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 ?
Respondents also felt the commercial property market would remain relatively stable, with almost 64 per cent of respondents saying any increases or decreases in prices would be less than 10 per cent.
He appreciated the measures taken by the central bank for the property market. The increase in the transfer fee by the Dubai Land Department is another important step he added.
"As you appreciate the property market is cyclical everywhere in the world -- and you see a few years up, and a few years down.
There may, therefore, be some correction in the property market in certain areas but, unlike 2007, this will not result in a collapse across the whole of the country.
In the paper titled 'Affordable Housing and Cyclical Fluctuations: The Malaysian Property Market', Ferlito said the peculiar evolution of the Malaysian property market over the past decade had led to a large number of unsold properties in the high-end segment and partially unsatisfied demand for affordable housing.
RoS'business development and information director, Kenny Crawford, said:"The Scottish property market is a significant component of the Scottish economy.
This sale of our remaining interest was a strategic decision to realise some cash resources and reinvest in the south-west and south Wales property markets."
"The prices in the secondary housing market declined by 3.54 percent, primary housing market 7.75 percent, land market 1.65 percent, commercial property market - 20.29 percent, rental commercial property market - 17.63 percent for the year," Ibrahimov said.
In an apparent move to inject new life in the property market before the general elections, the federal government slashed on Thursday property valuation rates by up to 57% for certain localities of Karachi, Lahore, Islamabad, Rawalpindi, Peshawar and Faisalabad.
That is what Cityscape Global 2017 has delivered - a strong message that Dubai's property market wasn't the single driver of the real estate dynamic in the country.
'The property market will continue to be be buoyant,' Dy said, adding that while interest rates were expected to rise this year, a gradual increase would not curb demand for property.
ISLAMABAD -- Islamabad Chamber of Small Traders (ICST) on Monday said unilateral decision of the government to regulate property market has damaged this sector.

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