Bundle Of Rights In Real Estate

Bundle Of Rights In Real Estate – The Comprehensive Guide

A bundle of rights in real estate is essential for all citizens when living or going to invest in real estate. So what does the bundle of rights involve? Follow this article for more information.

December 25, 2021

Before officially becoming an investor or simply working in the real estate industry, understanding the bundle of rights in real estate can help you have an accurate and legal perspective. 

Bundle Of Rights In Real Estate

What is the bundle of rights in real estate?

So what are the bundle of rights? The real estate bundle of rights is a term used for describing a group of rights in real estate, including the rights of the property owner and the person authorized to own the property. The bundle of property rights include possession, ownership, use, disposition, enjoyment, exclusion.


Land ownership is understood as the right to exploit useful properties of land to serve the State’s socio-economic goals. The State does not directly use all the land by itself but organizes for the whole society to use the land for all purposes. Land use rights are assigned to users (organizations, households, and individuals) on specific land plots.

Property owners have the right of possession in real estate. They are recognized actors in the process of possession, use, and disposition of land through direct or indirect activities. The all-people ownership of land creates a legal basis for everyone to have equal rights to own land.

The State will manage it through the following forms: formulating and approving specific master plans and plans on land use, formulating and promulgating legal regulations on land management and use, etc. Land users must also pay land use rights, land use right transfer tax, registration fees, etc.


Joint tenancy

Consolidated right of ownership is a case where two or more people jointly own a property, each of whom has an equal and undivided share. It means that all co-owners have equal rights to possess and enjoy the entire property. The consolidated co-owners have the right to survivorship. Accordingly, when a co-owner dies, this person’s interest in the property under the consolidated common ownership does not belong to the heirs but ceases to exist. Thus, this part of the benefit is evenly distributed among the remaining co-owners.

Tenancy in common

Joint ownership is the case where many people jointly own a property, each person’s share of ownership is not divided but not necessarily equal. Co-owners have no rights to the other, which means that if one co-owner dies, his share of the ownership will be inherited and the heirs become co-owners.

Any co-owner has the right to transfer his/her share of the common property. The transferee has the status of a joint owner of the property. In practice, if the parties do not agree otherwise or have no clear evidence to determine the form of the co-ownership relationship, the Courts will assume that this relationship is joint ownership.

Tenancy by total

Total ownership is the ownership relationship established between husband and wife, creating the unity of ownership as the property of one person. Full ownership shares many similarities with consolidated ownership. Thus, the wife (husband) has the rights of the other. However, in full ownership, a co-owner does not have the right to enter into any transaction or perform any action to terminate the full ownership relationship. The termination of the total ownership relationship can only be done through a divorce or an agreement between husband and wife.

Community property

There are eight states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington) that apply the combined property regime between husband and wife. Under this property regime, income and other property arising during the marriage are jointly owned by husband and wife. Upon divorce, the property under common ownership is divided equally between husband and wife.


The term “condominiums” is also used to refer to an apartment building or a construction that is divided into individually owned units, and the common parts such as land, exterior walls, equipment systems, the lobby… jointly owned by the community.

A person automatically becomes a member of the community when he or she owns a unit in the building. Members have the right to vote on community issues. The community is obliged to manage, maintain and maintain the common part, and each member must bear this cost periodically. Condominiums are subject to Federal laws. Under state law, each condominium must have a governing statute registered with the governing body.

Cooperative ownership

Cooperative ownership is a form of ownership in which a person owns and uses a certain unit of space in a building or structure but is not the owner of that space unit but actually owns it. share an interest in the entire building or structure. An organization (usually a company) is the person in the name of the owner of the entire building or structure, while individuals own an interest in the entire building or structure by owning shares in the company. take ownership of the entire building or structure. These individuals will rent out the apartments (units) in the building for the long term.


The right of use is a term utilized to refer to the way the owner uses their real property rights. Land use right is the right of the subjects to exploit the utility, enjoy the yields and profits from the use of land, lease it or be transferred from other subjects through the conversion, transfer, lease, sublease, inherit, donate… from the right holder.

Therefore, the use of a property is one of the important and practical powers of the owner. The owner may use the property according to his will but must not cause damage or affect the national interests, ethnic groups, public interests, lawful rights and interests of others. Usually, the owner directly uses his or her property but can be transferred to someone else on the basis of a legal contract of the owner. A person who is not the owner may use the property according to an agreement with the owner or as prescribed by law.

In some other cases prescribed by law, an agency or organization also has the right to use the property on the basis of a document issued by a competent state agency.

Bundle Of Rights In Real Estate


The right of disposition in real estate is the right to transfer ownership of the real estate, renounce ownership, consume, or destroy real estate. The disposition of property must be performed by a person with civil act capacity and not contrary to the provisions of law. Where the law prescribes the order and procedures for property disposition, such order and procedures must be followed.

The owner has the right to sell, exchange, gift, lend, inherit, give up ownership, consume, destroy or make other forms of disposition in accordance with the provisions of the law on the real estate. Meanwhile, a person who is not a property owner has the right to dispose of the property only as authorized by the owner or as prescribed by law. Where an individual or a legal entity has the right of priority to purchase certain assets in accordance with the provisions of law, when selling the property, the owner must reserve the right of priority to purchase for such subjects.

The right of disposition is exercised from two different angles:

  • For disposition from a practical perspective

Subjects can use methods such as the direct impact on the real estate by consuming or destroying property according to regulations. Consumption is the subject’s use of real estate to satisfy the needs of the subject’s life. Destruction of property is the act of the subject making the property no longer exist in different ways so that the property disappears forever.

  • For disposition from a legal perspective

Disposal from a legal perspective is understood as the transfer of real estate ownership from one subject to another in accordance with regulations, or the abandonment of property as a matter of law. arises the subject with a new right to that real estate. Subjects exercise their rights through specific appropriate civil transactions such as inheritance, donation, sale of property, etc. in accordance with the law.


The right of enjoyment gives the proprietor the opportunity to use and enjoy their own real estate in any way. This implies that the proprietor must take after all laws and mortgage holder contracts that apply. So, the proprietor is free to appreciate the property in any legitimate way.


Exclusion implies that the proprietor can forbid other individuals from utilizing or entering the property. A property proprietor does not permit anybody to get to a property without a warrant. Only law requirement officers with a lawful warrant have the correct to enter private property without consent. Easements, more often than not for utilities, some of the time provide access for third parties to perform upkeep.

Read more: What is an estate

What is restrictive ownership?

However, in some cases the rights of real estate owners are limited. The rights of real estate owners may be restricted by the following circumstances:


The easement is the right of a person who is not a real estate owner to use a part of real estate for a specific purpose. The right to translate may arise according to the agreement of the parties or according to the provisions of law. During the validity period of the right of subdivision, the owner of the immovable property has no right to prevent the beneficiary of the right to use the property within the scope of the right of translation. The right to translate shall terminate upon expiration or as agreed between the parties.


The property owner allows others to use the property in a certain way. The property owner may withdraw the license at any time.

Covenants and servitude

These are commitments made by the property owner regarding the use of the property. These commitments are often found in real estate contracts or documents or in plans. For example, owners of real estate lots in the same area commit to building houses of the same height, same paint color…

When possessing and using real estate, real estate owners must not cause a nuisance to adjacent property owners and must comply with the provisions of the law on environmental protection.

Is real estate management regulated?

The legal regulations on land management are largely enacted by the states and localities. The legal provisions mainly govern zoning, subdivision, construction management, official mapping, and land acquisition.

Bundle Of Rights In Real Estate

What is the concept of regional planning?

Regional construction planning aims to ensure the safety and health of the community and for other purposes. Thus, a city or locality is divided into several areas with different functions, for example, heavy industry, light industry, commercial area, and residential area. The area planning must comply with the comprehensive plan.

Divisional planning

The regulations on divisional planning govern the division of land by real estate dealers into many small plots of land. Partial plans must be submitted to the local authority to consider the connection between the subdivisions and public facilities such as roads and other public utilities. In addition, in some states, local governments may require real estate agents to set aside a portion of land for public purposes such as schools, parks, etc.

Construction management

In many localities, construction or demolition work requires a permit. The construction method must comply with the building codes issued by the local government.

Official map

On the official map, the local government identifies the road construction sites, but no one can build on the land that has been identified by the government.

Eminent domain

For public purposes, the Federal government, state government, and local government have the right to acquire land and must compensate the landowner. Compensation is determined based on the market price of the land.

Read more: What Does Pending Mean in Real Estate? A Comprehensive Guide 

Bundle of rights in real estate is the principal aspect that you should deeply understand before officially investing or working in the real estate profession. In addition, to gain more knowledge about this field, you could refer to our Real Estate practice exam, which contains all the knowledge and skills needed to work effectively in this industry. Hopefully, this article has provided you with enough information.