Question

Which of the following is NOT a characteristic of a fee simple title?

1) It is free of encumbrances
2) It is of indefinite duration
3) It is transferable with or without valuable consideration
4) It is transferable by will or intestacy

Answer 1

A fee simple title is a type of ownership in real property that grants the owner the highest form of ownership rights.

Step-by-step explanation:

A fee simple title is a type of ownership in real property that grants the owner the highest form of ownership rights. It is characterized by several features:

• 1) It is free of encumbrances: A fee simple title is typically free of any liens or other encumbrances that could restrict the owner's rights to the property.
• 2) It is of indefinite duration: A fee simple title has no time limit and can potentially last forever, as long as the owner or their heirs continue to own the property.
• 3) It is transferable with or without valuable consideration: The owner of a fee simple title can freely transfer their ownership interest in the property to another party, either by sale, gift, or other means.
• 4) It is transferable by will or intestacy: A fee simple title can be passed down to heirs through a will or intestacy, which refers to the distribution of property when someone dies without a valid will.

Based on these characteristics, the correct answer is option 1) It is free of encumbrances, as a fee simple title can indeed have encumbrances such as mortgages or easements.