Fee Simple
The highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.
Full Definition
Fee simple (also called fee simple absolute) is the most complete form of real property ownership recognized in law. The owner has absolute control over the property — the right to use it, sell it, lease it, mortgage it, give it away, and pass it to heirs — subject only to government powers (taxation, eminent domain, police power, escheat) and private restrictions (deed restrictions, easements, zoning). Fee simple is inheriteable and transferable without restriction. Other freehold estates — such as fee simple defeasible (ownership that can be lost if a condition is violated) and life estate — provide less complete ownership. Most residential real property in the United States is held in fee simple.
Real-World Example
A homeowner holds title in fee simple absolute. They can live there, rent it, sell it, remodel it, or leave it to their children — with no conditions on their ownership.
How Fee Simple Appears on the Real Estate Exam
Common question types, tested concepts, and what to watch out for
Fee simple = highest form of ownership. Know the difference between fee simple absolute (unconditional) and fee simple defeasible (can be lost if condition violated — e.g., 'so long as used as a school'). The government's right to take unused property from a person who dies without heirs or a will is called escheat.
Related Terms
More Property Rights & Ownership Terms
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