The Ins and Outs of Real Estate Law


The Ins and Outs of Real Estate Law

Real estate is one of the safest investments, and many people use it as an investment vehicle. Real estate law is not the exclusive domain of real estate attorneys and real estate agents. Every real estate investor should be familiar with the fundamentals of real estate law. In fact, a short course or a concise book on real estate law can be extremely beneficial at times (and is generally sufficient for understanding the basics of real estate law).

What you need to understand is real estate law, specifically the legal procedures that must be followed to ensure a smooth transfer of title to the property you acquire or sell, as well as other related procedures. You must understand the fee structure (e.g., stamp duty, etc.) that is required by real estate law. You can also learn about property classifications and how basic real estate law applies to them. Real estate law distinguishes between commercial and residential properties. One of the topics that would be of particular interest to you is the taxation of real estate. As a result, your real estate law study should include all aspects of taxation. Another thing you should be aware of is how mortgages are treated under real estate law. People who want to rent out their properties should, however, be familiar with real estate laws regarding tenancy.

Real estate law: Not for you?

However, you should not go overboard, i.e., you should not become obsessed with learning real estate law (lest you end up wasting a lot of time trying to learn everything about real estate law and be left with no time to evaluate your real estate investment). Real estate attorneys should handle the complexities of real estate law (and to some extent, real estate brokers, who too are taught real estate law as part of their course for obtaining a broker's license).

Understanding the various legal terms used in real estate laws can help you not only better understand real estate but also make your conversations with real estate attorneys or agents more fruitful. You should also keep in mind that, while some fundamentals remain constant, real estate laws differ from state to state. Furthermore, real estate laws (particularly tax-related real estate laws) can change over time, so you must keep track of such changes. Any significant changes will be prominently reported in the news, and you will be aware of them.

So, knowing a little bit about real estate law can be extremely beneficial (and is, in fact, essential).