New York State Real Estate Salesperson Licensing Exam

Unless specified otherwise, the transfer of title to real property in New York State creates which type of interest?

1. Life estate

2. Fee simple

3. Leasehold

4. Tenancy in common

The correct answer is: Fee simple

The transfer of title to real property in New York State automatically creates a fee simple interest, unless indicated otherwise. A fee simple interest is the most comprehensive form of property ownership, granting the owner full control over the property, including the right to sell, lease, or bequeath it. This type of ownership is characterized by having no time limit on the duration of ownership and is free from any future interests that could limit the estate. In real estate transactions, when a deed is executed without limiting language or stipulations, it typically conveys title in fee simple, reflecting the owner's complete rights over the property. This is a fundamental concept in property law and ensures that the new owner can exercise full rights, aligning with the principle of ownership stability in real estate. The other types of interests mentioned do not apply in this general situation: a life estate restricts ownership to the lifetime of a specified individual; a leasehold gives temporary rights to use and occupy the property without transferring ownership; and tenancy in common refers to co-ownership with separate undivided interests, typically involving more than one party. Thus, fee simple is the default condition of ownership unless explicitly stated otherwise.