Like the types of ownership interest conveyed that we spoke of above, deeds come in various forms and can affect the type of ownership a person ultimately acquires. The Lender therefore, requires the Purchaser to acquire the unrestricted right to sell the property and to convey that right to the Lender in the case where the Purchaser does not meet the Lender’s requirements in their loan documents (i.e. If the collateral (property) can not be sold for the value assigned to it, then the Lender takes a different approach to lending the Purchaser the money. Without these matters, what would the Purchaser be buying and what would its value be? Likewise, a Lending Institution loans money to the Purchaser based on the value of the collateral. The Purchaser in a traditional sale is acquiring from the Seller, all of the Seller’s right, title and interest in the property, including the unrestricted power to sell the property in the future. They do not have an un restricted power to sell the property, but they do have rights to sell, mortgage or inhabit. Equitable Interest: Purchasers by contract to purchase agreements, land contracts, and lease agreements acquire interest less than fee simple in nature.

They convey their Unrestricted power to sell the real estate And re-acquire the right once they pay in full their mortgage obligations. This is the type of interest that Purchasers convey to their Lending Institutions.

Defeasible Fee Simple Interest: This is a interest conveyed in real estate which can be defeated/cancelled upon some future event.

This is the type of interest most Sellers have and convey to Purchasers Absolute Fee Simple Interest: This is the unrestricted power to sell the real estate.Here are the following general types of Fee Simple Interest:

Fee simple absolute example documents