Before we talk about real estate law, let’s understand different types of property. Generally, property means a person or business owns the legal title of any item, good, or land. In the legal field, the property is of three types:
- Personal Property: Movable items like furniture or any tangible goods come under personal property.
- Intangible Property: Property that a physical item can represent, but there is no physical existence, comes under the intangible property—for example, patents, trademarks, and copyrights.
- Real Estate Property: Lands, structures, buildings that are immovable or permanently fixed on the land comes under real estate property.
Here I have explained real estate law in detail. After reading this article, you will understand the important terminologies about real estate property and its law.
What Is Real Estate Law?
Real estate law encompasses the ownership rights of a real estate property, purchasing and selling a home, land, or building. Additionally, it also involves deeds, real estate contracts, leases, zoning laws, rental agreements, etc. The real estate laws vary from one state to another, and you should follow the laws of your state no matter who you are.
Whether you are a buyer or seller, real estate agent, or real estate attorney, you should know about the real estate laws of your state. Now, let’s take a look at some of the important terminology used in real estate law.
Terms In Real Estate Law
If you are a buyer or seller, you should know these basic terminologies used in real estate law.
Title: In the legal field, the title means you own a property. More specifically, it’s the possession or ownership of a home, land, or real property in the context of real estate.
Mortgage: If you borrow money from a lender, you keep some percentage of your new home as collateral. The lender has partial ownership of your new house.
Foreclosure: Foreclosure is a process by which a lender takes control of a house when the house owner doesn’t pay back the mortgage.
Closing: It’s an agreement where the ownership of a real estate property is transferred.
Escrow: In a real estate transaction, escrow is a third party that keeps the money or property safekeeping the transaction.
Real Estate Agent: A real estate agent has the license for making negotiations or helping the buyers and sellers in a real estate transaction.
Real Estate Attorney: A real estate attorney oversees the transaction history of real property. The attorney also needs to be present during the closing of a real property agreement. Additionally, the lawyer also handles the legal disputes of a property.
Real Estate Law Practices
These are some real estate law practice areas. Although a real estate lawyer knows about these laws, it’s also important for homeowners and real estate agents to have a basic understanding of the related real estate law practices.
Real Estate Tax Law: Every homeowner needs to be aware of the tax law, especially if the real estate property is mortgaged. A good understanding of the real estate tax law can help homeowners to save money without overpaying taxes.
Tenant Law: Property owners and tenants who come to a rental agreement for a real estate property for rent or lease should be aware of tenant law. No matter whether it’s a residential or commercial property, the tenant owner must be aware of the tenant law, and the tenant should also know about the law.
Estate Planning Law: Another important real estate law is estate planning. This law helps the homeowners to plan for their future to transfer the ownership to their family or loved ones after their death. An estate planning is a right person to help you plan for the estate.
Personal Injury Law: The homeowner will be held responsible if the tenant gets injured at their property. As a tenant, it’s also important to know about personal injury law and consult a lawyer if the homeowner does not compensate for your loss.
Insurance Law: Homeowners should know about insurance law that helps them to recover their damage due to any reason. Understanding the real estate insurance law helps you to claim any damage to your property.
If you are a homeowner or want to buy a home, these are some important real estate laws that you must understand.
However, if you want to become a real estate agent, you need specific qualifications. More importantly, if you want to become a real estate lawyer, qualification is not enough; you need several years of experience to become a prominent real estate attorney.
FAQs On Real Estate Law
Here are a few questions that will help you learn more about real estate law and why you need a lawyer for making a real estate transaction.
What Does A Real Estate Lawyer Do?
A real estate lawyer can help the buyers and sellers in many ways. Also, the lawyer can draft real estate documents and ensure that the transactions are done properly. Apart from that, the lawyer can also help their clients in case of any legal disputes of a property. Moreover, they can resolve any environmental or insurance-related issues of the property too.
What Is Real Property In-Law?
Property is a multi-faceted idea because there are several things that come under this term. However, the property is generally categorized into two parts in the legal parlance; (1) Real, (2) Personal. Real property refers to the property including land or structures, fixtures, and buildings upon the land. On the other hand, personal property includes other tangible properties such as; furniture, equipment, other tangible goods, etc.
Do I really Need A Real Estate Attorney?
Well, that’s your personal preference, but some states mandate a real estate attorney during closing. It’s always better to have a real estate lawyer who can help you in preparing documents, reviewing your transactions, property transfers, and can resolve any legal disputes.
Are You Purchasing A Real Estate Property?
Hopefully, the above information has helped you to learn about real estate law. Apart from that, you have understood the importance of a real estate lawyer. Now, are you purchasing a real estate property? If yes, and you have any queries, drop them in the comments section.