What is the 'bundle of rights' in real estate ownership?

The concept of the 'bundle of rights' refers to the various legal rights that come with real estate ownership. These rights encompass a range of entitlements that an owner has regarding their property. The notion suggests that owning real estate involves not just the physical land, but also a collection of rights that can include the right to possess, use, sell, lease, and transfer the property.

In this context, the rights of an owner to manage their property is a fundamental aspect of real estate ownership. This management includes the ability to make decisions about how the property is used, improved, and maintained, balancing the owner's interests against any regulations or restrictions that may apply.

While repurposing land, subdividing it, or leasing it are specific rights that can be part of the bundle, they are not as encompassing as the broader management rights. Management entails a wide range of activities that can include any of those specific rights, along with others, giving the owner comprehensive control over their property within legal bounds. Thus, recognizing management rights as part of the 'bundle of rights' provides a clearer understanding of the full scope of ownership in real estate.