5 Real Estate Regulations You Should Know About

January 8, 2021 – Real Estate Investing

Law governs everything, and real estate is not an exemption. Real estate and immovable property are subject to numerous regulations. Of course, these laws and regulations can be overwhelming due to their volume and complexity. 

A typical person would not know real estate laws, much less how to understand or comply with them. That’s why it’s always advisable to have a lawyer with you when making real estate transactions. These professionals understand the laws governing properties and can help you make legal and wise decisions.

The law on real estate is there, after all, to protect you and your interests. So it does pay to at least be aware of the basics. Whether you have employed legal counsel for your real estate transactions, make yourself familiar with these fundamental real estate regulations. 

1. Contract Laws

A real estate transaction will involve a written and signed agreement to make it official. In other words, they involve contracts. Contracts that are executed for any real estate transaction, whether selling, transferring of property, etc., need to lay down all the terms of the agreement. Contracts that meet the law requirements are considered binding, and both parties must comply with their obligations. 

In America, real estate contracts are usually written according to the common law of contracts — and contracts law is one of the most difficult to understand and navigate. A real estate lawyer can help you draft valid contracts that protect you and your interests. 

2. Disclosure Laws

Disclosure laws bind home sellers or landlords of renters. This requires them to disclose important information to whoever is interested in buying or leasing the property, such as the property’s condition, the shape it’s in, zoning laws, or other things that the potential dweller needs to know. This acts as a guidebook for whoever will be living there or making use of the property. 

If you are selling your home without a realtor or lawyer or you’re looking to rent out your property, do be aware of the disclosure laws and know what is expected from you so that you avoid any consequences due to noncompliance with disclosure regulations. 

3. Insurance Laws

Insurance is one of the most important things to have for your property to protect yourself financially in case of damage or other unforeseen occurrences. Without property insurance, you’ll be left to shoulder any incident that may arise — even if you did not cause it.

Always protect your home and yourself by getting insurance coverage. A lawyer who is adept at insurance laws particular to real estate can help you determine what specific coverage you need, the requirements you have to fulfill, etc. 

4. Landlord and Tenant Relationship Laws

In a lease agreement, both landlords and tenants have respective rights and limitations that concern the property. Some examples are those regarding taxes, termination, amount of rent, disclosure, etc. 

These are often drafted in the contract of lease, which governs both parties’ relationship — the leasor and the lessee. Though there is a contract, your terms and agreements’ validity is also subject to your State’s relevant laws. 

5. Zoning Laws

Governments and municipalities take zoning laws very seriously. Although it is your property, you also have to comply with zoning regulations so that you’re not becoming an obstruction or a hindrance to the complete safety of other residents, passerbyers, pedestrians, etc. 

The failure to comply with zoning laws can cost you a lot of money. So you need to be aware of the zoning policies in our area. 

For commercial property, there can be instances when changes to zoning laws can be requested. This is upon showing a valid reason or justification as to why you should be permitted to use your property in a certain way against zoning policies. But the process of this can be difficult and lengthy. 

The smartest thing to do is to consider zoning laws before deciding to buy or rent a property. 

Properties and real estate are all covered by the laws and regulations set forth by your State and city. Ensure that you are aware of the laws that you have to comply with — even if it’s just the basics. This will protect you from possible lawsuits in the long run. Get the help of an experienced and knowledgeable attorney to help you navigate real estate laws.


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