Rain City Guide

History of Real Estate – Part 1

ARDELL on 01 28, 2006

Robbie asks: “On a related thought, how did people buy & sell homes in the “dark ages”? That seems more mind boggling to me than anything I or the folks at Zillow are going to be doing in the next year.”

Ardell responds: The first ever “recorded” real estate transaction, involved a “life estate” (not to be confused with landlord/tenant laws). The beneficiaries of the Life Estate breached the minimal conditions of occupancy and were ejected from the property, due to their failure to comply with the conditions of occupancy.You can find the details in the Bible under Genesis. Adam and Eve being the beneficiaries of the life estate, God being the owner and “The Garden of Eden” being the property from which the life tenants were ejected.

The second recorded real estate transaction involved the first ever “foreclosure” procedure. The “purchaser” defaulted on his “mortgage” and the owner foreclosed and took back the property. You can find this case in the same reference book noted above, under Cain and Abel. Cain foreclosed by killing Abel and burying him in the property, which he later resold with Abel still “in it”.

This method of sale and foreclosure (the “death for default” method) continued through most of history. You will recognize this through the “Feudal System” wherein the first “middle man” to the transaction was introduced. The owner, the King, transferred land to “the middleman” the fief/Lord, as a reward for services performed, who then implemented the use of serfs for property maintenance and profit. The King could then foreclose on the fief/Lord by means of death and likewise, the fief/lord could eject the serf for lack of performance , via the same death remedy.

The transfer of property rights via death of the losing party to the transaction, continued through to this Country via gunfights, executions and mass massacre until about 1850 to 1930 or so, depending on where in the country one happened to be.

This brings you up to the original mls and just prior. You will find the details of how real estate was sold just prior to the mls, in the early stages of the mls and through to the present, in the History of Real Estate – Part 2

About the Author: Ardell DellaLoggia

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An Associate Broker with Sound Realty. ARDELL was named one of the 25 most Influential Real Estate Bloggers in the U.S. for 2007 by Inman News, and has over 19 years exeperience in Real Estate up and down both Coasts. She represents buyers and sellers of real estate on both sides of the 520 Bridge from Kirkland, Bellevue and Redmond on the Eastside to Green Lake and surrounds on the Seattle side. You can reach her at 206-910-1000 or by hitting the email the author link above.