Interest = “a right to”What does "ownership interest" mean? Ownership interest denotes the legal rights and entitlements an individual or entity possesses in a property, whether it's real estate, a business or other asset. This interest represents the stake or claim a person has in the property, granting them the privileges and responsibilities associated with ownership. In essence, someone with an ownership interest holds a portion or entirety of the rights, benefits and obligations inherent to that 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