Types of Fee Simple

Types of Fee SimpleThere are two types of fee simple fee simple absolute and fee simple defeasible. Fee simple absolute is the most common type of fee simple. A fee simple defeasible is created when a condition is placed on the fee simple in the deed. There are two types of fee simple defeasible estates are the fee simple determinable and the fee subject to condition subsequent. This refers to a specific use on the land such as long as the land is used for a park then “¦. If the land reverts to something else then the property would then revert to the state or the party involved. This also refers to properties that have alcohol restrictions as well. When these events happen then the property is then reverted to the original grantor of the property.

Joint tenants are two tenants who own the property. When a couple is married, they usually will sign the papers as joint tenants. This allows for the leeway that if one of the parties dies then the other party will own the property instead of the property reverting to the state. This also allows the parties to distinguish in their wills that a certain portion of the proceeds from the sale of their property will go to their children.

There is another type of tenancy, which is a tenant in common this is also known as a 1031 exchange. This is where the tenants have undivided interest in the property and their ownership shares are not required to be equal. The investor then receives their own deed on the property that shows their interest that is invested. A 1031 exchange is accomplished by selling a given property and finding an intermediary then in 45 days they must claim the property they are exchanging with and then in 180 days they must sell that exchange property.