Residential Real Estate Outline
- Types of real estate
- What is residential real estate?
- The difference between residential real estate and commercial real estate
- What types of property are considered residential?
- What does owning residential real estate mean?
- Buying a House
- Selling a House
As experienced real estate lawyers in Toronto, we know firsthand how important it is to provide attention to detail and give forethought to any property transaction. From the agreement of sale and purchase to due diligence and closing, a real estate lawyer can be a guide to ensure a deal is done properly and efficiently.
Types of real estate
Residential real estate
‘Residential real estate’ applies to any property available for occupation for non-business purposes, usually as a single family or multi-family structure. Residential real estate can include collections of apartments, multi-family housing, townhouses, condos, cooperatives with multiple ownerships, semi-detached and detached dwellings, and portable dwellings such as mobile homes, houseboats, and tiny homes.
Commercial real estate
‘Commercial real estate’ is any property used exclusively for business purposes and/or which is used predominantly as a workspace rather. In most cases, commercial real estate is leased to tenants to allow them to conduct business on the premises. Commercial properties like this are wide-ranging, with examples including gas stations to shopping centers, retailers of all categories, office spaces, hotels, restaurants, and more.
Industrial real estate
‘Industrial real estate’ refers to any facilities used for manufacturing, production, research and development, storage, and distribution. In any national or international company’s supply chain, this is one class of real estate which is very important to day-to-day operations. Industrial real estate continues to be a necessity in consumption, trade, and eCommerce.
Land real estate
‘Land real estate’ refers to a designated portion of land on which any buildings or equipment are not included. Land real estate is oftentimes discussed as it relates to the natural resources on the land or to separate it from the man-made structures occupying it. Even when there is nothing built on a parcel of vacant land, it is still managed like any other real estate.
What is residential real estate?
Residential real estate is land developed for people to live on and which is usually defined as such through local zoning regulations. To this point, residential real estate cannot be used for commercial or industrial purposes. This is the most common type of real estate and encompasses many potential dwellings. Depending on the area, there are oftentimes regulations which apply to how residential properties are expected to be managed.
For most Canadians, the purchase of residential real estate will be the most important financial investment they make. Residential real estate allows a buyer to pay into an investment while giving them a private area to call their own. In many cases, especially in cities such as Toronto where the value and growth rate of real estate is so much higher than it is in most Ontario rural communities, real estate like this is purchased to sell at a profit and/or to lease to others.
The difference between residential real estate and commercial real estate
Commercial real estate focuses on offices, retail spaces, single-purpose business-oriented facilities, and properties which are dedicated solely to commercial affairs. Comparatively, residential real estate is used predominantly and almost exclusively as a living space. Although one may use a portion of residential real estate as a home office, the area’s primary use will always be as a living space. Therefore, this still classifies it as residential as opposed to commercial.
What types of property are considered residential?
There are many types of properties which are classified as residential, including condominiums, townhouses, cooperatives, single-family detached and semi-detached homes, and multi-family homes. Residential real estate is a very broad category, with virtually anything used predominantly as a living space qualifying. Compared to other types of real estate, residential is less expensive and more widely available to individuals looking to buy.
What does owning residential real estate mean?
To successfully purchase, own, or sell residential real estate, it oftentimes requires the assistance and support of a real estate lawyer, lending institutions, agents, brokers, and the municipality. When someone owns residential real estate, there are many moving pieces – most of which advantageous. Residential real estate is a great investment, allowing someone to give money every month into something which they can sell at a later date usually for profit. A real estate owner is also provided with a piece of land and a home on which they can build and live, without having to pay a landlord.
Buying a House
Especially if you’re a first-time home buyer in Toronto or Ontario, an experienced real estate lawyer can be a major asset as they’re trained to deal with common residential real estate problems, can clarify vague or unclear terms, can draft the necessary documentation to support your purchase, and can assist on other matters in consultation as well. All in all, this saves time, money, and risk. Some may not think it necessary however having a lawyer on-call is an excellent way to relieve stress in the home buying process and ensure you’re getting a fair shake.
Read more about Buying A House
Selling a House
No matter, if this is your first time selling a house in Ontario or not, a residential real estate lawyer, can work to make the transaction of moving property from your hands to a buyer’s peaceful and easy. After the selling price and terms are established by you and your real estate agents, a lawyer’s there to draft any necessary documentation and ensure what you’re signing is fair. Deals like these are some of the most complicated transactions a Canadian will have to deal with. You don’t want to be out of your depth and risk a penalty down the line.
Are you selling or buying a house in Toronto? Hire a Hummingbird Lawyers LLP residential real estate lawyer to protect yourself, your time, and your investment. Regardless of whether it’s routine contract negotiation and review, or resolving a last-minute issue, let us be your representative and help you in facilitating a fair, amenable transaction.