Industry Analysis of Real Estate Law - Research Paper Example

Introduction Real e is property, which is expressed in terms of land and buildings, which are found in that land. Other things that may come along the land are the crops that are also found on land, water, minerals or any other immovable asset or property that may be founds within that piece of land. However, what is highly considered as real estate is land and the buildings that may be found within that land. Therefore, real estate is taken as a professional business whereby there is purchasing and disposing of this land and buildings in terms of cash. There is also the renting of these buildings, the land, or even the housing in the land. Real estate is a legal term that is used throughout the globe, and it is within the jurisdiction of all nations in the globe. However, a legal boundary assists in the limiting of a unit of real estate or even the immovable property such as land. This boundary in most cases may appear as a discontinuation especially where there is terrain such as a hedge, a ditch, or a wall. Essentially a legal boundary is a social construct or a conceptual entity. This boundary is the one that separates a piece of land in order to indicate ownership of that land. Land is in most cases subdivided into various units of ownership by these boundaries On the other hand, real estate is an industry that has various unique characteristics, which highly affects its current value. These characteristics are further classified into physical and economic characteristics. The economic characteristics that look at the value of real estate include area preference, improvements, scarcity, and even permanence. The economic characteristic can also be looked at in terms of profitability that is the amount that is likely to be recovered after a real estate sale. In physical characteristics terms, it can be look at in terms of size. How large or small is the real estate land and what is the likely growth rate for that piece of land. There is an escrow program within the real estate industry that provides people or students with relevant training. This training is significant for the escrow industry. This is where individuals who are interested in the real estate industry are introduced to the essential principles of escrow. This is done before the persons are introduced into more advanced case studies and practices within the industry. There is also a certificate program that has three units in escrow which assists in equipping people with the relevant real estate agent skills. These units include investment, human resource, mathematics, business related courses in accounting, and law. They assist in completing the program and at the same time provide individuals with an appreciation and an understanding of the business world. Most particularly it assists them with an understanding of the responsibilities within the industry of escrow. Real estate law is extremely significant to users because it assists them in identifying significant updates based on a wide range of issues. These are issues that highly affect the commercial real estate professionals and attorneys. It also includes other issues to do with leasing and equity, taxes, litigation, finance, security, regulations and even legislation. On the other hand, the real estate law assists an individual in staying up to date with the news regarding litigation, regulations, and registration. This is especially for those that affect commercial real estate and at the same time monitor public policy decisions that may affect a real estate dealer, or their clients. Real estate law also assists in strategic planning of reports for personal transactions especially those that are able to signal various industry trends and various commentaries differentiated by economists., These are economists who are capable of analyzing the present data and at the same time put an excellent real estate indicator in the business perspective. It also assists an interested party in having a conclusive interview with the real estate attorney or any other industry professional. This could also happen with significant newsmakers that are able to share their real estate experiences with other people on the line of change. Finally, the law of real estate has the capability of benefiting an individual in building a comprehensive analysis and review of the key states. It also involves the federal court decisions, which are affecting all possible areas of commercial real estate. This varies from the use of land to its financing and also other court opinions. Different people are able to learn about real estate activities from the European Union in Europe to Asia. This paper will focus on Guaranty company, which is a, real estate company located in Lewis county, Tennessee. The company has earned a tremendous reputation for expertise, excellent and commendable service, integrity, and courtesy. It is also a company that highly values the community around it as it always ensures that they stay involved with the community. This is a company that has over the years been able to provide an extraordinary blend of both old fashioned real estate experiences with the latest technology in real estate. This is then added to the company’s financial strength and flexibility of their partners, and with that there is a distinctive title and escrow service company. This is a company that has gone through all the macro environmental forces which have influenced its growth and development. Macro environment analysis Title Guaranty company is a company in Lewis county in Tennessee that is highly influenced by the macro environment especially in its operations. There are certain macro environmental factors that affect the company, and they include economic, demographic, global, technological, socio-cultural, and legal political factors. According to research, demographic forces are the forces that highly influence the real estate market in terms of support. All through in the past years demographic forces have been the most significant forces in the real estate business and most especially in the Title Guaranty Company. These are the macro environmental forces that have been extremely supportive to the company. This has foreseen a significant growth in the number of real estate businesses that are transacted on an annual basis (Kahr, 77). The number of first time purchasers is much higher now in the current years than it was in the past years. This means that the group of people who are likely to purchase houses in the future will grow significantly. This makes the business more convenient to rely on in the future especially because there is some hope that the company is growing. On the other hand, the demographic factor indicates that the rate of immigration is likely to grow tremendously. This is, therefore, expected to boost the real estate market since many immigrants will be purchasing their homes. Then again, Title Guaranty Company has been highly affected by the economic forces or factors. This is because today the current rate of unemployment is extremely high. There have not been indications that this rate is going down in any case, it is only found to increase. Therefore, there are no potential buyers to purchase from the company since people do not have resources to purchase. On the other hand, these economic factors have foreseen foreclosures. This has been indicated by the fact that the rate of unemployment is not decreasing. People have accumulated significant loans, and they are yet due to repay these loans. This is the other reason as to why people are not purchasing real estate. The housing rates are high for an individual to afford. The high unemployment rate coupled with foreclosure is what has contributed to higher housing prices. This way, it is only those who are employed who can afford purchasing a house or even land. This concludes that economic forces have had some negative impacts on the Title Guaranty Company and despite everything, the company is still going strong. The social forces highly relate to the trends in the society or culture. There are many social forces that affect Title Guaranty Company, and they include population trends, family composition, and aging in the American population, environmental consciousness, emergence of home offices, security consciousness, and leisure time. In terms of the population trend, there is the decline, the growth and even the stability of the population. People have a tendency of thinking that when a population increases, the demand of real estate will be fuelled. However, this is not the case because the higher the population, the higher rate of unemployment and the lower the demand for real estate. In America, a family is composed of the traditional household whereby there is a father who is working. A home making mother, two children while there is also single parenthood, and other households comprised of two working parents. This has not changed, and all these households require some extremely different housing. The aging population that is highly increasing in America has led to the concern of having retirement homes for these people. This also includes some care providing facilities, some senior apartment communities, hospitals, nursing homes, and even some medical offices. All these are highly demanded, and the Title Guaranty Company in the real estate industry is doing everything possible, to ensure that all are provided. In addition, the highly advanced technology has led many people working at home thereby creating the need for home offices. Therefore, Title Guaranty Company is conscious that today, they are able to build more houses with offices inside in order to cater for all those who work from home. On the other hand, there is the political or the legal forces, which influence Title Guaranty Company. Whether the company is in the national, local, or state level, it is highly influenced by the legal forces. Some of these legal forces include federal money policy, taxes, labor issues, real estate taxes and assessments, quality of forces and quality of school. There are taxes are that imposed on the higher cities which result in disposable income for purchases of real estate. Ones there are income taxes; it becomes complex for the public to procure their own homes. Therefore, the people who benefits are the land lords hereby their tenants cannot afford to vacate their apartments because they cannot be able to purchase their homes (Ball, 33). On the other hand, the government has a significant influence on the interest rates. Therefore, the Federal Reserve has significant influence on the interest rates charged on those being loaned in order to construct houses or for mortgage purposes. Labor issues have extremely high influence on the building choices. For instance, when Title Guaranty Company is planning to have some constructions, they have to consider certain labor regulations or laws in order to avoid being inhibited from constructing. In addition, there are certain global factors that highly influence the manner in which the operations of Title Guaranty Company are conducted. There are some structures that are not supposed to be constructed in certain locations. They have been prohibited because there are certain issues that relate to these places such as natural disasters. Competitive trends Title Guaranty Company is a company that has highly been influenced by these macro environmental factors. Therefore, in order for the company to maintain its competitive trend, it has to ensure that it balances all the macro environmental factors. For instance, with the ever varying planet in terms of know-how, Title Guaranty Company has to change. It has to adapt most of the technological factors in order to remain competitive among other industries (Thalmann, 69). These new technologies will assist Title Guaranty Company in the creation of new products that are coming up, and modern designs on how they build their houses. On the other hand, they will also adapt new processes such that most of their business transactions will be simply done online. This means that Title Guaranty Company may post its products in the internet from where the interested persons will be able to see them. After looking at these numerous products, the individual is also able to contact the concerned company online from where they may ask various questions. After both parties have negotiated and agreed, they can carryout monetary transactions through the internet. Therefore, this means that adequate time has been saved where the client did not have to go to the real estate company. Instead, he or she gets all the information from the internet from where he or she can make a decision where to purchase it or not. Then again, it is advantageous since Title Guaranty Company does not have to keep advertising its products. Ones they post them to the internet every person has the chance to view this information or products. Technology is a significant factor that has ensured that real estate industry has maintained its competitive trends. The other competitive trend as maintained by Title Guaranty Company is its ability to harmonize its activities. There are certain qualifications that an individual requires in order to be employed in Title Guaranty Company. These qualifications are such that they will be able to uphold the characteristics of the industry. This is in a manner that they do not have to go against the regulations set aside by the industry. This way, the company has maintained highly trained personnel who have been able to propel the company to the next level. The competitive trends are also boosted by the demographic factors such that, with the growing population, most people will demand houses. This leaves Title Guaranty Company competing to make sure that they are capable of offering quality housing to the people. Therefore, the competitive trend in this case is where they ensure that there is quality housing that will boost the demand for real estate. Future industry implications Real estate industry is among the leading and promising industries in the globe. Real estate is an industry that will continue growing even in the future. The macro environmental forces are meant to strengthen the real estate businesses because they are the most noteworthy factors that manipulate the development of the industry. For instance, such force as demographic forces gives hope for their expectations. This is because the population today is growing an increasing rate. This means a significant number of people will in the future demand for real estate. This is in terms of either houses or land where they will build their own houses. Therefore, the industry will make certain that, in the future, there is more housing so that they will be capable of meeting up the demand that will be there (Satter, 43). The industry is also given a lot of hope by the technological forces. The changing technology has positively impacted the real estate industry. This is because people from different nations may be able to view some of the real estate that is in other nations. For instance, a person in Europe may be interested in purchasing a real estate building in America. Therefore, in order to do this effectively, the person does not have to travel from Europe to America. Instead, this individual will be able to contact all the relevant information regarding real estate in America through the internet. The person will also see some of the real estate that are on offer and where they are located. It will be possible for this person to purchase the land or the house without having to travel to America. The competitive trends are also significant, and they will keep the industry growing and developing in a significant way. Therefore, for any entrepreneur who may be willing to risk most of his finances in the real estate industry, he may do so because this is an industry that has the highest potential in the entire globe. Therefore, the entrepreneur may go ahead and launch his venture, and within a short time, he or she will be capable of getting the payback of real estate. Other recommendations are that the entrepreneur should embrace technological forces. This can be done by ensuring that all his or her ventures are run technologically, and this way people will access the information without having to advertise. In addition, the entrepreneur should also consider the legal forces and make sure that he or she does not lay his venture in an area that has been prohibited by the government. This way, he will not have any issues with the administration or any other corporation that is working on behalf of the government. Alternatively, the entrepreneur should be watchful about the demographic forces, social cultural forces, and even global forces. Specific new business ideas Real estate industry has been remarkably successful in the entire globe. However, for the business to grow and develop more, it should come up with certain ideas. For instance, they should do everything possible, to target the poor. Any person who is incapable of procuring a house for him should be considered, and policies made which can assist him or her acquire their own property. For instance, the industry could formulate a policy that allows real estate companies to build houses in places where there are slums. They could also build these houses in government land that has been set aside for such activities. This will minimize the cost of construction and the poor person will be able to purchase the house. However, for those who still cannot be able to purchase the house at ones, they will be given an amount they can disburse on monthly terms. This should be an amount that they can afford paying; for instance, it could be an amount they are used to paying as their house rent. After paying for a period of several years depending on the rate of the home and after meeting this cost through the monthly rent, the house becomes theirs. This is an idea that could be adapted by many real estate companies especially in the developing nations. However, in such nations as America, it could also happen in order to assist the poor. Part II Purpose statement The purpose of this statement is to provide a complete real estate closing solution in which will serve all the states in united states of America. Opportunities of the company According to an article on step by step process of how real estate can close a paperless loan, it is evident that the real estate industry is coming up with new ideas. These new ideas are meant to boost the industry in terms of growth and development. Although many people have been curious on how these paper the industry is embracing this new idea. It is now possible for a person to close their real estate transaction without using any papers. This is an idea that has really boosted the real estate business especially because it would be easy to prove a transaction. In the past, con artists would forge documents and act as real estate agents and this way many people would lose their money and have no prove to prove the existence of a transaction. This new idea may be highly affected by certain industry trends. For instance, implementing this idea may be costly meaning that economically, the idea may be difficult to implement. On the other hand, the society may not embrace this idea fully since it requires most of them to be educated. The industry should take time and teach every individual within a society the benefits of this idea. Recommendations All entrepreneurs should embrace the new idea of a step by step process and how it would be possible to close a paperless loan. Recommendations are given to potential entrepreneurs in the real estate industry. They should be conscious of all the likely risks that may affect the business so that when they are investing in the industry, they are aware of whatever they are doing. On the other hand, with such a significant improvement in the real estate industry, all the potential entrepreneurs should take the risk of investing. This is because it is possible to overcome or avoid all these risks and eventually make it in the real estate industry (Thalmann, 24). Works Cited Ball, Michael. Markets & institutions in real estate & construction. Oxford: Blackwell Pub., 2006. Print. Bruce R. Barringer. Entrepreneurship: Successfully Launching New Ventures (4th Ed), 2012. Print Kahr, Joshua, and Michael C. Thomsett. Real estate market valuation and analysis. Hoboken, N.J.: Wiley, 2005. Print. Satter, Beryl. Family properties: race, real estate, and the exploitation of Black urban America. New York, N.Y.: Metropolitan Books, 2009. Print. Thalmann, Philippe. Construction and real estate dynamics. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan, 2003. Print. Read More