Real estate law, also referred to as real property law, involves rights to own, use, encumber, and transfer land and permanent additions (such as buildings) attached to the land. Due in part to the importance of real estate to our culture and economy, real estate is a major practice area, as evidenced by the fact that the real property law sections of state bars consistently rank in the top three in number of members.

There are two basic types of real estate practice; typically, a real estate practitioner will be either transaction-oriented or involved chiefly in litigation. However, an attorney may do both, particularly in small firms, and a real estate practice group in a firm of any size is likely to be involved in both.

State law governs most aspects of real estate practice, with two important caveats. First, some federal laws have a significant effect on real estate, including federal tax laws, environmental statutes, consumer protection laws, and bankruptcy laws. Second, the practice is increasingly going national to meet the demands of clients and their businesses. For example, counsel in one state working for a corporation formed in another state may handle a matter that involves property, lenders, tenants, consultants, and other parties from several other states. Real estate attorneys also often go to other states to interview witnesses, conduct depositions, and participate in arbitrations and mediations. Even without traveling, a real estate practitioner often assesses the impact on the client’s business of the laws of another state. The ABA and many states are recognizing this trend by adopting professional conduct rules that permit the multi-jurisdictional practice of law.

The real estate industry is sensitive to the state of the economy, making real estate law a cyclical and volatile area of practice. Nevertheless, a flow of work always follows the marketplace. For example, a strong economy triggers a construction boom, and a weak market results in foreclosures.

Construction law is a subset of real estate law concerned with the relationships between construction professionals and property owners.