Property Valuation
In Minnesota appraisal practice, the term 'fee simple' value assumes the property is:
ASubject to an existing lease
BFree of all encumbrances and in fee simple ownership✓ Correct
CValued at the current assessed value
DBeing valued for property tax purposes only
Explanation
Fee simple value assumes the property is unencumbered—free of leases, liens, or other interests that could affect its use or transfer. Most purchase appraisals in Minnesota estimate fee simple market value. When a property is subject to a below-market lease, the leased fee value (which considers the lease) may be lower than the fee simple value.
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