Grutz, the owner of Blackacre in Fee Simple Absolute, conveys it "to A and his heirs so long as the land is used only for residential purpose, but if the land is put to nonresidential use during A's lifetime, then to B and his heirs."
What is the state of the title?
A: Fee Simple Determinable with an Executory Limitation
B: Shifting Executory Interest in Fee Simple Absolute
Grutz: Possibility of Reverter
The authors of a leading Hornbook explain this result as follows:
"B's executory interest will become a present estate only if the land is put to nonresidential use during A's lifetime, and the transferor's possibility of reverter will become a present interest only if the land is first put to nonresidential use after A's death. In either event, A's fee simple will be completely defeated."
Do you all understand this?
