subject: What is Fee Simple Ownership in Real Estate? [print this page] What is Fee Simple Ownership in Real Estate?
Fee Simple Ownership in real estate is the most complete and comprehensive form of ownership that anyone can have on a real property. It is a type of freehold ownership practiced in many countries .Other than the four most basic powers of taxation, domain, police power and escheat. Nothing else can limit the privileges that the owner of a property under fee simple ownership is entitled to. Some municipal regulations in a certain area of jurisdiction are another exception that can limit the privileges of real estate the owner under the fee simple ownership.
The property under this form of ownership does not revert to the government upon the expiry of certain duration of time. The owner and his or her heirs enjoy his estate absolutely without time limit given to his estate. Other than passing the property to any person of his choice, the owner can mortgage sell or do anything with the property as long as he or she is alive. The owner has exclusive discretion to determine whoever to inherit the property upon his or her death. When a transfer deed is being prepared in fee simple form of estate ownership, the presumption that the owner intents to pass the property in fee simple holds. Nothing else can alter this unless expressly stated in writing in the will of the intention of the original owner to alter it to other type of ownership which will revert back after the expiry of a certain period of time.
For instance, the owner of a real estate can give his chosen heir lifetime rights and thereafter the rights reverts back to the grantor of the estate Many types of Fee Simple Ownership in Real Estate exist. When the original grantor of a fee simple estate makes his will free of conditions, the heir will inherit the property in fee simple title. But when the bequeathed property has some conditions attached to it, it creates a fee simple determinable form of real estate ownership which is nullified upon the happening of a certain stated event. Since in most cases no personal tax is applicable in fee simple ownership in real estate, the owners of properties that fall in this class enjoy such advantage.However,with some policy changes, the owner may be required to pay some certain prescribed amount which is usually fixed. Some countries now levy property tax and rent charge which makes fee simple owners pay some money on their property to the respective authorities such as governments and municipal councils. This money will be used to provide special social services such as sewerage lines, water and road network developments. In summary: Fee simple ownership in real estate is the most comprehensive right conferred upon the owner of real estate property. The owner is free to sell; mortgage and can freely determine their heirs without any influence. They are entitled to determine whether or not the property inherited will revert back or not. Ownership can freely be transferred without limit to the inheritance of heirs. However, due to policy changes, the owners of property under this scheme are required to pay rent or property tax.
