The laws of business
Each of the most expansive real estate projects and endeavours is ultimately governed by federal, state or provincial and municipal laws and regulations. The Homburg Institute’s Business Law covers the core principles of business law that are the barrier to entry for each and every routine business transaction, no matter the scale.
This basic course is considered to be a fundamental requisite for any prospective real estate professional, and a worthwhile primer for those already working within the industry (particularly useful for real estate agents) and looking to firm up their knowledge bank.
Read on for a brief description of just some of the topics covered in Business Law. To register, you can follow the link in the conclusion of the article, or click here.
A contract that is inherently binding and enforceable by law must be home to a set roster of qualities before the two or more parties are tied to the obligations and rights enclosed within.
Only when the contract in question states its terms clearly, identifies the parties involved who are deemed to be competent, is devoid of any illegal implications, and includes the signatures of the parties involved (who are aware of the contract’s essential details) will it be legally binding.
In the case of real estate, contracts will also clearly and concisely identify property details in full, and outline agreed sales price and considerations.
Sales and leases
Sales and leases alike are a natural progression from the conditional nature of contracts. In order for a sale or a lease to be valid, a certain list of terms must be present in documentation.
In the case of a real estate sale, these are the identification of the parties involved, the designation of whatever properties are involved in the transaction, the agreed upon sale price and considerations (or an agreed upon formula used to determine pricing), and perhaps most importantly, a clear intent to sell.
Similarly, a lease agreement stipulates that all parties involved are accounted for in documentation, the agreed upon pricing and additional costs are laid out in full, the actuation and expiration of the agreement is documented, and that the property in question is both defined and accessible.
In short, the law of agency empowers a representative to act on your behalf in actuating legal relationships with third parties. For example, real estate agents (in this case aptly named) are bound by a list of obligations in line with their duties as an agent and you as a client. These include loyalty (putting your own best interests before their own), disclosure (prior relationships to buyers, sellers, etc), confidentiality, and accounting (accounting for funds entrusted to them).
Real estate investments play a significant role in the financial landscape. Because of this, the industry is no stranger to fraudulent and questionable activity.
As a result, government intervention in the form of regulation is established to guide or limit transactions based on their nature. These can include licensing and codes of conduct, but will vary and are ultimately in place to protect consumers and legitimize transactions.
Property and its protection is first separated into real property and personal property. The former is inclusive of land and everything permanently affixed to it - the latter, of all other property both tangible and intangible.
How these two property types are legally owned, exchanged, obtained, leased for tenancy and more are all topics subject to the specifics of the parties included and the conditions in which these transactions are taking place.
For more information on Business Law and how you can register, visit our website or the course’s official landing page.