Real Estate Law

1
Real Estate Law

• Chapter 1

2
Real Estate Law - Overview

• Real Estate Law broadly defined covers the law
  of property
• 1. Land
• 2. Building (Improvements)
• 3. Ownership (different type of fee ownership
  and leasehold ownership
• 4. Transfers (lease, sell/buy, collateral for
  loan)
• a. Contracts of Sale
• b. Leases
• c. Mortgaging

3
Real Estate Law - Overview

• To transfer land, certain requirements are
  needed to confirm what, exactly, is owned
• Title insurance
• Property, liability, hazard insurance
• Zoning and certificates of occupancy (Cos)
• Environmental Reports
• Licenses and Permits
• Financing documents (note, mortgage, UCCs)

4
Real Estate Law - Overview

• To transfer real estate property, there is a
  CLOSING in which interests are exchanged
• Transfer documents
• Title Insurance Policy
• Property, liability, hazard insurance
• Adjustments of taxes/expenses (closing statement)

5
Intro to the Legal System

• What law governs real estate?
• US constitution and 27 amendments a grant of
  power from the states to the federal government
• - The main body of the constitution establishes
  legislative, executive and judicial branches of
  government.
• - All powers that are not granted to the federal
  government under the constitution are reserved to
  the individual states

6
Intro to the Legal System

• 2. State constitutions
• 3. Statutory law law enacted by legislative
  body
• - Federal statutory law
• - State statutory law
• 4. Local government law
• - ie. Zoning laws

7
Intro to the Legal System

• Administrative law
• - Agencies created by federal, state and local
  legislative and governmental body administers and
  implements particular legislation
• - Rules and Regulations
• ie. IRS, Environmental Protection Agency,
  Federal Trade Commission, Food and Drug
  Commission

8
Intro to the Legal System

• Judicial Decisions
• - Case law and citations to such law
• Citations is a reference to where you can find
  the case laws published and read the opinions
  (books/websites). The case law tells you the
  court and the decision (how the court ruled
• - Subordinate to the constitution and statutes
• - Often case law is used to interpret statutory
  law

9
Intro to the Legal System

• Common Law
• - When there is no controlling law court
  decisions
• - What would be the law based upon prior court
  decisions reasoned opinions
• Court of Equity based on fairness
• - The remedies include specific performance and
  injunctions

10
Legal actions in court system

• The action begins by filing a COMPLAINT
• The complaint is served upon the defendant
• The defendant files an ANSWER to the complaint

11

• Period of DISCOVERY each party tries to
  determine the status of case of opposing party
  
• - subpeona books and records (emails)
• - dispositions are taken (like interviews, but
  can be hostile)
• - interrogatories (questions in writing)
• Settlement or trial?
• - Jury trial only if a question of law, not
  equity

12
Other types of legal actions

• The courts are getting clogged and there are
  longer time periods to schedule cases to be held
  in the courthouse. What are the alternatives?
• Alternative dispute resolution
• 1. Mediation a mediator helps negotiate
• 2. Arbitration an arbitrator decides the
  outcome not bound by precedent and not subject
  to appeal

13
Other types of legal actions

• Alternative Dispute Resolution (ADR)
• Contracts can require mediation/arbitration
• Problem? Parties may want discovery and may get
  equitable relief in court

14
Jurisdiction

• Federal courts hear cases arising under federal
  statutes, the US constitution and cases that
  involved diversity of citizens (citizens from
  different state)
• Two arms of federal court civil and criminal
• - district courts
• - courts of appeal
• State courts two arms limited jurisdiction
  (ie. small claims) and general jurisdiction
  under the general jurisdiction is an arm of
  specialization (family court, probate)
• The highest courts
• - state supreme courts (can be called Supreme
  Court of state OR Court of Appeals) (highest
  of state)
• - US Supreme Court (highest of fed/country)