Real Estate Law And Renting Property

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Introduction to Real Estate Law

Real estate law refers to the relevant legislation about ownership and other interests in real estate and real property, which are commercial and residential. This legal area includes the ownership categories of property, real estate acquisition and sales, property rights of tenants and landlords, property taxation, and mortgages and possession powers. Everyone involved in the real estate business, whether they own property, rent homes, or work in the industry, must know the core principles of real estate law.

What Is Commercial Real Estate Law?

Commercial real estate law is a branch of law that deals with the buying, selling, leasing, and management of commercial properties. This includes service spaces such as offices and shops, commercial spaces such as shops and markets, and factory and storage spaces such as warehouses and factories. A knowledgeable Real Estate Lawyer is essential in navigating different aspects like the nature of zoning and land use, environmental laws, taxes on properties, and financial covenants, among others. This law also deals with the rights and duties of landlords and tenants under business tenancies, including the terms of commercial leases, where a Real Estate Lawyer can provide invaluable guidance.

Key Topics in Real Estate Law

Property Ownership

Ownership is a key concept that refers to the rights and obligations of individuals or companies that acquire title deeds to real estate. The main types of property ownership include:

• Freehold Ownership

This is the most complete property ownership as it gives the owner prolonged rights to the property. The owner has full rights regarding the property's usage or intended usage, depending on the zonal laws and ordinances of the place, and the owner has full rights to transfer, sell, or even own the property without any restriction.

• Leasehold Ownership

In a leasehold occupancy arrangement, the landlord holds the right to lease the property to a tenant for a stipulated duration. The tenant only has the privilege of occupying the building for a specified period via charging rent, but ownership is by the landlord.

• Joint Tenancy

Tenants holding a property together, each vested with an ownership interest in the real estate in equal measure, are said to be joint tenants. A particular interest in joint tenancy is the tenancy by entireties, which makes a real right to the surviving tenant.

• Tenancy in Common

Unlike joint tenancy, tenancy in common can be divided so that the multiple owners have varied stakes in the property. Held as co-tenants in common, there is no right of survivorship, as an owner can transfer his share of the property to the heirs or sell it.

Buying and Selling Property

The purchasing and selling of property is one of the critical areas covered by real estate law. It involves several legal requirements and potential challenges:

• Contracts

Real estate contracts are legal documents that state compensation for the sale, including purchase price, date of closing, and other conditions (e.g., financing or inspection). This should be taken care of since any areas of contradiction tend to lead to disagreement between the two parties.

• Legal Requirements

The parties are always bound by the several legal formalities that must be complied with at the time of purchase, disclosure of certain facts, title search, financing, etc. Breaches of these requirements may result in a postponement of the transaction, or in extreme cases, the transaction might be entirely withdrawn.

• Common Issues

Disputes tend to arise during property sales, and those regularly encountered include title problems, issues with zoning, and property liens. Such problems can always act as an added hindrance to sales and may even have to be sorted out through the courts.

Landlord-Tenant Law

Landlord-tenant law regulates lease agreements. A lease is an agreement duly signed between the property owners and the renters, and it depicts the rental information such as the rent, terms of the lease, and tenant responsibilities for maintenance, among others. Each of the parties must follow the provisions that have been agreed upon in the lease agreement. Seeking professional help for landlord and tenant issues can ensure that both parties understand their rights and responsibilities, promoting a smoother rental experience.

Rights of Landlords

• Rent Collection: A landlord's rights include the right to be paid rent as provided by the lease agreement.
• Property Maintenance: Typically, landlords demand that tenants maintain the property's good physical condition, apart from normal deterioration.
• Eviction: Landlords can evict tenants under specific circumstances, such as non-payment of rent, violation of the lease agreement, or unlawful activities.
• Access to Property: The rights of tenants include the right to enter the property for inspection and repair or, in cases of emergencies, normally by giving prior notice to the tenant.

Rights of Tenants

• Quiet Enjoyment: Tenants are allowed to occupy the property without interference from the landlord.
• Habitability: Tenants can occupy habitable premises and get essential services such as heat, water, and light.
• Privacy: Tenants’ rights include the right to privacy, which landlords are legally required to give prior notice before accessing the rental unit.
• Non-Discrimination: Tenants' rights to protection against discrimination based on race, religion, gender, or other characteristics have also been enhanced.

Property Taxation

Property taxation involves imposing taxes on real estate, such as land and buildings, through local authorities. These taxes fund public services such as schools, roads, and emergency services.

Property Assessments

These include property taxes, whereby the amount payable depends on the property's value as determined by the local tax assessor. The value may be different from the market value, and property owners are allowed to appeal the assessed values if they feel that they are overly exaggerated.

Tax Liens

If property taxes are not paid, they may be levied, and the government may put a tax lien on the property. This lien has to be cleared before the property can be sold or transferred in any way.

Exemptions and Deductions

Residential property holders can take advantage of tax credits or deductions, including homestead tax exemptions for the main residence and energy-efficient improvements for residence.

Mortgages and Foreclosures

A mortgage is evidence of a debt created by a lien on an interest in section 25 and land. It enables someone to buy property when they cannot afford to pay cash for it. However, failure to meet mortgage obligations can lead to foreclosure.

Mortgage Contracts

Mortgage details how many installments of a certain amount of money are needed to get a loan, including the interest rate, other repayment terms, and legal actions to be taken if the borrower fails to pay. Such terms should be defined before the parties enter into a mortgage agreement.

Foreclosure Process

Lenders can initiate foreclosure proceedings if a borrower cannot make regular payments towards the mortgage. Each state has laws about foreclosures, which typically outline the 6 phases of foreclosure. There are legal procedures that allow a borrower to pay for the loan or prevent foreclosure.

Borrower Rights

A borrower has a few rights while in default and before their properties are foreclosed. They have the right to receive notice of the foreclosure process, cancel the foreclosure process, and redeem their property before it is sold at an auction.

Frequently Asked Questions