In this four-part blog series, you'll learn about the different forms of homeownership which include Fee Simple, Leasehold, Co-Op, and Condominium Ownership. So, stayed tuned each week to learn more!
Did you know there are a few different forms of home ownership? Indeed, there are! If you’re considering buying real estate, it’s important to know what type of ownership you want to have.
Let’s start with Fee Simple (aka as freehold/fee simple absolute), the most common form of ownership. Many home buyers are familiar with this type of ownership because that’s how most homes are purchased. It’s important to note that whether real estate is fee simple vs leasehold, it will determine what a homeowner can do with it, regarding possession, ownership, and more.
Under Fee Simple ownership, an owner has full possession of their property when bought. The buyer is given the title of the property, and has the right to sell it, transfer ownership of it, remortgage it, or put it in a will. In addition, no one can legally take real estate from an owner with a fee simple title.
Fee Simple: Condos & Townhouses
Fee simple can be contrasted with condo ownership. What does this mean? An owner will have complete access to the land, but they don’t own it. Owners of single-family residences have fee simple ownership, but condo and most townhouse owners do not since they only own the individual unit and not the land. However, they obtain the right to use the community property.
Each unit has its own tax bill, deed, mortgage, and ownership rights, but shares in the maintenance of the common areas. A condo or townhome development will list the type of ownership available in the Covenants, Conditions and Restrictions (CC&Rs) document.
Keep your eyes peeled for Part 2: Forms of Homeownership: Leasehold. In the meantime, you can learn more about each type of homeownership by clicking here.