Quick Answer: What Is The Difference Between Fee Simple Defeasible And Fee Simple Determinable?

What is the highest interest in real estate recognized by law?

is the highest interest in real estate recognized by law.

fee simple ownership is absolute ownership: the holder is entitles to all right to the property.

it is limited only by public and private restrictions; such as zoning laws and restrictive covenants..

What is considered a Defeasible fee?

Noun. defeasible fee (plural defeasible fees) (law) An estate in land that may be divested from its current owner upon the occurrence of an event set forth by the grantor in the grant.

What is another name for a fee simple determinable estate?

The highest form of ownership recognized by the law. Another name for fee simple estate. … Also referred to as determinable, conditional or qualified fee. A defeasible fee creates an encumbrance on the title and runs with the land. There are two types: conditional fee or determinable fee.

What is an example of fee simple Defeasible?

For example: To A for as long as the property is used for a museum. A has a fee simple determinable, and will hold the land for as long as it is a museum; the grantor holds a possibility of reverter. … A has a defeasible fee simple estate subject to a condition subsequent, and the grantor has a right of entry.

What are the two types of life estate?

The two types of life estates are the conventional and the legal life estate. the grantee, the life tenant.

What is the difference between a fee simple absolute and a fee simple Defeasible?

The rules pertaining to the fee simple absolute are simple. The holder has absolute ownership; his or her ownership lasts forever unless the holder transfers it. … A defeasible fee is simply a fee simple interest in land that can be taken away from the holder by the occurrence or non-occurrence of a specified event.

What are the two types of fee simple Defeasible?

Are There Different Types of Fee Simple Defeasible? Fee Simple Determinable. A fee simple determinable automatically ends the interest in the property when a condition is violated or not met. … Fee Simple Subject To Condition Subsequent. … Fee Simple Subject To Executory Limitation.

What are the two types of fee simple estate?

There are two forms of fee simple estate: absolute and defeasible. The two types of fee simple defeasible: … If the restrictions are violated, the estate automatically reverts to the grantor or heirs.

What does fee simple determinable mean?

A fee simple determinable is an estate that will end automatically when the stated event or condition occurs. The interest will revert to the grantor or the heirs of the grantor. Normally, a possibility of reverter follows a fee simple determinable.

What does simple fee mean?

Fee simple is a term that refers to real estate or land ownership. The owner of the property has full and irrevocable ownership of the land and any buildings on that land. He is free to do whatever he wishes on the land subject to local zoning ordinances. … Fee simple is the highest form of property ownership.

What is a fee simple interest?

Fee Simple Interest refers to absolute ownership, limited only by the four basic governmental powers of: 1) taxation, 2) eminent domain, 3) police power, and 4) escheat. A “fee simple” or “fee simple estate” is the most common way real estate is owned in the U.S.

Is a fee simple estate inheritable?

Examples include the fee simple estate or the defeasible fee estate, which continue for an indefinite period and are inheritable by the owner’s beneficiaries. Other freehold estates are referred to as “estates not of inheritance” or “life estates,” which exist only for the term of a person’s life.

What does fee simple mean in a will?

A fee simple represents absolute ownership of land, and therefore the owner may do whatever he or she chooses with the land. … If an owner of a fee simple dies intestate, the land will descend to the heirs. The term fee used independently is an adequate designation of this type of estate in land.

What are the two types of concurrent ownership?

Ownership of real property by two or more persons is known as concurrent ownership. 2. Four types of concurrent ownership exist: (1) joint tenancy with right of survivorship, (2) tenancy in common, (3) tenancy by the entirety, and (4) community property.

Why is a fee simple estate called the highest form of ownership interest?

Why is a fee simple estate called the highest form of ownership interest? – It cannot be taken by eminent domain or have a lien placed against it. – It includes the complete bundle of rights with virtually unlimited duration. … – It is not subject to estate taxes when passed on to legal heirs.