Fee simple facts for kids

Imagine you own a piece of land. A fee simple is the most complete way you can own land in English law. It means you own the land forever, and you can pass it down to your family or sell it to anyone you want. It's like having full control over your property without a time limit.

However, even with a fee simple, your ownership isn't totally unlimited. The government can still make rules about how you use your land, like for taxation (you have to pay taxes!), or if they need your land for a public project (like a road), they can buy it from you. There might also be special conditions on the land from a past owner, like if the land had to be used as a public park. If that condition isn't met, the land might go back to the original owner's family. This is called a fee simple conditional.

History of Land Ownership

The word "fee" comes from "fief", which was a type of landholding during feudalism. In the old days, land wasn't owned outright. Instead, a tenant would hold land from a powerful lord, and in return, they had to provide services. For example, a tenant might have to fight for the lord or help him with tasks.

This system created complicated relationships between lords and tenants. But over time, these old feudal rules changed. When feudal land ownership was stopped, these landholdings became "simple," meaning they no longer had all those old conditions attached.

Understanding Land Ownership Today

In English common law, the King or Queen used to be seen as the ultimate "owner" of all land. But they could grant rights to use and control land to others. This right to control land is called an "estate" in land. A fee simple estate is the strongest type of estate you can have. It's also often called "freehold" in England and Wales.

Long ago, if you held land from a lord, you couldn't easily sell it to someone else without the lord's permission. You could, however, give a part of your land to someone else to hold from you, which was called "subinfeudation". But in 1290, a law called Quia Emptores changed this. It made it easier to sell fee simple estates directly, without needing to create new layers of lords and tenants.

William Blackstone, a famous legal expert, described fee simple as owning land completely, without any end or limit. This means you can sell it, use it as security for a loan (like a mortgage), or decide who gets it after you pass away.

How Long Does Fee Simple Last?

A fee simple estate means you have the maximum possible ownership of land. It gives you the most rights and control over the property. The three main things about a fee simple are:

• It can be alienated (you can sell or transfer it).
• It can be devised (you can leave it to someone in your will when you die).
• It can be descended (if you don't have a will, it will pass to your heirs according to law).

Creating a Fee Simple Estate

In the past, to make sure someone received a fee simple estate, legal documents had to use very specific words, like "to B and his heirs." If those exact words weren't used, the person might only get a smaller right to the land.

Today, legal documents like deeds and wills are much simpler. If a will doesn't say otherwise, it's usually assumed that the person wants to give their property as a fee simple.

What is a Life Estate?

While fee simple means owning land forever, a life estate is different. It means someone can use and enjoy a property only for their lifetime. Once that person passes away, the ownership of the property goes to someone else. This "someone else" has what's called a remainder estate.

In England and Wales, life estates are not common for direct ownership of property anymore. They are usually handled through special legal arrangements called equity or trusts. In the United States, life estates are sometimes used in wills to let someone live in a house for their life, or by people who sell their property but want to keep living there until they die.

Different Kinds of Fee Simple

If a previous owner didn't put any special rules or conditions on the land, then the ownership is called a fee simple absolute. This is the highest and most complete form of ownership. It gives the owner full rights and responsibilities now and in the future.

However, there are other types called fee simple defeasible estates. These are created when an owner puts a condition on the land in the legal document (the deed). If a specific event happens, the ownership might end or be canceled.

There are two main types of defeasible estates:

• Fee simple determinable: If the condition uses words like "as long as the land is used for a park," then if the land is used for anything else, the ownership automatically ends and goes back to the original owner or their family.
• Fee simple subject to a condition subsequent: If the condition uses words like "but if alcohol is served," then if the condition is broken, the original owner or their family has the right to take the land back, but it doesn't happen automatically. They have to take action.

Today, laws in many places have changed these rules. If the language in the document isn't perfectly clear, courts often prefer to treat it as a "fee simple subject to a condition subsequent."

Paying for Your Land

Even if you own land in fee simple, it doesn't always mean you pay nothing. For example, in England and Wales, you might have to pay an "estate charge." In the United States, fee simple owners usually pay property tax to their local government. This money helps pay for things like schools and roads. Sometimes, there are extra taxes for specific projects, like improving local infrastructure.

If you own a condominium in fee simple, you usually also pay monthly fees to the condominium association. These fees cover the cost of maintaining shared areas like hallways or gardens. These payments are usually seen as agreements that come with the land, not as rent.

What Does "Fee Simple" Mean?

The word Fee means a legal right to use land, like a fief. The word Simple means it's unrestricted in two ways:

• There's no limit on who can inherit it.
• There are no restrictions on selling or transferring ownership.

The word fee actually comes from a very old word that meant "moveable wealth," like cattle! The Latin word pecunia, meaning money, also comes from this same ancient root.

See also

• Freehold (law)
• Allodial title
• Fee tail
• Leasehold
• Life estate
• Quia Emptores