Differences between a Residential Property and Commercial Property

Differences between a Residential Property and Commercial Property

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During the process of constructing a structure, construction law comes into picture. Construction law helps to monitor and check each step of the construction process from start till the end. It also helps to make sure that the parties involved in constructing the structure breaks any rules and laws.

Some of the key terms related to construction law are as follows –

  1. Client – He or she is the individual the construction work is carried out for.
  2. Contractor – He or she is the one who builds the structure.
  3. Subcontractor – These are a group of people working under the contractor. They also do the work related to electrical and plumbing installations.

Residential Property – A structure built for the purpose of living. It can be in the form of a bungalow, apartment and so on.

Commercial Property – A structure built to earn profit. The main focus of commercial property is solely based on generating profit.

The Differences –

A residential property is the one where the investor is the sole owner of the property, and a commercial property is the one where the owner leases it to tenants. Tenants use the property to generate income and profit for their business. Commercial properties are built in the form of apartment complex, retail like shopping malls and many more. The laws and regulations for commercial and residential property differs. The laws and regulations are carried out by different boards of conduct due to different zoning requirements, electrical codes, and construction rules. However, a project (either commercial or residential) may get shut down if it fails to deliver on time.

If you need to know more, then you must visit various construction law firms.