Land, building or anything which is permanently affixed to the land is called real estate, real property or realty. Fixtures include building, fences, or things attached to the building. Any property which is not affixed is known as personal property. The real estate property has been classified under two categories- Residential and commercial real Estate.

The residential real estate is the property sold or leased for day to day living of any individual or a family. This is a highly regulated affair in the US. Home buyers are given special protection under the law.

Real Estate transactions are governed by a body of federal statues and state regulatory and common law. All states require licensed real estate agents and brokers who earns a commission from the owner of the property. The broker is employed by the seller to find a buyer for the property; the seller and the broker are bound in a contract of listing agreement. The agreement is such that the broker is entitled to a commission if he or she finds a buyer. Under a special agreement the broker will be entitled to a commission even if the seller finds the broker without the help of the seller. The Real estate brokers are governed by The Federal Fair Housing Act prohibits discrimination by the brokers on the basis of race, colour, nationality etc.

The relationship between the buyer and the seller is governed by the Contract Law. The title to the property must be marketable, so the seller should have the proof of the title to the property which is often verified by an attorney to investigate whether the title is marketable. Some states also requires the seller to disclose all the problems related to the home such as wet basements or the presence of termites on the form. Failure to disclose can even result in the revocation of the purchase agreement or a lawsuit by the buyer.

Most common way of financing a real estate property is by obtaining a mortgage by a bank or by any other lending institutions. A security interest is received by the lender meaning in case of failure to repay the loan, the lender has a right to sell of the property to a third party to compensate the losses.

The Federal Government enacted the Real Estate Settlement Procedure Act (RESPA) to ensure that the buyer of the real estate is aware about all the costs related to the purchase including cost of property surveys, appraisals, title searches, broker’s fees, and administrative and processing charges.