Reviewed by Aug 27, 2020| Updated on
Introduction to Property Rights
Property rights explain the legal and intellectual ownership of assets and resources and one can make use of the same. These assets and resources can be both intangible or tangible in nature, and the owner can be government, individuals, and businesses.
In some countries, including developed ones, such as the United States of America and the United Kingdom, individuals can ascertain their rights over private property or the rights of private persons to collect, delegate, sell, rent, or hold their property.
In finance, property rights constitute the base for all market-related exchange. The rights of property allocation in a community impact the quality of the resource use.
Understanding Property Rights
A property can be secured only by following the set of laws and regulations that are enforced by the government. These laws establish the rights of ownership and the kind of hold one gets on possessing the same. 'Property' is used very expansively here and the kind of legal security that some types of properties possess generally vary across regions and jurisdictions.
Generally, a property is held by individuals and association of a few people. The property rights and ownership of a property can be claimed through copyrights and patents to protect the following:
- Diminishing supplies, such as land and natural resources.
- Living beings other than humans, such as birds, cats, dogs, and horses.
- Intellectual properties, such as novels, literature, inventions, and ideas.
Rights of Private Property
Rights over private properties are one of the most important components of a capitalist economy, moral philosophies, and legal systems. In a regime of private property rights, individuals should have the capability to keep others away from using their properties.
Any privately owned property or resource is prone to rivalry. This means that a single owner may have the legal rights and claim of title over the property. Private property owners will have the legal rights to make use of the property they own to their benefits. Private owners can exchange the resources on their wish.