What is a Bundle Of Rights?

A bundle of rights is defined as a set of legal rights that are accorded to a real estate buyer after purchase has been made. A bundle of rights are legal because the buyer of a real estate holds a legal title to the property after it has been purchased. Set of privileges that a real estate title holder enjoys under the bundle of rights include the rights of control, right of possession, right of exclusion, right of enjoyment and right of disposition (whether to sell or lease) on the property owned. These are the legitimate rights that are attributed to the ownership of a property in the real estate industry.

How Does a Bundle Of Rights Work?

Bundle of rights are also referred to the rights of possession that a real estate title holder enjoys. Purchase of a real estate property does not automatically mean that the buyer would enjoy all the rights in the bundle of rights. There are certain instances that can limit the rights that the property owner can enjoy. A good scenario to picture this is a situation whereby the owner of a property leases the property to another party, the rights in the bundle of rights will be broken between these parties. When this situation occurs, the bundle of rights enjoyed by each of the parties will be limited. Right of possession is a legal right enjoyed by the real estate buyer. Failure of the title holder to pay required property taxes can also limit the rights of possession that the holder can enjoy. Each of the rights in a bundle of rights have distinct functions. The right of control allows the real estate title holder, to use and manage the property under legal purviews. Going beyond the territory in which the property exists attract additional restrictions. The right of exclusion enables the title holder determine who enters the property or who is not allowed to enter the property. This can however not be used when there is a legal warrant authorizing the search of the property. The right of a property holder to do any activity he finds enjoyable on the property is right to enjoyment. Right of disposition means the holder can sell or lease out the property at any time he wishes to do so without being questioned. Properties subject to liens can however not be sold or leased out using this right.

Related Topics

• Property Law (Intro)
• Tangible and Intangible property?
• Knowledge Capital
  
• Calculated Intangible Value
• Real and Personal Property?
• Chattel
• Littoral Land
• Fixtures?
• Appurtenance
• Readily Removable Fixtures
• What is ownership?
• Role of Government in ownership of property?
• Allodial System
• Role of property rights in economic activity?
• What are the limitations on property ownership rights?
• What is nuisance?
• What is Zoning?
• What is Eminent Domain?
• Just Compensation
• What is Property Taxation?
• Assessment Ratio
• Millage Rate
• Homeowners Association (HOA)
• Accession?
• Rule of First Possession?
• Lost or Mislaid Items?
• Adverse Possession?
• Encroachment
• Contracts?
• Gift?
• Confusion?
• Establishing and transferring ownership in real property?
• Absolute Title
• Warranty Deed
• Register of Deeds
• Conveyance
• What is a fee simple interest in real property?
• Absolute Interest
• Restrictive Covenant
• What is a life estate in real property?
• What is a leasehold estate in real property?
• What are common types of co-ownership relationships in real property?
• Owning Real Estate Personally vs as LLC
• What if Co-Owners of Real Estate Want Out
• Community Property and Separate Marital Property?
• What is an easement interest in real property?
• What is a license of real or personal property?
• Bundle of Rights
• Absorption Rate
• Fair Housing Act
• Federal Housing Administration (FHA)
• Housing and Urban Development (HUD)
• National Housing Act
• Design Build Contract
• Building Permits
• Certificate of Acceptance
• Construction Surety Bond
• Acquisition, Development, and Construction Loan (ADC)
• Flipping (Real Property)
• Buy, Strip, and Flip
• Homeowner Affordability and Stability Plan
• Building Residual Method
• Accessory Dwelling Unit
• Property Management
• Cost-Plus Contract
• Real Estate Investment Fund
• Listing Agreement
• Property Lawyers
• Multiple Listing Service
• Home Equity
• Register of Deeds
• Title Search
• Opinion of Title
• Certificate of Title
• Abstract of Title
• Chain of Title
• Clear Title
• Cloud on Title
• Defective Title
• Defect of Record
• Action to Quiet Title
• Abeyance
• Encumbrance
• Affidavit of Title
• Warranty of Title
• Title Insurance
• American Land Title Association (ALTA)
• Earnest Money
• Private Mortgage Insurance
• Closing (Property)
• Settlement Statement
• Real Estate Settlement Procedure Act (RESPA)
• HUD-1 Form
• Closing Statement
• Closing Costs
• Buying Real Estate as an LLC
• What is a mortgage?
• What are the Rights of a Mortgage Holder?
• Deed of Trust or Security Deed?
• Trust Deed
• Certificate of Release
• Judicial Foreclosure
• Lis Pendens
• Deficiency Judgment
  
• Short Sale 
• Homeowners Protection Act
• Deed in Lieu of Foreclosure
• Tax Deed
• Tenancy at Will 
• Closed End Lease Definition
• One Percent Rule
  
• Net Lease
• Triple Net Lease (NNN)
• True Lease Definition
• Land Lease Option
• Hell or High Water Contract
• Habendum Clause
• Attornment
• Implied Warranty of Habitability
• Emblements Definition
• Co-Tenancy Clause
  
• What is a bailment?
• Consignment
• Unilateral-benefit and mutual benefit bailments?