Real Property

Bundle of Rights

The collection of legal rights associated with property ownership: the right to possess, use, transfer, encumber, and exclude.


Definition

The bundle of rights is a metaphor used to describe the various legal rights that come with ownership of real property. These include the right of possession, the right of use and enjoyment, the right of disposition (transfer), the right of exclusion (keeping others out), and the right of encumbrance (using the property as collateral). Fee simple ownership includes all rights in the bundle. Lesser estates, such as life estates or leaseholds — include only some of these rights.

Exam Tip

Real property ownership is not a single right but a bundle. Each right can be separated. For example, granting an easement gives up part of the right to exclude.

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Real Property

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