Real estate can be viewed as a bundle of rights. How these bundles of rights are grouped together determines the type of ownership interest an individual (or group of individuals) can stake claim to. In an ordinary life estate with remainder interests, which of the following rights is detached from the traditional bundle of rights that typically defines a fee simple absolute interest?
A) Possession
B) Use
C) Disposition
D) Enjoyment

Question

Quizplus · Accepted Answer

In an ordinary life estate with remainder interests, the right of disposition is detached from the traditional bundle of rights that typically defines a fee simple absolute interest. The life tenant only has the right to use and enjoy the property during their lifetime, while the remainderman has the right of ownership upon the life tenant's death. Therefore, the right of disposition (the ability to transfer or sell the property) is not included in this type of ownership interest.

Real Estate Can Be Viewed as a Bundle of Rights