We explain this concept in the context of termination of an interest in a life estate. This brings up the concept of a reversion interest in the transferor or his/her heirs or assigns. The deed will include language directing that if a certain event occurs, the transfer of the property from the prior owner to the current owner is undone and the property either reverts back to the original owner or to an identified third party. The most common forms of fee simple with limitations include: What is a Fee Simple Defeasible?įee simple defeasible ownership means that a condition (or multiple conditions) is/are attached to a transfer of the property. What are the Types of Fee Simple Interest? There is no limitation or conditions attached to the transfer. Fee simple absolute ownership means that all interests in the property are transferred. That is, the fee simple ownership can be subject to conditions that result in the holder of fee simple ownership automatically (or at the prerogative of a beneficiary) losing their rights in the property.įee simple ownership that has no limitations or conditions is known as Fee Simple Absolute. There are, however, certain limitations that can be placed on fee simple ownership. Next Article: What is a Life Estate? Back to: PROPERTY LAW What are the Limitations on Fee Simple Ownership? For example, the language of the deed may read "the grantor holds the aforementioned property in fee simple" or "grants to grantee said property in fee simple". If you have complete or total ownership of the property it will have language stating that the grantor owns and is transferring fee simple interest in the property. Note: Look at the deed to real property.Anyone else who claims an interest in the real property, such as a lienholder or holder of an easement, has a lesser claim of right to the property than the fee simple owner. More specifically, a fee simple owner has full legal rights and powers to possess, use, and transfer the land to others. The holder of fee simple has complete rights recognized under the law, and these rights carry on in perpetuity (i.e., they never expire). Note: It may help in understanding fee simple ownership by comparing it to a life estate or an easement covering the real property.
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