Real estate law is the area of law that governs the sale and purchase of land. It also regulates building codes and who owns property.
Lawyers who specialize in real estate law may charge an hourly rate or a flat fee. They can use legal time tracking software like Smokeball to bill faster and efficiently.
Property rights
Property rights are the legal protections that a property owner is given when they buy a piece of land. These include the right to possess, control, enjoy, exclude and dispose of the property as they wish. However, property owners should be aware that these rights may be limited by state or local laws and that these can also be superseded by liens on the property.
Homeowners have the right to use their property as they see fit, as long as they follow local and state laws. If homeowners want to operate a bar on their property, for instance, they can only do so if the land is zoned for this type of business and if they have the proper licenses from the city. Other limitations on property rights include the right to limit the amount of water a homeowner can take from a well and the right to remove anything erected on the land.
Formal property rights are indispensable for prosperous societies and have been shown to increase economic prosperity, security and societal resilience. Unfortunately, many communities lack these formal property rights, and as a result they experience increased poverty, inequality and violence. These problems can be mitigated by ensuring that local and state governments implement and enforce enforceable land laws. These laws should be based on local land-use planning, as well as the principles of equity and justice.
Contracts
Real estate contracts are complicated and legally binding, which is why it is important to have an attorney help draft them. Real estate attorneys are generally familiar with the regulations of their state and can quickly identify a contractual issue or problem that may arise during the home buying or selling process.
Contracts for residential properties typically include a legal description of the property; specifics of a mortgage, including amount, rate and term; closing dates for the finalization of the deal and transfer of ownership; deposit amounts; and contingencies. Typical contingencies are: home inspection, appraisal, financing, property taxes, and title insurance. Contingencies should be clearly written and realistic so that a buyer is not able to use contingencies as an excuse for backing out of a sale at will.
Unless otherwise stipulated, contracts should also specify which fixtures are included in the sale and which are not. Fixtures include things like kitchen appliances, light fixtures and ceiling fans. A contract can also stipulate liquidated damages, which are money that compensates a party for breaching the contract.
Lastly, the contract should include a kick-out clause. This is an escape clause that gives the seller the opportunity to finalize another deal with a buyer if the seller receives another offer for the property within a certain time frame. This is a common feature in real estate sales because the market can move quickly.
Licensing
A real estate license grants one party the authority to act on another person’s land, even when such action would otherwise constitute trespass. A licensed person must, however, keep a close watch over the licensor’s property and comply with all laws concerning the use of land and other property. A licensor may also revoke the license at any time. The licensee must immediately notify the licensor if any changes occur in the person’s status or circumstances that would affect his or her ability to operate as a licensed real estate broker or salesperson.
Students in this course will examine a variety of cases, problems and legal forms related to the finance and development of large commercial real estate projects. Initially, the course concentrates on the stages and transactions that comprise the construction loan package for a retail or office building project. Later, the course will explore secondary financing mechanisms with a focus on the financing of raw land through subordinated purchase-money mortgages or ground leases.
Students will work in conjunction with the Fitzgerald Institute for Real Estate, a new University institute that brings together faculty and students from the School of Architecture, College of Arts & Letters, Mendoza College of Business, and other academic units to address real estate issues across disciplinary boundaries. The institute will offer interdisciplinary research and scholarship, undergraduate, professional and executive education, and multidisciplinary conferences and workshops.
Litigation
Real estate law covers the exchange and ownership of property including land, buildings, and resources that exist on the land. This includes both commercial and residential property. Disputes often occur with these assets and can involve significant financial stakes, multiple parties and complex laws. Top attorneys who work in this area have a deep understanding of state and federal laws that govern these cases.
One type of dispute that occurs is a boundary dispute. This involves disagreements over the legal and practical property lines of a piece of land. Typically, these disputes are resolved by litigation. Boundary disputes can arise from a variety of factors, including whether or not the property boundaries are correctly registered and whether or not a practical property line is consistent with the legally registered property lines.
Another common issue that can lead to real estate litigation is a breach of contract. This is when one party fails to perform their duties under a contract. For example, if someone fails to make a mortgage payment, then the lender can begin foreclosure proceedings.
The field of real estate law also includes a wide range of other issues, such as taxation and property reassessment. The latter issue can cause disputes between homeowners and local governments over the value of their properties. It can also lead to litigation over public and private nuisances.