Real Estate Law
Real estate law encompasses a wide range of topics. Among them, property rights, real estate transaction, and real estate discrimination are major areas.Real Estate and Property Rights
In essence, the term real estate refers to land and anything that is permanently attached to that piece of land (such as buildings and fences). The owner of real estate has the right to anything that is permanently attached and within the boundaries of that land; this also includes the air above the land and any underground resources within the boundaries of that land.
Many issues may occur and would require legal action when dealing with property rights. One of the most common instances is when trees belonging to one owner falls over and damages neighboring property. In that case, the tree owner would only be liable for the damages if the fall arose from lack of maintenance. If the damage resulted from natural causes, the tree owner would not be responsible for the damage. Another common dispute arises if the tree pulls up the fence between the properties; this is generally considered as an encroachment on neighboring property, and the tree owner would be required to remove the tree and pay for any resulting damages.
Real Estate Transaction Law
Real estate transaction law deals with governmental regulations and procedures connected with real estate transactions. These are governed by countless federal statutes, common laws, and state laws.
To initiate a real estate transaction, a professional broker is typically employed by the seller to identify potential buyers for the property. Real estate brokers and agents are licensed and regulated by local state laws. The contract between the broker and the seller is referred to as a listing agreement. A listing is exclusive when the broker is the sole person entitled to commission for finding a buyer. Under an exclusive listing agreement, the broker is entitled to payment -- even when the seller finds the buyer without the broker’s assistance.
The next stage of real estate transaction is the contract. The typical real estate contract requires the seller to show proof of title to the property, and that no other party has undisclosed interests in the title. To facilitate the process, the buyer usually relies on the services of a title insurance company. Title insurance will insure the buyer against any losses in the event that the title is invalid.
Lastly, the title of the property is passed from the seller to the buyer. The actual transfer of title occurs at the end of the transaction. In order to pass the title, a deed must be executed and delivered. A deed needs to be in writing and clearly identify the parties and the land involved in the transaction. Most of the time, a deed must be acknowledged by a notary public to be considered legitimate.
Fair Housing Laws
Laws that deal with real estate discrimination are often called fair housing laws. The purpose of these laws and regulations is to prevent unfairness in the sale, rental, and financing of real estate based on race, religion, sex, and handicap. Among the earliest real estate discrimination laws passed is the Unruh Civil Rights Act, a state law passed in California. The Unruh Civil Rights Act states that no one should be subject to any type of inequality due to his or her race, religion, or ancestry. It also prohibits “steering” and “block busting” as real estate business practices.
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