Encyclopedia
Fee simple
The fullest form of land ownership.
For example: An owner-user buying a building outright gets fee simple title. (Illustration only, not a real deal.)
Official source: Land Title Act (BC Laws)
Example only, not a real client. Say you are comparing two warehouses. One is fee simple; the other sits on leased land. With fee simple you own the land and building with no end date, which makes financing and resale simpler.
What I’d tell a friend
Fee simple is the most complete form of ownership. Still search title for charges that limit what you can do.
Why it matters to you
It's the most complete form of ownership, so it's usually easier to finance and sell than leasehold.
How to use it in your deal
Buyers should confirm the fee simple owner on title is the seller, and review charges like mortgages, easements, covenants, liens and rights of way. Fee simple ownership is still limited by zoning, building rules, environmental laws, taxes and the Crown's rights, such as subsurface mineral rights in some cases. Lenders usually require fee simple or a long leasehold as security.
Strata titles are fee simple ownership of a strata lot plus a share of common property. Title insurance and a lawyer's review help protect against problems. Check the legal description and plan to confirm boundaries; fences and buildings aren't always where the plan says. A survey certificate can show encroachments before you're stuck with them. If the seller is a company, confirm who can sign for it.
Also check the property's parcel identifier (PID) matches every document in the deal, since a typo can send funds and title to the wrong place.
Mistakes I see
Assuming fee simple means no limits. Not reviewing charges. Missing mineral rights issues.
In BC and Vancouver
The Land Title Act governs registration through the Land Title and Survey Authority (LTSA).
Official sources: Land Title Act (BC Laws) · Land Title and Survey Authority of BC
What it means
Fee simple is the fullest form of ownership of land in BC. The owner holds the land and buildings indefinitely and can sell, lease or pass it on.
Ownership is recorded at the Land Title Office.
What still applies
Zoning, bylaws, taxes and charges on title, such as easements, covenants and rights of way, still limit how you use the property.
Have your lawyer review the title search before you remove subjects, and ask about anything you do not understand.
Questions to ask before you sign
- Who's on title?
- What charges apply?
- What are the boundaries?
- Are there mineral rights reservations?
Keep reading
Related terms: Freehold, Leasehold
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.