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What is Fee Simple?

• Definition: The most complete type of ownership interest in real property (land + improvements).
• Think of it as: Owning your house and yard outright, with the freedom to keep it, sell it, rent it, or pass it to your heirs.

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Key Features

1. Indefinite duration – it lasts forever (unless you sell or give it away).
2. Transferable – you can sell, gift, or leave it in your will.
3. Absolute ownership (usually) – no conditions, restrictions, or time limits beyond government rules (like taxes, zoning, HOA, etc.).
4. Subject to law – you still have to follow property laws, pay taxes, and comply with community rules.

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Types of Fee Simple

1. Fee Simple Absolute (most common)
   • Full ownership, no conditions.
   • Example: “To Mary and her heirs.” Mary owns it forever unless she transfers it.
2. Fee Simple Determinable
   • Ownership depends on a condition. If broken, ownership automatically reverts to the original owner.
   • Example: “To the city as long as the land is used as a park.” If it stops being a park, it goes back to the city.
3. Fee Simple Subject to Condition Subsequent
   • Similar to above, but original owner must take legal action to reclaim the land.
   • Example: “To John, on condition no alcohol is sold on the premises.” If alcohol is sold, the original owner can choose to take it back.

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Why it matters

• Most residential home sales in the U.S. are fee simple absolute.
• It gives the buyer the strongest rights possible.
• The only limits are government powers (taxation, eminent domain, police power, escheat).