What does "100% fee simple interest" mean?

Question

Recently found a listing that has the following information in the description,

"Siegel-Gallagher, Inc., on behalf of the owner, is offering for sale a 100% fee simple interest in the 40-unit multifamily property"

Can someone please explain what this means?

Thanks in advance!

Michael Borger · Answer

That's what these forums are for. There are 1001 nicer ways to say what he said. You asked a simple, honest question. Nothing wrong with that and don't let him dissuade you. Ask away.....

Matt Devincenzo · Answer

@Johann Kleisch ignore the post from @Royce Talbo. Your post didn't say you were under contract for this property, neither did it say you were considering it. You said you saw it and had a question....I saw a story about hippo's in Columbia this morning (seriously a true story) and had a question about how they were shipped there, it doesn't mean I'm going to go and try to smuggle some in to find out. And even if you were considering it, a word of caution doesn't need to paint you out to be a fool when it could have just as easily pointed you to the right person (broker, attorney, partner) to ensure you're protected in the transaction.

Michell P. · Answer

It means they're claiming to have full rights to sell the prop, and you'll get a proper deed with no (strange) conditions and no other attached interests. Sometimes when someone other than the owner is selling the property, they can't offer fee simple b/c there may be other claimants. And sometimes with multi units they sell them in chunks to raise capital so that you might only own 25% of the complex while other people own the other 75% - and the new buyer will have limited rights to resell. They're just marketing that this should be a "normal" sale.

Jon Holdman · Answer

When you get a "fee simple" interest in a property you actually fully own it. The alternative is a "leasehold" interest where you don't fully own the property. Leasehold isn't common in most locations. I've seen it quite a bit in Hawaii, though, where you buy a property with a leasehold on the land. You own the improvements, but only have a lease on the land. At the end of the land lease, you're supposed to remove all improvements and return the land to the owner in the same condition as it originally was.So, I'd assume from that verbiage that you're being offered 100% ownership of this 40 unit property.

Charles M. · Answer

Hey @Royce TalboWhat does "100% fee simple interest" mean?😂😂😂

Joel Owens · Answer

There is nothing wrong here. I would rather someone ask then get into a property and not ask.If you have money there are people that can generally help that have a track record and experience.Some people contact me to buy commercial and become my clients. They do not know anything about commercial real estate but I do it every day. These people maybe have bought residential or many times they own a business or have sold a business and are sitting on a lot of cash.I am talking individuals from 5 to 50 million and higher. They just need help and want a professional to guide them and have representation. Just make sure you connect with people who actually know what they are talking about.If someone has no money, no credit, and just wants an education then they can't expect people that make 500k to 1 million a year giving them a bunch of free talk etc.

Royce Talbo · Answer

@Johann Kleisch @Michael Borger@Matt DevincenzoIm sorry if I came across sounding mean I guess I could have worded it better, like I said I just dont want you to lose money. This just blew me away and it gets to me when I see people that has more money than me just throw it away. I see now that yes he did not say he was going to buy this property just that he saw it so these leads to my last statement saying that I would retract everything I said.

Tom Mole · Answer

Never apologize for seeking education and advice. I'm sure @Royce Talbo meant well, but I felt like he was just saying that you were asking a stupid question, which is a stupid reaction. You asked a great question and I'm glad others answered it so well. For my part I'm shopping for 50+ unit apartments all over the US and I've come in contact with dozens of unknown terms. Often they use a certain term in one state and another in the next state that refer to the same concept. I looked at your post specifically because I wasn't sure that I knew what it meant either.Keep asking your "stupid" questions. I will appreciate it, read it and vote for it. You will not see me putting you down for it in any way. This is exactly what the forums are for. You were brilliant to ask about something you don't know. So now I'm curious. How are you structuring this 40 unit deal? Is this property distressed or are you buying for performance? Is the project located near you (within an hour or so drive)? I'd love to hear more about your deal.

Matt Devincenzo · Answer

@Royce Talbo no harm done. I think you were legitimately trying to caution him, and I can understand your point. I take it for what it seems to have been which was just a misreading of the situation.Kudos to you for saying so, and not being defensive about it.

Johann Kleisch · Answer

Rookie question, next time I will do more research before asking here.Thanks!