A single-family home that is owned, not leased, falls under the fee simple (sometimes called fee simple absolute) category of ownership.īreaking down the etymology – the word origins – of the phrase “fee simple” helps make sense of it.This does not involve a transfer of ownership. Fee simple property can be rented out or leased to a tenant by the owner.This differs from leasehold ownership because the owner’s rights are considered indefinite and not contingent on a lease contract, and the owner can use them as collateral or security for a loan. It is the most common and highest level of real property ownership recognized by the law. Holding a fee simple interest in a property means the property is yours to modify, rent, sell, or leave as an inheritance to another person.įee simple ownership is an unrestricted type of absolute ownership. Read on to learn everything you need to know about this topic. Government Rights to Fee Simple Estatesįee simple is a type of property ownership that is often discussed but seldom understood.īut don’t worry, we’re here to make things easier for you.Fee Simple Absolute vs Fee Simple Defeasible.Can Multiple People Share Fee Simple Interest Ownership?.Is Mortgaged Property Considered Fee Simple?.
