Definition of real estate and real estate law

Definition of real estate and real estate law
The legal definition of real estate or real estate is land and its buildings. The real estate law stipulates who can own and use the land.
This simple concept includes various legal disciplines. First of all, real estate can be residential or commercial. It can be owned by one person, but can be used by another person through a rental arrangement. Land can be bought and sold. Due to the high value of land, there are many local laws to ensure that real estate transactions are correctly executed and recorded. Land can also be passed between family members through heritage planning, or it can be owned by more than one person.
Finally, state and local governments have regulations on the purpose of land use – for example, each piece of land must be used in accordance with local zoning laws, and landowners must not damage the surrounding environment.
A legal term describing who formally owns land.
Mortgage:
A loan covering the price of a house. The new owner must take part of the ownership of the lender’s house as mortgage.
Foreclosure:
If the homeowner fails to repay the mortgage, the lender controls the process of the house.
Closing:
Formal transfer of real estate ownership meeting.
Escrow:
Money or property held for safekeeping by an unselfish third party.
Real estate agent:
Professionals with license to negotiate and conduct real estate transactions.
For the definition of real estate, please visit the glossary of property rights and real estate law. Learn more about these laws on our real estate legal answers page.
Practice area notes
Not every deal requires a real estate lawyer, but hiring a lawyer can be very useful for the average home buyer. First of all, real estate lawyers can look at the transaction history and ownership of the house to ensure that the house can be sold and that no past owners claim to own the house. Second, many lawyers can advise homeowners on mortgage options. Third, lawyers can help review sales contracts to ensure fairness to all parties. Most real estate lawyers charge an hourly fee, although some charge a fixed fee.
Related business areas
Tax law:
Owning real estate, especially mortgage real estate, will have a significant impact on the tax revenue of most families. Knowing the tax law can prevent families from overpaying.
Landlord tenant Law:
The landlord tenant law covers the law on the lease of real estate, including the lease, rent and eviction of residential and commercial tenants. Many lawyers think it’s part of real estate law.
Accidents and injuries:
Homeowners may be responsible for damage to property.
Heritage planning:
Some people are very concerned about keeping real estate within their families. Estate planning lawyers can help them achieve this goal.
Insurance Law:
Most landlords have homeowner insurance to protect their property from all types of damage.

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