Fee simple ownership means that the title owners are unrestricted in their ability to transfer property. If you’re a fee simple owner, you also have the right to possess the property. Most home buyers own property with fee simple ownership and the ownership rights are theoretically infinite.
All payments associated with keeping the property falls on the shoulders of the fee simple owner. You have to pay property taxes and any associated debt, such as a mortgage. If you live in a condominium,you will also have to share in the costs of maintenance fees for the common areas.
Ability to Use as Collateral
You can use property that you own a fee simple interest in as collateral towards the purchase of other property. That’s not possible or can be difficult to accomplish with other types of ownership, such as property held as tenancy in common.
Transfer by Inheritance or Sale
You can transfer all or part of a fee simple owned property in a will or in a sale. The buyer doesn’t have to worry about limitations that are present in other forms of ownership because you have an unrestricted right to dispose of the property as you please.
Buying property with a fee simple interest is the best choice for a primary residence or investment property. It gives you the most freedom to do what you want with your property.