Real Estate and Oh The Laws
Wondering what are some laws regarding real estate? Also referred to as property law, real estate law is the aspect of law that deals with the buying, using and selling of land. The law governs how clients buy properties and what they can use the property for. It is called real estate law because it deals with real properties such as lands and buildings, as opposed to personal properties. This law has several aspects including titles, deeds, zoning, purchase financing, taxes and estate planning.
Laws Regarding Real Estate
The concept of this law includes various legal disciplines. First, real estate may be commercial or residential. It can be acquired and owned by a single person but used by another through rental agreements. Land can be bought and sold to individuals or to professional companies. Because of its high value, there are several laws to ensure the transactions are done properly and keenly recorded. Additionally, Stephen at Why Buy Houses says that through buying homes and real estate planning, land can be passed between different members of a family or owned by more than one person. Lastly, local and state governments have rules governing what lands may be used for.
Real Estate and State Law
Law practitioners who practice real estate law must be familiar with the state law that is applicable to their case. Such laws primarily apply to real estate. Although laws such as the Interstate Land Sales Full Disclosure Act is a federal law that applies to real estate universally, most laws regarding real estate comes from state laws. Such laws can vary from state to state; attorneys must therefore know how to identify the law specific to their case.
What is a Deed?
This is a document that gives an individual legal right to a property. Almost all states have laws governing the creation, execution and recording of a deed. A deed must be carefully drafted with a concise explanation of the property and the type of ownership involved in the property. In some cases, a deed comes with a promise that the person acquiring the property has a valid title. Such a deed is known as warranty deed. Other times, the owner is only interested in releasing any interest that a deed might contain. Such deed is called a quitclaim deed. It is important to pick the right deed for any property you acquire. As a real estate attorney, you must know how to advise clients on the right transaction to consider.
Real Estate Taxes
All real estate owners are subject to pay tax. The amount of tax levied by the government can be legally issued to the real estate owner. A real estate attorney can help clients on tax exemption through tax appeal boards and other legal proceedings. Tax on real estate can vary as well, depending on when you purchase and how long until you purchase. If you’re planning on buying a house in a year, reach out to a someone who knows what the tax situation will be then.
Leasing and Tenancy
Not every occupant of a property owns that property. Leasing and tenancy are important in real estate law. The terms of a lease are important to both the owner of the property and the tenant, whether the tenant is commercial or residential. Real estate lawyers assist clients draft and negotiate lease agreements.
The Bottom Line
Above are some laws regarding real estate. Keep in mind that this article gives only an overview of real estate. Real estate has a plethora of definitions and processes that agents are legally required to know and understand.