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Real Estate · Property Ownership

What is the key feature that distinguishes a fee simple absolute estate from a life estate?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

A fee simple absolute is the highest form of ownership — of potentially infinite duration and freely inheritable and transferable — while a life estate lasts only for the life of a specified person

  1. A A fee simple absolute is the highest form of ownership — of potentially infinite duration and freely inheritable and transferable — while a life estate lasts only for the life of a specified person
  2. B They are identical forms of ownership
  3. C A life estate can be sold but a fee simple cannot
  4. D A fee simple lasts only for the owner's lifetime

Why this is the answer

Fee simple absolute is the most complete ownership interest recognized in law: it has no time limit, passes to the owner's heirs, and can be sold, leased, mortgaged, or willed freely. A life estate, by contrast, lasts only as long as the life of a named person (the life tenant or another 'measuring life'); when that person dies, the property passes to the remainderman or reverts to the original grantor. The life tenant may use the property and is entitled to its benefits but cannot commit waste and cannot pass a greater interest than they hold. Recognizing these freehold estates and their durations is foundational to the national exam's ownership content.
Source: Real Estate Principles, Estates in Land

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About this topic: Property Ownership

Fee simple, joint tenancy, tenancy in common, and life estates each carry different rights, transferability, and survivorship rules. This is one of 11 Salesperson (National) questions on property ownership, each with a full explanation on a single study page.

New to this exam? Our Real Estate exam guide explains the format, scoring, and how to prepare.

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