Real Estate Forms
Real estate forms are an integral part of the real estate industry. They are used for a variety of purposes, such as legal records, property transactions and other matters pertaining to property ownership. Historical research has revealed that the first forms for use in a transaction, were created around 1836/8 in Japan. The types of these first Japanese form would typically list all the items involved in the sale or purchase of land or buildings with notations made on what was being sold or bought and how much it was worth in gold coins (gokan). The original purpose of these early forms would have been related to taxation as well as keeping track of ownership over land and buildings.
In the United States, the use of forms and documents to record real estate transactions goes back even further than in Japan. As early as 1788, deeds, title records and surveys were being used to record property ownership and transactions. By 1836/8 deeds and related documents were being printed in mass quantities for distribution to conveyors. At that time paper was relatively expensive so printers would set their type on wooden blocks which were then carved out of wood by hand. The resulting print form looked like a wooden block with print on it. Later, in 1877 for example, these woodblock forms would be replaced by engraved brass or copper plates which made printing much quicker and easier but also less expensive. These old forms are called hand-drawn deeds and would typically be written in cursive. In modern times, most real estate documents are typed on electric typewriters.
The most basic of forms are often referred to as "permanent" records or "primary" real estate records and it is with these that the System for Electronic Registration of Transactions (SERV) is based. The SERV is an international system for the registration of real estate transactions, which replaces paper-based transaction books known as Offices of Land Registration (OROs). The SERV has been in use in the United States since 1969, and is often used for record-keeping and evidence in legal proceedings.
SERV forms are used to register all types of real estate transactions, including sales, mortgages, leases, conveyances of land (including buildings), easements and transfers of other interests in property. The basic format of these electronic records is similar to that used for conventional paper records. In a standard transaction the following information may be provided:
In addition to these basic fields (and any required legal notices), forms may also provide for additional seller information fields such as seller name, street address or physical description, city or zip code, telephone number and email address.
In the United States, the standard for such electronic registration is based on the National Formulary for Electronic Records (NFE) - Registration and Transfer of Real Property. In Canada, the standard national form has been known as Real Property Electronic Registration System (REPORTS) since 1997.
Real estate forms are used in real estate contracts to protect both parties. They are also used to help regulate the terms for each party in an easy manner that can be updated easily if issues arise. In a contract it is typically written down what each party will do in a real estate transaction and how each party will handle any differences or concerns that arise during the transaction.
A real estate contract is a formal written document that details the terms of a real estate sale. In most cases a real estate contract is used as evidence of intent, which is a legal way to ensure that buyers and sellers of real property will fulfill their side of the deal. A real estate contract can be between individuals or it can be between an individual and their attorney if they are buying or selling property on behalf of another party.
In Australia the first use of Real Estate forms was in 1879 with the use of "Resignation Forms". These were primarily used to record transfers within one agency.
In Australia, the first use of Real Estate forms was in 1879 with the use of "Resignation Forms". These were primarily used to record transfers within one agency. The Resignation form used by the RCI was first developed in 1878. It was first published in 1879, and it is based on a form designed for the Registration Office at Churston Cove, UK by John Parr Gee who is regarded as the father of modern contract law. The Resignation Form has been revised several times over the years. In 1975, it changed from being specific to transfers between agents to cover all transactions undertaken by either agent or principal. In 1983 two additional categories were introduced: Permits and Exemptions. When the Real Estate and Business Agents Act 1978 was replaced by the Property Occupations Act 2002, there was no change in the way real estate transactions are recorded. However, there was a significant change in the manner of recording leases.
In Australia, all states have legislation which dictates how real estate forms must be structured and what types of information must be included. A set of standard forms were developed to ensure that real estate forms are structured in a clear and consistent manner so that they can be read and understood by all parties involved in a real estate transaction. These standard forms are controlled by government regulators in each state and territory.
The concept of standard real estate forms originated in Australia and was further developed by the Real Estate Institute of New South Wales and the Real Estate Institute of Victoria. These two bodies decided to work together and seek standardisation for their own members. The ultimate result was that these two bodies along with a third body, the National Association of Real Estate Boards (NAREB) agreed on a set of standard forms which are called the 'Real Estate Transaction Forms'.
The basic information required in an original real estate contract is:
Each party to a real estate contract will usually have their own information recorded on a separate form, however it is also possible to have common information (such as agency details) recorded on one form. There may also be single sided forms that allow for the recording of the same information on both sides of a document.
In Australia, the main documents used to record real estate transactions are real estate forms which are required for all real estate transactions and can be broadly grouped into three types:
Similar to UK, the Real Estate and Business Agents Act 1978 was replaced by the Property Occupations Act 2002. There were no changes in how real estate is recorded in this act. In addition to these forms there are some other documents that must be completed by parties before a property can be transferred (for example an administration agreement must be signed before a property is transferred). The completion of these various paperwork requirements varies depending on the type of transaction being completed.
Conclusion
Tags:
Real Estate Forms