Idaho Real Estate Practice Exam

What type of ownership grants a property owner the most rights and control over their property?

1. Leasehold Interest

2. Fee Simple Defeasible

3. Life Estate

4. Fee Simple Absolute

The correct answer is: Fee Simple Absolute

Fee Simple Absolute is the type of ownership that grants the property owner the most rights and control over their property. This form of ownership allows the owner to use, sell, lease, or mortgage the property without any conditions imposed on the ownership. In a Fee Simple Absolute, the owner has full rights to the property, and these rights are not subject to any limitations or restrictions, making it the highest form of property ownership available. In contrast, other forms of ownership, such as Fee Simple Defeasible, come with certain conditions that can alter or terminate the ownership if specific events occur. A Life Estate gives rights to the property for the duration of the owner's life, after which the property may revert to another party or be passed on to heirs. Lastly, Leasehold Interest does not confer ownership but rather a temporary right to use and occupy the property for a specified term, typically under a rental agreement. Therefore, Fee Simple Absolute distinctly stands out as the most comprehensive form of ownership, providing complete freedom and control over the property.