Interest = “a right to”Anytime you have “interest” in a property, it means you have a right to the property, whether it’s through ownership or a security. “Ownership interest” simply means that you have all of the rights that come with owning a property. Ownership interest is different from “security interest,” which is what your mortgage lender holds. Security interest means that a party can obtain ownership interest (or take ownership) of the property only if you fail to live up to your obligations as outlined in your mortgage contract. Unlike security interest, the ownership interest is the highest possible form of interest.
What rights come with ownership interest?No matter what type of ownership you have in a property – whether you own all or part of it – you have certain rights to that property. As a holder of ownership interest in the property, your rights include, but are not limited to:
- The right to use the property
- The right to dispose of or sell the property
- The right to be compensated for property loss or damage