In the contemporary world real estate has become a major sphere of business. While dealing with real estate matters it is of high importance to be competent in its legislation, i.e. to know your rights and duties. Before we proceed straight to the issue, we should clearly understand what is meant by real estate. Real estate is a term which includes property in the form of land and buildings, rather than personal possessions. Real estate is often considered synonymous with real property, in contrast with personal property.
As for real estate transactions, it is a process when the property stops being owned by one person or organization and becomes owned by another. This process is believed to be a complex one as it encompasses not only the transaction of rights for the property but also the amount of money being exchanged and state regulations.
Real estate transactions usually include the following operations: subdivision, conveyance, and mortgaging. There also exist different types of properties with their own characteristics such as residential, commercial, or industrial properties. Real estate transactions are mainly regulated by federal statutes as well as state statutory and common law. It should be pointed out that the requirements established by state law can often differ considerably among different countries in the world. State statutory law (also known as statute law) and common law are two opposed notions. Statute law is the body of principles and rules of law laid down in the statutes. For example, it can be found in traditional civil law and modern civil code systems. Common law, on the contrary, is based on judges’ decisions and on custom rather than on written laws. Therefore, presidential decisions of courts are in force.
To make a transaction a buyer of the property should hire a real estate broker to prevent himself from any mistakes or problems. The broker and seller sign a contract known as a listing agreement. It is governed by the general principles of contract law and is required to be in writing. It is also a common practice that the title to the property being sold is marketable.
It is very important to understand the real estate contract as many questions and problems may arise. There are some aspects that have to be controlled, for that reason a person should always know what is included in the contract and what is not. It is common knowledge that there are no perfect contracts but you should not stay behind especially if it concerns person’s interests. But if it happened so a person should tell the other party to revise the contract.
On the whole, real estate law includes a wide range of issues concerning all kinds of real estate transactions. The most common are: disputes, broker issues, construction defects and claims, agreements, rents, representation of property owners before governmental entities.
Recently many economists have come to the conclusion that there is a need for more effective laws in this field.
Further reading
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