Fee Simple

What Is Fee Simple?

Fee simple absolute is the highest estate in land — a permanent, inheritable interest that gives the owner the broadest possible bundle of rights. The owner may use, transfer, lease, mortgage, or devise the property at will. Fee simple is the standard form of ownership conveyed in residential and most commercial real estate sales in the United States.

Rights Included in Fee Simple

• **Right of possession**: occupy and use the property - **Right of control**: use the property within legal limits - **Right of exclusion**: prevent others from entering - **Right of enjoyment**: use the property peacefully - **Right of disposition**: sell, lease, gift, or devise the property

Limitations on Fee Simple

Even fee simple ownership is subject to government powers, including taxation, eminent domain (the right to take property for public use with compensation), police power (zoning, building codes, environmental regulations), and escheat (the property passes to the state if the owner dies without heirs). Private restrictions such as easements, restrictive covenants, and HOA rules also limit fee simple rights. Variations include fee simple determinable (ownership ends automatically if a stated condition occurs) and fee simple subject to condition subsequent (grantor may re-enter and reclaim if a condition is breached). Most modern transactions convey fee simple absolute via warranty deed.