What does fee simple mean in real estate terms?

With fee simple, you take full and complete ownership of a piece of land and any buildings that sit on it. … Fee simple is the most common form of real estate ownership in the United States. It’s also the highest form of ownership. This doesn’t mean that owners can’t lose their properties and land.

Is fee simple a good thing?

As a matter of fact, having a fee simple estate is a good thing when it comes to property ownership. It means you own the property outright, and no one else has claim to it. It’s described by many different sources as the highest form of land ownership in common-law countries.

Why is it called fee simple?

The word “fee” is derived from fief, meaning a feudal landholding. … When feudal land tenure was abolished all fiefs became “simple”, without conditions attached to the tenancy.

What is an example of a fee simple estate?

For example, if a warranty deed conveys 123 ABC Street for as long as 123 ABC Street is used as a school, then the land would revert back to the grantor when 123 ABC Street is no longer used as a school. This would be a fee simple determinable estate.

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What is the difference between fee simple and freehold?

A freehold estate is an estate in which you have exclusive rights to enjoy the possession of a property for an undefined length of time. In contrast, a less than freehold estate is held for a fixed, defined period. Fee simple absolute is the greatest interest in a parcel of land that one can possibly own.

What would diminish a fee simple estate?

A fee simple represents absolute ownership of land, and therefore the owner may do whatever he or she chooses with the land. If an owner of a fee simple dies intestate, the land will descend to the heirs. … The term simple is added to distinguish clearly this estate from other interests in real property.

Do you own the property in fee simple?

Fee simple refers to how people own real estate. Say you buy a home in the United States from a seller. In the vast majority of cases, you will now have what is known as fee simple ownership of this property. With fee simple, you take full and complete ownership of a piece of land and any buildings that sit on it.

Is a fee simple estate perpetual?

The greatest possible interest in real property. The estate is unconditional, unlimited, and perpetual. Each state has its own statutory and common law framework for estates in fee simple.

Is a condo fee simple?

Definition of Fee Simple

Fee simple is a legal term describing the most common and absolute type of property ownership. … Owners of single-family residences have fee simple ownership, but condo and many townhouse owners don’t, since they own only their individual unit, not the land on which the development is built.

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What is the difference between fee simple and life estate?

The fee simple absolute is inheritable; the life estate is not. … A life estate pur autre vie is an estate that the grantee holds for the life span of another person. For example, the grantor conveys the property “to grantee for the life of A.” A life estate is usually created by deed but can be created by a lease.

Can a fee simple estate be subdivided?

Fee simple ownership of property may be divided in three specific ways: (1) physically; (2) by specific use rights; and (3) over time. The physical division of property into two or more parcels of land allows the fee simple owner to sell or give away physical portions of the property while retaining others.

Can a fee simple absolute be inherited?

Fee Simple Absolute A fee simple absolute is the most extensive interest in real property that an individual can possess, since it is limited completely to the individual and his or her heirs and assigns forever, and it is not subject to any limitations or conditions.

Why is fee simple estate called the highest form of ownership interest?

When the life tenant dies, the estate passes to the original owner or another named party. … The fee simple freehold estate is called the highest form of ownership interest, even though a fee simple defeasible carries some restriction on usage.

What is the lowest estate in real estate?

A tenancy at sufferance is the lowest form of estate known to law. Also called an estate at sufferance, it exists indirectly as the result of circumstance, and is never deliberately created.

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What does fee simple Hoa mean?

Fee Simple – Homeowner’s or Property Owner’s Association with a deed to a defined space on a separate lot and an undivided fractional interest in the common elements. Typically, common elements are on separate lots, titles for which are vested in a HOA or POA.

Does fee simple title include mineral rights?

Fee Simple ownership represents the absolute ownership of all aspects of a property for an indefinite period of time. The fee owner owns both the surface and the mineral rights below ground. As such, fee simple owners have the rights to grant mineral or oil and gas leases.