Fee simple ownership is a legal term used in real estate that means full and irrevocable ownership of land, and any buildings on that land. It is the highest form of ownership, which means the land is owned outright, without any limitations or restrictions other than local zoning ordinances. Fee simple ownership is the most common type of property ownership in the US for personal property, like homes, ranches, and farms.
Under fee simple ownership rules, the owner may do anything they wish on the land, as long as it falls within established easements and zoning laws. This means that the owner can add a bedroom to their home, build a second-story addition, create a new garage, or tear down the entire home and build a new one from scratch. Fee simple and fee simple absolute are often used interchangeably, but there is a slight difference. Fee simple absolute is more powerful than fee simple defeasible because it’s outright ownership with no restrictions.
In contrast, fee simple defeasible is a slightly less powerful form of ownership, where ownership is dependent on specific conditions. If these specific conditions are not met, the property may be returned to the grantor.
