Certified Pennsylvania Evaluator Practice Exam

What term is used to describe the highest degree of ownership in real estate?

1. Leasehold Estate

2. Fee Simple Title

3. Life Estate

4. Joint Tenancy

The correct answer is: Fee Simple Title

The term used to describe the highest degree of ownership in real estate is "Fee Simple Title." This form of ownership represents an estate in land wherein the owner has complete control over the property and can use it, sell it, lease it, or transfer it as they wish. The owner of a fee simple title holds the property indefinitely, and their rights are not limited by time, conditions, or other encumbrances which apply to other types of ownership. In contrast, a leasehold estate grants the tenant rights to use and occupy the property for a specific duration, but the ultimate ownership remains with the landlord. A life estate allows an individual to use and benefit from the property during their lifetime, but ownership reverts to another party upon the end of that life. Joint tenancy involves shared ownership between two or more individuals, with rights of survivorship, but does not confer the same level of complete control as fee simple title does. Therefore, fee simple title clearly denotes the highest level of real estate ownership, providing the fullest extent of rights and privileges involved.