Real Estate Council of Alberta Fundamentals Practice Exam

What type of ownership in land is characterized by absolute ownership without time limitation?

1. Leasehold

2. Life estate

3. Fee simple

4. Co-ownership

The correct answer is: Fee simple

The correct answer is characterized by absolute ownership without time limitation. This form of ownership, known as fee simple, grants the owner full rights to the property that include the ability to sell, lease, or transfer ownership as they please. Unlike other types of ownership interests, such as leasehold or life estate, fee simple does not have restrictions based on duration. In a leasehold arrangement, for example, the tenant has a right to use and occupy the land for a specified period but does not own the land outright. A life estate provides ownership that lasts only for the duration of an individual's life, after which the ownership reverts back to the original owner or passes to another party. Co-ownership involves multiple parties sharing ownership rights of the property, which complicates the concept of absolute ownership. Given the definitions and key characteristics of these ownership types, fee simple stands out as providing the most complete and unrestricted rights of ownership, making it the answer to the question regarding ownership without time limitation.