What is Fee Simple Ownership?
Fee simple is the highest and most complete form of ownership interest in real estate. When a person holds property in fee simple, they have absolute ownership, subject only to government regulations such as zoning laws, property taxes, and eminent domain. This means the owner has the right to:
• Use the property as they see fit (within legal limits).
• Sell, lease, or transfer the property.
• Pass the property to heirs through a will or other estate planning tools.
• Make improvements or modifications, as permitted by local regulations.
Fee Simple vs. Other Forms of Ownership
Unlike other property interests, such as life estates or leasehold estates, fee simple ownership does not have an expiration date. It grants indefinite ownership and full control over the property. Some common distinctions include:
• Fee Simple Absolute – The most unrestricted and permanent form of ownership, where the property remains with the owner and their heirs indefinitely.
• Fee Simple Defeasible – Ownership that could be revoked if specific conditions or restrictions (set forth in the deed) are violated.
Why Fee Simple Matters in Real Estate Transactions
When purchasing or selling real estate in Illinois, fee simple ownership ensures that the buyer receives full ownership rights, free from future claims by previous owners (subject to any recorded encumbrances like mortgages or easements). Title searches and title insurance policies help confirm that the seller has the right to convey the property in fee simple.
If you are considering buying, selling, or transferring real estate in Illinois, consulting with an experienced real estate attorney can help ensure that the transaction is handled correctly, protecting your rights and interests.
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