Ace the Michigan Real Estate Salesperson Exam 2025 – Unlock Your Future in Real Estate!

The ownership form that allows a property to revert to the grantor if it is not used as designated is known as a determinable fee. In this type of ownership, the property is conveyed with a specific condition attached to its use, meaning that as long as the property is used for the specified purpose, the ownership remains with the grantee. However, if that condition is violated or the property is used in a way that does not adhere to the specified intent, the ownership can automatically revert back to the original grantor or their heirs.

This concept emphasizes the link between the right of ownership and the purpose for which the property is intended to be used. The reversion clause is a vital characteristic of a determinable fee, making it distinct from other forms of ownership, such as fee simple absolute, which does not contain such conditions, or life estates, which grant property use for the lifetime of a designated person without the same automatic reversion. Joint tenancy is another distinct form of ownership that is characterized by rights of survivorship and does not include conditions that would allow for reversion back to the grantor based on usage.