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Welcome again to the series
on real estate economics.
I'm John McDonald,
the Emeritus Professor
of Economics
at the University of Illinois,
Chicago, and an
Emeritus Professor
of Real Estate at
Roosevelt University.
Today's talk is on
forms of ownership.
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This is the second
talk in the series and
I indicated last
time that this would
be the talk on
owning real estate,
the bundle of rights, and so on.
So, as I mentioned
in the first talk,
the forms of ownership
vary according
to the bundle of
rights involved and
as I mentioned, we
will be focusing on
the maximum bundle
of rights because,
after all, that's what you want.
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So, what is in the
maximum bundle of rights?
First of all, there
is the right to
own the land and the improvements
affixed to the land.
As I mentioned last time,
that maximum bundle
includes the surface,
below the surface,
and above the surface
and all the improvements.
Now, as I mentioned,
the owner might possess
only some of those rights,
something short of
the maximum bundle,
but for now, we're focusing
on the maximum bundle.
Now, the second part of
that maximum bundle is the right
of exclusive possession
and control.
That means the right
of the owner to
use the real property
for any legal purpose,
naturally, to control entry,
to use the property as
collateral for loans.
Now, this is very
important, as you'll see,
that this is the method through
which ownership of property
can be transferred or,
in fact, purchased
in the first place.
That a typical loan puts
the property itself
up as collateral.
Now, finally, that right of
exclusive possession and
control includes collecting
damages for trespass.
Those are two of
the maximum bundle,
right to own the land
and the improvements
and the right of exclusive
possession and control.
Now, there are two
more major parts
