What does fee simple tenure mean?

Fee simple means a type of ownership where a buyer purchases a real estate property outright and has the right to use the property indefinitely.

What is the difference in fee simple and leasehold?

Fee simple ownership requires no rent be paid, though property taxes still must be paid to the local and state government where applicable. A leasehold requires rent be paid to the true property owner, and depending on the terms of the lease, the lessee may also pay property taxes.

What is a fee simple interest in land?

An interest in land. Land owned in fee simple is owned completely, without any limitations or conditions. This type of unlimited estate is called absolute. A fee simple is generally created when a deed gives the land with no conditions, usually using the words like “to John Doe” or “to John Doe and his heirs”.

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 is an example of a fee simple?

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.

What are the two types of fee simple estate?

Fee Simple Estates There are two kinds of Fee Simple: Absolute or Defeasible.

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.

Can a property be fee simple and leasehold?

There are several ways that land can be held. These include fee simple, cross-lease, unit title and leasehold. A fee simple title is where the property is owned freehold and is the most common form of ownership. There are no restrictions on this type of ownership.

What are the types of fee simple?

There are two kinds of Fee Simple: Absolute or Defeasible….Defeasible Fee Simple

  • Fee Simple Determinable: The estate will be automatically terminated if the stated condition occurs.
  • Fee Simple Subject to Condition Subsequent: The estate is similar to a fee simple, but has a condition attached.

Does fee simple mean freehold?

Fee simple (freehold) Fee simple is a type of freehold property ownership, but these terms are often used interchangeably. Fee simple is the most common and highest form of private land ownership. This means the title is free of any other claims and you can sell or pass the property to whoever you want.

Why is the fee simple absolute estate the most desirable?

The best form of real property ownership is fee simple absolute, sometimes called a freehold, which 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.

Can a fee simple be inherited?

A fee simple is an interest in property, usually land, which has two unique characteristics, including that the property may be possessed indefinitely and it may be inherited by the individual’s heirs.