what do you understand by the word realty and which areas does it cover?

Question

i see a lot of companies calling themselves realty companies i want to know what kind of services they render and how do they operate,their organisational structure and examples of some very successful ones in the world

Answer 1

This question has gone six days without an answer.

In the United States, the word "realty" is commonly interchangable with the phrase "real estate". In fact, Webster's Dictionary offers the definition of the noun "realty" as meaning "real estate". For all practical purposes, the terms are interchangable.

In the USA, a realty company facilitates the selling and buying of real estate by bringing together seller and buyer, and thereby earning a sales commission. The business is highly regulated in all fifty states with the manditory licensing ofreal estate agents and brokers.

Realty companies execute a listing contract with the sellers of real estate and then advertise the property for sale to the general public. Agents from competing companies can bring buyers to the table and the sales commissions are split in a fairly standard manner. Every realty company must have a licensed "Broker" of record who is ultimately responsible for the actions of the licensed realty agents who work for the firm.

One of the biggest realty companies in the USA is "Coldwell Banker". Prior to the 1970's, the realty business in the USA was a regional, and many times neighborhood, business that was highly fragmented. The acquisition of successful smaller companies by even more successful larger companies over the years has led to the nationwide giants we now see. Coldwell Banker was a financial based business, acquired by the giant retailer Sears & Roebuck, that got into the realty business. Through aggressive acquisition, they managed to achieve the scale necessary to be able to make the most of national advertising and promotion. There are others that have done the same thing.

Internationally, realty companies strike deals to split commissions generated from the referrals generated when people are transfered due to work requirements.

All of the abovementioned information applies to residential realty, but the commercial realty business operates in a similar manner.

I hope this information helps.