1/16/2024 0 Comments Define fee simple absoluteThe ownership interest in a leased property. Leased Fee Estate – The ownership interest that the landlord or lessor maintains in a property under a lease with the rights of use and occupancy being conveyed or granted to a tenant or lessee. Following are definitions currently in use by the valuation profession (Dictionary of Real Estate Appraisal, 6th edition):įee Simple Estate – Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Fee simple includes the “full bundle” of rights while leases convey partial property rights to tenants for their use and occupancy. The primary property rights in appraisals are Fee Simple Estate or Leased Fee Estate. In ordering and completing appraisal reports then, the issue of which property rights should be valued often comes up. Standards require that interests or rights be identified and reported. Valuation theory holds that interests or rights in real estate are to be valued rather than physical land and buildings themselves. Author: Greg Holt, Appraiser, Mercantile Bank
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