What Is a Condition Subsequent?
In real estate contracts and deeds, conditions are used to control how and when obligations begin or end. While a condition precedent must happen before a contract becomes binding, a condition subsequent happens after the contract is already binding, causing the contract to be canceled or property rights to be forfeited.
Essentially, a condition subsequent acts as a legal "kill switch." The parties are fully bound to the agreement, but if the specific triggering event occurs, their obligations instantly cease.
Examples in Real Estate
Conditions subsequent are frequently used to maintain strict control over how land is used long into the future:
- Deed Restrictions (Fee Simple Defeasible) — A wealthy landowner donates a 10-acre parcel to the city with a condition subsequent written into the deed: "The city shall own this land, provided that it is used exclusively as a public park." The city owns the land immediately. However, if the city tries to build a courthouse on it twenty years later, the condition subsequent is triggered, and ownership of the land instantly reverts back to the original owner's heirs.
- Commercial Leases — A commercial lease for a restaurant might include a condition subsequent stating: "This lease shall remain in effect for 10 years, unless the tenant loses their state liquor license." If the tenant's license is revoked in year three, the lease is instantly terminated, and the landlord can evict them without going through a standard breach-of-contract lawsuit.
Waiver and Enforcement
Unlike a condition precedent (which automatically stops a contract from starting), a condition subsequent often requires the benefiting party to take affirmative action to enforce it. For example, if a deed restriction is violated, the original owner usually must file a lawsuit to legally reclaim the title. If they wait too long to enforce the condition after it is broken, a Florida judge may rule that they waived their right to reclaim the property.
Related Terms
- Condition Precedent — The opposite concept; starts a contract rather than ending it
- Deed — The document where ownership conditions are permanently recorded
- Commercial Lease — Often uses conditions subsequent to control tenant behavior
Barnes Walker Real Estate Law
Barnes Walker's attorneys draft highly specific conditions subsequent in commercial leases and property deeds, ensuring that landowners retain the legal authority to instantly terminate agreements if their strict usage requirements are violated. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC