What is recognized as the highest and best type of interest in real estate?

The highest and best type of interest in real estate is the Fee Simple Absolute. This form of ownership represents the greatest interest one can have in real property, granting the owner complete control over the property. Under Fee Simple Absolute, the owner has the right to use, sell, lease, or otherwise dispose of the property without limitations, and this interest is not subject to any conditions or restrictions that might affect its transferability.

In legal terms, it is the most complete form of ownership and is characterized by perpetual duration, meaning that the title can be passed down to heirs indefinitely. This makes it a highly desirable interest when it comes to real estate, as it provides the owner with the maximum possible rights.

In contrast, other interests like leasehold interest involve renting and thus do not confer the same rights as ownership; a life estate is limited to the lifetime of the individual and doesn't have the same freedom of transfer; and a fee tail is a less common form of ownership that restricts inheritance to a specific line of descendants, which can limit the owner's rights compared to a Fee Simple Absolute. Hence, Fee Simple Absolute is regarded as the most advantageous real estate interest.