essay on real estate agent

• Entertainment
• Environment
• Information Science and Technology
• Social Issues

Home Essay Samples Profession

Essay Samples on Real Estate Agent

A real estate agent serves as a crucial intermediary, bridging the gap between buyers and sellers, providing expert guidance, and ensuring a seamless experience throughout the entire process.

Tips to Write a Real Estate Agent Essay

In a real estate agent essay, one can explore the multifaceted roles and responsibilities that these professionals undertake. From conducting market research and property evaluations to negotiating deals and overseeing legal procedures, the essay can delve into the diverse skill set required to succeed in this dynamic field.

Real estate agents wear many hats, serving as trusted advisors, marketers, and negotiators. They possess in-depth knowledge of the local housing market, including current property values, market trends, and neighborhood demographics. These professionals leverage their expertise to help clients make informed decisions when buying or selling properties. They assist clients in setting realistic expectations, analyzing market data, and strategizing the best approach to achieve their objectives.

To succeed in this competitive industry, real estate agents must possess exceptional interpersonal skills. They build rapport with clients, understanding their unique needs and preferences. Effective communication enables agents to convey complex information in a clear and concise manner, ensuring clients understand every step of the process.

When writing the essay, it is essential to emphasize the significance of ethics and professionalism in the real estate industry. Discuss the importance of transparency, honesty, and integrity in building long-term relationships and fostering a positive reputation within the community.

Real Estate Agent: What Are His Responsibilities

A real factor helps sell, purchase or rent property to folks. The property includes residential, commercial, and industrial real estates. Anyone should buy a house while not a property agent. However, involving associate degree agent is advantageous. assets agents handle the work and licensing thence...

• Real Estate
• Real Estate Agent

What Should Be a Real Estate Agent

Selling or buying a home single handedly is frustrating. You may vigorously be in pursuit of prices forgetting other vital considerations. Hiring a real estate agent can help you make the most satisfying decisions. With the vast knowledge they have, they can efficiently market your...

Why I Want To Be A Real Estate Agent

There is nothing better than living in the perfect home for you and your family. I want to become a real estate agent one day just for that reason and many others. Real estate agents are the middle man between buyers and sellers of properties...

• Professionalism

Stressed out with your paper?

Consider using writing assistance:

• 100% unique papers
• 3 hrs deadline option

Best topics on Real Estate Agent

1. Real Estate Agent: What Are His Responsibilities

2. What Should Be a Real Estate Agent

3. Why I Want To Be A Real Estate Agent

• Firefighter
• Pediatrician
• Police Officer

Need writing help?

You can always rely on us no matter what type of paper you need

*No hidden charges

100% Unique Essays

Absolutely Confidential

Money Back Guarantee

By clicking “Send Essay”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails

You can also get a UNIQUE essay on this or any other topic

Thank you! We’ll contact you as soon as possible.

Career Plan for a Realtor Agent Essay

Introduction, description of the field, prospects for the future, requirements for entry/ personal attributes, a typical day at work, history of the field, company or institution specializing in this field, deborah swift, the memorable incident involving the field, works cited.

People have different tastes and preferences in life on their career objectives to pursue. This might be dictated by several factors such as the role models; the course one has pursued either as a profession or in any other field. In addition, this might be caused by the influence of the remuneration from the career that may include the basic pay as well as other forms of commissions and benefits. However, others consider career choice from the perspective of career growth. This paper seeks to explain or give a career plan for a realtor agent and then develop it for a realtor broker.

A realtor or a real estate agent is a party who acts as an intermediary between sellers and buyers of real estate or real property. A realtor attempts to find buyers who wish to buy as well as sellers who want to sell. The realtor at times helps the seller in advertising and market the property. When the realtor finds a buyer, his/her aim is to sell the property at the highest price possible under the best terms (Fisher 34). They discuss with the buyer and then take the buyer to see the property. During this process, the realtor also acts as a financial advisor to the buyer if the buyer does not have enough money to purchase the property.

They give them advice on where to access cash at favorable terms (Darryl 26). The remuneration of a realtor in most cases is hefty commissions from the sales. Therefore, the more deals the realtor makes, the more they pay. This career gives the chance to choose what one wants as the income. A realtor, therefore, must be someone who is hardworking and has the ability to prospect. The career of a realtor further has the advantage of being able to set his/her own hours of work.

Like any other career, a realtor must have options for the future. A person who is pursuing any career must set the objectives and vision for their future in terms of the level of management they will have raised to or in terms of finance as well as the customers in a particular span of time. A realtor as well must put all this into consideration since all of them will affect him/her. He/she must find ways of career growth from an agent to a broker.

Thus, they must work towards attaining the goals that will allow them to grow. On the other hand, a realtor must focus on finances that will result from the sales. Success in sales will result in a good income from the salary, but these two factors will be determined by the third factor, which is of prospecting and having a customer network. The more customers a realtor will have, the more the sales. Therefore, it is critical to establish a market to target that will give him/her potential customers to purchase the properties (Darryl 27).

These potential customers may include the senior government staff as well as civil servants, well paid in the private sectors such as banks, multinational companies, non-governmental organizations, and old business people. However, even people from other sectors who are potentials are also potential customers, but the trick used in this field is to concentrate in place with the majority of potential customers rather than focus on areas where potential customers are scarce.

Though every country has, it is requirements for one to qualify as a realtor, the most common qualifications and personal details are; one must be 18years and above, have a degree or diploma in the related field, one must have good communications as well as personal skills (Connie 53).

The person must be fluent in the required languages depending on the customers to target. In addition, you must be aggressive at work, persuasive, be of sound mind, have the ability to create rapport as well as being of good health (in order to maintain the energy necessary to keep up with your clients). However, in some situations, this career requires one to be flexible since sometimes you have to view the property at late hours. A realtor must also have an excellent geographical coverage knowledge of towns as well as the knowledge of property price ranges (Connie 20).

He/she must also have a good understanding of laws governing the buying and selling of property, and finally, a realtor must be licensed to carry out the business under the acts of the country or state of operation.

Under normal circumstances, a realtor works from the office. However, due to technological advancement, most of the information on properties is on the network, and most people prefer to work from home. In either case, there must be time spent in the field showing the buyers the houses as well as finding more about properties that might one day be for sale. Unlike other careers, the realtors work in the evenings or weekends since most buyers and sellers are mainly available during the weekends (Fisher 33).

According to the Canadian Real Estate Association (2011), the history of real estate agents or realtors started in the United States back in the 1880s. However, this started as an informal association of local real estate. At the turn of the century, the number of real estate boards had risen to fifteen. In 1908, the first national association for realtors was formed in the United States. The National Association of Realtors (NAR) had 19 boards and one state association. However, since then, several associations have been formed, and the field of real estate agents/ brokers has grown in all parts of the world.

Swift real Estate specialists is a realtor specialist firm with it is headquarters in Elkin, North Carolina, United States. The firm has been in the real estate business for over 40 years, and its mission has been “caring for the people as they make the decision of a lifetime and delivering the highest level of service in the industry” (Swift Real Estate Specialists 2011).

She is the principal broker/auctioneer with Swift Real Estate specialists. As a second-generation Realtor, she has been in the field all her adult life. Together with her husband, Deborah owns one of the oldest real estates in North Carolina Street. She has pursued excellence in real estate service relentlessly. Deborah is a graduate of the Realtors Institute (GRI), a Certified Residential Specialist (CRS), and Certified by the Instructor’s Institute. She is a past president of the Elkin-Jonesville Board of Realtors and a past regional vice president of The North Carolina Association of Realtors. She loves to help people and gets excited when called to assist in matters of Real Estate (Swift Real Estate Specialists 2011).

The most notable incident was when a customer requested a repair on the door, but the seller did not. The buyers were insulted at the seller’s dishonesty, and they picked out another house to make an offer. The owner of the former house refused to spend a little amount of money on repairing the door, and his home stayed on the market for many months (The Canadian Real Estate Association 2011).

Connie, Joyner. Realtors Never Die….They just Become Listless . New York: Constance P. Joyner, 2004. Print.

Darryl, Davis. How to Become a Powerful Agent in Real Estate: A Top Industry Trainer Explains How to Double Your Income in 12 Months . New York: McGraw-Hill Companies, 2003. Print.

Fisher, Steven. The complete guide to Real Estate Options: what smart investors need to know-explained simple. Florida: Atlantic Publishing Group Inc, 2007 Print.

Swift Real Estate Specialists, 2011. Web.

The Canadian Real Estate Association, 2011. Web.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2024, February 15). Career Plan for a Realtor Agent. https://ivypanda.com/essays/career-plan-for-a-realtor-agent/

"Career Plan for a Realtor Agent." IvyPanda , 15 Feb. 2024, ivypanda.com/essays/career-plan-for-a-realtor-agent/.

IvyPanda . (2024) 'Career Plan for a Realtor Agent'. 15 February.

IvyPanda . 2024. "Career Plan for a Realtor Agent." February 15, 2024. https://ivypanda.com/essays/career-plan-for-a-realtor-agent/.

1. IvyPanda . "Career Plan for a Realtor Agent." February 15, 2024. https://ivypanda.com/essays/career-plan-for-a-realtor-agent/.

Bibliography

IvyPanda . "Career Plan for a Realtor Agent." February 15, 2024. https://ivypanda.com/essays/career-plan-for-a-realtor-agent/.

• GLM Realtors Risk Assessment Project for a Commercial Property
• The Value of a Realtor's Professional Services to Sell Residential Houses
• The Entrepreneurial Audit: Bosshardt Corporation
• House Prices Determinants in East Ville
• Unethical Closing Pressure Techniques
• The Pricing Decision-Making Process
• Martin Luther King and His Trace in Chicago History
• Application of Psychodynamic Theory: Deborah Case
• How to Be a Stock Broker
• "The Power of Their Ideas" by Deborah Meier
• Personal Career Plan: A Vision Statement
• MBA in International Business and Investment Management
• Multiple Career Choices in Biosciences
• "Life Experience" Diplomas: Ethics and Legality
• Master of Business Administration and Its Benefits

Home / Essay Samples / Economics / Real Estate / My Ambition to Pursue a Career in Real Estate

My Ambition to Pursue a Career in Real Estate

• Category: Life , Economics
• Topic: Dream Job , Real Estate

Pages: 1 (518 words)

• Downloads: -->

Introduction

Exploring the appeal of a career in real estate.

--> ⚠️ Remember: This essay was written and uploaded by an--> click here.

Found a great essay sample but want a unique one?

are ready to help you with your essay

You won’t be charged yet!

Consumerism Essays

Brexit Essays

Capitalism Essays

Nafta Essays

Microeconomics Essays

Related Essays

We are glad that you like it, but you cannot copy from our website. Just insert your email and this sample will be sent to you.

By clicking “Send”, you agree to our Terms of service  and  Privacy statement . We will occasionally send you account related emails.

Your essay sample has been sent.

In fact, there is a way to get an original essay! Turn to our writers and order a plagiarism-free paper.

samplius.com uses cookies to offer you the best service possible.By continuing we’ll assume you board with our cookie policy .--> --> My Account

Make Today's Website as home page

Essay: Why I Want to Be a Real Estate Agent

Professional people who work in the real estate field have the freedom to work at their own pace because they are like a one-man-band. They generate their own leads, set their hours, grow and manage their business, file their taxes, self-promote, and more. Not many experts, college or university students can succeed in this job because there are a lot of responsibilities on one's shoulders. Success depends on the effort one puts into it, and I am a person who loves a challenge. The real estate field is very fast-paced and exciting and in this essay, I will highlight the reasons why I want to be a real estate agent.

As a pro real estate agent, I will learn a lot about construction, the real estate market, house design, and sales because I love the industry. To be a success, experts say one has to be a people person, and that is what I am. 

I enjoy talking to people about houses, what's going on in their lives, and helping them figure out the best deal and house for them. No two days are the same in the life of a real estate agent because there's a lot of relationship building and negotiating. This aspect excites me and that is one of the reasons why I want to become a real estate agent. From a very early age, I have always  liked people and houses, Pichardo, M. (2016)

Flexibility is the second reason why I want to become a real estate agent. Real estate agents do not sit on their desks every day from 9 am to 5 am. The role is centered around the availability, needs, and wants of clients. 

This is the level of flexibility I want for myself, plus being a real agent means tools like tablets, smartphones, and iPads are my best friends. Working on multiple different transactions all day is more exciting than sitting at a desk all day. I get to play the role of a promoter, interior designer, accountant, and counselor all in one day due to the flexible nature of this career, Gerber, M . (2019).

Academic essay writers at  customwritings.com  have pointed out that buying a house is one of the biggest investments most people will ever make in their lives and many clients have little knowledge about the ins and outs of the industry, Chiarella, T (2019). I want to become a real estate agent because I have a passion for helping people and pointing them in the right direction. 

I want to help them with everything from inspections, property analysis, repairs, moving, cleaning, packing, everything involved in a sales transaction, I want to help people with it. It can be a stressful time for both clients and agents however, it will be my duty to calm their nerves and make transactions as smooth as possible.

According to Zeller, D (2011), many top-rated professional writing services say that the success of any business including their field of writing depends on the amount of effort that that one puts into it as pointed out earlier in this essay. Being my own boss means I will be able to decide how many transactions I can make or how many clients I will see in a day, both online and offline. I will also have the final say on how I will serve clients, how I will promote myself as well as my listing and more. The ability to control what's around me is also the reason why I want to become a real estate agent.

My job will be to solve problems no matter the size by accessing information and sharing my findings with other agents, clients, and customers to deal with challenges. Clients in the real estate world will come to me with questions and will expect me to have answers. I like being a problem solver, and that is why a career as a real estate agent suits me.

Jannatpour, M (2016) said the real estate market is always changing and does not wait for anyone including custom writing services. It is up to me to keep up with changes in trends, markets, demographics, and more. I have the will and desire to learn new things all the time and that is why I want to get into this line of work. Being a real estate agent is not all about houses, I want to improve my skills and processes all the time. I am willing to learn more in areas such as marketing, environmental issues, psychology, design, construction, economics, regulations, strategy, and more.

As a real estate agent, I will have full creative freedom in designing my marketing materials and blueprints. Social media platforms have made it easy for agents and clients to communicate easily and effectively. I can use them to help my future clients envision how a house will be transformed for example. The fact that I enjoy interior design very much and online promotion make me a perfect fit to be a real estate agent. If I am struggling with creativity, I know I can rely on a paper writing service for ideas, Keller, G. (2013).

Becoming a reliable real estate agent is a wonderful and exciting career choice because it combines interior design with accountancy, counseling, and appraising. I will be dealing with expensive transactions while trying to make clients happy at the same time. Playing a massive role in the lives of my future clients is the driving force behind my desire to get into this industry. I enjoy helping people and the independence I will have in terms of my work schedule, learning new things, dealing with queries, and coming up with ideas.

References:

Chiarella, T (2019) Becoming a Real Estate Agent. Simon & Schuster

Gerber, M . (2019) The E-Myth Real Estate Agent Why Most Real Estate Businesses Don't Work and What to Do About It. Prodigy Business Books

Jannatpour, M (2016)The Honest Real Estate Agent: A Training Guide for a Successful First Year and Beyond as a Real Estate Agent. CreateSpace Independent Publishing

Keller, G. (2013) The Millionaire Real Estate Agent It's Not About the Money. Rellek Publishing Partners 

Pichardo, M. (2016). The Beginner Real Estate Agent How to Start Your Career As a Residential Real Estate Agent. CreateSpace Independent Publishing

Zeller, D (2011) Success as a Real Estate Agent For Dummies. Wiley

• Aug 1, 2021

7 Types of Writing Every Real Estate Agent Should Master

Updated: Feb 5, 2022

One of the biggest surprises you may have run into when you got into real estate was the amount of writing involved. Whether it's for marketing your services to buyers and sellers, highlighting your latest listing , or simply to keep in touch with members of your sphere of influence (SOI), good writing skills are of paramount importance for agents and brokers alike.

Whether you are new to real estate or looking for ways to improve your performance, you'll find that developing your expertise at these seven types of writing can go a long way toward helping you grow your business and your impact.

• Property Descriptions

There's a reason that I have written so much about property descriptions over the years. It's one of the tasks that real estate agents struggle with the most and enjoy the least. However, a well-written property description can have a significant impact on the way that you market your latest listing online.

While some real estate agents skip the property description altogether, I think this is a mistake. Although a picture is worth a thousand words, your real estate photos don't always do a good job of indicating updates and upgrades, layout, location, and other aspects of a home that make it special. A good property description, however, can do all that and more.

Here are a few things to keep in mind as you write your property descriptions. Be sure to check out my blog for others:

If you're unsure what to say for a property description, imagine that you are telling a prospective buyer about the home. If someone asked about your newest listing, you wouldn't just say "AC replaced 2018." You'd start with something great, (the WOW factor ) then fill them in on other highlights.

If you're looking for a way to organize your property description, consider a narrative that takes them through the property from the driveway into the front door and through the home to the backyard and outdoor spaces.

Whatever you do, don't be tempted to crib a property description from another agent. Just like photos, property descriptions are proprietary and theft can open you up to ethical and licensure violations.

If you want to improve your property descriptions, check out my course on the topic . If you just want to outsource the job altogether, reach out for my 24-hour flat fee MLS description service .

One of the things I'm asked to write most often is a bio. Sometimes it's for a brand new agent, while other times it's for an experienced agent who hasn't updated his or her bio in decades.

Bios are among the most dreaded types of writing for many agents because no one ever seems really pleased with their own bio. Heck, I even outsourced the first draft of my current bio to another writer simply because I felt that it was too hard for me to organize my own thinking.

It really helped to talk about my career with someone else and see what stood out to her. That gave me a better handle on what would be interesting to communicate to others. If you're struggling with your own bio, consider talking it out with someone, then asking them to tell you what they found most interesting or compelling.

Check out some of my writing on the topic of bios at Inman. You'll get lots of good ideas from agents in the industry along with my commentary about what makes their bios work. Then consider how you might want to rework your own bio.

Website Content

You'll need to create evergreen content for your website that describes the service you provide, the markets you serve, and any other relevant information you want to share. At a minimum, you'll probably want to include a bio and information geared toward buyers and sellers. If you serve a particular niche, it's a good idea to include that information as well.

If you have purchased your website through a service that delivers a ready-made site, be wary of using their in-house content. Often this is generic content that is identical to that of dozens or even hundreds of their other clients. That kind of identical text will destroy your SEO ( search engine optimization ) and cause you to rank below other agents in your area.

I'll share with you a story of what I experienced during the rewrite of a client's website. The client had purchased the site from one of those aforementioned website farms. The design of the site included dozens of community pages.

The top-level pages were fine, though they were, as I mentioned, generic. However, when you get into the sub-pages where the community information was located, the website builder had simply taken Wikipedia entries, run them through a thesaurus, then copied and pasted the resulting mishmash of information. It didn't read like English even -- just gibberish.

While it's great to have lots of pages on your website, don't get so concerned with page count that you leave the content unfinished or poorly developed. It's better to have a smaller site with content that is rich and meaningful.

If your brokerage provides a website for you, be sure to begin building your own as soon as possible. You don't want to spend time, money, and energy developing content for a site that you don't own. A website is an important foundation for your marketing. You want to be able to take it with you, even if you leave your current brokerage or market.

Core Content (Blogs, Video Scripts, Podcast Flows)

Whether you choose to communicate with your potential audience through blogging , video , or a podcast, you'll need to get comfortable creating content. Well-developed content is a valuable resource that you can use throughout all of your marketing channels. It will build SEO for your website and can be included in your social media and other marketing outreach.

You'll want to have a balance between evergreen content and more timely, changeable content. For example, a market report is content that has a short shelf life but helps to show your expertise and value to buyers and sellers in the short term. On the other hand, a guide to financing or to the buying or selling process may contain evergreen content that will remain current and provide value for many years to come.

Repurposing content is an important way to ensure that everything you create goes further. For example, if you create a video for first-time home buyers, you can have it transcribed, refined, and turned into a blog post. You can take the major points and make them into an infographic or a series of social media posts. Finally, pull each major point out and use it as the basis for new pieces of content.

Marketing Materials

From postcards and letters to email marketing , social media marketing, and more, you're always advertising something as a real estate agent. Maybe it's your new listing or maybe you're just introducing yourself to a new geographic farm . Either way, it's important to learn how to talk to potential clients in writing, across a variety of platforms.

One thing to remember whenever you are creating marketing materials is that value-added marketing will always outperform a direct sale approach. That means that providing meaningful information -- an idea or insight that helps your audience save money or find what they need -- is more effective than telling them why you're so darn wonderful. In other words, show, don't tell, why people should choose you as their real estate agent.

Another way to think of this was popularized by online marketing guru Gary Vaynerchuk: Jab, jab, jab, Right Hook. It means to give value through the content you provide over and over, then occasionally slip in a sales pitch. By that time, not only will your audience be primed to respond, they won't resent the occasional pitch because of all of the value you've provided previously.

Press Releases

If you're a broker or the head of a team, you may want to connect with the media in your market. If you are looking to expand your reach as an industry leader, you may need to connect with the national media. If you are growing your influence into specific, new markets you may want to connect with media in specific cities. For all of these scenarios, a press release strategy can be valuable.

Whether you're writing your own press releases or having them written by your PR firm or a content writer like me, you'll want to ensure that you are putting time and money into effective targeting strategies. This is often where most of the budget for a press release goes, since a specific, targeted release can cost thousands of dollars.

While that may sound expensive, compare it to a broader release which may make you feel good but may not produce the follow-up that you want from the media. Ideally, a press release should make one or more members of the media reach out to you to report on the information contained in the press release. If you're not getting that type of follow-up, it may be because the audience for your release is not targeted enough.

If you're looking to connect with members of the media without the use of a press release, explore options like HARO (Help a Reporter). This platform allows you to pitch your expertise to members of the media who are coming to the platform with specific stories in the works. Over time, you can develop relationships with media figures that get you featured in real estate or market-related stories with a national audience.

Correspondence

Sometimes, an email or text simply won't do. A handwritten note can be a powerful way to connect (or reconnect) with leads, past clients, and other members of your SOI. From thank you notes to introductions and more , note-writing is a lost art that you can bring back into your business.

Look for beautiful stationery so that you can make an immediate impression, even before they open the envelope. Take time to write neatly and address the envelope as well as writing the note itself. The idea here is to give the recipient the sense that you took time and care to write the note as a personal expression of your regard.

Imagine the impact it could have on your business if you wrote just one thoughtful, sincere thank you note each day. Connect with colleagues, congratulate a friend on an accomplishment, or simply let someone know that they're on your mind. Handwritten notes have a magical ability to make people feel special -- and to make them feel good about you.

Whatever you're looking for, I offer writing services that can help you do more. From blog posts to email and website content to bios and property descriptions, Writing Real Estate is not only my company name -- it's what I love to do each day. Contact me for a consultation or email me at [email protected] and let's talk about how I can be of help as you grow your real estate business.

Recent Posts

The top 10 creative strategies to boost real estate listings and attract potential buyers

How to use ChatGPT to write MLS property descriptions

Who's afraid of the big bad OpenAI ChatGPT? (Hint: Not I)

1 comentario

Thanks for the advice, buddy! But I believe that sometimes this is not enough. Therefore, if I have problems with writing, I use dissertationguru.net an online service in which experienced professionals can write any work quickly and efficiently. I found not only inspiration in such online services, but also valuable advice from more experienced authors. It's also a great way to communicate your ideas to an audience and even get your writing published. I fell in love with services like these and can’t imagine my writing life without them!

Real Estate Agent Essays

Alabama real estate commission website, popular essay topics.

• American Dream
• Artificial Intelligence
• Black Lives Matter
• Bullying Essay
• Career Goals Essay
• Causes of the Civil War
• Child Abusing
• Civil Rights Movement
• Community Service
• Cultural Identity
• Cyber Bullying
• Death Penalty
• Depression Essay
• Domestic Violence
• Freedom of Speech
• Global Warming
• Gun Control
• Human Trafficking
• I Believe Essay
• Immigration
• Importance of Education
• Israel and Palestine Conflict
• Leadership Essay
• Legalizing Marijuanas
• Mental Health
• National Honor Society
• Police Brutality
• Pollution Essay
• Racism Essay
• Romeo and Juliet
• Same Sex Marriages
• Social Media
• The Great Gatsby
• The Yellow Wallpaper
• Time Management
• To Kill a Mockingbird
• Violent Video Games
• What Makes You Unique
• Why I Want to Be a Nurse
• Send us an e-mail

Your Article Library

Essay on real estate in india.

ADVERTISEMENTS:

The term ‘real estate’ is defined as land, including the air above it and the ground below it, and any buildings or structures on it. It is also referred to as realty. It covers residential housing, commercial offices, trading spaces such as theatres, hotels and restaurants, retail outlets, industrial buildings such as factories and Government buildings.

Real estate involves the purchase, sale, and development of land, residential and non-residen­tial buildings.

The main players in the real estate market are the landlords, developers, builders, real estate agents, tenants, buyers etc. The activities of the real estate sector encompass the housing and construction sectors also.

The real estate sector in India has assumed growing importance with the liberalization of the economy. The consequent increase in business opportunities and migration of the labour force has, in turn, increased the demand for commercial and housing space, especially rental housing.

Developments in the real estate sector are being influenced by the devel­opments in the retail, hospitality and entertainment [e.g., hotels, resorts, cinema theatres) industries, economic services (e.g., hospitals, schools) and information technology (IT)-enabled services (like call centres) etc. and vice versa.

The real estate sector is a major employment driver, being the second largest employer next only to agriculture. This is because of the chain of backward and forward linkages that the sector has with the other sectors of the economy, specially with the housing and construction sector. About 250 ancillary industries such as cement, steel, brick, timber, building materials are dependent on the real estate industry.

The Indian real estate market is still in its infancy, largely unorganised and dominated by a large number of small players, with very few corporates or large players having national presence. The Indian real estate markets, as compared to the other more developed Asian and Western markets is characterized by smaller size, lower availability of good quality space and higher prices.

Supply of urban land is largely controlled by state-owned development bodies like the Delhi Development Authority (DDA) and Housing Boards leaving very limited developed space free, which is con­trolled by a few major players in each city.

Many of the over 100 laws governing various aspects of real estate date back to the 19th century. Despite the plethora of laws, the situation appears to be far from satisfactory and major amendments to existing laws are required to make them relevant to modern day requirements.

The Central laws governing real estate include:

Indian Contract Act, 1872:

This legislation specifies when a party can be said to have the capacity to contract. A contract pertaining to realty can be entered into, among oth­ers, by an individual (who is not a minor or of unsound mind), partners of a firm, a corporate body, a trust, a sole corporation, the manager of an undivided family, and a foreigner.

All the requirements of a valid contract, i.e., consideration, intention to contract and validity under the law of the land must be satisfied.

Transfer of Property Act, 1882 :

This lays down the general principles of realty, like part-performance and has provisions for dealing with property through sale, exchange, mort­gage, lease, lien and gift. A person acquiring immovable property or any share/interest in it is presumed to have notice of the title of any other person who was in actual possession of such property.

Registration Act, 1908 :

The purpose of this Act is the conservation of evidence, assurances, title, publication of documents and prevention of fraud. It details the formalities for registering an instrument.

Instruments mandatory to register include:

(a) Instruments of gift of immovable property;

(b) Other non-testamentary instruments which purport or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, to or in immovable property;

(c) Non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of instruments in (b) above.

(d) Leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent.

Sales, mortgages (other than by way of deposit of title deeds) and ex­changes of immovable property are required to be registered by virtue of the Transfer of Property Act. Evidently, therefore, all the above documents have to be in writing.

Section 17 of the Act provides for optional registration. An unregistered document will not affect the property comprised in it, nor be received as evidence of any transaction affecting such property (except as evidence of a contract in a suit for specific performance or as evidence of part- performance under the Transfer of Property Act or as collateral), unless it has been registered.

Thus, the doctrine of part performance dealt with under section 53A of the Transfer of Property Act and the provision of section 49 of the Registration Act (which provides that an unregistered document cannot be admissible as evidence in a court of law except as secondary evidence under the Indian Evidence Act) together protect the buyer in possession of an unregistered sale deed and cannot be dispos­sessed.

The net effect has been that a large number of property transac­tions have been accomplished without proper registration. Further other instruments such as Agreement to Sell, General Power of Attorney and will have been indiscriminately used to effect change of ownership.

Special Relief Act, 1963 :

This Act is only to enforce individual civil rights. A person dispossessed of immovable property without his consent (other than in due course of law) can recover possession by a suit filed within six months from the date of dispossession.

Unless the contrary is proved, in a suit for specific performance of a contract, the Court shall presume that a contract to transfer immovable property is one in which monetary compensation for its non-performance would not afford adequate relief. The Court could also grant a perma­nent/mandatory injunction preventing the breach of such contract and award damages.

Urban Land (Ceiling and Regulation) Act (ULCRA), 1976 :

This legislation has fixed a ceiling on the vacant urban land that a ‘person’ in urban agglomerations can acquire and hold. A person is defined to include an individual, a family, a firm, a company, or an association or body of individuals, whether incorporated or not. This ceiling limit ranges from 500-2,000 square metres (sq. m).

Excess vacant land is either to be surrendered to the Competent Authority appointed under the Act for a small compensation, or to be developed by its holder only for specified purposes. The Act provides for appropriate documents to show that the provisions of the Act are not attracted or should be produced to the registering officer before registering instruments compulsorily registrable under the Registration Act.

The objective of acquiring the excess vacant land could not be achieved because of intrinsic deficiencies in the legislation itself. The provisions under sections 19, 20 and 21 of the Act have together proved counter­productive to the objectives of the legislation.

So far, only 19,020 hectares could be taken possession of by State Governments and Union Territories and the remaining land was locked up in various litigations. This has only helped push up land prices to unconscionable levels and practically brought the housing industry to a stop.

This legislation was repealed by the Centre in 1999; however, it shall not affect the vesting of the vacant land, which has already been taken pos­session by the State Government or any person duly authorised by the State Government in this regard under the provisions of ULCRA.

The repeal of the Act, it is believed, has eliminated the large amount of litigation and released huge chunks of land into the market. However, the repeal of the Act has not been carried out in all States. Initially the repeal Act was applicable in Haryana, Punjab and all the Union Territories.

Subsequently, it has been adopted by the State Governments of Uttar Pradesh, Gujarat, Karnataka, Madhya Pradesh and Rajasthan. Andhra Pradesh, Assam, Bihar, Maharashtra, Orissa and West Bengal have not adopted the Repeal Act so far.

Land Acquisition Act, 1894:

This Act authorises Governments to acquire land for public purposes such as planned development, provisions for town or rural planning, provision for residential purpose to the poor or landless and for carrying out any education, housing or health scheme of the Government. In its present form, the Act hinders speedy acquisition of land at reasonable prices, resulting in cost overruns.

The Indian Evidence Act, 1872:

Under the Act, whenever the status of any property of which he is shown to be in possession is questioned, the burden of proving that he is not the owner lies on the person who asserts that he is not the owner.

State Laws Governing Real Estate:

While each State has its own set of laws, which govern planned develop­ment, rules for construction and floor-area-ratio (FAR) or floor space index (FSI) and formation of societies and condominiums, two laws that exist in every State, are the stamp duty and rent laws.

Rent Control Act :

Rent legislation in India has been in existence for a very long time. Rent control by the Government initially came as a temporary measure to protect the exploitation of tenants by landlords after the Second World War. However, these rent control Acts became almost a permanent fea­ture.

Rent legislation provides payment of fair rent to landlords and pro­tection of tenants against eviction. Besides, it effectively allows the tenant to alienate rented property. Tenants occupying properties since 1947 con­tinue to pay rents fixed then, regardless of inflation and the realty boom.

Some of the adverse impact of the Rent Control Act are:

1. Negative effect on investment in housing for rental purposes.

2. Withdrawal of existing housing stock from the rental market.

3. Accelerated deterioration of the physical condition of the housing stock.

4. Stagnation of municipal property tax revenue, as it is based on the rent.

5. Resultant deterioration in the provision of civic services.

6. Increase in litigation between landlords and tenants.

The Rent Control Act, in fact, is the single most important reason for the proliferation of slums in India by creating a serious shortage of affordable housing for the low income families.

Low and middle-income families typically live in rented accommodation all over the world and the need for such accommodation in our cities will only increase as the economy modernises, labour mobility increases and urbanisation takes place. It is, therefore, necessary to increase the stock of rental housing.

Promotion of rental housing can have a significant impact on the economy in many ways:

1. It reduces shortage of housing for a large section of the population who cannot afford ownership.

2. Housing construction being a labour intensive activity, investment in housing generates employment for both skilled and unskilled labour. Housing has backward and forward linkages with many other industries.

3. Rental housing helps in stabilising real estate prices and checking speculation and, thus, makes housing affordable for the weaker sections.

4. It helps check proliferation of slums.

In the absence of rent control, dilapidated urban housing would be pe­riodically pulled down and replaced by modern apartment buildings and other complexes leading to more rational use of prime locations and also creating a continuous process of urban renewal. This has not happened in India because rent control combined with security of tenure provides no incentive for house owners to undertake renovation work.

This explains the run down appearance of many of our buildings in prime locations, which gives Indian cities a much more shabby appearance than their counter­parts in other developing countries. Repeal of the Rent Control Act could unleash a construction boom as has happened in many major cities all over the world.

This is not only necessary to meet the growing unmet demand for housing but it would also have a highly favourable effect on employment generation.

In 1992, the Central Government proposed a model rent control legisla­tion which was circulated to all States. The model Act proposed modifi­cation of some of the existing provisions regarding inheritance of tenancy and also defined a rent level beyond which rent control could not apply.

A New Delhi Rent Control Act based on this model law was passed in 1997 but it has not been notified to date because of resistance from traders who are sitting tenants. Only a few States have introduced the model Act.

Related Articles:

• 4 Analyses of Important Features of Real Estate Investment
• What are the Different Approaches for Estimating Market Value in Real Estate?

Essay , Management , Real Estate

Comments are closed.

• Share full article

Advertisement

Supported by

Justice Department Says It Will Reopen Inquiry Into Realtor Trade Group

On Friday, the U.S. Court of Appeals for the District of Columbia made a ruling that opens the door for a renewed investigation into the National Association of Realtors.

By Debra Kamin

The Justice Department will reopen an antitrust investigation into the National Association of Realtors, an influential trade group that has held sway over the residential real estate industry for decades. The investigation will focus on whether the group’s rules inflate the cost of selling a home.

The renewed federal inquiry comes after the U.S. Court of Appeals for the District of Columbia on Friday overturned a lower-court ruling from 2023 that had quashed the Justice Department’s request for information from N.A.R. about broker commissions and how real estate listings are marketed.

Friday’s ruling was another setback for N.A.R., still reeling from a March 15 agreement to settle several lawsuits that alleged the group had violated antitrust laws and had conspired to fix the rates that real estate agents charge their clients. Pending federal court approval, N.A.R. will pay $418 million in damages and will significantly change its rules on agent commissions and the databases, overseen by N.A.R. subsidiaries, where homes are listed for sale.

Home sellers in Missouri, whose lawsuit against N.A.R. and several brokerages was followed by multiple copycat claims, successfully argued that the group’s rule that a seller’s agent must make an offer of commission to a buyer’s agent had forced them to pay inflated fees.

The Justice Department now has another chance to peel back the curtain on those fees and other N.A.R. rules that have long confused and frustrated consumers.

“Real-estate commissions in the United States greatly exceed those in any other developed economy, and this decision restores the Antitrust Division’s ability to investigate potentially unlawful conduct by N.A.R. that may be contributing to this problem,” said Assistant Attorney General Jonathan Kanter, the head of the Justice Department’s antitrust division, in an emailed statement. “The Antitrust Division is committed to fighting to lower the cost of buying and selling a home.”

Americans pay roughly $100 billion in real estate commissions annually. In many other countries, commission rates hover between 1 and 3 percent; in the United States, most agents specify a commission of 5 or 6 percent, paid by the seller. Those high commission rates have been at the heart of N.A.R.’s mounting legal challenges.

In an emailed statement on Friday, representatives for N.A.R. said the organization was “reviewing today’s decision and evaluating next steps,” adding that they remained “steadfast in our commitment to promoting consumer transparency and to supporting our members in protecting their clients’ interests in the home buying and selling process.”

Should N.A.R. wish to appeal the ruling, it will have to now take it to the Supreme Court.

With 1.5 million members, a powerful lobbying arm in Washington and $1 billion in assets, N.A.R. has an outsize influence on the real estate industry. It even owns the trademark for the word “Realtor,” and an agent must be a member to call themselves one.

The Justice Department sued the trade group in 2005, claiming that N.A.R. promoted anticompetitive practices and inflated commissions, and the two sides agreed to a 10-year settlement in 2008, during which time N.A.R. was required to change many of its policies regarding home listing sites.

After that settlement expired, the Justice Department reopened its investigation, issuing demands for documentation on how Realtors in the United States use N.A.R.-operated databases to list homes and discuss commission rates, as well as the rules on agent compensation that the organization enforces among its membership.

The department even issued statements of interest in two lawsuits against N.A.R., regarding anticompetitive practices, including the Missouri case, which N.A.R. settled in March.

In 2020, it looked like the case had ended — the Justice Department offered another settlement to N.A.R., this one requiring rule changes like more disclosure around broker fees. N.A.R. agreed, and the investigation was closed.

But in 2021, under the new Biden administration, the Justice Department backed out of its settlement and announced it was reopening its inquiry. N.A.R. took them to federal court in a bid to stop them, and initially was successful in January 2023. But the Justice Department appealed, and a three-judge panel of the appeals court sided with the department in a split ruling — with two judges in favor and one against.

In an interview with The New York Times, Michael Ketchmark, who was the lead lawyer in the Missouri home sellers’ lawsuit against N.A.R., called the renewed investigation “great news for homeowners and home buyers across the country,” which would expand upon the impact of the civil cases against the group.

N.A.R.’s agreement to settle came months after a jury verdict in October 2023 in favor of the home sellers that would have required the trade group to pay at least $1.8 billion in damages.

“Through our trial and our settlement with N.A.R., we advanced the ball as far as we could down the field,” he said. “This is an opportunity for the DOJ to continue to hold them accountable, and if they feel additional steps need to be taken through criminal prosecution or regulation, now they have the green light to do it.”

Debra Kamin reports on real estate, covering what it means to buy, sell and own a home in America today. More about Debra Kamin