The Rise of Real Estate.

Real estate is a booming business in many states. This has resulted in a lot of job opportunities for different people such as real estate agency. A real estate agency is a business that facilitates transactions in the property and real estate sector such as listings of land, houses, estates and commercial buildings for sale or lease purposes. The property and real estate sector being broad, real estate agents can either specialise in a specific type of transaction or give generalised real estate services to clients. What are the legal considerations for setting up such a business?


Registration

Every business must be registered in order to operate legally. With respect to business law, a business can be registered as a sole proprietorship, private limited company, public limited company or a partnership. The chosen type of business will have a great impact on the profit and loss sharing, statutory obligations, capital contribution and the documents required to register the business. Understanding different structures is essential in ensuring that you choose the best structure for your business. With the help of an attorney and accountant, you can figure out the best structure for your business based on your vision, mission and the market conditions.


Besides this, you need to register with bodies that regulate operations in the real estate sector. These bodies ensure that all agencies operate in standard ways and protect the rights of clients. Remember that joining such bodies my not be mandatory but it gives your business the credibility required to operate in the state in question. Such bodies have numerous capacity building initiatives for their members which comes in handy to develop your skills in the real estate sector.


Contractual agreements

Real estate agents sign numerous agreements with clients who either need to buy or sell houses, commercial buildings and other types of property. If these agreements are not executed effectively, the agents are held liable. It is therefore up to the agency to ensure that they have the capacity to come up with comprehensive contractual agreements with their clients. To do this, the agency may require an in house legal team. This team will be tasked with developing, reviewing and executing different legal agreements with clients and the community in general.


One of the other major reasons why you require an in house legal team is the fact that you are constantly collecting confidential information from clients. This information should be safe guarded at all costs. All your employees need to understand which information can be shared and which one cannot be shared unless under special circumstances. The legal team will see to it that all employees understand this. They will also be tasked with solving any legal issues that arise, drafting and executing the documents that are required for different transactions and ensuring that the rights of the clients are upheld at all times.


Education

In some states, you will be required to go through basic courses in real estate and business law before you can qualify for the license. Note that this may not be mandatory but it is helpful for your business. While there are things you can learn about the real estate industry from experience, there are those that require you to go through school to understand well. Therefore, you should make a point of joining some of these classes.