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Forms of ownership: deeds, titles, leases

Published on March 31, 2024   9 min

A selection of talks on Finance, Accounting & Economics

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0:00
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.
0:24
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.
0:55
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

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