Property, Buildings, and Land
Property, buildings, and land are all included in the definition of real estate, as well as the air above and the earth below the land (Friedman, Harris & Lindeman, 2000).
Real Estate Systems
A real estate system is an automated framework for determining the location of a certain property, its description, its proprietorship, and other information deemed crucial by the components of the complete system. Major and sizable cities in the United States currently provide online Real Estate Systems (RES) access for property taxes, past and present property taxes, as well as the costs of the property from the most recent purchase (Friedman, Harris & Lindeman, 2000).
Estate System
Additionally, a real estate system commonly termed as an estate system is a type of stratification set up by law where the possession of property or land brings about domination of authority.
Questions for Owners of Power Electrician Inc.
In the second meeting with the owners of Power Electrician Inc. a few questions prepared to help make them decide whether to continue leasing or buy new building and land are as described below:
Do you need full control of the property?
Have you considered the long-term costs?
Have you examined the tax liability?
What is the status of your funds in the current financial books?
Can your credit score sustain a mortgage?
Importance of Full Control of the Property
Foremost, the owners are asked if they need full control of the property (Wesley, 2001). This question will help them identify if they possibly plan to make increments or remodels to the property suite the execution of services to their customers. Or, then again make them know whether they will alter the business hours or wish to make changes to the way they carry out their business. If they lease, they may need to get their landlord's consent to roll out these improvements. Assuming, nonetheless, that they opt to possess the property, then they will have the freedom to carry out whatever amendments they so wish.
Consideration of Long-Term Costs
Additionally, the owners are asked to consider the long-term costs. This question will enable them to understand that renting may once in a while beat out a buy as far as income is concerned, especially in the initial years (Wesley, 2001). However, an acquisition is typically less expensive because, the proprietor, apart from paying the majority of the expenses related to obtaining and conserving the property, will endeavor to work in a benefit for himself. Therefore, to save themselves these from these costs, purchasing, as opposed to leasing would be the best option.
Tax Liability Examination
Nonetheless, the company owners are asked if they want the property asset to yield investment funds by saving them the tax expenses. Contingent upon a few elements, for example, how long have they used the premises, how productive their business has been, and what part of the price tag or lease identifies with the land itself as opposed to structures, a buy may cut the tax charges when contrasted to renting.
Stability of Current Financials
The owners are also asked if their current financials are stable. Especially in the initial years, renting might be superior to buying from an income viewpoint (Wesley, 2001). With a leasing, your principle costs may well be restricted to their deposits but with buying, the owners will need to have the whole amount or an up-front installment on a home loan (Wesley, 2001).
Credit Score and Mortgage
Finally, the company owners are asked if their organization's rating of credit may sustain a home loan. If it cannot be, then the best option will be to lease instead of buying land. By surveying the above questions, the owners will be able to decide on either continuing to lease or buy another space.
Memorandum
To: The Owners of Power and Electrician Inc.
From: Consultant from T&G Consulting Co.
Date: November, 2nd, 2017.
Subject: Adverse Possession
From a clear analysis of the matter, it might not be quite easy for the family to repossess the land based on the following factors (Doyle, 2009). Once your company purchases the land, it aims at using it continuously based on adverse possession laws of real. Additionally, according to the law, once the initial owners have given out the land, they cannot repossess the rented or sold property despite how long they use it. Also according to the law of adverse possession, once possession is open and famous such that ownership is clear to any individual who tries to look for mistakes, then it cannot be repossessed by the initial owner (Doyle, 2009).
Therefore, you need not worry about the family trying to repossess the land as this might not be easy under adverse possession laws.
To: The Owners of Power and Electrician Inc.
Subject: Type of Deed to be Prepared
Greetings, sir/madam,
Following the agreement by the family to vacate the land, a deed of transfer of property will have to be prepared. This deed will enable your company to have full possession of the land you have purchased. The deed should be prepared and signed by both parties to ensure compliance in the transfer of the property. Kindly feel free to ask any other questions that will help you carry out the transfer of property process successfully.
Sincerely,
Name
Consultant from T&G Consulting Co
References
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Bottom of Form
Doyle, M. B. (January 01, 2009). Ownership by Display: Adverse Possession to Determine Ownership of Cultural Property. The George Washington International Law Review, 41, 1, 269-297.
Friedman, J. P., Harris, J. C., & Lindeman, J. B. (2000). Dictionary of real estate terms. Hauppauge, NY: Barron’s Educational Series.
Wesley, J. (2001). Auto buying vs leasing. Albany, N.Y: Delmar.
