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Essay sample - Acquisition and Disposal of Land and Real Estate
Pages 8 (2008 words)
The acquisition of land and real estate is a high risk, uncertain and often very complex venture. There are many risks that are associated with the acquisition of land and these include subsidence, pollution and legal issues…
The acquisition of land and real estate requires an official process that is based on risk analysis, and financial analysis.Real estate refers to things which are not movable for example land and improvements permanently attached to it. There is a difference between real estate and real property. The ownership rights that are associated with the real estate are called real property. During acquisition of real estate, the investor acquires the land, all the physical assets of the land and all the things which are permanently attached to it. The investor also gets property rights which include the right to control, occupy, develop, exploit, lease, improve, and sell the real estate.It is important to differentiate between real estate and real property because different parties have different rights on a given part of real estate. Property rights can also be described as the right of a person to use, dispose, possess and enjoy his property. (Fisher & Brueggeman 2004)The value of real estate is the total price that an individual is willing to pay so as to acquire the benefits associated with all the property rights. It is important to note that it is not necessary for a person to be the owner of the property so as to have rights to it. A person who rents a piece of land is not the owner but he has the exclusive right to use the land as he wishes for a certain period of time. ...
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