National Real Estate Practice Exam

What does the term "Bundle of Rights" encompass in real estate?

1. Only the right to sell

2. All rights of ownership and use

3. Only rights associated with the physical land

4. Rights to access neighboring properties

The correct answer is: All rights of ownership and use

The term "Bundle of Rights" in real estate refers to the comprehensive set of rights that an owner has in relation to a property. This includes the right to possess the property, the right to use it, the right to exclude others from it, the right to sell it, the right to lease it, and the right to give it away or bequeath it. Essentially, it embodies the full spectrum of ownership rights that come with real estate holdings. This concept is foundational in real estate law and highlights that ownership is not merely about the physical land or structure, but also about the various legal rights that accompany that ownership. Therefore, the correct answer reflects the notion that a property owner has a multitude of rights, not just a singular aspect like the ability to sell or restrictions to physical land alone.