What Does Fee Simple Mean?
What Does Fee Simple Mean? There are many types of property ownership. You can own a home part-time, own just the airspace or own the house and the land underneath it. You can own raw land, but not the mineral rights, and you can own mineral rights, but not the land, and so on.
Ownership
Fee simple is a means of holding title to the property so that it can be transferred with no limitations, except for liens against the home and any neighborhood restrictions or zoning. Fee simple refers to title ownership rights of possession and disposition. As long as you’re obeying the law, you can control how your property is used and who can come and go. You can occupy it, rent it, sell it or give it away.
Zoning Regulations
Despite possessing title ownership to the property, you must still follow zoning regulations. Community zoning for residential use prevents a person from opening a retail store in their living room. City laws prevent a homeowner from disturbing the peace with loud music. Neither can impact your ownership or disposition of your fee simple home.
Community Rules
Your fee simple home may be part of a planned community that is governed by a homeowner’s association. The association is made up of homeowners who may insist that you paint your front door the same as everyone else, that you don’t put political signs in your yard, and that you park in your driveway and not on the street. When you purchase a home, these are covenants to which you agreed. However, these covenants do not interfere with your title of ownership or you ability to dispose of your property.
Because communities can place restrictions on how fee simple homes are managed, it’s easy to confuse fee simple ownership with types of housing, such as single-family homes or condominiums. Single-family refers to a type of housing in which no walls are shared with other homes. By that definition, it’s possible to purchase a home fee simple, even if it has shared walls, such as a townhome. You can also purchase a townhome that is a condominium, which means you own the airspace, but not the land your unit rests upon.
When you own the title to a fee simple home, you can bring value to the community by keeping your home in good repair and condition. In return, your community protects you and your investment by imposing regulations for the greater good.
