Question

Describe how Graaskamp's Situs Theory & Enterprise Concept relate to the form, function, & finance of real estate.

Answer 1

Situs Theory is all about property.

In law, the Situs ( for position or site) of property is where the property is treated as being located for legal purposes.

Situs of an object determine the lex , i.e. the law applicable in the jurisdiction where the object is located.

For eg: Real estate in England is subject to English law.

Real estate in Scotland is subject to Scottish law.

Real estate in France is subject to French law.

It can be essential to determine the Situs of an object and the lex situs , because thwr are substantial difference between the laws in different jurisdiction governing; for ex- whether property has been transferred effectively; what taxes apply ( such as inheritance tax, estate tax, wealth tax, income tax and capital gains tax) and whether rules of forced heirship apply.

The English Common law rules, which apply in most common law jurisdiction are in outline as follows:

- the Situs of real estate is where it is located.

- the Situs of Chattel( tangible moveable item) is where it is currently located.

-the Situs of bearer instrument is where the document is located but in case of registered instrument is where the register held.

- Situs of debt is where the debtor resides.

- the Situs of intangible property, intellectual property and goodwill is where the property is registered.

- the Situs of ship within territorial waters is where it is located but the Situs of ship in international waters is its port of registry.

Real estate - form, function and finance

Different forms of real estate

- Residential real estate includes both new construction and resale homes.

- Commercialization real estate includes shopping center and strip malls, medical and educational building, hotels and offices.

-Industrial manufacturing building and property as well as warehouses

- Land includes vacant land, working farm and ranches.

Real estate function- A real estate broker works to negotiate and arrange real estate transaction. This licensed individual has daily duties that include writing contracts and overseeing transactions for sales and purchasing activities on houses, land and commercial properties.

Real estate financing- There are several ways of real estate financing: governmental and commerce sources and institutions.

A home buyer or builder can obtain Financial aid from saving and loan association, commercial bank, mortgage banker, LIC, credit unions, individual investors etc.