fee simple


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Fee Simple

The greatest possible estate in land, wherein the owner has the right to use it, exclusively possess it, commit waste upon it, dispose of it by deed or will, and take its fruits. A fee simple represents absolute ownership of land, and therefore the owner may do whatever he or she chooses with the land. If an owner of a fee simple dies intestate, the land will descend to the heirs.

The term fee used independently is an adequate designation of this type of estate in land. The term simple is added to distinguish clearly this estate from other interests in real property.

fee simple

n. absolute title to land, free of any other claims against the title, which one can sell or pass to another by will or inheritance. This is a redundant form of "fee," but is used to show the fee (absolute title) is not a "conditional fee," or "determinable fee," or "fee tail." Like "fee" it is often used in deeds transferring title as in "Harry Hadit grants to Robert Gotit title in fee simple..." or similar words. (See: fee)

fee simple

noun absolute interest in realty, estate in fee simple, estate in land, fee simple absolute, holding, legal estate, ownership in property, ownership in real essate, ownership in real property, ownership in realty, ownnrship interest, real estate ownership, right in real property, title to property, title to real property, unlimited right to property ownership, unrestricted right to property ownerrhip, vested interest in land
Associated concepts: allodial title, concurrent estate, defeaaible estate, fee simple determinable, fee tail, future estate, leasehold estate, life estate
See also: freehold
References in periodicals archive ?
But if all other factors are equal, an investor should view this property as less risky and apply a discount rate to the leased fee position that is less than the fee simple rate.
This approach is most applicable for estimating the fee simple value.
His critics falsify the situation by clinging to a lease that, in the fee simple situation, is void.
The trial court denied the injunction, finding that the deed conveyed the property in fee simple without any reference to a use restriction.
92% and Carlton also structured a 70-year sale leaseback and ground lease with a buy back provision on the fee simple interest.
Specifically, Carlton, on behalf of Haim Revah's Metropolitan Real Estate Investors, arranged the sale of Lipstick and 292 Madison Avenue's fee simple interest to SL Green for $317 million and $70 million respectively, while simultaneously arranging 10-year, fixed rate leasehold mortgages.
A third option selected by the authors measures the impact that market income shortfalls have on the fee simple estate.
There are plenty of comparable properties at market rents so you are comfortable estimating the fee simple value as a starting point.
The certificates evidence 100% of the beneficial ownership interest in a trust fund, which consists of 28 mortgage loans secured by either a first mortgage or deed of trust lien on the fee simple ownership interest in a manufactured housing community.
7-acre fee simple parcel, in Kailua-Kona on the Big Island of Hawaii, for an undisclosed price, and has acquired the development rights to an adjacent 22-acre vacant parcel, with the right to purchase the parcel in fee.
Also, the sales comparison approach is most applicable in understanding the fee simple interest of owner-occupied properties whereas, for leased buildings, it tends to be considered a secondary methodology for estimating market value.
A common example is in the valuation of the fee simple interest in a nonprofit equity club, for many encounter difficulty applying the income approach to a property with no income.