What concept is used to define an "interest in real estate"?

The concept that defines an "interest in real estate" is often referred to as the "bundle of rights." This term describes the various rights that an owner has regarding their property, which can include the right to possess, use, sell, lease, and exclude others from the property. Each right can be individually transferred, sold, or retained by the owner, leading to a flexible arrangement of property interests.

In the context of real estate, the "bundle of rights" is essential because it encapsulates the totality of interests that one may have in a property, distinguishing between ownership and the various ways one can interact with that property. For instance, a homeowner not only has the right to live in the house but also can choose to rent it out, sell it, or modify it, reflecting the different facets of ownership contained within this concept.

Understanding the "bundle of rights" is crucial for anyone involved in real estate, as it not only affects how properties are transacted but also influences legal considerations surrounding ownership and the use of land.