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Understanding Your Rights as a Property Owner

Buying & Selling | By Bonnie Joffe | 0 Likes
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When you purchase real estate, you are not just buying the physical property—you are also buying rights that give you the ability to use, control, and dispose of a property as you see fit.

Whether you’re a homeowner or a prospective buyer, this guide will give you a comprehensive understanding of what is included in these rights—and where they may be limited.

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Privileges of property rights

Perhaps the most fundamental right of property ownership is your “bundle of rights” and the autonomy and opportunities it provides.

The right of possession

This gives the property owner the right to own, utilize, enjoy, and dispose of as they see fit, and the liberty to make alterations, rent, sell, or secure mortgages on it.

The right of enjoyment

The right of enjoyment grants legal authority to enjoy the property in a preferred manner. For example, the owner has the freedom to host a party at their residence, as long as it doesn’t violate any local noise ordinances.

The right of control

Whoever holds title to the property has the right to use it in any way they please except for what is prohibited by law. However, a homeowners association can enforce rules for the benefit of all homeowners and impose restrictions, such as a house’s paint color, exterior decor, or even the type of roof.

The right of exclusion

Property owners retain the right to prevent unauthorized entry or use of their property to protect their privacy and security. But, keep in mind, that there may be exceptions depending on circumstances, such as emergency services, law enforcement, or for someone or an entity with an easement to the property.

The right of disposition

This is fully realized only when the property is owned outright and not mortgaged. An owner can also sell, gift, or transfer their property to others, although they must comply with legal requirements and restrictions.

Water, air, and mineral rights

Located on, above, or under your property, these resources may be owned by you, the government, or another party. Before purchasing your next home, it’s crucial to inquire about your specific entitlements as the new homeowner.

Water rights

Water rights dictate a property owner’s entitlement to access and use adjacent bodies of water. Riparian rights, for instance, apply to those near rivers or streams, allowing water usage so long as it doesn’t impact neighbors. Littoral rights pertain to those living on a large body of water, including lakes, seas, or oceans. These rights vary by state and region and may not automatically come with land ownership. So when buying a waterfront home, be sure you know what your water rights are.

Air rights 

In real estate, air rights signify ownership of the airspace above a property, but they are subject to regulations, like aircraft and satellite restrictions. Air rights can be leased, sold with the property, or sold separately. Understanding your air rights is crucial, especially when it comes to drone use and responsibilities. Check with your local government for clarification, as these laws can sometimes be unclear.

Mineral rights

When you acquire a property, both surface and subsurface minerals, like oil, gas, copper, or gold, come with it since they’re attached and can’t be removed. Your mineral rights grant you the ability to sell, lease, or give them away. However, if these rights were previously sold to another party, such as a drilling company or the government, you won’t have any ownership of them.

Looking at floor plans of house

Limitations

Property rights are not absolute and can have limitations, which can affect the current or future use of the property.

Zoning regulations

Zoning ordinances separate land into different districts and impose restrictions on what property owners are allowed to do on their private land and how they can go about developing it. Each district may then face further guidelines imposed by the local government.

Easements

Easements provide permission for third parties to utilize your property for particular purposes, such as a utility company needing access to your land for power line maintenance. These privileges can limit how you use or upgrade your property. For example, you couldn’t add a fence or other structure that blocks access to your land or even your neighbor’s views.

Adverse possession

Also known as squatter’s rights, adverse possession is when a nonowner gains title and ownership to a piece of the property they have been occupying for a specified period without any legal action being taken against them. Depending on your state, the required time frame can range from seven to twenty years.

Eminent domain

In cases of eminent domain, the federal, state, or local government seizes private property for public use for infrastructure enhancements like roads, bridges, and water systems. However, owners have the right to receive just compensation in return.

Whether you’re a current homeowner or looking to sell, seek guidance from a real estate agent or attorney to gain a better understanding of your rights whether you are buying or selling a property.

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