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 ?
These risks, for many years, have moved real estate markets through cycles.
But now that the real estate market is stabilizing and on an upward trend, well-established funds are also looking to shift to growth-type assets, which have variable rents that match market levels.
Recent trends and developments of the UAE real estate market
Market segmentation of Saudi Arabia, Egypt, UAE (including Northern Emirates, Dubai and Abu Dhabi), Jordan, Oman Kuwait and Qatar real estate market by residential, office, retail and hotel on the basis of total supply, 2005-2010
And Nima Nattagh, a real estate market analyst at CMDC, doesn't think any impact will be felt in the real estate sector until we are seven to eight months deep into next year.
Demirdache: The high level of competition in the commercial real estate market forces lenders and investors to be more aggressive.
The market is very solid right now,'' said John Karevoll, a real estate market analyst with La Jolla-based Acxiom/Dataquick.
com/research/b0b5e2/kuwait_real_estate) has announced the addition of the "Kuwait Real Estate Market Outlook to 2013" report to their offering.
His knowledge and experience of real estate market trends, negotiations, valuation, finance, architecture, marketing and buyer/seller psychology is unparalleled in the brokerage community.
But a regional real estate market analyst said the improvement is mainly the result of a comparison to last year's figures, which were dismal and thus give the impression that the market is rebounding.
com/research/283bcf/qatar_real_estate) has announced the addition of the "Qatar Real Estate Market Outlook to 2013" report to their offering.

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