FAQs
The best form of real property ownership is fee simple absolute, sometimes called a freehold. This means that the owner or owners can do whatever they like with the property, subject only to encumbrances like liens, or local guidelines, such as zoning, taxation or criminal laws.
What is an example of a fee simple? ›
For example, a homeowner may choose to build an addition onto their house and would not be limited by a lease or other contractual obligation. Owners of fee simple land maintain full control over the interests of the land for an unlimited duration, usually until they convey the interests of the land to someone else.
What does 100% fee simple mean? ›
Fee simple is the highest form of ownership — it means the land is owned outright, without any limitations or restrictions other than local zoning ordinances.
Which of the following best describes fee simple? ›
The real estate term fee simple describes a landowner's complete and total ownership of a piece of land and all properties on it. The fee simple owner may do anything they wish on the land as long as it falls within established easem*nts and zoning laws.
What are the disadvantages of fee simple? ›
Fee simple also has downsides, such as being responsible for following zoning laws, high costs, the risk of losing the property, and the need for maintenance and upkeep.
What is another term for fee simple? ›
The fee simple estate is also called "estate in fee simple" or "fee-simple title", or sometimes simply "freehold" in England and Wales. From the start of the Norman period, when feudalism was introduced to England, the tenant or "holder" of a fief could not alienate (sell) it from the possession of his overlord.
What is the meaning of fee simple interest? ›
Fee Simple Interest refers to absolute ownership, limited only by the four basic governmental powers of: 1) taxation, 2) eminent domain, 3) police power, and 4) escheat. A “fee simple” or “fee simple estate” is the most common way real estate is owned in the U.S.
What does fee simple mean in a lease? ›
A fee simple is an interest in property that grants the interest holder full ownership of the property. A leased fee is an ownership interest that a landlord/lessor retains in a fee simple upon granting a tenant/lessee a lease to access and use the property.
What is a fee in simple words? ›
A fee is a fixed price charged for a specific service. Fees are applied in a variety of ways such as costs, charges, commissions, and penalties. Fees are most commonly found in heavily transactional services and are paid in lieu of a wage or salary.
How do you use fee simple in a sentence? ›
Example Sentences
I seemed to have purchased the fee simple of his good graces by my flattery. Mine host, mine host, we lay all night at the George in Waltham; but whether the George be your fee-simple or no, 'tis a question. An estate-tail is, by the origin of the word, cut or carved (taill) out of the fee-simple.
To put it simply, a processing fee is a pre-set amount that a business pays every time a customer uses a credit or debit card to pay for their goods or services.
What does less than fee simple mean? ›
Less-than-fee acquisition means the purchase of an interest in property that is less than the entire fee simple estate (which is one in which the owner is entitled to the entire property with the unconditional power of disposition during the owner's life and which will descend to his or her heirs and legal ...
What is an example of a fee simple absolute? ›
He sells his apartment building to Rickey for $1,000,000. Once Rickey buys the apartment building, he will take all of Fred's rights to the building. He will therefore own a fee simple absolute in the building and he has the right to possess the building forever or sell it to a third party.
What is the opposite of fee simple ownership? ›
Fee simple interest vs.
Fee simple interest means the owner's interest in their property is absolute. They own it all. Leasehold interest is another term for a leasehold. The tenant's interest comes in the form of the leased property.
Is a fee simple estate inheritable? ›
Freehold Estates
Examples include the fee simple estate or the defeasible fee estate, which continue for an indefinite period and are inheritable by the owner's beneficiaries.
Which is better, fee simple or leasehold? ›
Differences Between Fee Simple and Leased Fee Ownership
In most cases, property buyers prefer fee simple ownership as they have full rights over the property and the freedom to sell it if they wish to.
