The document discusses different types of property rights and interests in land. It describes the fee simple system as providing the largest bundle of private land ownership rights. It notes that government can impose taxes on private property through taxation, take private property for public use through eminent domain, and regulate land use through police powers. When a property owner dies without a will or heirs, ownership passes to the government through escheat. The document also discusses other estates like life estates and leaseholds, as well as easements and encroachments that can limit full fee simple ownership rights.

1. © OnCourse Learning
Chapter 3: Rights and Interests in Land

2. Exclusive Right to Use of Land
 Feudal System
 Allodial System
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3. Government Rights
Property Tax
• The right of government to tax private property.
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4. Government Rights
Eminent Domain
•The right of government to take private property
for public use upon payment of just
compensation.
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5. Government Rights
•The right of government to regulate private
property for the protection of the general public’s
health, morals, and welfare.
Police Power
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6. Government Rights
Escheat
•When a person dies and leaves no heirs and
no instructions as to how to dispose of real
and personal property.
• Ownership of property passes to the
government
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7. The largest, most complete
bundle of rights one can hold
in land; land ownership.
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Fee Simple

8. The Fee Simple Bundle of Rights
Real estate ownership is, in actuality, the ownership
of rights to land. The largest bundle available for
private ownership is called “fee simple.” © OnCourse Learning

9. Real Estate as a Bundle of Property Rights
• Property rights are what gives value to the real estate.
• Private property rights are subject to limitations imposed
by government. Thus, this can limit the value of the
investment.
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10. Removing Sticks from the Fee
Simple Bundle
Note that the fee simple bundle shrinks
as an owner voluntarily removes rights.
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11. Control Mortgage
Lease
Impose covenants or conditions
Grant easement
Grant license
Build or remove structures
Use & Enjoy Occupy as residence
Use as place of business
Farm
Mine/drill for oil, etc.
Place of recreation
Exclusion Maintain privacy
Non-trespass
Disposition Sell or refuse to sell
Give
Will
Abandon
Right or Benefit Stick in Bundle
Real Estate as a Bundle of Property Rights
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12. Commonly Found Easements
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13. Commonly Found Encroachments
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14. Other Estates
 Qualified Fee Estates
 Life Estates
 Statutory Estates
 Freehold Estates
 Leasehold Estates
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15. Rights and Interests in Land
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16. Cross Section of Estates and Rights in Land
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17. Cross Section of Estates and Rights in Land (continued)
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18. Checkpoint
In the absence of any other factors, which bundle of
rights has a higher value?
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19. Key Terms
 Chattel
 Easement
 Eminent domain
 Encroachment
 Encumbrance
 Estate
 Fee simple
 Lien
 Title
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