Real estate can include property, land, buildings, air rights above the land, and underground rights below the land.
The term refers to real, or physical, property. As a business term, real estate also refers to producing, buying, and selling property. It affects the U.S. economy because it’s a critical driver of economic growth. Real estate, sometimes referred to as “real property,” is technically land plus any other tangible improvement that might rest upon it or be installed in it. The improvement might be a building that’s been erected there, or a roadway. It can be something that’s been inserted into the ground, such as a septic system. Land with any of these structures is said to be improved. It’s “unimproved” when it lacks them. Real estate involves numerous facets, because it doesn’t simply exist. It can segue from unimproved to improve. It can be purchased or sold. It might be owned by a government, a corporate entity, or by a private party. But certain components can have a direct impact on the economy: consistent improvement of land, and the individual and entities that facilitate those transfers of ownership. New home building is a critical category. It includes the construction of single-family homes, townhouses, and condominiums. The National Association of Home Builders (NAHB) provides monthly data on home sales and average prices. The data on new home sales is a leading economic indicator.3 It takes four months to establish a trend for new houses sold.
Real Estate Agents
Real estate agents assist individuals, businesses, and investors in buying and selling properties. The industry is typically divided up into specialties. Sellers’ or listing agents help find buyers through the Multiple Listing Service or their professional contacts. They price your property, using listings of recently sold homes known as “comparables,” or “comps,” because they’re similar to yours. They can help you spruce up your property so it looks its best to potential buyers. They assist in negotiations with the buyer or the buyer’s agent to get the highest price possible. Buyers’ agents provide similar services for the home purchaser. They know the local market, so they can find a property that meets your most important criteria. They also compare prices, a process that’s referred to as “doing comps.” This helps them guide you to areas that are affordable. Buyers’ agents negotiate for you, pointing out reasons why the seller should accept a lower price. They can help with the legalities of the process, including title search, inspection, and financing.
Types of Real Estate
• Residential Real Estate: Residential real estate includes both new construction and resale homes. The most common category is single-family homes, but there are also condominiums, co-ops, townhouses, duplexes, triple-deckers, quadplexes, high-value homes, multi-generational homes, and vacation homes.
• Commercial Real Estate: Commercial real estate includes shopping centers and strip malls, medical buildings, educational buildings, hotels, and offices. Apartment buildings are often considered commercial, even though they’re used for residences, because they’re owned to produce income.
• Industrial Real Estate: Industrial real estate includes manufacturing buildings and property, as well as warehouses. The buildings can be used for research, production, storage, and distribution of goods. Some buildings that distribute goods are considered to be commercial real estate. The classification is important because zoning, construction, and sales can be handled differently for this type of property.
Land includes vacant lots, working farms, and ranches. The subcategories within vacant land include undeveloped, early development or reuse, subdivision and site assembly. Anyone who buys or sells a home engages in real estate investing, and this means considering several factors. Some people do so well investing in their own homes that they want to buy and sell homes as a business. You might flip a house, buying it to improve it and then sell it. Many people own several homes and rent them out. Most individuals can negotiate face-to-face with another party. However, the terms of the deal must be properly recorded in a contract for them to be legally binding. Attorneys can negotiate on your behalf and also make sure that the contract adheres to all state laws. Furthermore, they can address any specific issues that might affect the future use of the property.
In many states, the buyer and the seller have three days to review a real estate contract before it becomes legally binding. Some buyers and sellers aren’t aware of this. A lawyer will make the client aware of it, review the contract for legal glitches, make necessary changes, and insert useful contingencies. Another vital service that attorneys perform is called a title search. Its purpose is to ensure that the property is free of any encumbrances, such as liens or judgments. The title search is essential because it reveals whether the seller has the legal right to sell the property. Although anyone can do a title search, an attorney will be able to do it faster and better. If they don’t do it themselves, they’ll often have working relationships with title search companies specializing in this service. If the search uncovers something problematic, your attorney can counsel you on how to proceed. Suppose a title search reveals that the sellers must pay a lien or outstanding court judgment before selling their home. A lawyer might negotiate a price reduction on the property to compensate you for the delay. The lawyer may also provide the seller with suggestions or sources for financing so that they can satisfy claims. Furthermore, attorneys can secure proof that judgments or liens have been resolved. That is important if you ever plan to obtain a mortgage or loan against the property. When one or more parties are corporations, trusts, or partnerships, the contract preparation and the ensuing negotiations are complicated. An attorney understands these different types of business arrangements and their legal boundaries within your state’s law. The attorney will ensure that the contract is consistent with the law and the partnerships, trusts, or corporation’s charter agreements. Real estate deeds often need to be filed at the county and state levels. An attorney will be able to do this quickly and efficiently. In some cases, the transaction might involve property in an area where certain types of construction are not allowed.
If that happens, an attorney will be able to navigate the maze of state regulations so that you can complete the transaction. If the transaction revolves around commercial property, securing an attorney is even more critical. The attorney will be able to cut through government red tape to establish your corporation or sole proprietorship as a valid business entity for state tax purposes. An attorney can also secure your actual business license through the municipality. Failing to file the appropriate documents at the state or the county level may result in dire consequences, such as:
• If a deed is not transferred correctly, it could lead to income or estate taxes for buyers and sellers.
• If building permits are not filed on wetlands, certain structures may have to be rebuilt, or owners may incur fines.
• If it is a commercial transaction, and the business is not correctly registered at the state level, the business might be forced to close.
If you’re selling a property, having an attorney represent your interests isn’t a legal requirement in most states. However, not having one increases your chances of being sued by the opposing party for failure to disclose certain information. That is because an attorney must review the home inspection and disclose relevant facts about the property to the other party. Suppose the other party is a corporation or a partnership, and the transaction is improperly completed. Then, they might sue you for not clearing the title to the property, failing to disclose certain defects, violating a corporate charter, or something else. While having a lawyer will not insulate you entirely from such litigation, obtaining legal counsel will certainly reduce your risk. An attorney will be much more likely to secure a clear title and make the appropriate disclosures. Lawyers can certainly help if you face discrimination during the home buying process. Even though most real estate lawyers do not specialize in that area, they will probably know an attorney who does. However, don’t let anyone convince you that you need to have lots of money or a high-priced legal team to respond to discrimination. Laws exist to protect everyone, regardless of income. Mortgage lending discrimination is illegal. If you think you’ve been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take. One such step is to file a report to the Consumer Financial Protection Bureau or with the U.S. Department of Housing and Urban Development (HUD). Having legal counsel makes good business sense because of the complexities that come with real estate transactions. Experienced real estate attorneys can help to protect your interests. They ensure that your transaction adheres to the applicable rules of your state and municipality. That way, the closing process can work to the satisfaction of all involved.
Roles Of Real Estate Attorney
The real estate attorney’s role with its many changing hat duties is as varied as it is challenging. Some role duties are;
• Superb analytical and negotiation skills. To translate this skill into a role we like to call this the chief operations officer combined with advocacy leader
• In fact, we were hired by an affordable housing group recently. Our affordable housing group client alleges the owners of their housing units were using fraudulent bait and switch. They used bait and switch practices for various ownership properties.
• Fighting as our client’s legal advocate, in this case, uses our expert litigation skills in the dispute.
• It is an example of why we are committed to being exemplary real estate attorneys.
• Excellent researcher. To translate this skill into a role we like to call this the scientist role.
• Great communicator. To translate this skill into a role we like to call this the teacher role.
• Stellar interpersonal skills and networking abilities. To translate this skill we like to call this the social media entrepreneur.
Some of the more typical real estate attorney responsibilities are;
• Draft legal papers for real estate transactions such as leases, mortgages, etc.
• Handle large-scale real estate portfolios with all the legal nuances which are different for each property.
• Assess legal risk in real estate documentation paperwork or court filings.
• Perform litigation of any real property transaction.
• Contract expertise in property management, purchases, and sales.
• Monitor legal risk on behalf and for their clients.
• Interpret real estate laws, rulings, and regulations.
The legal guidance a real estate attorney gives their clients cannot be overstated. A good real estate attorney can capture the best interest of their client in every real estate deal they are involved. This has unlimited value.
Real Estate Attorney Career
Some attorneys become real estate attorneys because of a bad real estate transaction that happened to them or their family. Many times what happened to chart the attorney on the path to becoming a real estate attorney was something they will remember forever. It might have been a real estate attorney who helped them. Regardless, it set their path to becoming a real estate attorney. This makes their commitment to real estate law and their clients powerful and unwavering. But the path to having a real estate legal career as an attorney is not easy to achieve. It takes commitment and effort. It also takes time and never giving up. The demands on your time as a real estate attorney are intensive. Sometimes the real estate dreams of young families rest on your shoulders. But that is what makes a career as a real estate attorney so challenging and needed. Real estate attorneys don’t always deal with one person or one family at a time. Sometimes real estate deals are complicated and have multiple interested parties.
As noted, some states require a real estate attorney to supervise real estate transactions and be present at closing. These “attorney closing states” are Connecticut, Delaware, Georgia, Massachusetts, North Carolina, Rhode Island, South Carolina and West Virginia. Other states are considered “attorney title opinion states,” meaning a lawyer is required to certify title. These states are Alabama, Louisiana, Mississippi, North Dakota, Oklahoma, South Dakota and Wyoming. Four states—Illinois, New Jersey, New York and Ohio—do not require real estate lawyers, however they are typically involved in transactions according to local custom and practice. If you don’t live in one of these states, it’s up to you whether you want to hire an attorney. It may depend on your confidence in your own knowledge of the ins and outs of real estate law. Hiring one is certainly worth considering if you’re trying to navigate a particularly murky or complex situation like a foreclosure or a short sale.
Salt Lake City Real Estate Lawyer
Ascent Law LLC concentrates on real estate and litigation cases. Our attorneys provide thorough assistance in all types business and real estate lawsuits and also unique property transactions.
If you require a Utah real property attorney, Ascent Law LLC would love to consult with you.
Call 801-676-5506 for a free initial consultation.
We provide free first appointments to real estate clients.
Real Property – Real Estate
Our firm has a history of success in standing up for clients in a large range of real estate deals and litigation. We are a firm with a track record for result-driven negotiations in real estate cases. Having attorneys that are both licensed real estate agents and licensed lawyers on your side gives you the confidence you need to move forward and prevail. Whether you are becoming part of a REIT or you need a life estate or a Declaration of Condominimum drafted you have come to the right place. We not only draft the documents and provide the support you need, but we also handle complex litigation, and evictions for landlords and owners. We do both residential and commercial evictions. We also handle commercial leases for shopping centers. One of our largest clients has been a 22 unit shopping center where we won the entire case. We even obtained an award of attorneys fees and costs for our client.
We can give you the support and information necessary to secure your investments and your legal rights.
Ascent Law LLC is a real estate and litigation firm well experienced in all areas of real estate law:
If you are ready to move forward with your real estate case, please call us now. We look forward to working with you on your case.
Free Initial Consultation with Real Estate Lawyer
When you have a real estate matter, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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— Jeremy Staxio (@JStaxio) December 7, 2022