Real estate is one of the most common investments among citizens. And before the economic crunch, it was certainly one of the top money making industries in the country. It is not a wonder why there are many people who want to make real estate a primary source of income.
With all the commissions that one can earn from real estate, it’s really a lucrative business. However, before anyone can become a real estate agent one would need to have a license. This means that one would need to study real estate law and understand it thoroughly so he can serve his clients better.
Learn Real Estate Law and Get a Real Estate License
The very first requirement in getting a real estate license is one’s age. One must be at least 18 years old in order to qualify for a license.
Then one must be at least a high school graduate. This is quite expected since people would be expected to learn real estate law to get a license.
Again, it is important that one knows real estate law because there’s a written exam on it. One has to pass the real estate law exam in order to finally get the license.
Basic Real Estate Law
There are two types of real estate, commercial and residential real estate. Commercial real estate, of course, refers to a sale or a lease of property for commercial use. Residential real estate, on the other hand, is rental or sale of property to families for daily use.
Between the two, residential real estate is more heavily regulated. Since the 70’s, real estate law gives more protection to home buyers by requiring a truth in statement from the seller. This means that the seller must disclose all problems relating to the house being sold.
Failure to disclose problems like presence of termites or perhaps a wet basement could nullify the purchase agreement. The seller could also be sued for fraud. Real estate law may differ from state to state. But in many states, an inspector is required so that all problems can be determined.
Most home buyers would be required to get a mortgage from a bank or any lending institution. In return, the lending institution gets security interest. Should the home buyer default in the future, the lending institution will have the right to take the title of the property so they can resell it to recover the mortgage debt.
Nevertheless, a part of the real estate law would dictate that home buyers be told of all expenses and fees during the closing of transactions. So clearly real estate law is there to protect the buyers, the sellers and the lending institutions as well.