Understanding Fee Simple
Fee simple is the most common type of ownership recognized by law in the US. It gives the owner absolute ownership of land, including both the surface and subsurface rights. This means that the owner has the right to use, sell, lease, give away, or bequeath the property as they see fit. Fee simple is often referred to as ‘owning real estate in perpetuity’ because it can be passed down through generations.
Characteristics of Fee Simple
- Absolute Ownership: The owner has full control over the property and can make any changes they see fit.
- Inheritance: Fee simple can be passed on to heirs through a will or intestate succession.
- No Time Limit: Fee simple ownership has no expiration date and can last indefinitely.
Examples of Fee Simple
For example, if you purchase a house on fee simple land, you have the right to use the property as you see fit, whether that means living in it, renting it out, or selling it. You can also make alterations or additions to the property without needing permission from anyone else.
Case Studies
In a famous case involving fee simple ownership, the Supreme Court ruled in Johnson v. M’Intosh (1823) that fee simple title to land could only be obtained through a grant from the federal government. This case set a precedent for land ownership in the US.
Statistics on Fee Simple Ownership
According to a recent survey, over 60% of property owners in the US hold their properties in fee simple. This shows the popularity and prevalence of this type of ownership.
