When does a Fee Simple Estate become limited?

A Fee Simple Estate is considered the highest form of ownership in real estate, providing the owner with maximum rights to the property. However, this estate can become limited when certain restrictions are imposed. Government limitations may include zoning laws, land use regulations, environmental restrictions, or other governmental controls that limit how the property can be used or developed. When these external limitations are applied, they affect the rights associated with a Fee Simple Estate, thereby creating a scenario in which the owner's full rights may be curtailed.

In contrast, selling the property, leasing it, or transferring it to heirs do not impose governmental limitations on the estate; rather, these actions are an exercise of the owner's rights. Each of those situations maintains the fundamental nature of the Fee Simple Estate, as the owner remains in control unless external agencies impose specific restrictions.