Glossary - Real Estate

Real estate encompasses land along with any permanent improvements attached to the land, wether natural or man-made—including water, trees, minerals, buildings, homes, fences, and bridges. It is a form of real property, differing from personal property, which is not permanently attached to the land such as vehicles, boats, jewelry, furniture, and farm equipment.

Also known as

  • Property
  • Real Property
  • Realty

Use cases examples

  • Lease Agreement: This lease agreement constitutes the lessee's right to use and occupy the real estate property at 123 Main Street for a specified term under certain conditions.
  • Mortgage Contract: The mortgagor agrees to secure the loan by granting the mortgagee a lien on the real estate located at 456 Elm Street, as described in the attached schedule A.

Considerations for investors

  • Evaluating the potential for appreciation in real estate value and the rental income as a return on investment.
  • Assessing the risks associated with real estate investments, such as market fluctuations, economic downturns, and the liquidity of real estate assets.

Considerations for founders

  • Understanding local real estate laws and regulations, including zoning laws, which can significantly affect the business operations.
  • Considering the long-term real estate needs of the business for growth and expansion, and the importance of location for customer access and logistics.

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