What is Real Estate?
Real estate is a legal term that encompasses land along with anything permanently affixed
to the land, such as buildings. Real estate is often considered synonymous with real
property (also sometimes called realty), in contrast with personal property, chattel, or
personality. However, for technical purposes, some people prefer to distinguish real
estate, referring to the land and fixtures themselves, from real property, referring to
ownership rights over real estate. The terms real estate and real property are used
primarily in common law, while civil law jurisdictions refer instead to immovable property.
In spite of the name, real estate has no connection with the concept of reality (in other
words, the law does not consider real property more "real" than personal property). It
derives instead from the feudal principle that in a monarchy, all land was considered the
property of the king. Thus originally the term real estate was equivalent to "royal estate",
real originating from the French royale, as it was the French-speaking Normans who
introduced feudalism to England and thus to the English language; cognate to Spanish real.
With the development of private property ownership, real estate has become a major area
of business. Purchasing real estate requires a significant investment, and each parcel of
land has unique characteristics, so the real estate industry has evolved into several
distinct fields. Specialists are often called on to valuate real estate and facilitate
transactions. Some kinds of real estate businesses include:
* Appraisal - Professional valuation services
* Brokerages - Assisting buyers and sellers in transactions
* Development - Improving land for use by adding or replacing buildings
* Property management - Managing a property for its owner(s)
* Relocation services - Relocating people or business to different country
Within each field, a business may specialize in a particular type of real estate, such as
residential, commercial, or industrial property. In addition, almost all construction business
effectively has a connection to real estate.
What is Foreclosure?
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or
repossesses a piece of real property due to the owner's default on its promissory note.
When the process is complete, it is typically said that "the lender has foreclosed its
mortgage or lien."
In the United States, there are two sorts of foreclosure in most common law states. Under
"strict foreclosure," the bank claims the title and possession of the property back in full
satisfaction of a debt, usually on contract. In the proceeding simply known as foreclosure,
the property is exposed to auction by the county sheriff or some other officer of the court.
Many states require this latter sort of proceeding in some or all cases of foreclosure, in
order to protect any equity the debtor may Have in the property, in case the value of the
debt being foreclosed on is substantially less than the market value of the property (this
also discourages strategic foreclosure). In this foreclosure, the sheriff then issues a deed
to the winning bidder at auction. Banks and other institutional lenders typically bid in the
amount of the owed debt at the sale, and if no other buyers step forward They get title to
the property in return.
Other states Have adopted non-judicial foreclosure proceedings, in which the mortgagee,
or more commonly the mortgagee's attorney, gives the homeowner a legally specified
notice of the default and the mortgagee's intent to sell the property. If the homeowner fails
to cure its default, or use other lawful means (such as filing for bankruptcy) to stop the
sale, the mortgagee or its representative will conduct a public auction in a similar manner
as the sheriff's auction described above. The highest bidder at the auction becomes the
owner of the property free and clear of any interest of the former homeowner.
In most jurisdictions it is customary for the foreclosing lender to run a title search of the
property and to name all other persons who may Have liens on the property, whether by
judgment, by contract, or by statute or other law, so that They may appear and assert their
interest in the foreclosure litigation. In all US jurisdictions a lender who conducts a
foreclosure sale of property which is the subject of a federal tax lien must give 25 days
notice of the sale to the Internal Revenue Service: failure to give notice to the IRS will
result in the lien remaining attached to the property after the sale.
Land lording and the Tennant.
A landlord is the owner of a house, apartment, condominium, or land which is rented or
leased to an individual or business, who is called the tenant.
In the United States, landlord-tenant disputes are governed by state law (not federal law)
regarding property and contracts. State law and, in some places, city law or county law, sets
the requirements for eviction of a tenant. Generally, there is limited number of reasons for
which a landlord can evict his tenant. Some cities Have laws establishing the maximum rent
a landlord can charge, known as rent control.
A rental agreement, or lease, is the contract defining such terms as the price paid,
penalties for late payments, the length of the rental or lease, and the amount of notice
required before either the landlord or tenant cancels the agreement. In general, the
landlord is responsible for repairs and maintenance, and the tenant is responsible for
keeping the property clean and safe.
Many landlords hire a property management company to take care of all the details of
renting their property out to a tenant. This usually includes advertising the property and
showing it to prospective tenants, and then, once rented, collecting rent from the tenant
and performing repairs as needed.
Duties of the landlord
The landlord has two common-law duties. The first is to give the tenant possession of the
land; the second is to provide the premises in a habitable condition - there is an implied
warranty of habitability. If landlord violates either, the tenant can break the lease and move
out, or stay and sue the landlord for damages
The lease also includes an implied covenant of quiet enjoyment - landlord will not interfere
with tenant's quiet enjoyment. This can be breached in three ways.
1. Total eviction of tenant through direct physical invasion by landlord
2. Partial eviction - when the landlord keeping tenant off part of the leased property (even
locking a single room). Tenant can stay on the remaining property without paying any rent.
3. Partial eviction by someone other than landlord - where this occurs, rent is apportioned.
If landlord leases tenant 100 acres of land, but it turns out that 40 of those acres belong to
another person, tenant only has to pay 60% of the rent.
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