subject: Real Estate—immovable property [print this page] Real Estateimmovable property Real Estateimmovable property
Real estate refers to a legal term which usually means the land and some development made on it such as building, fencing, wells and many others which are immovable in nature.
The mode of business in real estate varies at different places such as business in Mexico and Central America is different from that of the United States. They also have some similarities such as legal formalities which include the role of the real estate broker or real estate agents who help in buying; taxes one needs to pay; paperwork approved legally and a neutral party which mainly looks after the documentation to avoid any problems.
However, many US companies assist US buyers in buying real estate in Mexico and Central America. The price of real estate is said to be cheaper in the US but in actuality, it depends on the location. Generally, any foreign entity (person, corporation, trust, partnership) can own real property in the US upon sale, the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) required income tax withholding generally 10% of the gross proceeds must be withheld by the settlement agent there are also some additional income taxes for foreign corporations who distribute dividends to their shareholders.
Many countries have restricted foreigners to buy real estate and only few locations have been offered to them. In order to exemplify it, we can say that in Mexico foreigners have not been permitted to buy land or homes within 50 km of the coast or 100 km from a border unless they have title in a Mexican Corporation.
As private property ownership came into existence, real estate has emerged as a great business area which is also known as commercial real estate. To buy real estate, one may need to have a significant amount of money.
Appraisal, brokerages, development, lease, property management, real estate marketing, real estate investing, relocation services, corporate real estate are kinds of real estate businesses. Each kind of real estate offers a new field in which to start a business. It includes residential, commercial or industrial property.
