In the realms of finance and real estate the transfer of property or land between two people (the grantede and grantee) is a tad complicated process. There are numerous nuances and conditions to be taken into consideration when an area of property is given an owner who is not the original like if the new owner has full ownership rights to the land, or if they are restricted in their ability to modify the property to suit their needs. One method by the way that transfer of land could be completed is by an easy fee or fee simple absolute.
What exactly is fee simple and what is fee simple? In the context of real estate law the definition of fee simple estates are fee basic estate can be described as a parcel of property or land that is completely owned by the grantee or by the person to whom ownership of land was transferred to. If land is fee simple the grantee has an unrestricted and indefinite right to make use of the land, hold the land, harm the land, or dispose the land by selling, gifting or by a declaration in the will. A fee-simple land title is by far the most common and highest form of property ownership that is recognized under legislation throughout the United States.
Etymology and the Historical Use of Fee Simple
A lot of terms used in the current real estate industry are derived out of the law that was common in England as well as the political system utilized there in the past. The phrase fee simple is derived directly from fief or a piece of land used by servants, in exchange for the labour of the true owner of the land. Fiefdoms were the primary component in feudalism which was a system of society that was prevalent across England as well as throughout Europe in the Middle Ages. Land parcels were commonly referred to as estates during the period of feudalism which led to the concept of free estate to be used through into the Middle Ages and translated into the modern day usage.
The Fee Simple Ownership System Work
The sale of land isn’t as straightforward to transfer as selling other objects and products. For example, if someone buys candy in a shop that is sold to the buyer, they are handed the bar by the cashier when they have made payment to purchase the product. If land is bought, however, the thing that is being offered for sale (the estate) cannot be transferred since it is too large to be physically transferred between a grantor as well as a grantee. The estate’s interest is transferred when a piece of land is purchased in the United States, meaning the grantee can make use of the land in any way they wish (in the form of fee-absolute) or in accordance with the provisions of the contract (in non-freehold estates such as leasehold ownership).
The fee simple ownership process can only occur under certain conditions. The most important thing is that a fee simple deed needs to be signed by the grantor and the grantee and stating that the former person is the owner of the land, without limitations or conditions. A fee simple title also guarantees the ownership’s duration and rights to fee simple ownership which the grantee gains. The sections below will explain the duration terms imposed by a fee-simple deed and the rights to ownership that a grantee acquires in a fee simple contract.
Time horizon of Fee Simple Ownership
In an estate that is fee simple, the land is owned by the grantee throughout the period of time and is not subject to expiration. In a fee simple estate, the owners of the estate have the option to sell their properties or buildings that are located on the land, and the land itself, whenever they wish. They could also choose to give the land over to a different owner (whomever the owner desires) in the form of an inheritance. An estate that is fee simple doesn’t mean that the landowner can’t lose their land however, because government agencies can still make use of articles of eminent domain to acquire property from those who fail to pay taxes on property or do not comply with other laws, such as the laws governing zoning. Landowners are still able to purchase their land back via foreclosure.
Rights of Ownership Fee Simple
There are many rights that come with fee simple land ownership. The most important thing is that the owner of the land has complete and complete ownership of the land as well as all the properties (buildings or businesses, etc.) that are located on it. The owners are free to alter the land, create new structures and use the land in any way they like, without restrictions, insofar as they’re operating within the federal zoning regulations and are not in violation of the law. Landowners are free to build an addition to their house or remove an area of trees that are on their property (in the event of building an entirely new structure) according to the rules of fee simple ownership, for instance.
Fee simple ownership also grants some other rights that are notable including:
- The land’s ownership cannot be returned to the grantor in any situation (unless granted by the deed) This means that the grantee is the sole owner of the land after the interests are transferred.
- The owner is free to transfer the right to sell or lease their home any person and the deed doesn’t automatically expire.
- The transfer of land rights also includes the conveyance of mineral rights, water rights interests, and the right to grant easements over the property.
Different types of fees Simple
There are various types of ownership that are fee-simple that could be defined more precisely according to the terms outlined by the fee-simple title, or the deed signed by the both the grantor and the grantee. Although the term fee-simple generally means that an unlimited use of land can be granted to a grantee is not always the case when specific conditions are in place. The three most common kinds of fee simple ownership are:
- Fee simple absolute
- Fee simple determinable
- Fee simple conditional
The sections below will explain each of these distinct kinds of fee simple in greater depth and will offer an example of each one.
Fee Simple Absolute
Simple absolutely is the simplest kind of fee simple ownership and is often used to refer to fee basic. It is a kind of freehold. This means that the grantee has the property without limitations (thus becoming absolute) and is able to make use of the land in any way they wish. Grantees of a fee-simple estate can also transfer the land over to another owner at any time they decide to.
If land is transferred to a fee-simple absolute owner, the language used to convey the land can take many types. It is crucial that the language doesn’t contain any possibility that the interest in the land could be lost or returned in the direction of the initial owner. Nor is it necessary to include restrictions or limitations. If the language says”Grantor grants the right to grant 123 ABC Street to Grantee for the lifetime of the Grantee as an example, then this would be regarded as an estate for life instead of an absolute fee simple. Properties in the possession of a lease or leasehold estate, should not be considered to be fee simple. The proper language for conveyance in an absolute fee simple deed would include:
