Legal Definitions - base fee

The term base fee refers to a specific type of land ownership that is conditional and can automatically end if a certain event occurs or a condition is no longer met. It is also known as a fee simple determinable.

Unlike a full fee simple, which represents complete and unconditional ownership of land, a base fee grants ownership for an indefinite period but with a built-in limitation. This limitation is typically expressed using phrases like "for so long as," "until," or "while." If the specified condition is violated or the event occurs, the ownership of the property automatically reverts to the original grantor (the person who gave the land) or their heirs, without the need for any further legal action.

Here are some examples to illustrate this concept:

• Example 1: Land for a Public Park

  A wealthy philanthropist donates a large tract of land to a city, stating in the deed that the land is granted "for so long as it is used exclusively as a public park." The city accepts the land under these terms.

  In this scenario, the city holds a base fee in the land. If, fifty years later, the city council decides to sell a portion of the park to a private developer to build condominiums, the ownership of that portion (or potentially the entire tract, depending on the exact wording) would automatically revert to the philanthropist's heirs. The heirs would not need to sue the city; the ownership transfer happens automatically upon the violation of the condition.

• Example 2: Property for Educational Use

  A family grants a parcel of land to a local school district with a deed specifying that the property is to be used "until it is no longer utilized for educational purposes."

  The school district possesses a base fee in the property. If, at some point in the future, the school closes due to declining enrollment and the district decides to convert the building into administrative offices or sell it for commercial development, the ownership of the land would automatically revert to the grantor family or their descendants. The family would then regain full ownership without needing to take the school district to court.

• Example 3: Historical Preservation

  An elderly individual donates their historic mansion to a local historical society, with the condition in the deed that the property must "always be maintained as a museum open to the public."

  The historical society holds a base fee interest in the mansion. If the society later faces financial difficulties and decides to sell the property to a private developer who plans to convert it into luxury apartments, the ownership of the mansion would automatically revert to the original donor's estate or heirs. The donor's family would then become the rightful owners again because the condition for the grant was violated.