Mortgage Loan Originator (MLO) Licensing Practice Test 2026 – Your All-in-One Guide to Exam Success!

"Fee simple absolute" refers to the most complete form of property ownership available in real estate. When an individual holds property as fee simple absolute, they have full and unrestricted rights to the property, meaning they can use it, lease it, sell it, or even pass it on to heirs without any limitations imposed by the original grantor. This type of ownership carries no conditions or limitations, allowing the owner to fully enjoy and control their property.

This contrasts with other forms of ownership where restrictions might apply, such as ownership that comes with conditions attached, limited ownership rights, or rights that are specifically designated for short-term uses like rentals. Fee simple absolute is significant because it provides the greatest degree of control and permanence over the property, making it a desirable ownership status among property owners.