Understanding the Bundle of Rights of Real Estate Property Ownership
When you own real estate property, you are not just buying a physical structure, you are also acquiring a bundle of rights that come with ownership. These rights include the right to occupy, control, exclude, dispose of, enjoy, access, support, destroy, pay taxes, and eminent domain. This post will take a closer look at each of these rights, what they mean, and how they impact your ownership experience.
Examples of Fee Simple Rights:
The right of possession is the right to occupy and use the property as you see fit, so long as you are not violating any laws or infringing on the rights of others.
The right of control is the right to make decisions about how the property is used, including making improvements, renting it out, or selling it.
The right of exclusion is the right to exclude others from the property, such as by locking the doors or putting up a fence.
The right of disposition is the right to sell, transfer, or gift the property to another person.
The right of enjoyment is the right to enjoy the property and its fruits, such as by collecting rent or harvesting crops.
The right of access is the right to have reasonable access to the property, even if it means crossing over someone else's land.
The right of support is the right to have the property support itself and any other structures on it, such as by having a foundation or retaining wall.
The right of destruction is the right to destroy or remove the property, but this right is limited by the zoning and building codes of the area.
The right of taxation is the right to pay taxes on the property and to claim any deductions or credits that may be available.
The right of eminent domain is the right of the government to take your property for public use, but they must pay you just compensation.
The Four Powers of Government:
It's important to note that In the United States of America, private ownership of real property rights is guaranteed by the US Constitution but is subject to certain government restrictions, known as the four powers of government:
Taxation: The right of state and local governments to generate revenue by levying taxes on goods, products, and rights. While the federal government cannot tax real property directly, income and proceeds from real property sales may be subject to federal income taxation.
Eminent Domain: The government's right to take private property for public use upon providing just compensation. This power can be exercised by government agencies or entities acting under governmental authority, such as housing authorities, school districts, or park districts. Condemnation is the act of enforcing the right of eminent domain.
Police Power: The government's right to regulate property to protect public safety, health, and general welfare. Examples include zoning ordinances, building codes, traffic regulations, health codes, and environmental regulations.
Escheat: The government's right to claim titular ownership of a property when the owner dies without a will or any statutory heirs. In such cases, the government becomes the recipient of the property if no other heirs can be found.
Private Restrictions on Ownership:
Private restrictions can limit the use or development of a property and may affect how ownership can be conveyed. The purchaser of a property may be obligated to use the property subject to privacy restrictions, such as the right of way or party-wall agreements. Deed restrictions and subdivision covenants can often be found in recorded deeds at county courthouses or online. Easements and rights of way may be more challenging to uncover but can be found in title reports or through diligent public records searches. In some cases, owners, clients, brokers, or neighbors may provide this information. Identifying other restrictions, such as unrecorded water rights agreements, may require more extensive research.
Owning real estate property comes with responsibilities and obligations like paying property taxes, maintaining the property, and complying with zoning and building codes. Understanding the bundle of rights associated with property ownership helps you make informed decisions about buying, selling, or renting property and being aware of your rights as a property owner. Knowledge of these rights allows you to protect your interests and make the most of your investment in real estate. Being aware of these rights allows you to make more informed decisions and protect your interests as a property owner. Remember that owning real estate is not only about the physical structure but also about the bundle of rights that come with it.
Bluemark Realty Advisors is a privately-owned appraisal company focused on providing the highest quality and service. We offer commercial and residential appraisal services including appraisal reports, reviews, and portfolio valuation. For more information about real estate valuation for commercial and real estate appraisals please reach us at 813-330-1339 or at firstname.lastname@example.org.
Our Founder- Victor A. Torres, MAI
Victor A. Torres is a highly experienced and accomplished Senior Appraiser and founder of Bluemark Realty Advisors. With a wealth of knowledge and expertise, Victor has been providing exceptional commercial appraisal services since 2012, completing projects across Puerto Rico, Georgia, South Carolina and Florida. Specializing in residential subdivisions, multi-tenant retail facilities, triple net facilities, ground leases, industrial properties, proposed facilities, and single-tenant office/retail facilities, Victor is a respected and trusted professional in the industry.
In addition to his commercial appraisal work, Victor is currently managing the R3 Federal Program appraisals in the southern region of Puerto Rico. Funded by the Department of Housing and Urban Development of the United States (HUD), the R3 program provides assistance for the repair or reconstruction of single-family homes damaged by hurricanes Irma and/or Maria. Prior to co-founding Bluemark Realty Advisors, Victor held an appraiser position at Franklin Street Valuation Advisory in Tampa, Florida.
Victor holds a Bachelor's degree in Accounting from the University of Puerto Rico, Mayaguez campus and is State-Certified General in the state of Florida and Puerto Rico. He is also a Member of the Appraisal Institute (MAI), demonstrating his commitment to professional development and excellence in the field of appraisal. Victor A. Torres is a true industry leader, providing expert, reliable and unbiased appraisal services to clients.