Start Date
5-12-2019 1:15 PM
End Date
5-12-2019 2:30 PM
Description
This IAAO paper addresses issues regarding the term fee simple, or more appropriately, fee simple absolute. “Although it is probably good practice to use the word ‘absolute’ whenever one is referring to an estate in fee simple that is free of special limitation, condition subsequent, or executory limitation, lawyers frequently refer to such an estate as a ‘fee simple’ or even as a ‘fee.’” (Bergin and Haskell 1984, 24) “The term ‘fee simple’ or ‘estate in fee simple’ is a generic term.” (Jensen v. The City of New Albany 2007). Ongoing controversy regarding appraising the fee simple estate has prompted the need for further discussion on this topic. Specific issues arising from the term fee simple absolute include whether a property should be valued as if vacant, whether the term assumes any encumbrances on the property, and whether fee simple implies market rent. The fee simple estate is the foundation of what assessors in many jurisdictions are asked to examine, and clarifying this concept will assist assessors, appraisers, the courts, and others in the appraisal community in maintaining consistency, credibility, and uniformity in assessment and appraisal practices.
Recommended Citation
Sokoloff, Irene CAE; Shepherd, William D. Esq.; Chappell, Norman; and Korpacz, Peter, "Fee simple: Setting the record straight" (2019). IAAO Annual Legal Seminar. 5.
https://researchexchange.iaao.org/legal/legal19/sessions/5
Fee simple: Setting the record straight
This IAAO paper addresses issues regarding the term fee simple, or more appropriately, fee simple absolute. “Although it is probably good practice to use the word ‘absolute’ whenever one is referring to an estate in fee simple that is free of special limitation, condition subsequent, or executory limitation, lawyers frequently refer to such an estate as a ‘fee simple’ or even as a ‘fee.’” (Bergin and Haskell 1984, 24) “The term ‘fee simple’ or ‘estate in fee simple’ is a generic term.” (Jensen v. The City of New Albany 2007). Ongoing controversy regarding appraising the fee simple estate has prompted the need for further discussion on this topic. Specific issues arising from the term fee simple absolute include whether a property should be valued as if vacant, whether the term assumes any encumbrances on the property, and whether fee simple implies market rent. The fee simple estate is the foundation of what assessors in many jurisdictions are asked to examine, and clarifying this concept will assist assessors, appraisers, the courts, and others in the appraisal community in maintaining consistency, credibility, and uniformity in assessment and appraisal practices.