World of Property & Real Estate

Real estate law: Not for you?

Real estate is indeed one of the safest investments and a lot of people use real estate as an investment avenue. Real estate law is not the forte of real estate attorneys and real estate agents only. Every real estate investor should understand at least the basics of real estate law. In fact, a short course or a concise book on real estate law can sometimes be of great help (and is generally sufficient for understanding the basics of real estate law).

What you need to understand is the real estate law with respect to the legal procedures that you need to follow for ensuring a smooth transfer of title to the property you acquire/sell and other related procedures. You need to understand the fee structure (e.g. stamp duty, etc) that you need to take care of as per real estate law. You can also understand the classification of properties and how the basic real estate law applies to them. How the commercial and residential properties are treated differently by the real estate law. The tax laws with respect to real estate are one of the things that would be of most interest to you. So, your study on real estate law should also cover all the aspects related to taxes. How mortgages are treated in the perspective of real estate law is another thing that you should know about. Then again, the real estate law with respect to tenancy should also be well understood by people who wish to rent out their property.

However, you should not overdo that i.e. you should not start becoming hysterical about learning real estate law (lest you end up wasting a lot of time in trying to learn everything about real estate law and be left with no time to evaluate your real estate investment). Leave the intricacies of real estate law with the real estate attorneys (and to some extent real estate brokers who too are taught real estate law as part of their course for obtaining broker license).

Understanding the various legal terms referred to in real estate laws can help you in not only enhancing your understanding of real estate but also help in making your conversations with real estate attorneys/agents really fruitful. You should also note that though some of the basics remain the same, the real estate laws vary across various states. Also, real estate laws (especially the tax related real estate laws) can undergo a change over a period of time, so you need to keep a tab on such changes. Any big changes will anyhow appear prominently in news and you will get to know of them anyhow.
So knowing a little bit of real estate law can really be helpful (and is, in fact, essential).

Whenever you buy or sell real estate, you may be like millions of other people out there, in thinking that you don’t need a real estate agent.  Most people who buy or sell homes, generally think that a real estate agent is a waste of money.  Those who choose to buy a new home, think that real estate agents only add to the cost of purchasing the home.

What most people aren’t aware of, is the fact that real estate agents are normally paid by the seller, not by the buyer.  As a buyer, you’ll get to work with a professional real estate agent without really having to pay for it yourself.  The policies can vary greatly from state to state and company to company, which is why you should always check any paperwork or contracts that are provided to you to ensure this is the case.  When you are interviewing agents, make certain to ask about any type of fees as well.

A lot of real estate agents out there may work with both buyers and sellers, although most specialize in working with either the buyer or the seller.  If you are buying a home, make sure that the agent you choose has prior experience of working with buyers and transactions that involve no money down.  This way, you can count on your agent to be there when you need him the most - especially if you don’t have a down payment.

If you are interviewing a real estate agent and he or she isn’t familiar with down payment assistance programs, you shouldn’t hire their services.  Agents who aren’t familiar with these types of programs generally aren’t on the level, or they may lack the experience necessary to help you purchase the home of your dreams.

You can also make a list of real estate agents that you can interview based on referrals from friends, lenders, and even family. Lender referrals are normally a great choice as most lenders have worked with their recommendations in the past and both are already familiar with each other.  Choosing a lenders referral can also prevent you from encountering any obstacles or surprises.

When you interview a real estate agent, make sure that you have the agent explain his fees.  This way, you’ll know exactly how much he will be getting from the purchase.  You should also find out how much experience he has in the field, and how long he has been working with real estate.  You can also ask about sample contracts as well.  If you are buying a home, you should make sure that the agent works with buyers.  If you happen to be selling your home, then you’ll want to make sure that the agent works with sellers. Agents that are dedicated to one or the other are the best to choose, as they will have more experience than agents who work with both buyers and sellers.

Find a real estate agent is an easy task - providing you know what to look for.  If you take things one step at a time and carefully make a decision, chances are that you’ll end up with an agent who has the experience you want.  You should always be careful when you choose, and never rush the process.  Real estate agents are easy to find, although finding one who fits your needs and has your budget in mind is a little tougher to locate.  When you make that final decision, you should always choose an agent who has your best interest in mind - and isn’t just after the money.