What is fee simple?

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Fee simple refers to a term in the real estate industry that corresponds to absolute ownership to a particular piece of land or estate. It is considered to be the highest type of estate or land ownership because by virtue of law this type of ownership is exclusive and absolute. The only restrictions to a fee simple estate ownership are in terms of a particular government’s zoning or deed restrictions. If these restrictions are not present or applicable, owners of a particular piece of land can basically do whatever he/she wants with his/her property. If this particular owner wants to use his own property to build a house or building for example, then he/she can do so because the type of estate ownership is fee simple or as some would call it, the ownership is fee simple absolute.

In terms of property disposal, owners of a certain piece of and can also pass it on to their legal heirs. This is simply due to the fact that ownership under a fee simple real estate contract involves no limits in the duration. Under the exclusivity and absolute ownership clause of fee simple contracts, the land or property owner has all the legal rights to possess, use, and dispose his/her property. The only thing required for this feature is that a written will or contract must be made to legalize the disposal to the owner’s heirs.
From the absolute type of fee simple ownership, other types or variations were created to specify the conditions and restrictions associated with such contract. Fee simple defeasible involves some conditions required by the grantor and these are specified on a deed. This other type is also referred to as fee simple determinable and in this type the granting of ownership may become void if the specified condition is not met.

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