What is qualified fee simple? Definition of qualified fee. : a defeasible estate in fee that may come to an end (as for breach of a condition or on account of an executory limitation on a stated event) specifically : a base or determinable fee simple — compare fee simple conditional. Click to see full answer.
What does qualified fee mean?
The basic mechanics of qualified pricing is that a merchant will receive a very low and attractive rate. This rate will look fantastic, and in most cases is certain to be lower than the rate a merchant would receive on an interchange plus quote. The issue is that a merchant will rarely or never pay the qualified rate.
What is a qualified fee?
Qualified fee is an estate limited to a person and his/her heirs, with a qualification annexed to it providing that the estate must determine whenever that qualification is at an end. Since the estate may last forever, it is a fee and since it may end on the happening of an event, it is called a qualified or determinable fee.
What is a fee simple?
Fee simple is the term used to represent the maximum ownership interest in real property that is allowed under the law. It can be referred to as "complete ownership". Generally, a person who purchases real property (land) assumes that they own 100% rights in the property. That is, they assume that they own the property in fee simple.
What does it mean to own property in fee simple?
What Is Fee Simple Ownership? The real estate term fee simple describes a landowner’s complete and total ownership of a piece of land and all properties on it. The fee simple owner may do anything they wish on the land as long as it falls within established easements and zoning laws.
What is an example of a fee simple?
For example, if a warranty deed conveys 123 ABC Street for as long as 123 ABC Street is used as a school, then the land would revert back to the grantor when 123 ABC Street is no longer used as a school. This would be a fee simple determinable estate.
What does fee in fee simple mean?
Land owned in fee simple is owned completely, without any limitations or conditions. This type of unlimited estate is called absolute. A fee simple is generally created when a deed gives the land with no conditions, usually using the words like "to John Doe" or "to John Doe and his heirs".
Is fee simple a good thing?
As a matter of fact, having a fee simple estate is a good thing when it comes to property ownership. It means you own the property outright, and no one else has claim to it. It's described by many different sources as the highest form of land ownership in common-law countries.
What is qualified fee?
Definition of qualified fee : a defeasible estate in fee that may come to an end (as for breach of a condition or on account of an executory limitation on a stated event) specifically : a base or determinable fee simple — compare fee simple conditional.
What is an example of a fee simple estate?
An example of a fee simple determinable estate is the following: To A for as long as the property is used for a car wash. A has a fee simple determinable and will hold the land for as long as it is used as a car wash.
What are the two types of fee simple estate?
Fee Simple Estates There are two kinds of Fee Simple: Absolute or Defeasible.
Is fee simple the same as freehold?
Fee simple (freehold) Fee simple is a type of freehold property ownership, but these terms are often used interchangeably. Fee simple is the most common and highest form of private land ownership. This means the title is free of any other claims and you can sell or pass the property to whoever you want.
What is the opposite of fee simple?
Fee simple ownership requires no rent be paid, though property taxes still must be paid to the local and state government where applicable. A leasehold requires rent be paid to the true property owner, and depending on the terms of the lease, the lessee may also pay property taxes.
What are the characteristics of a fee simple estate?
The estate in fee simple is capable, indefinitely, of transfer inter vivos or devolution on death. Thus, it is an estate of uncertain, indefinite duration, and could, in theory, last forever.
What is an unqualified fee?
UNQUALIFIED PROPERTY means the Property comprising a multifamily apartment project the fee simple interest in which is not 100% owned or leased, directly or indirectly, by Borrower and/or its Wholly Owned Subsidiaries.
What is a fee simple determinable?
a determinable fee simple estate is one that automatically terminates upon the occurrence of a specified event or the cessation of use for a specified purpose and will revert to the grantor without any entry or other act…
What is another name for a fee simple determinable estate?
Another name for fee simple estate. Fee simple defeasible (qualified fee) An estate that is subject to some condition to determine when it will begin or end. Also referred to as determinable, conditional or qualified fee. A defeasible fee creates an encumbrance on the title and runs with the land.
What Is Fee Simple Ownership?
The real estate term fee simple describes a landowner’s complete and total ownership of a piece of land and all properties on it. The fee simple owner may do anything they wish on the land as long as it falls within established easements and zoning laws.
Fee Simple Vs. Leasehold Ownership
Most residential real estate in America is owned on a fee simple basis. But a smaller percentage of home sales result in leasehold ownership.
The Bottom Line
If you’re buying a home, it’s most likely that you’ll end up with the fee simple model of ownership. This is by far the most common real estate ownership arrangement in the country.
Fee Simple Defeasible
A "fee simple defeasible" is a fee simple that could end with the violation of a condition. Fee simple defeasible can be confusing, because it is easy to assume that if the interest could end, then one of the two characteristics of a fee simple may not be met.
Fee Simple Absolute
A "fee simple absolute" is what one typically thinks of when someone els "owns" something. Typically, this is an interest in property a person will receive when they either buy land or receive land as a gift. The interest is absolute because the interest will not end on the occurrence of an event or condition.
Will I Need a Lawyer to Determine the Type of Estate I Have?
As previously stated, most property interests are conveyed as a fee simple absolute. A reading of the deed should indicate the type of interest owned. If there are no words of conveyance that indicate that a fee tail, life estate, or fee simple defeasible has been conveyed, then the interest is most likely a fee simple absolute.
History
The word "fee" is derived from fief, meaning a feudal landholding. Feudal land tenures existed in several varieties, most of which involved the tenant having to supply some service to his overlord, such as knight-service (military service).
Common law
In English common law, the Crown had radical title or the allodium of all land in England, meaning that it was the ultimate "owner" of all land in the past feudal era. However, the Crown can grant ownership in an abstract entity —called an estate in land—which is what is owned rather than the land it represents.
Duration
An estate in fee simple denotes the maximum ownership in land that can be legally granted; it is the greatest possible aggregate of rights, powers, privileges and immunities available in land. The three hallmarks of the fee simple estate are that it is alienable, devisable and descendible .
Creation and characteristic of fee simple
Rules requiring words of general inheritance to create fee simple by conveyance have been abolished by statute in the United States. To convey an estate in fee simple at common law, the deed or will must state "to B and his heirs." Anything short of those words transferred a smaller estate.
Life estate
Many jurisdictions retain the possibility of creating a life estate, although this is uncommon.
Types of fee simple
If previous grantors of a fee simple estate do not create any conditions for subsequent grantees, then the title is called fee simple absolute. A fee simple absolute is the highest estate permitted by law, and it gives the holder full possessory rights and obligations now and in the future.
Rent
The claim that no rent or similar obligations are due from the owner of property in fee simple is only partially true. For example, a rentcharge may exist requiring a freeholder to pay a fixed sum of money closely resembling rent, and many jurisdictions have created financial obligations that may be imposed on a freehold estate.
