The fee simple estate
includes air rights, subsurface rights, and all other property rights associated with real estate ownership.
106) These challenges led to a revision of the original objective and the Nisga'a Land Titles System, to allow holders of these entitlements, through the provisions in the Nisga'a Landholding Transition Act, to transition them to an estate in fee simple, which then enables the holder to transfer or mortgage the fee simple estate
In a proper market value appraisal of a fee simple estate
in a property leased above market (such as in some ad valorem cases), excess rent is never addressed because the property must be appraised as unencumbered.
Pursuant to the Act, the Nisga'a Village Government can offer the fee simple estate
to a Nisga'a citizen only if the Nisga'a Village is registered as the owner of the estate in fee simple and if (a) the entitlement is not subject to a registered mortgage, (b) the parcel is not greater than 0.
After a hypothetical value for the fee simple estate
is estimated then the analyst can move on to the valuation of other parts of the "pie" displayed in Figure 1.
The degree of differences between contract and market rents and differences between actual and market occupancy in this volatile market make it more important than ever to understand how to reconcile property value differences between leased fee and fee simple estates
and to properly account for the impact of differences in rents and occupancy on the value of a property being appraised.
The difference between the leased fee and fee simple estate
should be addressed in the income capitalization and sales comparison approaches.
Mueller's comments he seems to be agreeing with us when he states "The authors' approach becomes clear when rent shortfalls are addressed for what they are: negative cash flow to the fee simple estate
When one discusses the appropriate property interest to appraise, ad valorem (property) taxation needs to be considered as well, specifically whether BEV should be included in the tax base and whether the fee simple estate
or leased fee estate should be taxed.
If a property occupied by a successful business is likely to experience a diminution in value in the event that the business fails, the situation may best be addressed in the "Reconciliation" section, where the indications for the leased fee estate from an income approach based on high current rent and for the fee simple estate
from a sales approach based on low-end transactions involving vacant properties are likely to point up the difference.
The proposed definition applies equally to the fee simple estate
of an industrial building in Topeka, to the leasehold estate of a service station in Cincinnati, and to the leased fee estate of strip stores in Little Rock.
Meanwhile, Michaels also announced the availability of up to 99% in financing for owners of fee simple estates