What is a 'Bundle Of Rights'

A bundle of rights is a set of legal rights afforded to the real estate title holder. It can include the right of possession, the right of control, the right of exclusion, the right of enjoyment and the right of disposition. Real estate ownership carries with it a complex set of rights, and the bundle of rights concept has traditionally been the way in which those rights are assigned.

BREAKING DOWN 'Bundle Of Rights'

When a person purchases a piece of property, he is not necessarily afforded all of the rights in the bundle of rights. The rights can be broken up and given to different parties. This may apply to situations where the property is leased to another party, limiting the property owner’s rights based on local landlord tenant laws and regulations.

Right of Possession

The right of possession refers to the rights given to the title holder of a particular property. These rights may be limited in certain instances, such as when a title holder fails to pay required property taxes, but in most regards, the title holder is considered the owner of the property.

Right of Control

The right of control allows the title holder the ability to manage the use of the property in any means deemed legal within the jurisdiction in which the property exists. Entry into an area regulated by a homeowners' association may lead to additional restrictions being in place, though the restrictions are not technically legal standards.

Right of Exclusion

The right of exclusion allows the title holder to limit who may or may not enter the property. This applies to most situations except when certain easements are in place, or when a warrant authorizing the search of the property is properly acquired and served by a member of the law enforcement community.

Right of Enjoyment

The right to enjoyment asserts the title holder's right to participate in any activities he finds pleasurable while on the property. The activities in question must fall within the confines of the law.

Right of Disposition

The right of disposition protects the title holder’s right to transfer ownership, either permanently or temporarily, to another qualified party at will. An exclusion exists if the property owner owes a current mortgage on the property, as he must pay off the debt before ownership can be transferred. An exclusion also applies in cases where the property is subject to a lien, such as when a homeowner has failed to pay property taxes.

  1. Title Search

    An examination of public records to determine and confirm a property's ...
  2. Warranty of Title

    A guarantee by a seller to a buyer that the seller has the right ...
  3. Property Management

    Property management is the administration of residential, commercial ...
  4. Title Insurance

    Title insurance is indemnity insurance that protects the holder ...
  5. Certificate Of Title

    A state or municipal-issued document that identifies the owner ...
  6. Incorporeal Rights

    Rights that can't be seen or touched, but are still enforceable ...
Related Articles
  1. Insurance

    How to Decide if Title Insurance Is Worth the Cost

    Most people don't understand the critical role title insurance plays when buying a home.
  2. Insurance

    Encumbrances And Nonpossessory Interests In Real Property

    Learn about nonpossessory interests and the various forms of encumbrances.
  3. Taxes

    How Does a Tax-Free Exchange Work?

    In regards to the sale of property, particularly in real estate, a 1031 exchange is increasingly being recognized for its tax benefits to investors of all levels.
  4. Taxes

    Sell Your Rental Property for a Profit

    Being a landlord can be taxing, especially when you want to sell. Find out how to reduce your burden.
  5. Investing

    Investing in out-of-state property

    If you can't afford property close to home, consider taking the real estate plunge elsewhere in the country.
  6. Managing Wealth

    Tips For Transferring A House Title

    Transferring a house title can be complicated at times. Here are some guidelines to help you get through the process.
  7. Investing

    Costs New Investors in Real Estate Do Not Consider

    As lucrative as real estate investment can be, there are a multitude of costs that new real estate investors must consider.
  8. Managing Wealth

    Investing In Foreclosures Not A Get-Rich-Quick Venture

    Investing in this kind of real estate takes capital, time and careful planning.
  9. Taxes

    Your Property Tax Assessment: What Does It Mean?

    Understanding your property taxes can protect you from financial shocks.
Trading Center