Monthly Archives: June 2007

What’s a fee simple?

Hint. It’s neither a fee nor is it simple.

Rather, the term is used to refer to the “bundle of rights” that accompany ownership of real property.

The “fee simple” is the largest bundle available for private ownership of land.

Included in the bundle of rights under “fee simple” are: right to occupy and use, right to build, right to restrict use, right to mine, drill, or farm, right to mortgage, right to easements, right to exclude others, right to sell, right to give away or abandon, right to refuse to sell, right to rent or lease, right to license, right to the fruits, and right to devise by will.

Hence, real estate ownership is also really just ownership of the rights to the land.

When a real property is mortgaged, this may be viewed as removing one right from the bundle and giving it to third parties (such as a bank or other financing institutions ).

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Four people you meet in real estate practice

You see them at malls manning exhibits of subdivision developments, say Filinvest Land Inc.‘s Corona del Mar or Commonwealth Estate Inc.’s Collinwood.

They entertain you during open houses of subdivision or condominium projects and show you around the house models or condo units that are for sale.

They take you “tripping”—the term used in the Philippine realty service to describe the practice of bringing prospective buyers to one or more properties so they can choose what best suits them.

They’re known as real estate brokers and because of the nature of their profession, they need to be a little bit of a PR person, lawyer, accountant, conciliator, geodetic engineer, says Trade and Industry Regulatory Division-Cebu Province chief Zaide C. Bation.

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Into the world of realty service

One of the first things I’ve learned when I joined a review class to prepare for the Philippine brokers’ licensure examination is differentiating between the “business” and the “practice” of real estate.

Real estate as a business deals with investing money to acquire or improve land and anything attached to it–like a house or a building–and selling, leasing, or using them for other income-generating purposes. Think real estate developers or property investors.

Well, this blog is not about that.

This blog is about the aspect of real estate as a practice. Think real estate salesmen, brokers, appraisers, and consultants. They’re called real estate practitioners and they’re engaged in the realty service practice.

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