You buy a bundle of rights when you buy real estate. The acronym for memorization is SLUDGE. You may have some or all of these rights. See your rights following:
Sell-You have the right to sell it
Lease- You have the right to lease it
Use- You have the right to use it
Dispose- You have the right to dispose of it; you could tear the improvements down, sell the timber, or sell the rock and gravel.
Give Away- You have the right to give it away
Encumber- you can encumber your property with a loan, or an easement, or a covenant, etc.
Again you "may" only have some of these rights; A buyer of a commercial property may not have the right to use the property because of a long term lease held by a lessee. You may not be able to encumber the property with a loan possibly due to environmental regulations or other reasons.
When you have the entire bundle of rights it is called a Fee Simple Interest. If it is leased long term you have a Leased Fee Interest. If you are a long term tenant you have a Leasehold Estate Interest. If you have only the right to live there until you die, that is a Life Estate Interest. If you have the right to a property after someone dies that would be a Remainder Interest.
So you may be buying thinking you are buying just a house but in actuality you are buying a bundle of rights. If you have the entire bundle of rights...Fee Simple... that is still subject to other issues out there in the world. The acronym I use for these limitations on your rights is PETE.
Police Power- Zoning, ordinances, overlay restrictions, etc.
Eminent Domain- The government may establish a right to take your property away from you for such things that will help the overall public good. Like building a highway, power line, sewer easement, or even more controversial for economic development.
Taxation-Your property is subject to taxation by the government.
Escheat-If you die and there is no will or proper probate, the property will revert to state ownership.
Questions: Call Mark Baird, Appraiser 541-770-2769