Owning property comes with the bundle of rights. Property ownership is subject to the rights or interests of others. The bundle of rights is a common way to explain the complexities of property ownership.
It is useful to imagine a bundle of rights that can be separated and reassembled.
Imagine that in your hand you hold a number of straws. Each straw represents a distinct and separate right of the owner, such as the right to use the property, to sell it, to lease it, to give it away, or to choose to exercise all or none of these rights.
If the owner does not pay a worker who worked on the property, a mechanic's lien would be filed. That would take some, but not all, rights out of the bundle held by the owner. Taking care of the mechanic's lien returns those rights or "straws" to the bundle held by the owner.
Recognized rights include:
- the right of possession: the property is owned by whoever holds title
- the right of control: within the law, the owner controls the use of the property
- the right of exclusion: others can be excluded from using or entering the property
- the right of enjoyment: the owner can enjoy the use of the property in any legal manner
- the right of disposition: the title holder can sell, rent or transfer ownership or use of the property at will
Ownership of land is holding "title" to it. The evidence of the transfer of title is the deed. The seller executes a deed to transfer title to real property and the bundle of rights that go with it.