Law of Commerce
In fee simple is whereby the buyer of the property is provided with the tittle so that he has
the right to possess and use the land as long as he is alive and in accordance to his wish. In other
words, the ownership of the fee simple has absolute ownership of the real property and he
acquires the entire property including the land and the buildings so that he can use these
properties for his economic advantage. On the other hand, life estate ownership is the land
ownership for the duration of a person’s life, to imply that such ownership ends upon the death
of the owner, after which the ownership of the land may be reverted to the owner or it may be
passed to another third party (Sealy & Hooley, 2008). The principle in life estate is that the
ownership of the land becomes the tenant since the ownership does not exist beyond the death of
the owners so that it can be passed to the owner or other third parties. Legally, easement is the
non-possessory interest in another person’s land that allows the holders to use the property for
economic gain, despite lacking ownership to the land and the owner remains with exclusive right
over his land. According to Sealy and Hooley (2008), easement is the right of one person to
exercise a limited form of ownership or possession of somebody’s property for a certain period
LAW OF COMMERCE 2
of time while the full ownership remains with the original owner. On the other hand, a tenacy is
usually a short-term agreement, whereby the tenant mainly uses the value of the fixtures and
fittings for his interest in the property.
Reference
Sealy.L. S & Hooley, R.J. (2008). Commercial Law: Text, Cases, and Materials. Oxford
University Press; 4th edition
