Fee Simple

Fee simple (also called "fee simple absolute") is the highest and most complete form of property ownership recognized in law. A fee simple owner has unconditional ownership of the property with the right to use it, modify it, sell it, lease it, gift it, or pass it to heirs without restriction — subject only to government powers such as taxation, eminent domain, and zoning regulations.

In the context of tax lien and tax deed investing, understanding fee simple ownership is important because it represents what the investor is ultimately working toward when acquiring property through tax sales. A tax deed, once any redemption period has expired and title has been cleared, should convey fee simple ownership to the investor.

However, not all tax deed sales automatically convey fee simple title. Some states issue limited or "bargain and sale" deeds that may not carry the same warranties as a standard warranty deed. This is why quiet title actions are often necessary — they help establish that the investor holds true fee simple title, free from competing claims or encumbrances.

When evaluating potential tax deed investments, investors should consider what type of deed will be issued and whether additional steps (such as a quiet title action) will be needed to obtain marketable fee simple title. This affects both the timeline and cost of the investment, as well as the investor's ability to sell the property or obtain title insurance in the future.