Certified Residential Appraiser Practice Exam

Which of the following is NOT one of the five major rights in the bundle of rights?

1. Improvements

2. Lease

3. Equity

4. Transfer

The correct answer is: Equity

The five major rights in the bundle of rights associated with real estate ownership typically include the rights to possess, use, enjoy, lease, and transfer the property. In this context, the correct response identifies "Equity" as not being one of these core rights. Equity represents the ownership value of a property after accounting for any debts or liens on it; however, it is not a fundamental right of ownership. Instead, equity is a financial concept related to the value vested in a property. The bundle of rights focuses on the actions an owner can take regarding their property rather than the financial implications of ownership. On the other hand, the options that encompass the major rights include "Improvements," which allows owners to modify or enhance their property; "Lease," which is the right to rent or lease the property to another party; and "Transfer," which is the right to sell or otherwise convey ownership of the property. Each of these rights contributes to the comprehensive control that an owner has over their real estate, whereas equity is more about the financial stake or value derived from the property ownership.