Real estate or immovable property is a term that refers land along with anything permanently affixed to the land, such as Buildings, Home, Flats etc. Real Estate Business is a Business NOT a Profession. Sometimes it is spoken as a profession, but it is basically a business. A Profession means the use of science or art & person applying it earn profit whereas a Business stands for profit, and the profit for business.

Divisions of the Real Estate Business.—The main divisions of the real estate business are :
1) Investment,
2) Operation,
3) Agency.
These differ from one another according to the aims of the persons. To conduct first two divisions of the business (investment or operation) actual capital is required. The most important capital in the agency business is the goodwill of its customers.

Investment in real estate is generally made for either one of two aspects:
(a) to derive an income,
(b) to hold for resale in expectancy of an increase in value.

Operation: Real estate operation is done for either one of two aspects:
(a) for purchasing and selling of land,
(b) for the purpose of building,
(c) for the purpose of lending money upon mortgages.

The first aspect of operation i.e. purchases and sale of land is that branch of operation which concerns the dealing land as a thing to be bought and sold. It may be divided into two parts :

(1) Speculation, pure and simple, by which land is bought in the hope of a rise in value and resold when that hope is either realized or known to be unfounded.

(2) Development of land, the most conspicuous part of which is the development of vacant tracts by buying them wholesale in their wild condition, making them marketable by bringing them to such a state of development as is implied by putting streets through them, pre-paring them for use and then selling them in small parcels. This is a most important and useful part of the commercial side of the real estate business, and has resulted in the development and settlement of many parts of the country.

The second aspect of Operation which concerns itself in building may be similarly divided into,

(1) Speculative building which consists in building structures primarily for sale, and not necessarily for the use of the constructor, and

(2) Building for investment which consists of the erection of structures for rental or primarily for the use of the person conducting the operation.

The third form of operation which is concerned with the lending of money upon real estate security is divided into two parts,

(1) Making of permanent loans,

(2) Making of building or temporary loans.

Agency—Agency is that branch of the real estate business which engages the attention of the greatest number of persons who are concerned with the business. It is divided into two parts
1) Brokers
2) Management.

A Broker is a person who for compensation, usually proportioned to the value of the subject-matter, brings about transactions between principals.

Brokers have two divisions according to the kinds of business-

1) The Sales Broker is a broker who devotes his time and attention to the bringing about of the sale or exchange of real property.

2) A Loan Broker is one who gives his attention to the obtaining of loans upon the security of real property.

Management, the second branch of agency, is the operation of deriving income and caring physically for real estate structures. It concerns itself not only with the deriving of income, but with the keeping down of expenses and the care in making expenditures. It is popularly known as ”Agency.”

The methods of dealing in real estate and the laws governing it are not arbitrary and were not made for the citification of others or for the purpose of multiplying legal fees. All systems of law are expressions of two things, the historic customs of the people whom they affect, and the modification of those customs, as changes made those modifications advisable.