A Short Guide to Fee Simple Absolutes
Fee simple absolute is a term commonly used in real estate law, but it can be confusing for those who are not familiar with legal jargon.
In this article, we will provide a comprehensive guide to fee simple absolutes, explaining what they are, how they differ from other types of property ownership, and the advantages and disadvantages of having fee simple absolute ownership.
What is Fee Simple Absolute?
Fee simple absolute is the highest form of property ownership in real estate law. It is also known as fee simple ownership or fee ownership. This type of ownership grants the owner complete ownership rights over the property, including the right to sell, lease, and transfer the property as they see fit. The owner has absolute control and freedom to use the property, subject only to local zoning laws and other legal restrictions.
Fee simple absolute ownership can apply to both land and buildings, and it is essentially the most comprehensive and supreme property right one can possess.
How Does Fee Simple Absolute Differ from Other Forms of Property Ownership?
There are various forms of property ownership, and each comes with its own set of rules, limitations, and advantages. The most common forms of property ownership include:
– Leasehold: This refers to a property owned by a landlord who leases it to a tenant for a certain period, usually a few years. The tenant has the right to use the property as per the lease agreement, subject to conditions set out by the landlord. However, the landlord maintains ultimate ownership and control of the property.
– Life Estate: This type of ownership gives the owner the right to use a property for their lifetime. The ownership ceases to exist upon the death of the owner, and the property reverts to the original owner or passes to another person. Life estate ownership can only be created through a will or trust.
– Joint Tenancy: This is a form of ownership where multiple owners have an equal share in the property. If one of the owners dies, their share automatically transfers to the other owners. This type of ownership is common among couples or business partners.
– Tenancy in Common: Similar to joint tenancy, this refers to a property owned by multiple parties, but each owner has a distinct share in the property. There is no guarantee of equal shares, and if one of the owners dies, their share can be passed down to their heirs or beneficiaries.
– Fee Simple Absolute: As mentioned earlier, fee simple absolute is the highest and most comprehensive form of property ownership. The owner has unlimited control over the property, subject only to legal restrictions and zoning laws.
What are the Advantages of Fee Simple Absolute Ownership?
There are several benefits to having fee simple absolute ownership, including:
– Full Ownership and Control: Fee simple owners have complete and unrestricted control over the property, including the right to sell, lease, transfer, or modify the property as they see fit. There are no restrictions on how they use the property, as long as they comply with local zoning laws and other legal requirements.
– Investment Potential: Fee simple ownership can be a great investment opportunity for those looking to buy and sell properties for profit. Because the owner has full control over the property, they can increase the property’s value through renovations, upgrades, or other changes that increase its appeal to potential buyers.
– Inheritance: Fee simple ownership can provide a straightforward way of transferring wealth to heirs or beneficiaries. Upon the death of the owner, the property can be willed or passed down through trust to the intended beneficiary.
What are the Disadvantages of Fee Simple Absolute Ownership?
While there are several benefits to fee simple absolute ownership, it also comes with a few disadvantages, including:
– Maintenance Responsibility: Because the owner has full control over the property, they are also responsible for its maintenance, upkeep, and repair. This can be costly, especially if the property is large or requires significant upgrades.
– Liability: With full ownership and control comes full responsibility for any liabilities associated with the property. For example, if someone is injured while on the property, the owner may be held liable for any damages.
– Inability to Restrict Use: Because fee simple ownership comes with complete control, it can also be challenging to restrict the use of the property. For example, if a neighboring property owner wants to open a business that could negatively impact the owner’s quality of life, there may be limited legal recourse to stop them.
Conclusion
Fee simple absolute ownership is the most comprehensive form of property ownership in the US, granting the owner complete control and freedom over their property. While it comes with several benefits, including investment potential and inheritance, it also has potential drawbacks, such as maintenance responsibility, liability, and inability to restrict use. It is essential to consider all aspects of fee simple ownership, both benefits, and drawbacks, before deciding if it is right for your real estate needs.
Fee Simple Absolute
This most powerful form of property ownership, that which allows for full control over land.
The only limitations upon the property are held by the governmental powers of eminent domain, escheat, police power, and taxation.
Besides that, you have the right to enjoy your property to its fullest as long as it does not interfere with the enjoyment rights held by neighbors.
The lifetime of an absolute fee simple estate is infinite. Not only do you have the right to enjoyment of it, but so do your successors. Regardless of a will or not, as long as there is someone living after the death of a fee simple absolute property owner, they will inherit the property. If all the inheritors predeceased the property owner, the governmental power of escheat will kick in and the government will acquire the property
Fee Simple Defeasible
Fee simple defeasible is the second most powerful form of ownership, usually created after a limitation is set to covenants on a deedLife Estate
A lower form of property ownership is that of life estate, and can be determined as temporary since it is based upon the life of a person. With the certainty of the fact that “no one lives forever,” property owners will create a life estate, giving an individual possession based upon the length of their own life, or upon the life of another.
The possessor loses his rights to the property once the life being measured has expired. This form of ownership is convenient by means of not having to create a will, or go through the processes of the probate court to validate the will itself. Everything automatically happens upon the termination of the life being measured.