Real estate refers to immovable property such as land, which also includes rivers or streams that may be part of the land, as well as any physical structures that may be affixed to the land like houses, buildings or commercial establishments.
The terms "real estate" and "real property" are often understood to mean the same thing, although in some circles, real property refers to the rights of the owner over the real estate. Both terms are used mainly in common law, which is further divided into property law, the laws that refer specifically to the property, and contract law, the laws which refer specifically to the rights of the person over the property.
For centuries, people have viewed land as the primary measure of wealth. Even today, land comprises a large part of the fortunes of the wealthiest individuals and nations. Developing countries who are rich in real estate use this to attract foreign investments that can spur economic growth. However, in recent years, economists have noted that the key real estate investments into developing countries have been derailed by the lack of effective laws to safeguard such investments.
The leading source of capital for purchasing and developing land real property is mortgages. These are loans that banks grant to individuals who use the real property as collateral. Mortgages are favorable endeavors for banks because they can't lose: either the borrower successfully repays his loan with interest or if the buyer cannot pay his loan, the bank can claim the rights to the property through foreclosure, which is an action that is decided in a court of law. Once the property is foreclosed, the bank can sell it to recoup its loan.
This is where economists raise a howl. An analysis of international banking and real estate laws reveals that, in many developing countries, there is no effective way for a lender to foreclose. With no legal or institutional protection, many investors are discouraged from investing in real estate in developing countries. Often, the mortgage loan industry is only open to a select few, mostly engaged in by a cabal of well-connected families who frequently use their social connections in matters of foreclosure.
Real estate is an industry that can help people experience great wealth. Many of the worlds richest people have made their money through real estate. It is no surprise that many people are looking into real estate as a career. Getting a real estate license allows you to help people buy and sell real estate. Each state has its own procedure on how to get a real estate license.
A real estate license is required in every state in order to practice as a real estate agent or broker. To get a license a person must be 18 years old or older, graduated high school or have a GED, and pass a written licensing test. Some states require schooling or college course work. The reason for testing and licensing is that real estate can be complicated and the laws can be hard to understand.
There are two levels of licensing in each state. A real estate agent can be a broker or salesperson. A broker can act on behalf of a client and a salesperson can only perform under the supervision of a broker.
The license test is administered by a state agency and the name of the actual test varies form state to state. You should go to the testing agency to determine your states exact licensing procedure. There are many variations on requirements like age, background, and education.
If education is required you should find out the specifics about this requirement. Some states require college course work, while others only require special real estate courses.
The test format can change at any time, so be prepared for any format. Basically, though, most states have a multiple choice test. The test will either be one part or broken into two parts. If in two parts, one part will generally cover key points and the other will get into specifics.
If you are wanting to persue a career in real estate the first step is finding out how to take the licensing test and how to prepare for it. Once you obtain your real estate license you are on your way to an exciting career.
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