A grantee may be entitled to compensation in such circumstances only if they have invested in the property’s determinable fee or if the compensation aligns with fulfilling the original usage intent stipulated by the grantor. If neither condition is met, compensation often favors the original grantor or their heirs as it recognizes their latent property interests and intended conditional usage.
For example: A city that received land for free with the condition to build a public library may receive only partial compensation when such land is seized for public infrastructure, with any surplus potentially directed back to the donor’s heirs or toward library services elsewhere, honoring the initial restriction.