Real estate has been defined in many different ways but most of these definitions share a lot in common. They describe real estate as property costing of land and other things on it, including buildings and natural resources. Crops, water, minerals, or flora and fauna are immovable property that can also be considered as part of real estate. What often comes in mind whenever ?real estate’ is mentioned is the buildings, housing and land on which they are built on, even though it usually has a wider meaning than just that.
Land and anything fixed, permanently attached or immovable on it including fences, fixtures, reads, improvements, shrubs and trees, sewers, utility systems, structures, and walls can all be part of real estate depending on the terms of agreement. Property that isn’t affixed is known as Personal Property, and include things like furniture and draperies. Also, real estate can be considered a business composed of the profession of buying and selling or renting of buildings and housing.
It is a huge industry that has grown tremendously over the years and has extremely advanced in current times. Media usually refer to the real estate market as residential living, even though it can be categorized into three comprehensive groups based on how it is used: commercial, residential, and industrial. Residential real estate involves the sale and rental of houses and land for families and individuals for daily living and includes undeveloped land, condominiums, houses, and townhomes. Commercial real estate comprises the sale and lease of properties for business purposes and includes office buildings, retail store buildings, and warehouses among others. Industrial real estate deals with factories, farms, and mines.
The sale and leasing of real estate are two major economic activities in the USA, which are regulated by the state and federal laws. The sale and rental of residential property is an area that is heavily regulated. All states need brokers and real estate agents to be licensed before they can sell property on behalf of property owners and earning a commission from it. To get the license, such people must be at least 18 years old, have a high school diploma, and pass some written test on the real estate principles and laws.
Since the 1970s, property buyers have been receiving additional protection under these laws. Many municipalities and states requires property sellers to file truth-in-housing statement. The seller is expected to disclose any problem with the home being sold, and shouldn’t hide anything or information that could have affected the selling of the property. Information such as the presence of termites, or wet basement are important and can affect the transaction in general.
Failure to disclose such information can lead to revocation of the buying agreement or the buyer can sue the seller for fraud. Some laws also require an inspector to visit and inspect the property to determine if there is any problem that might be of importance to the transaction. Most residential real estate purchases require that the buyer obtain mortgage from bank or leading institutions.