The major sources of real estate law are legislation at federal, state and local level, and

• A. Court decisions
• B. Professional real estate associations
• C. Real estate commissions
• D. Local practices

Answer: (A)

Court decisions are a major source of real estate law because they interpret and apply statutes and fill gaps left by legislative text, creating binding precedent for future cases. Legislation at federal, state, and local levels sets the rules, but judges interpret those rules, resolve disputes, and define how they’re expected to work in real-world transactions. Over time, case law shapes established standards in areas like property rights, contracts, agency duties, disclosures, and fair housing. For example, a court ruling clarifying what must be disclosed in a real estate transaction becomes a controlling standard in later cases and helps guide practice.

Other influences, such as professional associations, real estate commissions, or local practices, provide guidelines, regulatory oversight, and enforcement, but they don’t create binding law by themselves. They support how the law is implemented rather than being the primary legal rules themselves.