real estate

Residential Real Estate Law
Real estate law involves rights in the ownership and possession of land and buildings attached to land. Real estate law often is referred to as the law of real property to distinguish it from the law of personal property, which includes all other property.
Below you will find some general explanation of real estate concepts and terms, the home-buying process, and landlord/tenant law.

Real Estate Ownership
Typically, ownership of real estate includes the following rights:

Property can be owned by one or more persons. The two common ways in which parties co-own a piece of property are joint tenancy and tenancy in common.

Joint Tenancy
Although joint tenancy is a popular way for a husband and wife to own property, there is no requirement that joint tenants be married or that there only be two joint tenants. Owners in joint tenancy have a right to sell, encumber, and possess the entire property. When one joint tenant dies, the remaining joint tenants automatically take the deceased joint tenant's share of the property by right of survivorship. The surviving joint tenants are required to file a death certificate and an affidavit with the county recorder. Joint tenancy allows the surviving joint tenants to avoid probate, transfer and death taxes.

Tenants in Common
Tenants in common, like joint tenants, share the right to possess, sell, and encumber the property. Unlike joint tenants, however, tenants in common do not have a right of survivorship. Upon the death of one tenant in common, his or her ownership interest passes to his or her heirs as part of the estate.

Advantages and Disadvantages of Co-Ownership
Although there are advantages to co-owning property, there are drawbacks as well. If co-owners cannot agree on use, sale, or possession of a piece of property, they may have to go to court to resolve the matter in a partition action. In a partition action a joint tenant or tenant in common asks the court to split the property in a fair and just manner. Real property may be difficult to divide and partial interests may be difficult to sell, so a court will usually order that the property be sold and proceeds from the sale distributed to the co-owners in relation to their interests.

Residential Real Estate
The most common consumer real estate transaction involves the sale of a home. Unlike years past, today a home buyer has a variety of options in deciding the type of dwelling to buy. Single family houses are still the most common selections for home buyers. Single family homes provide the maximum amount of privacy and freedom to their owners, but they may also be the most expensive option and require the most upkeep.

Condominiums and townhouses may be an option for some purchasers. Both give their owners many of the advantages of home ownership, such as tax deductibility of mortgage interest, without some of the responsibilities some people consider to be disadvantages, such as lawn care and exterior upkeep. Residents usually pay association fees to cover maintenance.

A homestead is not a particular type of dwelling; instead, it is a tax classification that can dramatically lower what a homeowner pays in real estate taxes. People who live in the property they own are taxed at a much lower rate than if they rent out that property to others. If a person buys property that currently is rental property, he or she must fill out an application to change the property's tax status; otherwise, the person could end up paying non-homestead taxes for the first year of ownership.

Title
Title to real estate is the ownership of the property. Title may refer to the actual ownership or to the documentary evidence of that ownership. Title is what gives the owner the right to the property. In order to sell a piece of property, all title matters must be cleared. Usually, this is accomplished through a title search. A title search is a diligent search of all records relating to the property to determine whether the owner is authorized to sell the property and whether there are any claims against it. If any defects in title are discovered during the title search, the seller usually has time to cure the defect.

Often people have title insurance to protect them against any hidden defects in the title. There are two types of title insurance. One type protects the lender's interest in the property and the other protects the home owner's interest.