All of us, at some point in our lives, we have to face the purchase, sale or rental of a home, either as investors, as landlords or tenants or simply for the purpose of finding a home in which live with our family. Therefore, it never hurts to have some basic notions about Real Estate Law and how it affects real estate property. Here we will explain everything you need to know about it, so pay attention.
Remember that here at RS Chase Lawyers you will find the most suitable services offered by professionals qualified for your case.
What is Real Estate Law?
The Real Estate Law is, fundamentally, the set of rules and laws whose purpose are the objects considered as real estate by civil legislation. Therefore, it is intended to regulate and govern the birth, transmission, modification, acquisition and extinction of both property rights and their dismemberments, as well as the levies and taxes that must be borne.
The purpose of its real estate laws being published is that its execution was to streamline all the processes that we have cited previously and which, until that moment, were really difficult to carry out. In fact, it puts its grain of sand at the time of decentralising the system, allowing that it is not a single public administration that can undertake them. It also focuses on the use of modern technologies and faster access to justice.
However, there are other legal texts that also have a direct influence on Real Estate Law. This is the case, for example, of the Constitution, which establishes the legal framework on which the right of every person to have decent housing is based. Also, although to a lesser extent, there are other laws and decrees that are also related, as in the case of the Mortgage Law.
For its part, the state body in the field of property law is the Land Registry. In fact, he is in charge of making any change of ownership in regard to the ownership of a property, as well as certifying his rental status or any other issue. Therefore, although it is not always mandatory, it is indispensable for most procedures of this type.
What is real estate?
We have all heard about real estate. However, despite the simplicity of the concept and its definition, not everyone knows exactly what they are. Specifically, these are properties that, due to their physical characteristics, cannot move from the place where they are located.
To be more exact, the laws establish a series of criteria on the basis of which real estate can be classified. In this sense, we must distinguish between:
- Real estate by incorporation. Constructions of residential buildings, single-family houses, etc.
- Real estate by nature. They make reference to the plots, both in their soil and in the subsoil.
- Real estate by analogy. This is the case of mortgage concessions.
- Real estate by representation. This point refers to the documentation that accredits the registration of the property, as is the case of the deeds.
- Real property by accession. This is the most complex point since it refers to access points of the buildings, such as doors and windows. When they are uninstalled, they are considered movable property, whereas, when they are part of the construction, they are real estate.
Therefore, real estate is all real estate to which we are accustomed. Knowing this will allow you to better understand that there is a very close relationship between them and Real Estate Law since, fundamentally, they represent the bulk of the subject matter of the discipline.
Relationship between Real Estate Law and Real Estate
Real Estate Law, as we have already mentioned, regulates everything related to real estate. Beyond establishing the rules that regulate the use of these in the cases that we detail at the beginning of the article, it also establishes the taxation that these have to support. And is that, as you know, being the owner of a home, a commercial premise or any other type of property entails various tax obligations. These are the most important:
- The Tax on Real Estate. It is a direct tax that is established based on the tax assessment assigned to the property or its cadastral value. It is applied by the municipalities themselves and is paid once a year.
- The Tax on the Patrimony. It is a tax whose purpose is to force the taxation of natural persons based on their net worth.
- The Tax on the Increase in the Value of Urban Land. Another municipal ownership tax whose purpose is to tax the increase in the value of a land that can be urbanized when it is transmitted. Its amount varies from many factors, being the number of years since the last change of ownership, its cadastral value and its location the most important.
- Personal Income Tax. Its objective, among many others, is to tax the ownership of all those real estate goods that do not produce income and that, in addition, are not used by its owner. It could be said, according to this, that it is established based on the performance of the real estate capital, reaching the amount of 2% of the cadastral value. For its part, we must also take into account, in this regard, that the surplus value obtained after a sale is also taxed.
In short, there is a close relationship between Real Estate Law and Real Estate since this discipline is responsible for establishing all the rules related to properties of this type. In addition, although not directly, it also establishes parameters regarding taxation. We hope we have been of help and that, from now on, you have everything much clearer.
Here at RS Chase Lawyers you’ll find a team of qualified professionals ready to assist you with any issues related to real estate.