Landowner Basics: Understanding Private Property Rights
“The best investment on earth is earth.” — Louis Glickman
Owning land—especially under fee simple ownership—comes with a powerful set of private property rights. Understanding these rights early, even before purchasing land, ensures you can fully enjoy your property while respecting the rights of others.
What Is Fee Simple Ownership?
Fee simple is the highest and most complete form of property ownership. It grants the owner full, irrevocable rights to the land and any structures on it, subject only to local zoning laws.
In practical terms, fee simple ownership means:
- You control the land indefinitely
- You can sell, lease, or transfer it
- You can use it for any legal purpose allowed by zoning
- Your rights are only limited by law or existing covenants
Private property rights are foundational to capitalist economies and many legal systems, making them essential knowledge for every landowner.
Core Private Property Rights
1. Right to Possession
Once you hold the title, you have the right to possess and control the land.
If the property is mortgaged, the lender typically holds the title until the loan is paid in full. During that time:
- Your possession rights may be limited
- Failure to make payments can result in the lender reclaiming the property
2. Right to Control
You may engage in any legal activity on your land, provided it complies with:
- Local zoning ordinances
- State and federal laws
- Neighborhood covenants or HOA rules
Covenants may restrict activities such as:
- Raising livestock
- Operating a business
- Using certain fertilizers
- Allowing grass to grow beyond a set height
Always review local laws and covenants before purchasing land. A qualified land professional can help you understand these restrictions.
3. Right to Use and Enjoyment
You may use your land for any lawful purpose. However:
- Illegal activities can result in federal forfeiture
- Zoning regulations may limit how the land can be developed or used
Municipal zoning laws exist to guide and control property development, and they directly influence what you can and cannot do on your land.
4. Right to Allow Others to Use the Property
You may grant others access to your land—either for free or for profit. This right is often a major income generator for landowners.
Examples include:
- Leasing farmland to farmers
- Charging for hunting access
- Offering agritourism experiences (pumpkin patches, fruit picking, corn mazes)
5. Right to Privacy and Exclusion
You may prevent others from entering your property. No one may access your land without permission, except in specific circumstances:
- Law enforcement may enter while pursuing a suspect
- A judge-issued warrant grants access for investigation
- Existing easements or access rights granted by previous owners must be honored
6. Right to Transfer Ownership
You may transfer your land however you choose:
- Sell it
- Gift it
- Include it in a will or trust
This flexibility is a key advantage of fee simple ownership.
7. Right to Use Property as Collateral
Land can be used as collateral to secure loans or mortgages. This may:
- Improve your loan eligibility
- Lower interest rates
However, defaulting on the loan can result in losing the property.
8. Air Rights
Landowners generally own the airspace above their property, with limitations:
- You may build vertically within zoning limits
- You may not build horizontally over a neighbor’s property line
- Air rights are especially important in urban or commercial development
What Landownership Rights Do Not Include
Owning the surface of the land does not guarantee ownership of:
- Minerals
- Oil
- Gas
- Other subsurface resources
A title search or mineral rights search is essential before purchasing land. You may discover that another party already owns the subsurface rights.
Understanding Your Private Property Rights
Private property rights are powerful, but they are not absolute. Knowing the limits and opportunities tied to your land helps you:
- Choose the right property
- Avoid legal issues
- Gas
- Maximize enjoyment and value
Accredited Land Consultant Matt Davis of Cushman & Wakefield summarizes it well:
“In addition to the personal enjoyment you and your family may receive from spending time on your property, owning land is a tried and true way of preserving and growing wealth. By leveraging the expertise of a land professional early in your property search, you can be confident you know what you are buying, what rights others may have that impact the property, and that you will be able to use the property the way you desire, for generations to come.”