|
Real estate or immovable property is a legal term (in
some jurisdictions) that encompasses land along with
anything permanently affixed to the land, such as buildings.
Real estate (immovable property) is often considered
synonymous with real property (also sometimes called
realty), in contrast with personal property (also sometimes
called chattel or personality). However, for technical
purposes, some people prefer to distinguish real estate,
referring to the land and fixtures themselves, from
real property, referring to ownership rights over real
estate. The terms real estate and real property are
used primarily in common law, while civil law jurisdictions
refer instead to immovable property.
In recent years, many economists have recognized that
the lack of effective real estate laws can be a significant
barrier to investment in many developing countries.
In most societies, rich or poor, a significant fraction
of the total wealth is in the form of land and buildings.
In most advanced economies, the main source of capital
used by individuals and small companies to purchase
and improve land and buildings is mortgages -- bank
loans for which the real property itself constitutes
collateral. Banks are willing to make such loans at
favorable rates in large part because if the borrower
does not make payments the lender can foreclose, that
is, file a court action that lets them take the property
and sell it to get their money back. But in many developing
countries there is no effective means by which a lender
could foreclose, so the mortgage loan industry as such
either does not exist at all or is only available to
members of privileged social classes.
|
