Introduction to Real Estate

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:

  • Feudal system. All the lands are owned by the sovereign ruler, who then gives certain ownership or usage rights to his or her subjects, who then may allow peasants and other workers to lease land for farming or other use. This was the predominant system in Europe for much of the Common Era.
  • Communist system. Similar to the feudal system, all the lands are owned by the state-or the "people." Use of land is dictated by the state, and no individual can ever fully own any property.
  • Allodial system. The system used in the United States and much of the developed and developing democratic world.

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:

  1. Land. The ground surface and the natural elements below and above it.
  2. Real Estate. Land and any improvements on it.
  3. Real Property. Real estate and the different "rights" involved with it.

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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Real Estate Planning And Prosperity

Real Estate Planning And Prosperity

Entrepreneurs go against the flow. You've a business idea. Lots of individuals have business themes. The difference is that you, the entrepreneur, take action. Realty investors are the same.

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