Bundle Of Rights Theory

Bundle of Rights In real estate there is a theory that is referred to as the “Bundle of Rights”. In an essence the real estate owner or title holder is afforded certain set of rights. The bundle of rights include 5 different rights. These rights include such things as the right of possession, the right of control, the right of enjoyment, the right of exclusion, and also the right of disposition. It is actually completely up to the owner whether if they would like to exercise any of these rights or not. The owner also does not always have to get all of the rights afforded to him/her at once. At times the bundle of rights may be broken up and afforded to others. This typically can happen if the property is leased and the owner is a landlord.
The rights in the bundle may also be taken away in certain situations. For instance, if the owner gets work done on the property and does not pay the contractor for his work, the contractor may choose to file a …show more content…
The right of possession is one of the most simple of these rights and basically states that whomever holds the title owns the property. This right can be taken away if taxes and dues that are associated with the property are not properly paid. The second right is the right of control. The right of control allows the owner to manage his/her property the way he/she intends to as long as it managed in a legal sense and it is not used for illegal activities. For instance, growing illegal drugs on your property would not be covered under this right. The third right is the right of enjoyment. The right of enjoyment is similar to the right of control in the way that it allows the owner to do what he/she wants with the property, or in this case allows the owner to enjoy the property the way the owner wants. For instance, if you want to host an event on your property, this right allows that. However just like the right of control you must follow the law to be able to keep this