To fully understand real estate and what it is, we have to go back to the basics and define the basic principles that define real estate. Although there are a lot of basic building blocks that we can talk about – real estate investing, various types of real estate investments etc., we will tackle the very basic of all the real estate fundamentals – the definition of real estate.
Real Estate Definition
In legal terms, real property is generally defined as land and things permanently attached to the land. Things that are permanently attached to the land which includes houses, garages, and buildings are often referred to as “improvements.” Substances that are beneath the land, such as gas, oil, and minerals are also considered permanently attached. Items that can be attached to the land, but are not necessarily permanent such as mobile homes and tool sheds are not considered real property.
Real Property vs Personal Property
Property is generally divided into real property and personal property. Real property includes things like the house and the land on which it lies, while personal property includes moveable goods – your car, clothes, and most of your personal possessions are considered personal property.
Ownership of Real Property
In the United States, there are special legal requirements controlling the ownership of real property. Under the Statute of Frauds, all contracts for the sale of real property must be done in writing. This holds true for all Scottsdale real estate, too, of course. In any event that the contract for real property is not in writing, it will not be enforced in a court of law. Furthermore, real property is not covered under the Uniform Commercial Code (UCC). This means that UCC warranties and regulations do not apply to the purchases or sale of real property.
Sale and Lease of Real Estate
The sale and lease of real estate in the United States are considered major economic activities and are heavily regulated by state and federal laws. The two major types of real estate are commercial and residential real estate. Commercial real estate is the sale and lease of property for business purposes, and residential real estate involves the sale and rental of land to people for daily living.
The sale of residential property is heavily regulated, and all states require real estate agents and brokers who earn a commission for selling property to be licenses. To get a license, a person must have a high school diploma, be at least eighteen years old and pass a written test on real estate principles and law.
We have now discussed the very basic fundamental building blocks of real estate, and this can be a good start in starting your journey with real estate!