Real estate

Real estate is property consisting of land and the buildings on it, along with its natural resources such as
growing crops (eg. timber), minerals or water, and wild animals; immovable property of this nature; an
interest vested in this (also) an item of real property, (more generally) buildings or housing in general.[1][2]
In terms of law, real is in relation to land property and is different from personal property while estate
means the "interest" a person has in that land property.[3]

Real estate is different from personal property, which is not permanently attached to the land (or comes with
the land), such as vehicles, boats, jewelry, furniture, tools, and the rolling stock of a farm and farm animals.

In the United States, the transfer, owning, or acquisition of real estate can be through business corporations,
individuals, nonprofit corporations, fiduciaries, or any legal entity as seen within the law of each U.S.
state.[3]

History of real estate

The natural right of a person to own property as a concept can be seen as having roots in Roman law as
well as Greek philosophy.[4] The profession of appraisal can be seen as beginning in England during the
1500s as agricultural needs required land clearing and land preparation. Textbooks on the subject of
surveying began to be written and the term "surveying" was used in England, while the term "appraising"
was more used in North America.[5] Natural law which can be seen as "universal law" was discussed
among writers of the 15th and 16th century as it pertained to "property theory" and the inter-state relations
dealing with foreign investments and the protection of citizens private property abroad. Natural law can be
seen as having an influence in Emerich de Vattel's 1758 "Law of Nations" which conceptualized the idea
of private property.[6]

One of the largest initial real estate deals in history known as the "Louisiana Purchase" happened in 1803
when the Louisiana Purchase Treaty was signed. This treaty paved the way for western expansion and
made the U.S. the owners of the "Louisiana Territory" as the land was bought from France for fifteen
million, making each acre roughly 4 cents.[7] The oldest real estate brokerage firm was established in 1855
in Chicago, Illinois, and was initially known as "L. D. Olmsted & Co." but is now known as "Baird &
Warner."[8] In 1908, the National Association of Realtors was founded in Chicago and in 1916, the name
was changed to the National Association of Real Estate Boards and this was also when the term "realtor"
was coined to identify real estate professionals.[9]

The stock market crash of 1929 and the Great Depression in the U.S. caused a major drop in real estate
worth and prices and ultimately resulted in depreciation of 50% for the four years after 1929.[10] Housing
financing in the U.S. was greatly affected by the Banking Act of 1933 and the National Housing Act in
1934 because it allowed for mortgage insurance for home buyers and this system was implemented by the
Federal Deposit Insurance as well as the Federal Housing Administration.[11] In 1938, an amendment was
made to the National Housing Act and Fannie Mae, a government agency, was established to serve as a
secondary market for mortgages and to give lenders more money in order for new homes to be funded.[12]
Title VIII of the Civil Rights Act in the U.S., which is also known as the Fair Housing Act, was put into
place in 1968 and dealt with the incorporation of African Americans into neighborhoods as the issues of
discrimination were analyzed with the renting, buying, and financing of homes.[13] Internet real estate as a
concept began with the first appearance of real estate platforms on the World Wide Web and occurred in
1999.

Residential real estate

Residential real estate may contain either a single family or multifamily structure that is available for
occupation or for non-business purposes.[14]

Residences can be classified by and how they are connected to neighbouring residences and land. Different
types of housing tenure can be used for the same physical type. For example, connected residences might
be owned by a single entity and leased out, or owned separately with an agreement covering the
relationship between units and common areas and concerns.[15]

According to the Congressional Research Service, in 2021, 65% of homes in the U.S. are owned by the
occupier.[16]

Major categories

Attached / multi-unit dwellings

Apartment (American English) or Flat (British
English) – An individual unit in a multi-unit building.
The boundaries of the apartment are generally
defined by a perimeter of locked or lockable doors.
Often seen in multi-story apartment buildings.
Multi-family house – Often seen in multi-story Single-family detached house in
detached buildings, where each floor is a separate Essex, Connecticut, United States
apartment or unit.
Terraced house (a.k.a. townhouse or rowhouse) – A
number of single or multi-unit buildings in a
continuous row with shared walls and no intervening
space.
Condominium (American English) – A building or
complex, similar to apartments, owned by individuals.
Common grounds and common areas within the
complex are owned and shared jointly. In North
America, there are townhouse or rowhouse style
condominiums as well. The British equivalent is a
block of flats.
Housing cooperative (a.k.a. co-op) – A type of
multiple ownership in which the residents of a multi- Townhouses in Victoria, Australia
unit housing complex own shares in the cooperative
corporation that owns the property, giving each
resident the right to occupy a specific apartment or unit.
Tenement is a type of building shared by multiple dwellings, typically with flats or
apartments on each floor and with shared entrance stairway access found in Britain.
Semi-detached dwellings
Duplex – Two units with one shared wall.
 Detached dwellings
Bungalows
Split-level home
Mansions
Villas
Detached house or single-family detached house
Cottages
Portable dwellings
Mobile homes, tiny homes, or residential caravans – A full-time residence that can be
(although might not in practice be) movable on wheels.
Houseboats – A floating home
Tents – Usually temporary, with roof and walls consisting only of fabric-like material.

Other categories

Chawls
Havelis
Igloos
Huts

The size of havelis and chawls is measured in Gaz (square yards), Quila, Marla, Beegha, and acre.

See List of house types for a complete listing of housing types and layouts, real estate trends for shifts in the
market, and house or home for more general information.

Real estate and the environment

Real estate can be valued or devalued based on the amount of environmental degradation that has occurred.
Environmental degradation can cause extreme health and safety risks. There is a growing demand for the
use of site assessments (ESAs) when valuing a property for both private and commercial real estate.[17]

Environmental surveying is made possible by environmental surveyors who examine the environmental
factors present within the development of real estate as well as the impacts that development and real estate
has on the environment.

Green development is a concept that has grown since the 1970s with the environmental movement and the
World Commission on Environment and Development. Green development examines social and
environmental impacts with real estate and building. There are 3 areas of focus, being the environmental
responsiveness, resource efficiency, and the sensitivity of cultural and societal aspects. Examples of Green
development are green infrastructure, LEED, conservation development, and sustainability developments.

Real estate in itself has been measured as a contributing factor to the rise in green house gases. According
to the International Energy Agency, real estate in 2019 was responsible for 39 percent of total emissions
worldwide and 11 percent of those emissions were due to the manufacturing of materials used in
buildings.[18]

As an investment
In markets where land and building prices are rising, real estate is
often purchased as an investment, whether or not the owner intends
to use the property. Often investment properties are rented out, but
"flipping" involves quickly reselling a property, sometimes taking
advantage of arbitrage or quickly rising value, and sometimes after
repairs are made that substantially raise the value of the property.

Luxury real estate is sometimes used as a way to store value,

especially by wealthy foreigners, without any particular attempt to
rent it out. Some luxury units in London and New York City have
been used as a way for corrupt foreign government officials and
businesspeople from countries without strong rule of law to launder
money or to protect it from seizure.[19]

Professionals A house that was sold in Victoria,

Australia
Real estate agent - North America
Estate agent - United Kingdom

See also
Environmental Surveying Fractional financing
Green Development Land lot
Phase I environmental site assessment Real estate business
Commercial real estate Real estate economics
Estate (land) Right to property
Extraterrestrial real estate

References
1. "Real estate": Oxford English Dictionary online: Retrieved September 18, 2011
2. James Chen (May 2, 2019). "What Is Real Estate?" (https://www.investopedia.com/terms/r/re
alestate.asp). investopedia.com. Archived (https://web.archive.org/web/20000818111700/htt
ps://www.investopedia.com/terms/r/realestate.asp) from the original on August 18, 2000.
Retrieved May 13, 2019.
3. Real Estate. Funk & Wagnalls New World Encyclopedia, 1. 2018.
4. Alvik, Ivar (2018). "Protection of Private Property in the Early Law of Nations". Journal of the
History of International Law. 20 (2): 220. doi:10.1163/15718050-19041026 (https://doi.org/1
0.1163%2F15718050-19041026). S2CID 158672172 (https://api.semanticscholar.org/Corpu
sID:158672172).
5. Klaasen, R. L. (1976). "Brief History of Real Estate Appraisal and Organizations". Appraisal
Journal. 44 (3): 376–381.
6. Alvik, Ivar (2018). "Protection of Private Property in the Early Law of Nations". Journal of the
History of International Law. 20 (2): 218–227. doi:10.1163/15718050-19041026 (https://doi.o
rg/10.1163%2F15718050-19041026). S2CID 158672172 (https://api.semanticscholar.org/C
orpusID:158672172).
 7. "Louisiana Purchase: Primary Documents in American History" (https://guides.loc.gov/louisi
ana-purchase). Library of Congress Research Guides. Archived (https://web.archive.org/we
b/20220625171531/https://guides.loc.gov/louisiana-purchase) from the original on 2022-06-
25. Retrieved 2022-05-18.
8. Richardson, Patricia (June 2, 2003). "Father-son team scores big at home; Nearly 150 years
old, family-owned Baird & Warner Inc. is a dominant force in the area's residential real estate
industry, and shows no signs of slowing down or selling out". Crain's Chicago Business.
9. "History of National Association of Realtors" (https://www.nar.realtor/about-nar/history).
National Association of Realtors. 13 January 2012. Archived (https://web.archive.org/web/20
220513054559/https://www.nar.realtor/about-nar/history) from the original on 13 May 2022.
Retrieved 18 May 2022.
10. Nicholas, T.; Scherbina, A. (2013). "Real Estate Prices During the Roaring Twenties and the
Great Depression". Real Estate Economics, 41. 2: 280.
11. Greer, J. L. (2014). "Historic Home Mortgage Redlining in Chicago". Journal of the Illinois
State Historical Society. 107 (2): 204–233. doi:10.5406/jillistathistsoc.107.2.0204 (https://doi.
org/10.5406%2Fjillistathistsoc.107.2.0204).
12. "A BRIEF HISTORY OF THE HOUSING GOVERNMENT-SPONSORED ENTERPRISES"
(https://www.fhfaoig.gov/Content/Files/History%20of%20the%20Government%20Sponsore
d%20Enterprises.pdf) (PDF). Archived (https://web.archive.org/web/20230308060643/http
s://www.fhfaoig.gov/Content/Files/History%20of%20the%20Government%20Sponsored%20
Enterprises.pdf) (PDF) from the original on 2023-03-08. Retrieved 2022-05-18.
13. Taylor, K. Y. (2018). "How Real Estate Segregated America". Dissent. 65 (4): 23–24.
doi:10.1353/dss.2018.0071 (https://doi.org/10.1353%2Fdss.2018.0071). S2CID 149616841
(https://api.semanticscholar.org/CorpusID:149616841).
14. "Title 16. Conservation; Chapter 1. National Parks, Military Parks, Monuments, and
Seashores; Minute Man National Historical Park" (http://definitions.uslegal.com/r/residential-
property/). US Legal. Archived (https://web.archive.org/web/20170708092404/https://definitio
ns.uslegal.com/r/residential-property/) from the original on 2017-07-08. Retrieved
2015-10-04.
15. Kimberley Amadeo (March 28, 2019). "Real Estate, What It Is and How It Works" (https://ww
w.thebalance.com/real-estate-what-it-is-and-how-it-works-3305882). thebalance.com.
Archived (https://web.archive.org/web/20190513121739/https://www.thebalance.com/real-es
tate-what-it-is-and-how-it-works-3305882) from the original on May 13, 2019. Retrieved
May 13, 2019.
16. "Introduction to U.S. Economy: Housing Market" (https://web.archive.org/web/20220729211
324/https://sgp.fas.org/crs/misc/IF11327.pdf) (PDF). Congressional Research Service.
Archived from the original on 2022-07-29. Retrieved 2022-05-18.
17. Cutting, Robert H.; Calhoun, Lawrence B.; Hall, Jack C. (2012). " 'Location, Location,
Location' Should Be 'Environment, Environment, Environment': A Market-Based Tool to
Simplify Environmental Considerations in Residential Real Estate". Golden Gate University
Environmental Law Journal.
18. "Global status report for buildings and construction". International Energy Agency. 2019.
19. "Why Manhattan's Skyscrapers Are Empty" (https://www.theatlantic.com/ideas/archive/2020/
01/american-housing-has-gone-insane/605005/). The Atlantic. 16 Jan 2020. Archived (http
s://web.archive.org/web/20210413073300/https://www.theatlantic.com/ideas/archive/2020/0
1/american-housing-has-gone-insane/605005/) from the original on 13 April 2021. Retrieved
13 April 2021.

External links
 The dictionary definition of real estate at Wiktionary
Quotations related to Real estate at Wikiquote

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