Property Investing 101 – Understanding Real Estate Investment
Property in the broadest sense is what either directly belongs to or in addition to something, whether as a partial constituent or as an independent attribute. In the context of property the word is used to refer to anything that belongs or is owned by someone. For the most part the word has a legal sense and the meaning of property is primarily associated with money (as in ownership). The word ‘property’ is also used to refer to any improvements made to real estate, personal possessions and other items and properties.
Private property refers to that part of a person’s house or real estate which that person uses or benefits from in some way. When it comes to real estate, this means the land on which the real estate is situated. A typical piece of real estate is one that is let out to the public or to anyone who is legally qualified to rent or lease the property. There are different types of property, such as proprietary property, real estate and vacant land.
Within the context of property there are two levels of ownership. The first is total ownership which is sometimes called deeded. This is the level of property in which the individual or group makes the claim to the property and everything within the property is theirs. The second type is deeded in lieu of ownership, which occurs when the person selling the property agrees to transfer all rights and benefits to another party. This is done so that the previous owner can enjoy all the benefits that would have been assigned to them but for the transfer of the property.
Although private property can be owned individually by individuals and groups, the government has some direct control over property. It is the government that owns and maintains the infrastructure of a country. The infrastructure normally consists of roads, buildings and other facilities that provide for the smooth running of society. The government can either be a centralized agency or divided into local governments that each have their own power and jurisdiction. Often, when a property needs to be constructed or altered, the approval is first obtained from the local government before it is transferred to the central government.
The process of transferring property is usually very simple. There are usually no red tape or approvals required. If you are looking to buy or sell property, you will be required to fill out a form announcing your intent to purchase or sell property. This form is then forwarded to the department of property where you plan to trade or live. At this point the process begins.
The most common method of transferring property involves a lawyer, the deed being recorded in a public registry. If this is not possible, the government or designated representatives will oversee the transfer of title. The deed will then be transferred to you in exchange for your promise to pay taxes on the property for a specified amount of time, usually 18 months. Property ownership can be confusing and anyone seeking the best advice should consult a qualified attorney. They will be able to help you understand the ins and outs of property ownership in North America.