The Role of Government

The real estate industry is regulated and influenced by all three levels of government: Local Government: This level has the most direct impact on real estate property owners. It impacts the industry through property taxation and regulatory activities such as occupational licensing, zoning ordinances, building codes, and building permits. State Government: This level deals with the ownership and transfer of real estate. It impacts the industry through documentary stamp taxes on deeds and notes. Federal Government: This level impacts the real estate business through fiscal and monetary policies. Agencies affecting real estate include the Department of Housing and Urban Development (HUD), the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA). It also enforces laws regarding fair housing and equal opportunity.