Which statement about a fee simple estate is NOT true?

Which statement about a fee simple estate is NOT true?

• A. It is not limited by governmental powers.
• B. It is freely transferable.
• C. It lasts forever.
• D. It can be encumbered by liens.

Answer: (D)

A fee simple estate represents the highest level of ownership with essentially unlimited duration and broad rights, including the ability to transfer ownership and to place liens on the property. But it is not outside government influence. Police power (such as zoning and health codes), taxes, eminent domain, and the possibility of escheat can limit or affect how the property is used or transferred. So the statement that a fee simple estate is not limited by governmental powers is not true. The other statements—being freely transferable, lasting forever, and being encumbered by liens—are accurate descriptions of a fee simple estate.

A fee simple estate represents the highest level of ownership with essentially unlimited duration and broad rights, including the ability to transfer ownership and to place liens on the property. But it is not outside government influence. Police power (such as zoning and health codes), taxes, eminent domain, and the possibility of escheat can limit or affect how the property is used or transferred. So the statement that a fee simple estate is not limited by governmental powers is not true. The other statements—being freely transferable, lasting forever, and being encumbered by liens—are accurate descriptions of a fee simple estate.