What does "100% fee simple interest" mean?

Question

Recently found a listing that has the following information in the description,

"Siegel-Gallagher, Inc., on behalf of the owner, is offering for sale a 100% fee simple interest in the 40-unit multifamily property"

Can someone please explain what this means?

Thanks in advance!

Michael Borger · Answer

That's what these forums are for. There are 1001 nicer ways to say what he said. You asked a simple, honest question. Nothing wrong with that and don't let him dissuade you. Ask away.....

Matt Devincenzo · Answer

@Johann Kleisch

ignore the post from @Royce Talbo. Your post didn't say you were under contract for this property, neither did it say you were considering it. You said you saw it and had a question....I saw a story about hippo's in Columbia this morning (seriously a true story) and had a question about how they were shipped there, it doesn't mean I'm going to go and try to smuggle some in to find out. And even if you were considering it, a word of caution doesn't need to paint you out to be a fool when it could have just as easily pointed you to the right person (broker, attorney, partner) to ensure you're protected in the transaction.

Michell P. · Answer

It means they're claiming to have full rights to sell the prop, and you'll get a proper deed with no (strange) conditions and no other attached interests.

Sometimes when someone other than the owner is selling the property, they can't offer fee simple b/c there may be other claimants.  And sometimes with multi units they sell them in chunks to raise capital so that you might only own 25% of the complex while other people own the other 75% - and the new buyer will have limited rights to resell.

They're just marketing that this should be a "normal" sale.

Jon Holdman · Answer

When you get a "fee simple" interest in a property you actually fully own it.   The alternative is a "leasehold" interest where you don't fully own the property.  Leasehold isn't common in most locations.  I've seen it quite a bit in Hawaii, though, where you buy a property with a leasehold on the land.  You own the improvements, but only have a lease on the land.  At the end of the land lease, you're supposed to remove all improvements and return the land to the owner in the same condition as it originally was.

So, I'd assume from that verbiage that you're being offered 100% ownership of this 40 unit property.