Real Estate Owership Right, BEnifits, Limitations

Real property, or realty, is the real estate and the legal consequences of owning the real estate, which is sometimes referred to as a bundle of legal rights, or appurtenance, that the owner has with respect to the real estate, and that transfers to any subsequent owner.A real estate owner has the same rights as an owner of personal property: the right to possess it, to control it, to enjoy it, and to exclude it from others, as well as the right to dispose of it by selling it, gifting it, abandoning it, or bequeathing it. This is the classic idea of ownership.However, real estate ownership is restricted in many ways by the law. Zoning laws, for instance, restrict what the land can be used for, environmental laws restrict what can be done to the land, easements restrict exclusions, and fair housing laws govern the sale of real estate. Real estate rights can also be restricted to certain aspects of the real estate, such as mineral rights.It’s obvious why real estate benefits the owner, but real estate ownership also benefits society by avoiding the tragedy of the commons—exploiting the land for one’s benefit, but not contributing to the renewal of the exploited resources. So, for instance, if a parcel of land is not owned, then people could come to cut down the trees to make firewood or furniture, but they would have no incentive to plant new trees, because they do not own the property, and thus, would not benefit by renewing the resources for others. Thus, real estate ownership promotes conservation and renewal of resources, and it also allows improvements. No one would spend money, for instance, to construct a building on land that they did not own.