The Legal Side Surrounding Real Estate - Case Study Example

The Legal Side Surrounding Real E For every industry that individuals are exposed to, there are subsequent laws that they are faced with that involve the overall structure being exposed to. With regard to Real Estate, those laws would be as diverse as they would be detailed. In light of the different types of real estate present, both commercial as well as privately owned, the laws present to govern the practices surrounding either type, would be uniquely formatted to fit within the constraints of the type of real estate being considered. While they would be laws that would be diversified in appearance, they would be fundamentally important in the end. In understanding the nature of commercial, as well as private real estate, it would first be imperative to understand what would constitute as a definition for the central factor in this case. As the real estate market would continue to see an onslaught of cases, involving the concerns of average consumers as to their ability to hold onto their properties at whatever cost, it would cause for a further examination of the laws presently in place for real estate at a level concerning homeownership and the steps that homeowners must take to save their homes and what they may face, both in their favor and what also may be against them as they seek to keep their dwellings. According to the dictionary accessed through law.com, the definition for real estate would be as follows, “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,” (“real estate”, p. 1). In observing the nature of real estate, such as how it would be connected, if anything, to the notion of real property, it would be assessed that, in terms of real estate, it would be all encompassing of various things that, with their given purposes, would require written laws to be available that would act as the governing body. In terms of its definition, commercial real estate law is defined as being a law that, “...governs real property -- immovable property like land, buildings and fixtures -- that is operated for profit. Commercial real estate includes any income generating property such as offices, shopping malls, restaurants, industrial parks, retail stores, and factories. Commercial real estate transactions are regulated by both federal and state laws. Although commercial real estate investment can be very profitable, there is always an element of risk involved, such as non-payment of rent or depreciation of the value of the property,” (“Commercial Real Estate”, p. 1). For properties such as retail chains, or other dwellings whose purpose remains the providing of specific services for profit received, the type of law that would govern the business’ overall structure would be that of a commercial nature. From a standpoint of transaction, or a purchase that is made between two or more parties, “Real estate transaction law overview helps the consumer fully understand federal and state statues enacted to protect the public from harmful business practices and procedures. Although certain requirements established by one state may significantly differ to another state, federal guidelines do apply to all states,” (“Real Estate Transaction”, p. 1). As many citizens have seen the threat of foreclosure on their properties rise as part of the increasingly uncertain economic state of the American economy, there would remain the benefit of familiarizing one’s self with the availability of information that further educates the masses about what rights are in fact guaranteed in regard to real estate possession. A key factor to keep in mind in this case, would be the level of information available for state related issues and to remain aware of the variance that can occur, in terms of how some regulations are handled by respective states but that when it comes to the federal government, many of their rules in terms of real estate law, are followed by all of the 50 states that reside within the United States. At the heart of real estate is the transactions that occur between a seller(s) & the buyer(s), so a regulation in place that would seek to govern the practice of real estate sales, would only seem to serve a realistic purpose. The following are a sampling of the topics mentioned within the previously mentioned source; Predatory lending RESPA Mortgage Fraud Fair Housing Act Real Estate Contracts Law Landlord-Tenant Law Federal Equal Credit Opportunity Act Privacy Policy Disclosure (“Real Estate Transaction”, p. 1). There are many factors to consider, when delving into the process of becoming involved with real estate. With both commercial, as well as private real estate, there becomes the greater issue of abiding by the laws present so that the transactions may occur without the presence of doubt, as to whether or not steps were missed. The laws would be specific for real estate independently owned, as well as the procedures in place for those wishing to rent property, or real estate, as seen in the existence of the Fair Housing Act, as well as the existence of the Landlord-Tenant Law. For those individuals that wish to achieve the dream of home ownership, the laws surrounding questionable financial lending practices, would be put into place for the sake of protecting the industry making the financial investment from allegations of wrongdoing and most importantly, offer the assurance to those seeking financing, to know that they have the protection behind them as they move forward with their endeavor(s). In looking at all of the legality involved in understanding the various aspects of real estate law, it can become quite possible to have those observing the verbiage, to become lost and confused, in terms of being able to digest and ideally understand the different levels of distinction and section categories that are found within real estate law, after further delving into the research available on the topic. Despite the incredible amount of legal language used within the written work created, the outcome of such laws created, impact not only the lawyers hired to argue such cases when the need arises but ultimately, the issue of real estate law, has influence on the grand scheme of the population and impacts all walks of life and socio-economic status. For those who seek to make the plunge into home ownership, or for those who wish to take on the position of being a renter, under real estate law, there would be a provision in place for them. Many of those laws seeking to protect not only the owner but also, affording a level of protection to whomever, or whatever, may be taking up residence within the dwelling, or structure itself. With the laws mentioned above, the following are described in greater detail; Eminent Domain- The news is full of reports these days about the Supreme Court ruling on eminent domain. If you own property, you should be concerned. The doctrine of eminent domain refers to the power states have over all the property in the state, public or private. That power allows the state to take private property for public purposes. The property owner is generally entitled to receive the fair market value of the property. Landlord Tenant Law- Landlord Tenant Law governs the rental of commercial and residential property. It is composed primarily of state statutory and common laws. A number of states have based their statutory law on either the Uniform Residential Landlord And Tenant Act (URLTA) or the Model Residential Landlord Tenant Code. Federal statutory law may be a factor in times of national/regional emergencies and in preventing forms of discrimination. Renters Rights- Arm yourself with knowledge and know-how before you sign your lease. If youre trying to rent your first apartment, it may be hard without a rental history. Heres a tip: rather than trying to rent from a property management company that is bound by rules, try renting from an individual. But wherever you seek to rent, youll have better luck if you take references and a credit report with you and know your renters rights. Housing Rights- Housing Rights are often overlooked. It is an unfair or discriminatory practice for any person, owner, or person acting for an owner, of rights to housing or real property, with or without compensation, including but not limited to persons licensed as real estate brokers or salespersons, attorney, auctioneers, agents or representatives by power of attorney or appointment, or any person acting under court order, deed or trust, or will. Mortgage Foreclosures- Failure to make payments results in the foreclosure of the mortgage. Foreclosure allows the mortgagee to declare that the entire mortgage debt is due and must be paid immediately. This is accomplished through an acceleration clause in the mortgage. Failure to pay the mortgage debt once foreclosure of the land occurs leads to seizure of the security interest and its sale to pay for any remaining mortgage debt. The mortgage foreclosure process depends on state law and the terms of the mortgage. The most common processes are court proceedings (judicial foreclosure) or grants of power to the mortgagee to sell the property (power of sale foreclosure). Many states regulate acceleration clauses and allow late payments to avoid foreclosure. (“Real Estate Law”, p. 1). In the end, the level of detail that would go into the overall understanding of the intricacies of real estate law would remain considerable. Different factions within the population that would have varying interests and with those diversified interests would require the need to have laws in place that would fulfill those interests. While many of the laws in place would have similar characteristics between them, many would have fundamental aspects to them that would set themselves aside from the rest and further outline the need for the number of laws that have been created. While some things may appear to be clearer cut than others, the multi-layered nature of real estate and the laws governing it, would only go to prove that, as it would come to real estate, the vast majority of the factors involved, would be anything but clear cut. Real estate is something that many are influenced by. Whether it is the desire to own their own property, or observing the dealings taken on by others, real estate remains one of the constant issues in life that for the most part, cannot be avoided. Real estate decisions may either be for personal and/or professional reasons and the ensuing ramifications of such decisions that are made, leave the need for laws that explain both the rights, as well as the expectations that come with such choices that are considered and executed. Further research, besides that which would have already been done, is also possible on this subject matter. For questions pertaining to federal, state and local real estate law inquiries, viable resources can be found through utilizing both the Internet, as well as the local public library. In general, for Internet searches for the subject matter, both Yahoo.com, as well as Google.com, maintains a solid level of resource information that can enable further research and greater understanding of the overall issue of real estate law. As more and more individuals gravitate towards the Internet for many of their daily research needs, those most aware of the intricacies of real estate law have elected to make much of the information available, highly accessible by those who seek to utilize the Internet in such a venture. It is increasingly beneficial to know as much as possible about the issue(s) that are being researched. Primarily, knowing the steps needed to be taken in the early stages is just as important, as the methods taken afterward. Knowledge is key and the greater the knowledge, the more likely the best outcome will be realized. As it may appear to be incredibly daunting and possess the ability to become inundated with the level of detail, full awareness of the aspects of real estate law, would only serve to aid individuals, instead of hinder them. Laws serve as the foundation, or framework, for a civilization to live and operate by. Real estate laws are no different in their relevance, as well as their fundamental influence that they wield. References “Commercial Real Estate”. Martindale-Hubbell Lawyers.com. Copyright: 2010. Page: 1. Retrieved from http://real-estate.lawyers.com/commercial-real-estate/ “Real Estate Law Information”. Legal Law Help. Copyright: 2000-2010. Retrieved from http://www.legallawhelp.com/legal_law_channels/real_estate_law/ “Real Estate Transaction Law Overview”. RealEstateLawyers.com. Copyright: n.d. Page: 1. Retrieved from: http://www.realestatelawyers.com/Real-Estate-Transaction.cfm “real estate”. Law.com Dictionary. Copyright: 2010. Page: 1. Retrieved from http://dictionary.law.com/Default.aspx?selected=1724&bold=|||| Outline I. Introduction II. Definition of real estate III. Definition of commercial real estate IV. Laws surrounding real estate 1. Greater detail about laws such as: A. Eminent Domain B. Landlord Tennant Law C. Renters Rights D. Housing Rights E. Mortgage Foreclosures V. 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