The Top Property Management Newsletter and Events for July 2022
It’s Time to Celebrate Freedom!
We wanted to bring you a round up of the latest news, ideas and tips to maximize your experience as a landlord or REALTOR®.
On July 4, 1776, the Second Continental Congress unanimously adopted the Declaration of Independence, announcing the colonies’ separation from Great Britain.
The Constitution provides the legal and governmental framework for the United States, however, the Declaration, with its eloquent assertion “all Men are created equal,” is equally beloved by the American people because it set forth the framework for true independence and freedom.
The belief that we can be free in every aspect of our lives was a driving force that lead to the war between the 13 colonies and England. Part of that freedom included the belief that each individual has the right to be financially free – owning their own property and achieving independence for themselves based on their own hard work.
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.” -Andrew Carnegie, billionaire industrialist
What’s your idea of financial freedom?
Maybe it’s enjoying a long vacation in the Caribbean, or spending half the year skiing in the mountains. Maybe it’s a scaled-back work week, being able to work part-time, while you spend the rest of your time with your family or pursuing a hobby that you enjoy. Or maybe it’s retiring at the age of 40 and setting out on a great adventure to travel the world.
The definition of financial freedom will look different for everyone, but for most this achievement means reaching a point where you don’t have to worry about finances and knowing you have the wealth to support yourself and your family under any circumstances.
While there are many different routes that you can take to grow your wealth and find financial freedom, one tried and true method is none other than real estate investing.
If you own property, or are thinking about investing, and would like to discuss steps to obtain your own financial independence through property ownership and professional property management, please contact us today: Dan@PolarisManage.com
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What Is the Bundle of Legal Rights of a Property Owner?
(Based on an article by James Kimmons, The Balance: Small Business)
When a piece of property is sold, the seller transfers to the buyer a “bundle of legal rights” that comes with it. The rights included in this bundle are possession, control, exclusion of others from it, and disposal. Find out more about these rights and why they’re represented as a bundle of sticks in history.
What are the Property Owner’s Legal Rights in a Bundle?
The bundle of rights to property ownership is given to the holder of the title to real estate. The basic idea of property rights in the United States legal system is that they are a collection of privileges with respect to other people, rather than simply rights over a tangible item. Various versions of the bundle of rights exist, but the most important ones include:
- The right of possession
- The right of control
- The right of exclusion
- The right to derive income
- The right of disposition
The owner also has the right to exercise all or none of those rights
A.M. Honoré, a British legal scholar, made a list of instances of property ownership in the 1960s that included items besides rights. The prohibition of harmful use, for example, implies that an owner may not harm others through the use and enjoyment of their property. There is also no defined length of time duration during which the property belongs
How Does the Bundle of Legal Rights of Property Owners Work?
One or more rights may be lost or granted for a specific length of time before being restored. This can happen if, for example, the owner of a property wants to rent out a cottage on their property to a tenant or allow a farmer to grow crops on part of the acre.
There are some exceptions to the rights of landowners. For example, the owner of a property may not operate a business on their land if it is not allowed by zoning laws. And the owner of a property may not build something on their land if there is an ordinance preventing buildings from being too tall.
Owners of property also have to meet certain obligations, like paying taxes and keeping insurance. If they don’t meet these obligations, they might lose some of their rights as an owner.
The Right of Possession
A property is owned by the person who has title to it. If someone buys a property with cash, they own it right away because there is no mortgage note or other type of financial claim against it.
If someone takes out a mortgage on a house, the bank that loans them the money gets a lien on the property. This means that if the person who buys the house doesn’t pay back the loan, the bank can take back the property. The time it takes for them to do this might be different depending on which state the house is in.
The Right of Control
Owners generally have complete control over the use of their homes, but they must also comply with any subdivision or homeowner association covenants and restrictions, as well as local and state rules. An owner can’t have loud parties every weekend in their condo if the association’s bylaws prohibit playing high-volume music after 10 p.m.
The right to control may also be described as the right to manage—in Honoré’s words, the right “to decide how and by whom a thing shall be used.”
The Right of Exclusion
People can be kept from entering your property or home without your permission. This right is usually very well protected by law. However, there are some exceptions. Utility companies are allowed to go onto properties to fix things and a property owner who sells a piece of land might need to allow people to drive on their land to get to the new land.
The Right to Derive Income
Owners of a property can make money from it by renting it to someone or a business. They could also use the property to run a business if zoning permits.
The Right of Disposition
The term “disposition” refers to the ability of a property holder to transfer ownership of their property to someone else, including after their death. They can choose to sell or give it away. If the property owner still owes money to a lender, they must use the sale proceeds to pay off the remaining mortgage balance.
Some Key Takeaways
- Real estate owners have a “bundle of legal rights” that transfers to them when they purchase a property.
- The idea of property ownership as a collection of rights in relation to other people is the dominant way of looking at property rights under the U.S. legal system.
- The main legal property rights are the right of possession, the right of control, the right of exclusion, the right to derive income, and the right of disposition.
- There are exceptions to these rights, and property owners have obligations as well as rights.
Spicy Pineapple Slaw Recipe
Looking for something to SPICE UP that July 4th Holiday – Here is a favorite recipe from Southern Living Magazine.
If you’re looking for a little help on what to plan and pack during picnic season, try starting with this refreshing, picnic-perfect slaw to accompany grilled meats, sandwiches, and finger foods.
Who can resist a crunchy, festive, and colorful coleslaw recipe when the temperature starts to climb? Not only is coleslaw an easy and delicious way to use up seasonal produce, but it’s also a simple side dish that comes together very quickly using very few ingredients.
What we love most about this Spicy Pineapple Slaw, in particular, is that there’s no mayo in the ingredient list, making it an essential and portable recipe to add to your picnic collection. The added bonus of fresh pineapple and jalapeño and Fresno chiles give this tasty slaw a sweet and spicy flavor.
To prepare this recipe, combine cabbage, radishes, cilantro, and chiles in a large bowl. Just before serving, whisk together zest, lime and lemon juice, honey, and seasonings in a small bowl, and let stand for 10 minutes. This crowd-pleasing slaw serves 8, but it can easily be doubled for large gatherings and potlucks.
Ready in just 25 minutes, this zesty pineapple slaw is sure to be a mainstay of your summer menu for seasons to come.
Polaris Property Management is not for everyone – If you are a property owner that wants to self manage because you prefer to maintain control over the daily decisions, you enjoy meeting and picking tenants, control every detail of maintenance and repairs.
But, If you’re a property owner that doesn’t have the time or expertise, or are looking for more freedom in your daily life, then contacting Polaris Property Management company can be a great option.