Principles of real estate - Research Paper Example

Principles of real estate Introduction As a real estate agent for the past fourteen years, I have learned that Civil law guards or protects the status of real property in real estate markets whereby licensed people known as agents and realtors work in the market of purchasing and buying of real property in real estates. As a real estate agent with experience of over 14 years, I understand that investment in real estate is a weapon of choice if they are willing to invest. This is because from my prior practices, I understand that the stock market is growing more and more certain in that it is not easy to comprehend why this is happening this is so especially in Desoto and Memphis. For that past fourteen years, I have learned that investment in real estate is rewarding and lucrative when conducted well and in a right manner since it presents very few risks. It is significant to note that timeless adage knowledge is essential. Just as it is the case with any other financial investment, engaging in real estate investment without having as much knowledge as possible on the front end can be disastrous. Therefore, as a person who has been in real estate business for fourteen years, I am aware of the legal and economic tenets of the venture which includes property ownership, finance, valuation, and property management in Desoto and Memphis. Economic elements of real estate For the fourteen years I have been in the real estate business as an agent in both Memphis and Desoto, I know that when it comes to real estate, land valuation, land use and determination of incomes of owners of the land are some of the elements considered when purchasing or leasing an estate. In addition, I have learned that the value of real estate has taken the form of man-made structures which has made the value of land increase. Therefore, this has made me as agent to include all forms of tangible fixed capital. This is going to be done by identifying the rights enjoyed by tenants in various estates and the economic costs and benefits of various estates (Thomas, 1996). Therefore, as a real estate agent who has been in business for the past fourteen years, I have come to realize how the estate is used, and how I can exclude others from enjoying the property if it is personally owned by alienating or transferring some of these rights to other people on mutual agreeable terms. Legal aspects of real estate As a real estate agent working in Memphis for the past fourteen years, I have wisely made distinction between property and contractual rights. I have done by ensuring that there is a clear distinction between property rights that someone has over things enforceable against other people and contractual rights that are enforceable against a specific or particular person. In some instances, I will properly understand that property rights might come from contract (Thomas, 1996). In relation to real estate, for instance, I have to identify two sets of legal relationships to prevail alongside one another in that there is the property right to be exercised over the lease of the estate and contractual right to sue over evictions. In this manner, I have been able to work efficiently without complications in that I know my areas of jurisdiction as a real estate agent and in a position to handle any eventuality that might arise. Principle of property ownership From my fourteen year experience, I understand that property is usually perceived as being protected by domestic or local sovereignty. This is because ownership on its part does not necessarily equate with the issue of sovereignty because if ownership offered supreme power or authority, it will not be ownership but sovereignty. I have to do this due to the fact that; property ownership rights come from social convention while others come from explanation from natural law or morality. Therefore, as a real estate agent, I have recognized that law identifies different aspects of interests called estate in real property. This is so because this kind of estate is determined by the language of lease, will, deed, and land grant via which the estate is acquired. Real estate’s therefore, are differentiated by the varying property rights that vest in each property and that establish the transferability and duration of several estates. This principle has worked well in Memphis and Desoto where I have been working as a real estate agent (Thomas, 1996). From my past experience, I know that a person who is enjoying an estate that he or she has rented is known as a tenant while a party who has legally bought an estate is referred to as the landlord or the owner. I have to make this distinction basing on the fact that property ownership in real estate has got different ways in which people can claim to be real owners of the property. This in turn put me in a good position since I know there is an estate of indefinite duration that can be transferred freely. This is the common kind of estate under which the tenant enjoys larger discretion over the disposition of the property. There is also conditional fee which I will use to classify an estate as lasting forever so long as some of the conditions contained in the grantor’s deed do not occur (Thomas, 1996). Additionally, as an experienced real estate agent, I understand that in case such a condition takes place, the property will automatically revert to the grantor or in some instances; the remainder interests are transferred or passed on to the next party. I will do this because when looking at property ownership in real estate, it is vital I look at the leasehold whereby an estate that has got limited duration as stipulated in the contract known as ‘lease’ between the person granted or given the leasehold and the other person having lived in the estate for a longer time. Furthermore, as an agent, I know that property ownership in real estate business can be perceived from an angle of life estate because I know an estate that is purchased by a grantee lasts forever. This is calculated in line with life estate, an estate can be sold, but the sale does not alter its duration which is confined to or limited by the natural life of the original or real grantee. This enables me to demarcate what type of property ownership lasts forever and which one does not. Additionally, I have known that it is possible that estates can be jointly owned or held as joint owners with rights of survivorship or in simple terms as common tenants, therefore, they will not worry if they do not have enough cash because I will let them team up with their friends and purchase real estate property. The only difference that may manifest in this type of joint ownership of a real estate in land is the issue of inheritability of the estate and the shares of interests that each owner has. In this kind of joint ownership of real estate, the property will be protected by survivorship rights, in case of the death of owner, it means that the living or surviving tenant becomes the only or sole owner of the property. This is because nothing is expected to be given or passed to the heirs of the dead tenant. But I understand that in some circumstances, particular words containing right of survivorship must be applied or else the tenancy will assume that the property is owned by two people in a joint tenancy lacking survivorship rights. I will let this happen because joint tenants usually own an equal share of the property regardless of their individual contribution to the real purchase price of the property. If the estate is sold some day in the future, the proceeds are always distributed equally and in strict manner in that no credits are given for any extra or excesses than one of the tenants may have contributed during the time of purchase of the property (Thomas, 1996). As an agent who has been in the business for the past fourteen years in Memphis, I have come to realize that in case there is a purchase of a real estate by two people jointly and then it happens that, there is demise of co-owner through death of tenant in common, I will ensure that the deed will possess a heritable portion of the property to his or her ownership interest which in turn will be taken to be equal among all tenants unless the deed stipulates otherwise. However, if joint ownership property is subdivided or sold in some countries, a credit can be issued on the basis of unequal contribution to the purchase price of the property. Real estate can be owned by two parties or jointly via devices such as building, condominium and housing cooperatives so as to avoid unforeseen wrangles in case of a disputed property. Valuation in real estate When carrying out my duties, I have to determine the value of the property in the following manner. The value of a given building, business, rental property or a home is determined or calculated using variety of methods. Any given property price or value can be distinct depending on the intended use or on the purpose of valuation. Therefore, in real estate, I will sell or rent an estate to people after the value of the property has been calculated and determined by the investors (Thomas, 1996). I will determine the value of the land by looking for the property’s market value. I will do this because the value of property differs from each other due to their location which is the most significant factor in valuation. As a real estate agent in Memphis, I am designated with the some duties in that I choose which sales are good to apply in order to infer price of certain property on the market. Also, according to valuation tenet of real estate, I identify characteristics on market that may affect the price of the property in that these characteristics ought to differ between sales and the property. I will carry out this by estimating the value of the dollar of these distinctions for each pair-wise comparison of subject property and sale in Desoto and Memphis. Finance and Property management in real estate I have come to understand that property management is the control, operation, evaluation and overview of residential, commercial or industrial real estate. As real estate agent who has been working in Memphis and Desoto County for the past fourteen years, I know that property management is essential in order to maintain good relationship with the tenants. I have come to realize the following areas of responsibility which include; Tenant occupancy Facility Marketing and financial Risk and administration management I have been in the business for the past fourteen years and I know that when selling the property, as the property manager I will be perceived as the owner’s partner in managing the returns on investment of the property via effective handling of the above areas of responsibility to know how to deal with the company’s returns so as to avoid making losses. This is so because, as a property manager I know I am the person responsible for property management thus, I work in the best interest of the owner with the main of maintaining and sustaining the property, rent collection, record maintenance, making sure it is occupied by tenants and improvement of budget. As a real estate agent for the last fourteen years, I have known that real estate property management in terms of marketing and financial entails full comprehension of expenses incurred from operating the property. It is from this data that I have set appropriate rental rates which I have to ensure that they are balanced in accordance with the current market and what it need to endorse in the way of rents. I am well acquainted with firm knowledge and necessary competitive skills in the area of rental property which has enabled me to keep pace with other market players in the same business (Thomas, 1996). Therefore, sometimes, there is need for special programs, marketing programs and other advertising plans or measures to the property owner this is aimed to maximize rental and occupancy rates. I will do this by carrying out regular financial reporting to the property owner by presenting all financial statements and records, losses and profits, budgeting and income taxes to the property owner. As an agent working in Desoto County, as a property manager I understand the requirements or needs of the tenants this makes me react to their requests on time. In addition, this is attained in a manner that the property is the activities of the tenants in regard to lease requirements, often evaluate and assess satisfaction of tenants in regard to property amenities versus those rental estates in the area that are competing and I will collect rent in timely way Additionally, for the last fourteen years I have learned that it is significant to closely monitor the property by assessing the physical structures and outdoor areas to ensure that tenant’s security is guaranteed. For instance, I regularly monitor electrical, landscaping, walls, roof, appliances and other areas are all included in physical property to ensure that they are in order. This regular assessment is conducted in order to keep the structures in good condition. More so, as the property manager I have established and maintained good relationship with the repair companies and contractor, efficiently and wisely budget capital expenditures and observe the quality of repairs and property maintenance. All these activities I conduct them with the purpose of retaining tenants. As an agent who has sold estates for 14 years in Memphis and Desoto County, I have known that keeping the files and all records of the property are important so as to avoid being caught on the wrong side of the law. It is true that local, Federal and State government have some mandate with regard to real estate property management. I have learned how to keep all meticulous records of accounting and tax payments in order make them safe. For purposes of liability, my experience has made me aware that all activities and interaction with tenants must be recorded and filed for a certain specified duration (Thomas, 1996). I have known that all records of the property should be kept safe by ensuring proper filing. For more than fourteen years I have been in real estate business, I have acquired relevant knowledge that helps me to transact my everyday activity since I know how to prevent risks and losses. Reference Thomas, D. A. (1996). Thompson on Real Property. Charlottesville VA: Michie Co. Read More