Business Organizations and Agency Law Legal Issues (Real Estate) Essay

Business Organizations and Agency Law Legal Issues (Real Estate) - Essay Example The various types of real estate business comprises of (i) Appraisal which includes professional valuation services (ii) Brokerages covers assisting buyers and sellers in transactions (iii) Development comprising of improving land for use by way of addition or replacing buildings (iv) Property management which is managing a property on behalf of its owners (v) Real Estate Marketing that covers the sales aspect of the property business and finally (vi) Relocation services encompassing repositioning people or businesses to a different country. Within each field, an organization might focus on a specific type of real estate like residential, commercial, or industrial property. Apart from that, nearly every construction business essentially bears an association with real estate. (Real Estate: Wikipedia) Of late several economists have overlooked the fact that absence of effective real estate laws can impede investment in a lot of development nations. In almost every society, cutting across economic conditions, a considerable proportion of the net wealth is held in the form of land and buildings. In the most developed economies, the primary source of capital used by individuals and small companies to buy and make improvements in land and buildings is through mortgages in which the real property forms the collateral. The banks are ready to extend such loans at convenient rates in major part, since in case the borrower fails in making payment, the lender can make a foreclose which implies that, it can file a case, to take possession and sell it to obtain money. (Legal Encyclopedia: Real Estate) The fundamental concept forming the basis for real property laws are uniform across the US. Nevertheless, a lot of differences in the application of these concepts among the states as also among the counties and cities within the states are found. Freehold Estate constitutes the first category of ownership under the Real Estate Agency law. The idea of estates in the American laws emerged from the feudal system in England. Estates in land are interests that are currently or might become possessory and which are measured by time frame. Possessory estates confer the holder the right to immediate possession. Realty estates are further classified as freehold and non-freehold. While freehold estates go on for an indefinite period or until the happening of certain event, non-freehold estates terminate on a specific date. (Overview of Real Property Law in the United States) The largest estate that is allowed under the provisions of law is the fee simple absolute in which the holder of this estate possesses complete possessory privileges at present and in the future for an indefinite period. No restrictions on its inheritability are present, it cannot be divested and it will not terminate on the occurrence of any event. But, the holder of the estate can sell it or any portion of it during the period of his lifespan and make a will prior to his death for disposal of the property. The other possessory estates are Fee Simple Determinable that suggests a fee simple however restricts the use of the land. Life Estate that is an estate whose period is calculated by the life or lives of one or more human being, and terminates at the death of a person. Fee Tail, that is an estate