User:Xtiantaylor/Real estate

Education
The 19th century was a turning for modern real estate education. More recently, globalization has had a large impact on the development of real estate in both business, and culture industries. According to Schulte, there are three different approaches to real estate education: 1) surveying, 2) investment and finance, and 3) interdisciplinary . The surveying approach is property-related, and primarily involves the surveying of land and architecture; the investment and finance approach is primarily academic and analytical, with its focus in investment analysis; the interdisciplinary approach (or "eclectic approach") incorporates the the fields of finance, business, and design . Today, the US and UK are the leaders of real estate education and, respectively, adhere to the investment & finance approach, and the surveying approach; the interdisciplinary approach is a modification of both the UK and US approach.

The 19th century offered a change in perspective. In the 1850’s universal education was widely recognized in the UK. (See Education Law in 1870, Amendments in 1903, 1918). The first education and examinations began in 1881. In 1902 institutional and elementary education was provided for surveyors. Bachelor's degrees were first offered at the University of London and the University of Cambridge in 1918 and 1919, respectively. This change in perspective allowed real estate to shift from primarily rural land surveys [IL7] to urban architecture. Surveyors use the application of tools in order to provide a graphical representation of property.

In the 1870’s a popular issue called the “Land Question” was explored by scholars. Notably, Henry George (1879) and other scholars explored the issue. Fred M. Taylor led a class called “The History and Theory of Land Tenure and the Agrarian Movement” at the University of Michigan. This course and others were “abolished”. During this time, Gordon Howwell (Ford) and Pierson (Carnegie) argued for reform in real estate education; they proposed “the undergraduate programs were insufficiently analytical, too institutional, and vocationally-oriented[IL1] .” Due to their influence and argument for rigor, real estate programs in the US are currently more oriented to finance1[IL2].

[IL3]

In the US, entry level education for real estate brokers [IL4] and sales agents [IL5] require a high school diploma or equivalent. Necessary work experience is based on the employer, or formal training or education. It is supposed that employers prefer to hire candidates with a college degree[1]. In 2016 the annual median pay for this occupation was $37,040; the number of workers employed in this field were 444,100.

Real estate brokers are licensed and, as of 2016, held 95,300 jobs. Licensure to become a broker requires courses in real estate. Real estate sales agents held about 348,800 jobs (2016). “Both brokers and agents must take state-accredited prelicensing courses to become licensed[IL6], some state may waive this requirement if the candidate has taken college courses in real estate.”

A more formal distinction between real estate brokers, and real estate agents are as follows:

“Real estate brokers [IL1] are licensed to manage their own businesses. As independent businesspeople, brokers often sell real estate owned by others. In addition to helping clients buy and sell properties, they may help rent or manage properties for a fee. Many operate a real estate office, handling business details and overseeing the work of sales agents.

Real estate sales agents must work with a broker. Sales agents often work for brokers on a contract basis, earning a portion of the commission from each property they sell.”3[IL1]

Beginning of land ownership as real estate

England, a major region of appraisal as profession, began with farmers[IL1]. Notably, William Hussey began as a farmer and butcher. As other farmers did, he shifted from selling livestock to selling land.[IL2] Farmers were known to be experts of the land2.

Four major developments that led to real estate advancing as a profession were 1) a growing influence of water in the mid 16th to 18th century, 2) the major adoption of canals, 3) “numerous private and public turnpike trusts” being formed, and 4) the proliferation of railways. [IL3] In sum, the industrial revolution gave rise to the need for “valuation specialists[IL4] .” Water gained influence as a “means of sanitation” along with “inland transportation.” And, the need for tools and facilities required to measure, evaluate, and acquire agricultural land grew. During this time of agricultural reform in the 18th century, farmers became appraisers and/or surveyors. The Land Surveyors’ Club (1834) was the first organized group of appraisers. Later, there was the Royal Institution of Chartered Surveyors which began in 1868 and still exists today; following this,  most appraiser organizations were formed: (1868) Royal Institution of Charter Surveyors, (1888) New Zealand Institute of Surveyors, (1929) American Society of Farm Managers and Rural Appraisers, (1932) American Institute of Real Estate Appraisers, (1938) Appraisal Institute of Canada, (1938) New Zealand Institute of Valuers, (1952) Australian Institution of Surveyors. Though listed, these organizations are not all-inclusive2[IL5].

Evolutionary Origin of Property Rights

Property owners have almost unlimited rights to exercise when it comes to their property4. This includes the right to forbid others entry or use of that property.

According to James Krier and his essay “Evolutionary Theory and the Origin of Property Rights” the origin of property and/or ownership possibly developed through a mixture of natural evolutionary processes and human design. The concept of ownership is not strictly related to humans. A wide variety of animals also exhibit this trait. Krier concludes that the development of property began with agricultural processes cultivated during the period of hunter-gatherer societies4.

Property ownership today has been a topic in discourse for a variety of disciplines. Discourse centers itself in the nature of property rights and ownership. Property ownership has been explored economically, politically, psychologically, biologically, environmentally, and sociologically[1][2][3][4][5]. [IL6]

[1] Loncarich, K. (2015). Nature’s Law: The Evolutionary Origin of Property Rights. Pace Law Review, 35(2), 580–642.

[2] Connor, M. A. (2018). Race, Republicans, and Real Estate: The 1991 Fulton County Tax Revolt. Journal of Urban History, 44(5), 985–929.

[3] Wolf, P. L. (2017). Food Deserts and Real-Estate-Led Social Policy. International Journal of Urban & Regional Research, 41(3), 414.

[4] Wiese, A. (2014). “The Giddy Rise of the Environmentalists”: Corporate Real Estate Development and Environmental Politics in San Diego, California, 1968–73. Environmental History, 19(1), 28–54.

[5] TILLOTSON, A. (2014). Race, Risk and Real Estate: The Federal Housing Administration and Black Homeownership in the Post World War II Home Ownership State. DePaul Journal for Social Justice, 8(1), 25–52.

Real Estate Purchasing Process
Purchasing real estate is a multi-step process that brings together several specialists in order to complete this complex task. The real estate purchasing process differs from other purchases in the amount of time it takes to complete and the amount of people and research it takes to get to a real estate closing. For many people, purchasing real estate will be a major investment in their lifetime. Since this is such an important process, people should take the time to get a basic understanding of how it works. Once a basic understanding is obtained, people can move on with a basic understanding of the process.

The first step in the process is to choose a real estate agent who will represent the buyer/seller in the transaction. The real estate agent will be responsible for drawing up the contract to purchase property. Once the contract is accepted the purchaser will make a deposit as specified in the purchase agreement. Once acquired, a deed is given by the seller to the purchaser. The deed is a legal document, and must be witnessed and signed by all parties to go on record. The purchaser must hire a lawyer or title company to affirm clear title. The title company guarantees clear title.

Upon acceptance of the contract the purchaser and his/her agent will commence their due diligence. The contract must provide the purchaser with a set time period to inspect the property and raise any objections that should arise. During this period the property will undergo all necessary inspections to ensure the property is free from any building flaws and free from any kind of damage caused by insects or rodents. This would also be the time when a survey of the property would take place.

Once the contract is accepted, the purchaser will begin to acquire a loan unless it is a cash sale. The purchaser will hire a banking institution or a mortgage company to assist with the purchase. The bank/mortgage company will assign a loan officer to the account. Once the purchaser is certified to make the purchase, an appraiser is sent to give his opinion of the price of the property based on surrounding comparable sales. In real estate markets, properties are bought and sold on an infrequent basis. Current market value of real estate must be gathered from information regarding comparable sales in the area. The appraiser will then submit his report affirming the purchase price and the loan is funded.

After funding is approved, the real estate agent will set a closing date at a title company with the the buyer and seller. The title company which employs attorneys on their staff will review all documents relating to the property’s title. This will make sure that no one else can make a claim to the land and make sure there are no existing liens or judgments against it. Counsel must also study any existing easements or agreements that will bind the purchaser after closing. After this is complete, the title company will issue title insurance guaranteeing the property is safe for transfer. Both parties sign the required paperwork and the purchase process is complete.