Nature of Real Property and Bundle Of Rights
Real Estate refers to land and all permanent improvements attached to it. It is also termed as real property or simply realty. It includes the surface of land itself, that which lies beneath the land, the air space above the land, and all things affixed to it by nature or by man.
A person who owns a real property also has the Bundle of Rights over that property, which includes the following:
- The Right To Use – The owner can do whatever he can to his property as long as follows certain limitations on land use. He may construct a building, plant trees on it, remove certain structures, etc. Or he may also do nothing at all to improve it.
- The Right To Dispose – The owner has the right to transfer the ownership of real estate to another through sale, donation, or will.
- The Right To Posses and Control – A real property owner has the right to exclude others from entering it and post a “No Trespassing” Sign to tell the whole world about it.
- The Right To Enjoy The Fruits – The real estate owner is also entitled to all the fruits of his real property such an income from lease and harvest from crop produce.
- The Right To Recover – In cases of disputes over ownership, possession and control over the real estate, the owner has the right to file his claims.
Limitations to the Bundle Of Rights
- Constitutional Limitations – The State can exercise its inherent Powers on private properties, including police power, eminent domain, taxation and escheat.
- Legal Limitations – Building code, zoning laws, subdivision regulations may limit ones rights over his property.
- Voluntary or Consensual Limitation – Includes those imposed by the property owner himself such as in a mortgage agreement, subdivisions restrictions, and voluntary easement. A property grantor may also impose property limitations to the grantee such as in a donation or will.
