Real Property & The Bundle Of Rights

July 6, 2022
Drucker & Mattia PLLC

The terms “real estate” and “real property” are often used interchangeably and incorrectly. When someone is discussing real estate, they are referring to:

  • The land
  • Natural improvements on the land
  • Artificial improvements on the land 

Imagine purchasing a single-family home that sits on multiple acres of land and has a small pond. When you buy real estate, you own the land, the home, and the pond. If you put a fence around the pond, that would be an artificial improvement. Even if the owner begins to plant crops and discovers there is an oil supply, they own both. These would be natural improvements on the land. 

Everything you have read above is likely in line with how you view a typical real estate transaction. Then how does real property differ from real estate?

Real Property 

Real property pertains to everything we just mentioned with one addition: the bundle of rights. These speak towards your interest and rights connected to owning the physical elements of the property. The bundle of rights refers to the following:

    • Possession: You legally own the property.
    • Control: As long as you are not violating any laws (including zoning laws and HOA rules), you can use your property however you choose.  
  • Exclusion: You can limit who enters the property. There are a few exceptions to this. For example, easements enable others to access your property. 
  • Enjoyment: This is another way of saying you can use your property as law as it is legal. In the scenario mentioned above with the single-family residence and the pond, the owners can fish in the pond or fill it—as long as they are not violating an environmental law. 
  • Disposition: The owners can sell the property or transfer ownership to someone else. Like exclusion, there are limits to this. Your right of disposition does not override a lien that a creditor places on your home. 

 

There are over three million housing units here in New York City, and renters occupy two-thirds of them. How do these laws apply to landlord/tenant relationships? Each state treats it differently. The right to exclusion, for instance, does not give you the right to evict a tenant unless they have substantially violated the lease agreement or laws.

Drucker & Mattia, PLLC

The attorneys at Drucker & Mattia, PLLC, offer large-firm services with a small-firm feel. We have extensive experience assisting clients with purchasing homes and commercial properties and legal matters connected to landlords and tenants. To speak with one of our attorneys, contact us to schedule a free initial consultation.

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Drucker & Mattia PLLC

When you’re facing legal issues or pursuing a lawsuit, skilled legal counsel makes a big difference. At Drucker & Mattia, PLLC, we specialize in a wide range of legal areas to meet the needs of a diverse client base.

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