PROPERTY & LEASING

Fee simple

Also called: fee simple absolute · full ownership

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PLAIN-ENGLISH DEFINITION

A broad form of real-property ownership representing the owner’s estate in land, subject to governmental powers and private encumbrances.

What it means in practice.

Commercial and investment properties are commonly owned in fee simple, although leases, easements, mortgages, restrictions and other interests may affect the property.

Why it matters.

Understanding the property interest being exchanged is as important as the building itself.

Additional notes.

Commercial and investment properties are commonly owned in fee simple, although leases, easements, mortgages, restrictions and other interests may affect the property.

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