Fee Simple
Definition and meaning of Fee Simple in real estate.
Fee simple represents the most absolute and comprehensive form of land ownership under common law.
In more detail
When a person purchases a home or land under this type of ownership, they have complete rights to use, lease, sell, or pass the property to heirs. These rights are not unlimited, because they remain subject to government powers like taxation, eminent domain, and police power such as zoning. This is the default form of ownership in most residential transactions.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Also known as | Fee simple absolute (when unrestricted) |
| Duration | Indefinite and inheritable |
| Subject to | Public restrictions like zoning and private restrictions like HOA rules |
An investor purchases a single-family home under this ownership status, allowing them to rent the house, build a garage, or sell the property whenever they choose.
Frequently asked questions
What is the difference between fee simple and leasehold?
Ownership of land and buildings under fee simple is permanent, whereas leasehold only grants the right to use the property for a set period under a lease.
Can this form of ownership be lost?
Yes, a property owner can lose their rights through foreclosure, tax sales, or government condemnation under eminent domain.
Related terms
Sources & references
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