Definition
Property ownership is legally viewed as a collection of rights—to possess, use, rent, sell, and pass to heirs. Various encumbrances like mortgages represent separate interests in this bundle.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Property ownership is conceptualized as a 'bundle of rights' because it encompasses multiple distinct rights that can be separately owned, transferred, or restricted. These rights include possessing the property, using it, receiving income from it, selling it, and passing it to heirs. Various interests like mortgages, easements, and leases represent separate portions of this bundle. Understanding the bundle of rights helps clarify what you actually own when you purchase property.
Pro Tip
Remember that ownership rights can be limited by easements and restrictions.
Example
The buyer's fee simple ownership included the complete bundle of rights to possess, use, lease, and sell.