Property Ownership
Property ownership concepts define exactly what a person owns in real estate and how that ownership is held. This chapter reviews estates in land, the ways two or more people can co-own property, and the bundle of rights that make up real property.
Estates in Land
An estate describes the degree, quantity, and duration of a person's ownership. A fee simple absolute is the most complete form of ownership: it lasts indefinitely and can be freely sold, willed, or inherited. A life estate lasts only for the life of a named person, after which the property passes to a remainderman or reverts to the original grantor. Leasehold estates give a tenant the right to possess and use property for a term without owning the title.
Forms of Co-Ownership
When two or more people own property at the same time they hold a concurrent estate. Tenancy in common gives each owner a separate, undivided fractional interest that passes to that owner's heirs at death. Joint tenancy adds the right of survivorship, so a deceased co-owner's share automatically passes to the surviving joint tenants. Ownership by a single person or entity is ownership in severalty, and some states recognize community property between spouses.
The Bundle of Rights
Real property ownership is often described as a bundle of rights that includes possession, control, exclusion, enjoyment, and disposition. These rights can be divided and transferred separately. For example, an owner may sell mineral or air rights, grant an easement, or lease possession while keeping title. Real property also includes the land, everything permanently attached to it, and the rights that go with it, in contrast to movable personal property.