Any understanding of the legal issues involved with real estate and mortgages must begin with the land and the other key elements of real estate, as well as how real estate is owned.
Real estate in the United States follows the allodial system of property ownership. This system recognizes the right of individuals to completely and fully own a parcel of property. This is no small thing, especially when this system is compared to other systems:
In American-English legal theory, it is important to understand the difference between these elements of land, real property, real estate and associated rights, such as air, mineral and water rights. This chapter will discuss these elements in three categories:
Most people treat the terms land, real estate and real property as interchangeable. They are not. Anyone who aspires to invest in real estate or work in the real estate industry must understand the key distinctions between these terms. Fortunately, they are not difficult concepts to grasp.
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