real estate

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Real Estate

Land, buildings, and things permanently attached to land and buildings. Also called realty and real property.

Real estate is the modern term for land and anything that is permanently affixed to it. Fixtures include buildings, fences, and things attached to buildings, such as plumbing, heating, and light fixtures. Property that is not affixed is regarded as Personal Property. For example, furniture and draperies are items of personal property.

The sale and lease of real estate in the United States are major economic activities and are regulated by state and federal laws. The two major types of real estate are commercial and residential real estate. Commercial real estate involves the sale and lease of property for business purposes. Residential real estate involves the sale and rental of land and houses to individuals and families for daily living.

The sale of residential property is heavily regulated. All states require real estate agents and brokers, who earn a commission from the owner of real estate for selling the property, to be licensed. To get a license, a person must have a high school diploma, be at least eighteen years old, and pass a written test on real estate principles and law.

Since the 1970s, home buyers have been given additional protection under the law. Many states and municipalities require a seller of real estate to file a truth-in-housing statement. A seller must disclose any problems with the home, such as a wet basement or the presence of termites, on the form. Failure to disclose this information can result in the revocation of the purchase agreement or a lawsuit by the buyers against the seller for Fraud. In addition, some laws require an inspector to visit the property to determine if there are any problems.

Most purchases of residential real estate require the buyer to obtain a mortgage from a bank or other lending institution. The lending institution receives a security interest on the real estate, which means that if the borrower defaults in paying back the mortgage, the institution can obtain title to the property and resell it to pay off the mortgage debt.

The federal government enacted the Real Estate Settlement Procedure Act of 1974 (RESPA) (12 U.S.C.A. § 2601 et seq.) to ensure that the buyer of residential real estate is made aware of the many costs associated with the sale. RESPA mandates that a federally insured lending institution give the buyer advance notice of all the costs to be paid on the date of closing the transactions. These costs typically include the cost of property surveys, appraisals, title searches, brokers' fees, and administrative and processing charges.

Cross-references

Sales Law.

real estate

n. land, improvements and buildings thereon, including attached items and growing things. It is virtually the same as "real property," except real property includes interests which are not physical such as a right to acquire the property in the future. (See: real property)

real estate

noun acreage, block, chattels real, estate, fee, freehold, ground, hereditament, land, landed estate, lot, parcel, plot, property, real property, realty
See also: demesne, domain, estate, fee, holding, immovable, land, parcel, premises, property, realty
References in periodicals archive ?
The London Business School survey found that despite speculation from real estate analysts across the UAE and the wider region about soaring property prices and the risk of another speculative property bubble, almost half (47 per cent) of respondents would invest in the Dubai property market.
The OeNB website now provides access to the OeNB's property market analyses and their underlying data.
Keogh and D'Arcy (1994) argue that maturity of the property market is not a process with an absolute finished accomplishment, it is rather a process that depends on market development routes and time periods to reach it, taking into account specific markets' processes and institutional forms.
The GCC fund flow is not limited to residential, which is another major plus for the local property market in gaining additional depth.
Regional month on month data recorded by the Agency Express Property Activity Index shows that the property market within Central England continues to thrive with an increase on properties sold from 11.
The chief executive of Hong Kong, Leung Chun-ying, has imposed three measures to rein in the property market, and has signalled that there may be more to come.
With an excess of supply negatively affecting the property market not only do the experts at JLL expect a drop in rents and prices but they think that asset management will determine which properties succeed and which fail (talk about stating the obvious, thinks Kipp).
The fall in sellers is good news for the property market.
Our property market has been taking off, which is causing some consternation," he told Reuters in an interview.
The property market of the Haitian capital Port-au-Prince was decimated by the earthquake and has yet to even start recovering.
MUSCAT Eoe1/4" With projections that the property market in the Middle East might bounce back in the near future, investors are warming up to the concept of distressed property fund.
UK buy-to-let property experts and landlords will gather to assess the impact of the UK property market meltdown, identify remedies and even learn how to buy a house for a pound.

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