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.
