Chapter 1Introduction to the Real Estate Business<br />The real estate business is more than just houses. As this chapter...
1	Introduction to the Real Estate Business<br />Learning Objectives<br /><ul><li>Identify the various careers available in...
Describe the five categories of real property
Explain the operation of supply and demand in the real estate market
Distinguish the economic, political and social factors that influence supply and demand</li></ul>Modern Real Estate Practi...
National Association of REALTORS®Preamble to Code of Ethics<br />Under all is the land. Upon its wise utilization and wide...
Vocabulary <br />
Importance to economy<br />38% of GDP<br />1 ½ million real estate agents<br />Hundreds of specialties – <br />10s of mill...
Brokerage Multiplier Effect<br />Brokerage <br />Broker<br />Agents<br />Office Staff<br />Landlord<br />Government taxes<...
1	Introduction to the Real Estate Business<br />A Business of Many Specializations<br /><ul><li>Brokerage
Appraisal
Property management
Financing
Subdivision and development
Home inspection
Counseling
Education</li></ul>Modern Real Estate Practice17th Edition<br />
Broker<br />Person or company who assists with a BARN SALE<br />Buy<br />Advertise<br />Rent<br />Negotiate<br />Sell<br /...
1	Introduction to the Real Estate Business<br />Types of Real Property Classifications<br />RCA IS Zoning (Districts)<br /...
Commercial
Agricultural
Industrial
Special Purpose</li></ul>Modern Real Estate Practice17th Edition<br />
1	Introduction to the Real Estate Business<br />The Real Estate Market<br /><ul><li>Supply and Demand
Factors Affecting Supply
Factors Affecting Demand</li></ul>Modern Real Estate Practice17th Edition<br />
Chapter 2Real Property and the Law<br />Many types of property define real estate’s “product.”  Land is one of the fundame...
2Real Property and the Law<br />Learning Objectives<br /><ul><li>Identify the rights that convey with ownership of real pr...
Describe the difference between real and personal property, and the various types of personalty
Explain the types of laws that affect real estate
Distinguish among the concepts of land, real estate and real property</li></ul>Modern Real Estate Practice17th Edition<br />
2Real Property and the Law<br /><ul><li>Land - The earth’s surface extending downward to the center of the earth and upwar...
Real Estate - Land at, above and below the earth’s surface, plus all things permanently attached to it, whether natural or...
Real Property-The interests, benefits and rights that are automatically included in the ownership of land and real estate<...
2Real Property and the Law<br />Modern Real Estate Practice17th Edition<br />
2Real Property and the Law<br />Bundle of Legal Rights<br />Modern Real Estate Practice17th Edition<br />
2Real Property and the Law<br />Real Property Rights<br /><ul><li>Surface Rights
Subsurface Rights
Air Rights
Water Rights</li></ul>Modern Real Estate Practice17th Edition<br />
2Real Property and the Law<br />Personal Property<br />All property that does not fit the definition of real property<br /...
Plants
Fixtures
Intent
Method of annexation
Adaptation to real estate
Agreement
Trade Fixtures</li></ul>Modern Real Estate Practice17th Edition<br />
2Real Property and the Law<br />Characteristics of Real Property<br /><ul><li>Economic Characteristics
Scarcity
Improvements
Permanence of investment
Location
Physical Characteristics
Immobility
Indestructibility
Uniqueness</li></ul>Modern Real Estate Practice17th Edition<br />
2Real Property and the Law<br />Laws Affecting Real Estate<br /><ul><li>Contract law
General property law
Agency law
Real estate license law
Federal regulations
Federal, state and local tax laws
Zoning and land use laws
Federal, state and local environmental regulations</li></ul>Modern Real Estate Practice17th Edition<br />
Chapter 3Concepts of Home Ownership<br />A variety of housing types are available under the general heading of “home owner...
3Concepts of Home Ownership<br />Learning Objectives<br /><ul><li>Identify the various types of housing choices available ...
Describethe issues involved in making a home ownership decision
Explain the tax benefits of home ownership and the provisions of recent changes to the Tax Code
Distinguish the various types of homeowner’s insurance policy coverage</li></ul>Modern Real Estate Practice17th Edition<br />
3Concepts of Home Ownership<br />Types of Housing<br /><ul><li>Apartment Complex
Condominium
Cooperative
Planned Unit Development (PUD)
Retirement Community</li></ul>Modern Real Estate Practice17th Edition<br />
3Concepts of Home Ownership<br />Types of Housing<br /><ul><li>Highrise Development
Converted-use Property
Manufactured Housing
Modular Homes
Time-share</li></ul>Modern Real Estate Practice17th Edition<br />
3Concepts of Home Ownership<br />Housing Affordability<br /><ul><li>Mortgage Terms
Ownership Expenses and Ability to Pay
Investment Considerations
Tax Benefits</li></ul>Modern Real Estate Practice17th Edition<br />
3Concepts of Home Ownership<br />Homeowner’s Insurance<br /><ul><li>Coverage and Claims
Basic vs. Broad-form Policies
Liability
Coinsurance Clause
National Flood Insurance Program</li></ul>Modern Real Estate Practice17th Edition<br />
Chapter 4Agency<br />Real estate is an industry about property, but it’s also an industry about people. The concept of age...
4Agency<br />Learning Objectives<br /><ul><li>Identify the various types of agency relationships common in the real estate...
Describe the fiduciary duties involved in an agency relationship
Explain the process by which agency is created and terminated and the role of disclosure in agency relationships
Distinguish the duties owed by an agent to his or her client from those owed to customers</li></ul>Modern Real Estate Prac...
4Agency<br />Modern Real Estate Practice17th Edition<br />
4Agency<br />Modern Real Estate Practice17th Edition<br />
4Agency<br />Real Estate Agency<br /><ul><li>Common-law history
Definitions:
Agent
Subagent
Principal
Agency
Fiduciary
Client
Customer
Nonagent</li></ul>Modern Real Estate Practice17th Edition<br />
4Agency<br />Fiduciary Duties of an Agent<br /><ul><li>Care
Obedience
Loyalty
Disclosure
Accounting
Confidentiality</li></ul>Modern Real Estate Practice17th Edition<br />
4Agency<br />Creation and Termination of Agency<br />Creation<br /><ul><li>Express Agency
Implied Agency</li></ul>Termination<br /><ul><li>Completion, performance or fulfillment
Death or incapacity
Destruction or condemnation of the property
Expiration
Mutual agreement
Breach
Operation of law</li></ul>Modern Real Estate Practice17th Edition<br />
4Agency<br />Limitations on Authority<br />Modern Real Estate Practice17th Edition<br />
4Agency<br />Types of Agency Relationships<br />Modern Real Estate Practice17th Edition<br /><ul><li>Single Agency
Subagency
Seller Representation
Buyer Representation
Owner as Principal</li></li></ul><li>4Agency<br />Types of Agency Relationships<br />Modern Real Estate Practice17th Editi...
Disclosed Dual Agency
Designated Agency
Undisclosed Dual Agency
Disclosure Laws
Nonagency
Agency Statutes</li></li></ul><li>4Agency<br />Customer-Level Services<br />Modern Real Estate Practice17th Edition<br /><...
Honest and fair dealing
Disclosure of all facts the licensee knows (or should be expected to know) that materially affect the value or desirabilit...
State law may require additional services or disclosures</li></li></ul><li>4Agency<br />Modern Real Estate Practice17th Ed...
4Agency<br />Property Conditions<br /><ul><li>Latent Defect</li></ul>	A hidden structural defect that would not be discove...
Chapter 5Real Estate Brokerage<br />A real estate brokerage is more than a room full of desks. It’s a hive of activity, de...
5Real Estate Brokerage<br />Learning Objectives<br /><ul><li>Identify the role of technologies, personnel and license laws...
Describe the various types of antitrust violations common in the real estate industry, and the penalties involved with each
Explain how a broker’s compensation is usually determined
Distinguish employees from independent contractors and explain why the distinction is important</li></ul>Modern Real Estat...
5Real Estate Brokerage<br />Brokerage<br />	The business of bringing parties together.<br />Real Estate Broker<br />	A per...
5Real Estate Brokerage<br />Broker-Salesperson Relationship<br /><ul><li>A real estate salesperson is licensed to perform ...
Employee – broker may require employee to follow rules for hours, attendance, etc.
Independent Contractor – broker cannot require specific office hours, attendance, etc.</li></ul>Modern Real Estate Practic...
5Real Estate Brokerage<br />Technology<br /><ul><li>Computers and Laptops
Internet, Web Sites, E-mail
Cell Phones, Digital Cameras, PDAs
Internet Advertising
Security
Electronic Contracting</li></ul>Modern Real Estate Practice17th Edition<br />
5Real Estate Brokerage<br />Broker’s Compensation<br /><ul><li>Commission is always negotiable
Commission is usually earned when
a completed sales contract has been executed by a ready, willing and able buyer
the contract is accepted and executed by the seller
copies of the contract are in the possession of all parties</li></ul>Modern Real Estate Practice17th Edition<br />
5Real Estate Brokerage<br />Broker’s Compensation<br /><ul><li>Procuring cause
broker started a chain of events that resulted in a sale
Ready, willing and able buyer
one who is prepared to buy on the seller’s terms and ready to take positive steps toward consummation of the transaction</...
5Real Estate Brokerage<br />Salesperson’s Compensation<br />Amount and method of compensation is set by agreement between ...
Share of commission
100% Commission Plan
Graduated Commission Split</li></ul>Modern Real Estate Practice17th Edition<br />
5Real Estate Brokerage<br />Modern Real Estate Practice17th Edition<br />
5Real Estate Brokerage<br />Antitrust Laws<br /><ul><li>Price-fixing
Group boycotting
Allocation of customers or markets
Tie-in agreements
Penalties</li></ul>Modern Real Estate Practice17th Edition<br />
5Real Estate Brokerage<br />Recent Issues<br /><ul><li>Fee-for-Services
Minimum Level of Service
Do-Not-Call Registry</li></ul>Modern Real Estate Practice17th Edition<br />
Chapter 6Listing Agreements and Buyer Representation<br />Whether representing sellers or buyers, the role of the real est...
6Listing Agreements and Buyer <br />	Representation<br />Learning Objectives<br /><ul><li>Identify the different types of ...
Describe the ways in which a listing may be terminated
Explain the listing process and the parts of the listing agreement
Distinguish among the characteristics of the various types of listing and buyer representation agreements</li></ul>Modern ...
6Listing Agreements and Buyer <br />	Representation<br />Modern Real Estate Practice17th Edition<br />Listing Agreements<b...
Exclusive-agency listing
Open listing
Multiple-listing (MLS)
Net listing
Option listing</li></li></ul><li>6Listing Agreements and Buyer <br />	Representation<br />Termination<br /><ul><li>purpose...
expiration of listing period
property isdestroyed or use is changed
title istransferred by law
mutual agreement of the parties
death or incapacity of either party
breach</li></ul>Modern Real Estate Practice17th Edition<br />
6Listing Agreements and Buyer <br />	Representation<br />Modern Real Estate Practice17th Edition<br />Listing Process<br /...
Basic information required
Disclosures</li></li></ul><li>6Listing Agreements and Buyer <br />	Representation<br />Modern Real Estate Practice17th Edi...
6Listing Agreements and Buyer <br />	Representation<br />Modern Real Estate Practice17th Edition<br />Listing Agreement Is...
Broker’s authority and responsibilities
Names of all parties
Brokerage firm
Listing price
Real and personal property
Leased equipment</li></li></ul><li>6Listing Agreements and Buyer <br />	Representation<br />Modern Real Estate Practice17t...
Proposed closing and possession dates
Closing details
Evidence of ownership
Encumbrances
Home warranty program
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Dearborn 17th pp

  1. 1. Chapter 1Introduction to the Real Estate Business<br />The real estate business is more than just houses. As this chapter says, “Real estate is big business,” and includes commercial properties, condominiums, and open land in addition to single-family homes.<br />
  2. 2. 1 Introduction to the Real Estate Business<br />Learning Objectives<br /><ul><li>Identify the various careers available in real estate, and the professional organizations that support them
  3. 3. Describe the five categories of real property
  4. 4. Explain the operation of supply and demand in the real estate market
  5. 5. Distinguish the economic, political and social factors that influence supply and demand</li></ul>Modern Real Estate Practice17th Edition<br />
  6. 6. National Association of REALTORS®Preamble to Code of Ethics<br />Under all is the land. Upon its wise utilization and widely allocated ownership depends on the survival and growth of free institutions and our civilization<br />
  7. 7. Vocabulary <br />
  8. 8. Importance to economy<br />38% of GDP<br />1 ½ million real estate agents<br />Hundreds of specialties – <br />10s of millions of people<br />Appraising to zoning specialist <br />Multiplier Effect Each dollar turns over Appraiser buys goods and services from their fees<br />Those providers buy other things <br />
  9. 9. Brokerage Multiplier Effect<br />Brokerage <br />Broker<br />Agents<br />Office Staff<br />Landlord<br />Government taxes<br />Community <br />
  10. 10. 1 Introduction to the Real Estate Business<br />A Business of Many Specializations<br /><ul><li>Brokerage
  11. 11. Appraisal
  12. 12. Property management
  13. 13. Financing
  14. 14. Subdivision and development
  15. 15. Home inspection
  16. 16. Counseling
  17. 17. Education</li></ul>Modern Real Estate Practice17th Edition<br />
  18. 18. Broker<br />Person or company who assists with a BARN SALE<br />Buy<br />Advertise<br />Rent<br />Negotiate<br />Sell<br />Aid<br />Lease<br />Exchange<br />
  19. 19. 1 Introduction to the Real Estate Business<br />Types of Real Property Classifications<br />RCA IS Zoning (Districts)<br /><ul><li>Residential
  20. 20. Commercial
  21. 21. Agricultural
  22. 22. Industrial
  23. 23. Special Purpose</li></ul>Modern Real Estate Practice17th Edition<br />
  24. 24. 1 Introduction to the Real Estate Business<br />The Real Estate Market<br /><ul><li>Supply and Demand
  25. 25. Factors Affecting Supply
  26. 26. Factors Affecting Demand</li></ul>Modern Real Estate Practice17th Edition<br />
  27. 27. Chapter 2Real Property and the Law<br />Many types of property define real estate’s “product.” Land is one of the fundamental concepts of real estate, as well as “improvements” in the form of houses and outbuildings. The fence suggests the limits of ownership.<br />
  28. 28. 2Real Property and the Law<br />Learning Objectives<br /><ul><li>Identify the rights that convey with ownership of real property and the characteristics of real estate
  29. 29. Describe the difference between real and personal property, and the various types of personalty
  30. 30. Explain the types of laws that affect real estate
  31. 31. Distinguish among the concepts of land, real estate and real property</li></ul>Modern Real Estate Practice17th Edition<br />
  32. 32. 2Real Property and the Law<br /><ul><li>Land - The earth’s surface extending downward to the center of the earth and upward to infinity, including permanent natural objects
  33. 33. Real Estate - Land at, above and below the earth’s surface, plus all things permanently attached to it, whether natural or artificial
  34. 34. Real Property-The interests, benefits and rights that are automatically included in the ownership of land and real estate</li></ul>Modern Real Estate Practice17th Edition<br />
  35. 35. 2Real Property and the Law<br />Modern Real Estate Practice17th Edition<br />
  36. 36. 2Real Property and the Law<br />Bundle of Legal Rights<br />Modern Real Estate Practice17th Edition<br />
  37. 37. 2Real Property and the Law<br />Real Property Rights<br /><ul><li>Surface Rights
  38. 38. Subsurface Rights
  39. 39. Air Rights
  40. 40. Water Rights</li></ul>Modern Real Estate Practice17th Edition<br />
  41. 41. 2Real Property and the Law<br />Personal Property<br />All property that does not fit the definition of real property<br /><ul><li>Manufactured Housing
  42. 42. Plants
  43. 43. Fixtures
  44. 44. Intent
  45. 45. Method of annexation
  46. 46. Adaptation to real estate
  47. 47. Agreement
  48. 48. Trade Fixtures</li></ul>Modern Real Estate Practice17th Edition<br />
  49. 49. 2Real Property and the Law<br />Characteristics of Real Property<br /><ul><li>Economic Characteristics
  50. 50. Scarcity
  51. 51. Improvements
  52. 52. Permanence of investment
  53. 53. Location
  54. 54. Physical Characteristics
  55. 55. Immobility
  56. 56. Indestructibility
  57. 57. Uniqueness</li></ul>Modern Real Estate Practice17th Edition<br />
  58. 58. 2Real Property and the Law<br />Laws Affecting Real Estate<br /><ul><li>Contract law
  59. 59. General property law
  60. 60. Agency law
  61. 61. Real estate license law
  62. 62. Federal regulations
  63. 63. Federal, state and local tax laws
  64. 64. Zoning and land use laws
  65. 65. Federal, state and local environmental regulations</li></ul>Modern Real Estate Practice17th Edition<br />
  66. 66. Chapter 3Concepts of Home Ownership<br />A variety of housing types are available under the general heading of “home ownership”: single family, small multifamily residences, and high-rise condos.<br />
  67. 67. 3Concepts of Home Ownership<br />Learning Objectives<br /><ul><li>Identify the various types of housing choices available to home buyers
  68. 68. Describethe issues involved in making a home ownership decision
  69. 69. Explain the tax benefits of home ownership and the provisions of recent changes to the Tax Code
  70. 70. Distinguish the various types of homeowner’s insurance policy coverage</li></ul>Modern Real Estate Practice17th Edition<br />
  71. 71. 3Concepts of Home Ownership<br />Types of Housing<br /><ul><li>Apartment Complex
  72. 72. Condominium
  73. 73. Cooperative
  74. 74. Planned Unit Development (PUD)
  75. 75. Retirement Community</li></ul>Modern Real Estate Practice17th Edition<br />
  76. 76. 3Concepts of Home Ownership<br />Types of Housing<br /><ul><li>Highrise Development
  77. 77. Converted-use Property
  78. 78. Manufactured Housing
  79. 79. Modular Homes
  80. 80. Time-share</li></ul>Modern Real Estate Practice17th Edition<br />
  81. 81. 3Concepts of Home Ownership<br />Housing Affordability<br /><ul><li>Mortgage Terms
  82. 82. Ownership Expenses and Ability to Pay
  83. 83. Investment Considerations
  84. 84. Tax Benefits</li></ul>Modern Real Estate Practice17th Edition<br />
  85. 85. 3Concepts of Home Ownership<br />Homeowner’s Insurance<br /><ul><li>Coverage and Claims
  86. 86. Basic vs. Broad-form Policies
  87. 87. Liability
  88. 88. Coinsurance Clause
  89. 89. National Flood Insurance Program</li></ul>Modern Real Estate Practice17th Edition<br />
  90. 90. Chapter 4Agency<br />Real estate is an industry about property, but it’s also an industry about people. The concept of agency is entirely about people, and relationships between and among them.<br />
  91. 91. 4Agency<br />Learning Objectives<br /><ul><li>Identify the various types of agency relationships common in the real estate profession and the characteristics of each
  92. 92. Describe the fiduciary duties involved in an agency relationship
  93. 93. Explain the process by which agency is created and terminated and the role of disclosure in agency relationships
  94. 94. Distinguish the duties owed by an agent to his or her client from those owed to customers</li></ul>Modern Real Estate Practice17th Edition<br />
  95. 95. 4Agency<br />Modern Real Estate Practice17th Edition<br />
  96. 96. 4Agency<br />Modern Real Estate Practice17th Edition<br />
  97. 97. 4Agency<br />Real Estate Agency<br /><ul><li>Common-law history
  98. 98. Definitions:
  99. 99. Agent
  100. 100. Subagent
  101. 101. Principal
  102. 102. Agency
  103. 103. Fiduciary
  104. 104. Client
  105. 105. Customer
  106. 106. Nonagent</li></ul>Modern Real Estate Practice17th Edition<br />
  107. 107. 4Agency<br />Fiduciary Duties of an Agent<br /><ul><li>Care
  108. 108. Obedience
  109. 109. Loyalty
  110. 110. Disclosure
  111. 111. Accounting
  112. 112. Confidentiality</li></ul>Modern Real Estate Practice17th Edition<br />
  113. 113. 4Agency<br />Creation and Termination of Agency<br />Creation<br /><ul><li>Express Agency
  114. 114. Implied Agency</li></ul>Termination<br /><ul><li>Completion, performance or fulfillment
  115. 115. Death or incapacity
  116. 116. Destruction or condemnation of the property
  117. 117. Expiration
  118. 118. Mutual agreement
  119. 119. Breach
  120. 120. Operation of law</li></ul>Modern Real Estate Practice17th Edition<br />
  121. 121. 4Agency<br />Limitations on Authority<br />Modern Real Estate Practice17th Edition<br />
  122. 122. 4Agency<br />Types of Agency Relationships<br />Modern Real Estate Practice17th Edition<br /><ul><li>Single Agency
  123. 123. Subagency
  124. 124. Seller Representation
  125. 125. Buyer Representation
  126. 126. Owner as Principal</li></li></ul><li>4Agency<br />Types of Agency Relationships<br />Modern Real Estate Practice17th Edition<br /><ul><li>Dual Agency
  127. 127. Disclosed Dual Agency
  128. 128. Designated Agency
  129. 129. Undisclosed Dual Agency
  130. 130. Disclosure Laws
  131. 131. Nonagency
  132. 132. Agency Statutes</li></li></ul><li>4Agency<br />Customer-Level Services<br />Modern Real Estate Practice17th Edition<br /><ul><li>Reasonable care and skill in performance
  133. 133. Honest and fair dealing
  134. 134. Disclosure of all facts the licensee knows (or should be expected to know) that materially affect the value or desirability of the property
  135. 135. State law may require additional services or disclosures</li></li></ul><li>4Agency<br />Modern Real Estate Practice17th Edition<br />
  136. 136. 4Agency<br />Property Conditions<br /><ul><li>Latent Defect</li></ul> A hidden structural defect that would not be discovered by ordinary inspection<br /><ul><li>Stigmatized Property</li></ul>Properties branded “undesirable” because of actual or rumored criminal, tragic or scandalous events that occurred on the property<br />Modern Real Estate Practice17th Edition<br />
  137. 137. Chapter 5Real Estate Brokerage<br />A real estate brokerage is more than a room full of desks. It’s a hive of activity, dependent on people, information, and technology to keep the business running.<br />
  138. 138. 5Real Estate Brokerage<br />Learning Objectives<br /><ul><li>Identify the role of technologies, personnel and license laws in the operation of a real estate business
  139. 139. Describe the various types of antitrust violations common in the real estate industry, and the penalties involved with each
  140. 140. Explain how a broker’s compensation is usually determined
  141. 141. Distinguish employees from independent contractors and explain why the distinction is important</li></ul>Modern Real Estate Practice17th Edition<br />
  142. 142. 5Real Estate Brokerage<br />Brokerage<br /> The business of bringing parties together.<br />Real Estate Broker<br /> A person licensed to buy, sell, exchange or lease real property for others and to charge a fee for these services.<br />Modern Real Estate Practice17th Edition<br />
  143. 143. 5Real Estate Brokerage<br />Broker-Salesperson Relationship<br /><ul><li>A real estate salesperson is licensed to perform real estate activities on behalf of a licensed real estate broker
  144. 144. Employee – broker may require employee to follow rules for hours, attendance, etc.
  145. 145. Independent Contractor – broker cannot require specific office hours, attendance, etc.</li></ul>Modern Real Estate Practice17th Edition<br />
  146. 146. 5Real Estate Brokerage<br />Technology<br /><ul><li>Computers and Laptops
  147. 147. Internet, Web Sites, E-mail
  148. 148. Cell Phones, Digital Cameras, PDAs
  149. 149. Internet Advertising
  150. 150. Security
  151. 151. Electronic Contracting</li></ul>Modern Real Estate Practice17th Edition<br />
  152. 152. 5Real Estate Brokerage<br />Broker’s Compensation<br /><ul><li>Commission is always negotiable
  153. 153. Commission is usually earned when
  154. 154. a completed sales contract has been executed by a ready, willing and able buyer
  155. 155. the contract is accepted and executed by the seller
  156. 156. copies of the contract are in the possession of all parties</li></ul>Modern Real Estate Practice17th Edition<br />
  157. 157. 5Real Estate Brokerage<br />Broker’s Compensation<br /><ul><li>Procuring cause
  158. 158. broker started a chain of events that resulted in a sale
  159. 159. Ready, willing and able buyer
  160. 160. one who is prepared to buy on the seller’s terms and ready to take positive steps toward consummation of the transaction</li></ul>Modern Real Estate Practice17th Edition<br />
  161. 161. 5Real Estate Brokerage<br />Salesperson’s Compensation<br />Amount and method of compensation is set by agreement between the broker and the salesperson<br /><ul><li>Fixed salary
  162. 162. Share of commission
  163. 163. 100% Commission Plan
  164. 164. Graduated Commission Split</li></ul>Modern Real Estate Practice17th Edition<br />
  165. 165. 5Real Estate Brokerage<br />Modern Real Estate Practice17th Edition<br />
  166. 166. 5Real Estate Brokerage<br />Antitrust Laws<br /><ul><li>Price-fixing
  167. 167. Group boycotting
  168. 168. Allocation of customers or markets
  169. 169. Tie-in agreements
  170. 170. Penalties</li></ul>Modern Real Estate Practice17th Edition<br />
  171. 171. 5Real Estate Brokerage<br />Recent Issues<br /><ul><li>Fee-for-Services
  172. 172. Minimum Level of Service
  173. 173. Do-Not-Call Registry</li></ul>Modern Real Estate Practice17th Edition<br />
  174. 174. Chapter 6Listing Agreements and Buyer Representation<br />Whether representing sellers or buyers, the role of the real estate professional is one of building relationships. The property for sale is the “product” but the focus of the agent’s business is relationships with the parties.<br />
  175. 175. 6Listing Agreements and Buyer <br /> Representation<br />Learning Objectives<br /><ul><li>Identify the different types of listing and buyer representation agreements and their terms
  176. 176. Describe the ways in which a listing may be terminated
  177. 177. Explain the listing process and the parts of the listing agreement
  178. 178. Distinguish among the characteristics of the various types of listing and buyer representation agreements</li></ul>Modern Real Estate Practice17th Edition<br />
  179. 179. 6Listing Agreements and Buyer <br /> Representation<br />Modern Real Estate Practice17th Edition<br />Listing Agreements<br /><ul><li>Exclusive-right-to-sell listing
  180. 180. Exclusive-agency listing
  181. 181. Open listing
  182. 182. Multiple-listing (MLS)
  183. 183. Net listing
  184. 184. Option listing</li></li></ul><li>6Listing Agreements and Buyer <br /> Representation<br />Termination<br /><ul><li>purpose is fulfilled
  185. 185. expiration of listing period
  186. 186. property isdestroyed or use is changed
  187. 187. title istransferred by law
  188. 188. mutual agreement of the parties
  189. 189. death or incapacity of either party
  190. 190. breach</li></ul>Modern Real Estate Practice17th Edition<br />
  191. 191. 6Listing Agreements and Buyer <br /> Representation<br />Modern Real Estate Practice17th Edition<br />Listing Process<br /><ul><li>CMA
  192. 192. Basic information required
  193. 193. Disclosures</li></li></ul><li>6Listing Agreements and Buyer <br /> Representation<br />Modern Real Estate Practice17th Edition<br />
  194. 194. 6Listing Agreements and Buyer <br /> Representation<br />Modern Real Estate Practice17th Edition<br />Listing Agreement Issues<br /><ul><li>Type of listing agreement
  195. 195. Broker’s authority and responsibilities
  196. 196. Names of all parties
  197. 197. Brokerage firm
  198. 198. Listing price
  199. 199. Real and personal property
  200. 200. Leased equipment</li></li></ul><li>6Listing Agreements and Buyer <br /> Representation<br />Modern Real Estate Practice17th Edition<br />Listing Agreement Issues<br /><ul><li>Description of the premises
  201. 201. Proposed closing and possession dates
  202. 202. Closing details
  203. 203. Evidence of ownership
  204. 204. Encumbrances
  205. 205. Home warranty program
  206. 206. Commission</li></li></ul><li>6Listing Agreements and Buyer <br /> Representation<br />Modern Real Estate Practice17th Edition<br />Listing Agreement Issues<br /><ul><li>Termination
  207. 207. Broker protection clause
  208. 208. Owner warranties
  209. 209. Indemnification
  210. 210. Equal opportunity
  211. 211. Antitrust
  212. 212. Signatures and date</li></li></ul><li>6Listing Agreements and Buyer <br /> Representation<br />Modern Real Estate Practice17th Edition<br />Buyer Agency Agreements<br /><ul><li>Exclusive buyer agency agreement
  213. 213. Exclusive-agency buyer agency agreement
  214. 214. Open buyer agency agreement</li></li></ul><li>Chapter 7Interests in Real Estate<br />Different types of property are affected by littoral and riparian rights. This view also suggests potential issues of estate types and taxation.<br />
  215. 215. 7Interests in Real Estate<br />Learning Objectives<br /><ul><li>Identify the kinds of limitations on ownership rights that are imposed by government action and the form of conveyance of property
  216. 216. Describe the various estates in land, and the rights and limitations they convey
  217. 217. Explain concepts related to encumbrances and water rights
  218. 218. Distinguish the various types of government powers, and how they are exercised</li></ul>Modern Real Estate Practice17th Edition<br />
  219. 219. 7Interests in Real Estate<br />Government Powers (“PETE”)<br /><ul><li>Police Power
  220. 220. Eminent Domain
  221. 221. Taxation
  222. 222. Escheat</li></ul>Modern Real Estate Practice17th Edition<br />
  223. 223. 7Interests in Real Estate<br />Leasehold Estates<br /><ul><li>Estate for years
  224. 224. Estate from period to period
  225. 225. Estates at will
  226. 226. Estates at sufferance</li></ul>Modern Real Estate Practice17th Edition<br />
  227. 227. 7Interests in Real Estate<br />Freehold Estates<br /><ul><li>Fee simple absolute
  228. 228. Fee simple defeasible
  229. 229. Fee simple determinable
  230. 230. Conventional life estate
  231. 231. Pur autre vie
  232. 232. Remainder and reversion
  233. 233. Legal life estate
  234. 234. Dower and curtesy
  235. 235. Homestead</li></ul>Modern Real Estate Practice17th Edition<br />
  236. 236. 7Interests in Real Estate<br />Modern Real Estate Practice17th Edition<br />
  237. 237. 7Interests in Real Estate<br />Modern Real Estate Practice17th Edition<br />
  238. 238. 7Interests in Real Estate<br />Modern Real Estate Practice17th Edition<br />
  239. 239. 7Interests in Real Estate<br />Encumbrances<br /><ul><li>Liens
  240. 240. Deed restrictions
  241. 241. Easements
  242. 242. Appurtenant
  243. 243. In gross
  244. 244. Party wall
  245. 245. By Necessity, Prescription or Condemnation
  246. 246. Licenses
  247. 247. Encroachments</li></ul>Modern Real Estate Practice17th Edition<br />
  248. 248. 7Interests in Real Estate<br />Modern Real Estate Practice17th Edition<br />
  249. 249. 7Interests in Real Estate<br />Modern Real Estate Practice17th Edition<br />
  250. 250. 7Interests in Real Estate<br />Water Rights<br /><ul><li>Riparian rights
  251. 251. Littoral rights
  252. 252. Accretion, Erosion and Avulsion
  253. 253. Doctrine of Prior Appropriation</li></ul>Modern Real Estate Practice17th Edition<br />
  254. 254. 7Interests in Real Estate<br />Modern Real Estate Practice17th Edition<br />
  255. 255. 7Interests in Real Estate<br />Modern Real Estate Practice17th Edition<br />
  256. 256. Chapter 8Forms of Real Estate Ownership<br />Many people visualize single-family homes when they think of real estate ownership but the same issues apply to all types of property. Here is a multifamily residence—possibly a condominium, cooperative, or timeshare vacation home.<br />
  257. 257. 8Forms of Real Estate Ownership<br />Learning Objectives<br /><ul><li>Identify the four basic forms of co-ownership
  258. 258. Describe the ways in which various business organizations may own property
  259. 259. Explain how a tenancy in common, joint tenancy and tenancy by the entirety are created, and how they may be terminated
  260. 260. Distinguish cooperative ownership from condominium ownership</li></ul>Modern Real Estate Practice17th Edition<br />
  261. 261. 8Forms of Real Estate Ownership<br />Modern Real Estate Practice17th Edition<br />
  262. 262. 8Forms of Real Estate Ownership<br />Forms of Ownership<br /><ul><li>Severalty
  263. 263. Co-Ownership</li></ul>Modern Real Estate Practice17th Edition<br />
  264. 264. 8Forms of Real Estate Ownership<br />Forms of Co-ownership<br /><ul><li>Tenancy in common
  265. 265. Joint tenancy
  266. 266. Four unities: Possession, Interest, Time, Title
  267. 267. Partition
  268. 268. Tenancy by the entirety
  269. 269. Married couples
  270. 270. Termination: Judgment sale, Death, Agreement or Divorce
  271. 271. Community property</li></ul>Modern Real Estate Practice17th Edition<br />
  272. 272. 8Forms of Real Estate Ownership<br />Modern Real Estate Practice17th Edition<br />
  273. 273. 8Forms of Real Estate Ownership<br />Modern Real Estate Practice17th Edition<br />
  274. 274. 8Forms of Real Estate Ownership<br />Modern Real Estate Practice17th Edition<br />
  275. 275. 8Forms of Real Estate Ownership<br />Trusts<br /><ul><li>Parties
  276. 276. Trustor
  277. 277. Trustee
  278. 278. Beneficiary
  279. 279. Living and Testamentary Trusts
  280. 280. Land Trusts</li></ul>Modern Real Estate Practice17th Edition<br />
  281. 281. 8Forms of Real Estate Ownership<br />Ownership by Business Organizations<br /><ul><li>Partnerships
  282. 282. General
  283. 283. Limited
  284. 284. Corporations
  285. 285. Shareholders and Double-Taxation
  286. 286. S Corporation
  287. 287. Syndicates and Joint Ventures
  288. 288. Limited Liability Companies (LLCs)</li></ul>Modern Real Estate Practice17th Edition<br />
  289. 289. 8Forms of Real Estate Ownership<br />Condominiums<br /><ul><li>Fee simple ownership
  290. 290. Creation
  291. 291. Common elements
  292. 292. Operation and administration</li></ul>Modern Real Estate Practice17th Edition<br />
  293. 293. 8Forms of Real Estate Ownership<br />Modern Real Estate Practice17th Edition<br />
  294. 294. 8Forms of Real Estate Ownership<br />Cooperatives<br /><ul><li>Proprietary lease
  295. 295. Shareholder ownership
  296. 296. Operation and administration
  297. 297. Tax advantages</li></ul>Modern Real Estate Practice17th Edition<br />
  298. 298. 8Forms of Real Estate Ownership<br />Townhouses<br /><ul><li>Common walls
  299. 299. Fee simple ownership
  300. 300. Common elements</li></ul>Modern Real Estate Practice17th Edition<br />
  301. 301. 8Forms of Real Estate Ownership<br />Time-Shares<br /><ul><li>Time-share estate
  302. 302. Time-share use
  303. 303. Membership camping</li></ul>Modern Real Estate Practice17th Edition<br />
  304. 304. Chapter 9Legal Descriptions<br />This chapter is about how land is divided up for ownership and how to describe those divisions. This subdivision was developed based on a plat map, and clearly shows how the land has been sectioned off for each home.<br />
  305. 305. 9Legal Descriptions<br />Learning Objectives<br /><ul><li>Identify the three methods used to describe real estate
  306. 306. Describe how a survey is prepared
  307. 307. Explain how to read a rectangular survey description
  308. 308. Distinguish the various units of land measurement</li></ul>Modern Real Estate Practice17th Edition<br />
  309. 309. 9Legal Descriptions<br />Methods of Describing Real Estate<br /><ul><li>Metes-and-bounds
  310. 310. point of beginning (POB)
  311. 311. monuments</li></ul>Modern Real Estate Practice17th Edition<br />
  312. 312. 9Legal Descriptions<br />Modern Real Estate Practice17th Edition<br />
  313. 313. 9Legal Descriptions<br />Methods of Describing Real Estate<br /><ul><li>Rectangular (Government) Survey
  314. 314. principal meridians
  315. 315. base lines
  316. 316. township lines and township tiers
  317. 317. ranges
  318. 318. township squares
  319. 319. sections
  320. 320. correction lines
  321. 321. government check
  322. 322. fractional sections and government lots</li></ul>Modern Real Estate Practice17th Edition<br />
  323. 323. 9Legal Descriptions<br />Methods of Describing Real Estate<br /><ul><li>Lot-and-Block
  324. 324. plat map
  325. 325. lot
  326. 326. block</li></ul>Modern Real Estate Practice17th Edition<br />
  327. 327. 9Legal Descriptions<br />Modern Real Estate Practice17th Edition<br />
  328. 328. 9Legal Descriptions<br />Measuring Elevations<br /><ul><li>Air lots
  329. 329. Datum
  330. 330. Benchmarks</li></ul>Modern Real Estate Practice17th Edition<br />
  331. 331. Chapter 10Real Estate Taxes and Other Liens<br />One type of lien is the mechanic’s lien, commonly found in home construction, rehabilitation, and addition projects.<br />
  332. 332. 10Real Estate Taxes and Other Liens<br />Learning Objectives<br /><ul><li>Identify the various classifications of liens
  333. 333. Describe how real estate taxes are applied through assessments, tax liens, and the use of equalization ratios
  334. 334. Explain how nontax liens, such as mechanics’ liens, mortgage liens, and judgment liens are applied and enforced
  335. 335. Distinguish the characteristics of voluntary, involuntary, statutory, and equitable liens</li></ul>Modern Real Estate Practice17th Edition<br />
  336. 336. 10 Real Estate Taxes and Other Liens<br />Creating Liens (VISE)<br /><ul><li>Voluntary – created intentionally
  337. 337. Involuntary – created by law
  338. 338. Statutory – created by statute
  339. 339. Equitable – created by common law</li></ul>Modern Real Estate Practice17th Edition<br />
  340. 340. 10 Real Estate Taxes and Other Liens<br />Liens<br /><ul><li>General
  341. 341. affect all property, both real and personal
  342. 342. Specific
  343. 343. secured by specific property
  344. 344. Priority
  345. 345. Subordination</li></ul>Modern Real Estate Practice17th Edition<br />
  346. 346. 10 Real Estate Taxes and Other Liens<br />Modern Real Estate Practice17th Edition<br />
  347. 347. 10 Real Estate Taxes and Other Liens<br />Real Estate Tax Liens<br /><ul><li>General (ad valorem)
  348. 348. Exemptions
  349. 349. Assessed value
  350. 350. Equalization
  351. 351. Calculation and billing
  352. 352. Enforcement
  353. 353. tax sale
  354. 354. right of redemption – equitable or statutory
  355. 355. Special Assessments
  356. 356. Homeowner Tax Relief</li></ul>Modern Real Estate Practice17th Edition<br />
  357. 357. 10 Real Estate Taxes and Other Liens<br />Other Liens on Real Property<br /><ul><li>Mortgage (Deed of Trust) Liens
  358. 358. Mechanic’s Liens
  359. 359. Judgment Liens
  360. 360. Lis pendens
  361. 361. Attachment</li></ul>Modern Real Estate Practice17th Edition<br />
  362. 362. 10 Real Estate Taxes and Other Liens<br />Other Liens on Real Property<br /><ul><li>Estate and Inheritance Tax Liens
  363. 363. Liens for Municipal Utilities
  364. 364. Bail Bond Lien
  365. 365. Corporation Franchise Lien
  366. 366. IRS Tax Lien</li></ul>Modern Real Estate Practice17th Edition<br />
  367. 367. Chapter 11Real Estate Contracts<br />The signing of a valid real estate contract is the keystone of a real estate transaction.<br />
  368. 368. 11 Contracts<br />Learning Objectives<br /><ul><li>Identify the requirements for a valid contract
  369. 369. Describe the various types of contracts used in the real estate business
  370. 370. Explain how contracts may be discharged
  371. 371. Distinguish among bilateral and unilateral, executed and executory, and valid, void and voidable contracts</li></ul>Modern Real Estate Practice17th Edition<br />
  372. 372. 11 Contracts<br />Contract Law<br />AContractis a:<br /><ul><li>voluntary
  373. 373. agreement or promise between
  374. 374. legally competent parties
  375. 375. supported by legal consideration
  376. 376. to perform (or not perform) a legal act</li></ul>Modern Real Estate Practice17th Edition<br />
  377. 377. 11 Contracts<br />Types of Contracts<br /><ul><li>Express or Implied
  378. 378. Bilateral or Unilateral
  379. 379. Executed or Executory</li></ul>Modern Real Estate Practice17th Edition<br />
  380. 380. 11 Contracts<br />Elements of a Valid Contract<br /><ul><li>Offer and acceptance
  381. 381. Consideration
  382. 382. Reality of consent
  383. 383. Legal purpose
  384. 384. Legally competent parties</li></ul>Modern Real Estate Practice17th Edition<br />
  385. 385. 11 Contracts<br />Validity of Contracts<br /><ul><li>Valid: meets all the essential legal elements
  386. 386. Void: lacks some or all of the essential legal elements
  387. 387. Voidable: appears to be valid, but may be rescinded </li></ul> or disaffirmed by one or both parties based on some legal principle<br /><ul><li>Unenforceable:appears to be valid but neither party can sue the other for performance</li></ul>Modern Real Estate Practice17th Edition<br />
  388. 388. 11 Contracts<br />Discharge of Contracts<br /><ul><li>Performance: “time is of the essence”
  389. 389. Assignment: transfer of existing contractual rights or duties
  390. 390. Novation:substitution of a new contract in place of the original</li></ul>Modern Real Estate Practice17th Edition<br />
  391. 391. 11 Contracts<br />Termination<br /><ul><li>Breach
  392. 392. Statute of Limitations
  393. 393. Partial Performance
  394. 394. Substantial Performance
  395. 395. Impossibility of Performance
  396. 396. Mutual Agreement
  397. 397. Operation of Law
  398. 398. Rescission</li></ul>Modern Real Estate Practice17th Edition<br />
  399. 399. 11 Contracts<br />Contracts Used in the Real Estate Business<br /><ul><li>Listing Agreements
  400. 400. Buyer Agency Agreements
  401. 401. Real Estate Sales Contracts
  402. 402. Options
  403. 403. Land Contracts or Contracts for Deed
  404. 404. Leases
  405. 405. Escrow Agreements</li></ul>Modern Real Estate Practice17th Edition<br />
  406. 406. 11 Contracts<br />Sales Contract Issues<br /><ul><li>Offer
  407. 407. Counteroffer
  408. 408. Acceptance
  409. 409. Binder
  410. 410. Earnest Money Deposit
  411. 411. Equitable Title
  412. 412. Destruction of the Premises
  413. 413. Liquidated Damages
  414. 414. Contingencies
  415. 415. Amendments and Addendums
  416. 416. Disclosures</li></ul>Modern Real Estate Practice17th Edition<br />
  417. 417. Chapter 12Transfer of Title<br />Despite technology, real estate is not a paperless industry. A wide variety of documents are needed to establish title, transfer title, and track ownership rights.<br />
  418. 418. 12 Transfer of Title<br />Learning Objectives<br /><ul><li>Identify the basic requirements for a valid deed
  419. 419. Describe the seven fundamental types of deeds
  420. 420. Explain how property may be transferred through involuntary alienation
  421. 421. Distinguish transfers of title by will from transfers by intestacy</li></ul>Modern Real Estate Practice17th Edition<br />
  422. 422. 12 Transfer of Title<br />Voluntary Alienation<br /><ul><li>A grantor conveys property to a grantee
  423. 423. A grantee receives property from a grantor
  424. 424. A deed is the instrument that conveys property from a grantor to a grantee</li></ul>Modern Real Estate Practice17th Edition<br />
  425. 425. 12 Transfer of Title<br />Requirements for a Valid Deed<br /><ul><li>Grantor with legal capacity to execute the deed
  426. 426. Identifiable, named grantee
  427. 427. Recital of consideration
  428. 428. Granting clause
  429. 429. Habendum clause
  430. 430. Accurate legal description of the property conveyed
  431. 431. Exceptions or reservations
  432. 432. Signature of the grantor
  433. 433. Delivery and acceptance</li></ul>Modern Real Estate Practice17th Edition<br />
  434. 434. 12 Transfer of Title<br />Types of Deeds<br /><ul><li>General warranty deed
  435. 435. Special warranty deed
  436. 436. Bargain and sale deed
  437. 437. Quitclaim deed
  438. 438. Deed executed pursuant to court order
  439. 439. Deed in trust
  440. 440. Trustee’s deed
  441. 441. Reconveyance deed</li></ul>Modern Real Estate Practice17th Edition<br />
  442. 442. 12 Transfer of Title<br />Modern Real Estate Practice17th Edition<br />
  443. 443. 12 Transfer of Title<br />Modern Real Estate Practice17th Edition<br />
  444. 444. 12 Transfer of Title<br />Transfer of Deceased Person’s Property<br /><ul><li>Transfer of title by will
  445. 445. Transfer of title by descent
  446. 446. Probate proceedings</li></ul>Modern Real Estate Practice17th Edition<br />
  447. 447. Chapter 13Title Records<br />The recording of property ownership is a serious undertaking, and the storage and maintenance of ownership and title records is a function of government.<br />
  448. 448. 13 Title Records<br />Learning Objectives<br /><ul><li>Identify the various proofs of ownership
  449. 449. Describe recording, notice and chain of title issues
  450. 450. Explain the process and purpose of a title search
  451. 451. Distinguish constructive and actual notice</li></ul>Modern Real Estate Practice17th Edition<br />
  452. 452. 13 Title Records<br />Public Records<br /><ul><li>Recording: the act of placing documents in the public record
  453. 453. Notice: constructive, actual and inquiry
  454. 454. Priority: the order of rights in time
  455. 455. Chain of title: the record of a property’s ownership
  456. 456. Title Search and abstract of title
  457. 457. Marketable title</li></ul>Modern Real Estate Practice17th Edition<br />
  458. 458. 13 Title Records<br />Proof of Ownership<br /><ul><li>Certificate of Title
  459. 459. Abstract and Attorney’s Opinion of Title
  460. 460. Title Insurance
  461. 461. Standard Coverage
  462. 462. Extended Coverage
  463. 463. Owner’s Policy
  464. 464. Lender’s Policy
  465. 465. Torrens System</li></ul>Modern Real Estate Practice17th Edition<br />
  466. 466. Chapter 14Real Estate Financing: Principles<br />This financing chapter focuses on the documents and concepts involved in real estate lending.<br />
  467. 467. 14 Real Estate Financing: Principles<br />Learning Objectives<br /><ul><li>Identify the basic provisions of security and debt instruments: promissory notes, mortgage documents, deeds of trust and land contracts
  468. 468. Describe the effect of discount points on yield
  469. 469. Explain the procedures involved in a foreclosure
  470. 470. Distinguish between lien and title theories
  471. 471. Explain the three methods of foreclosure</li></ul>Modern Real Estate Practice17th Edition<br />
  472. 472. 14 Real Estate Financing: Principles<br />Mortgage Law<br /><ul><li>Mortgagor = Borrower
  473. 473. Mortgagee = Lender
  474. 474. Title Theory
  475. 475. Lien Theory
  476. 476. Intermediate Theory</li></ul>Modern Real Estate Practice17th Edition<br />
  477. 477. 14 Real Estate Financing: Principles<br />Security and Debt<br /><ul><li>Hypothecation
  478. 478. Promissory Note
  479. 479. Interest
  480. 480. Usury
  481. 481. Loan Origination Fee
  482. 482. Discount Points
  483. 483. Prepayment Penalty</li></ul>Modern Real Estate Practice17th Edition<br />
  484. 484. 14 Real Estate Financing: Principles<br />Mortgages or Deeds of Trust<br /><ul><li>Duties of the Mortgagor or Trustor
  485. 485. Default
  486. 486. Assignment
  487. 487. Release
  488. 488. Tax and Insurance Reserves
  489. 489. Flood Insurance Reserves
  490. 490. Assignment of Rents
  491. 491. “Subject to,” Assumption or Novation
  492. 492. Alienation
  493. 493. Recording and Priority</li></ul>Modern Real Estate Practice17th Edition<br />
  494. 494. 14 Real Estate Financing: Principles<br />Modern Real Estate Practice17th Edition<br />
  495. 495. 14 Real Estate Financing: Principles<br />Modern Real Estate Practice17th Edition<br />
  496. 496. 14 Real Estate Financing: Principles<br />Land Contracts<br /><ul><li>Contract for Deed or Installment Contract
  497. 497. Other financing may not be available
  498. 498. Buyer = vendee
  499. 499. Seller = vendor
  500. 500. Owner Financing</li></ul>Modern Real Estate Practice17th Edition<br />
  501. 501. 14 Real Estate Financing: Principles<br />Foreclosure<br /><ul><li>Judicial
  502. 502. Nonjudicial
  503. 503. Strict
  504. 504. Deed in Lieu of Foreclosure
  505. 505. Redemption
  506. 506. Equitable
  507. 507. Statutory
  508. 508. Deed to Purchaser at Sale
  509. 509. Deficiency Judgment</li></ul>Modern Real Estate Practice17th Edition<br />
  510. 510. 14 Real Estate Financing: Principles<br />Modern Real Estate Practice17th Edition<br />
  511. 511. Chapter 15Real Estate Financing: Practice<br />This chapter focuses on the institutions and logistics of real estate lending. Banks are among the lending institutions involved in the real estate financing process.<br />
  512. 512. 15 Real Estate Financing: Practice<br />Learning Objectives<br /><ul><li>Identify the types of institutions in the primary and secondary mortgage markets
  513. 513. Describe the various types of financing techniques available to real estate purchasers and the role of government financing regulations
  514. 514. Explain the requirements and qualifications for conventional, FHA and VA loan programs
  515. 515. Distinguish among the different types of “creative” financing techniques that address borrowers’ different needs
  516. 516. Review legislation affecting real estate financing</li></ul>Modern Real Estate Practice17th Edition<br />
  517. 517. 15 Real Estate Financing: Practice<br />Real Estate Financing Market<br /><ul><li>Federal Reserve System
  518. 518. Discount Rates
  519. 519. Primary Mortgage Market
  520. 520. Thrifts, savings associations, commercial banks
  521. 521. Insurance companies
  522. 522. Credit unions
  523. 523. Pension funds
  524. 524. Endowment funds
  525. 525. Investment group financing
  526. 526. Mortgage banking companies
  527. 527. Mortgage brokers</li></ul>Modern Real Estate Practice17th Edition<br />
  528. 528. 15 Real Estate Financing: Practice<br />Real Estate Financing Market<br /><ul><li>Secondary Mortgage Market
  529. 529. Fannie Mae
  530. 530. Ginnie Mae
  531. 531. Freddie Mac</li></ul>Modern Real Estate Practice17th Edition<br />
  532. 532. 15 Real Estate Financing: Practice<br />Financing Techniques<br /><ul><li>Straight Loans
  533. 533. Interest-Only Mortgages
  534. 534. Balloon Payment Loans
  535. 535. Amortized Loans
  536. 536. Adjustable-Rate Mortgages (ARMs)
  537. 537. Growing-Equity Mortgages (GEMs)
  538. 538. Reverse-Annuity Mortgages (RAMs)</li></ul>Modern Real Estate Practice17th Edition<br />
  539. 539. 15 Real Estate Financing: Practice<br />Modern Real Estate Practice17th Edition<br />
  540. 540. 15 Real Estate Financing: Practice<br />Modern Real Estate Practice17th Edition<br />
  541. 541. 15 Real Estate Financing: Practice<br />Modern Real Estate Practice17th Edition<br />
  542. 542. 15 Real Estate Financing: Practice<br />Loan Programs<br /><ul><li>Conventional Loans
  543. 543. Loan-to-Value Ratio (LTV)
  544. 544. Private Mortgage Insurance (PMI)
  545. 545. FHA-Insured Loans
  546. 546. VA-Guaranteed Loans
  547. 547. Agricultural Loan Programs</li></ul>Modern Real Estate Practice17th Edition<br />
  548. 548. 15 Real Estate Financing: Practice<br />Other Financing Techniques<br /><ul><li>Purchase-Money Mortgages
  549. 549. Package Loans
  550. 550. Blanket Loans
  551. 551. Wraparound Loans
  552. 552. Open-End Loans
  553. 553. Construction Loans
  554. 554. Sale-and-Leaseback
  555. 555. Buydowns
  556. 556. Home Equity Loans</li></ul>Modern Real Estate Practice17th Edition<br />
  557. 557. 15 Real Estate Financing: Practice<br />Financing Legislation<br /><ul><li>Truth-in-Lending Act and Regulation Z
  558. 558. Special creditor definition
  559. 559. 3-day right of rescission
  560. 560. Advertising trigger terms
  561. 561. Penalties
  562. 562. Equal Credit Opportunity Act (ECOA)
  563. 563. Community Reinvestment Act (CRA)
  564. 564. Real Estate Settlement Procedures Act (RESPA)</li></ul>Modern Real Estate Practice17th Edition<br />
  565. 565. 15 Real Estate Financing: Practice<br />Computerized Loan Origination<br /><ul><li>Electronic network for handling loan applications
  566. 566. Scoring and Automated Underwriting</li></ul>Modern Real Estate Practice17th Edition<br />
  567. 567. Chapter 16Leases<br />Rental units come in all shapes and sizes, from single-family homes to multistory high-rises that contain hundreds of units. This block of historic apartment buildings is another type of rental property.<br />
  568. 568. 16 Leases<br />Learning Objectives<br /><ul><li>Identify the four types of leasehold estates
  569. 569. Describe the requirements and general conditions of a valid lease, and how a lease may be discharged
  570. 570. Explain the rights of landlords and tenants in an eviction proceeding, and the effect of pro-tenant legislation and civil rights laws on the landlord-tenant relationship
  571. 571. Distinguish the various types of leases</li></ul>Modern Real Estate Practice17th Edition<br />
  572. 572. 16 Leases<br />Leasehold Estates<br /><ul><li>Estate for Years
  573. 573. Estate from Period to Period (Periodic Tenancy)
  574. 574. Estate at Will
  575. 575. Estate at Sufferance</li></ul>Modern Real Estate Practice17th Edition<br />
  576. 576. 16 Leases<br />Modern Real Estate Practice17th Edition<br />
  577. 577. 16 Leases<br />Requirements of a Valid Lease<br /><ul><li>Offer and acceptance
  578. 578. Consideration
  579. 579. Capacity to contract
  580. 580. Legal Objectives</li></ul>Modern Real Estate Practice17th Edition<br />
  581. 581. 16 Leases<br />Lease Agreements<br /><ul><li>Possession of premises
  582. 582. Use of premises
  583. 583. Term
  584. 584. Security Deposit
  585. 585. Improvements
  586. 586. Maintenance</li></ul>Modern Real Estate Practice17th Edition<br />
  587. 587. 16 Leases<br />Lease Agreements<br /><ul><li>Destruction of premises
  588. 588. Assignment and subleasing
  589. 589. Recording a lease
  590. 590. Nondisturbance clause
  591. 591. Options</li></ul>Modern Real Estate Practice17th Edition<br />
  592. 592. 16 Leases<br />Types of Leases<br /><ul><li>Gross Lease
  593. 593. Net Lease
  594. 594. Percentage Lease
  595. 595. Variable Lease
  596. 596. Ground Lease
  597. 597. Oil and Gas Lease
  598. 598. Sale and Leaseback
  599. 599. Agricultural</li></ul>Modern Real Estate Practice17th Edition<br />
  600. 600. 16 Leases<br />Discharge of Leases<br /><ul><li>Breach
  601. 601. Suit for possession: actual eviction
  602. 602. Tenants’ remedies: constructive eviction
  603. 603. Pro-tenant legislation</li></ul>Modern Real Estate Practice17th Edition<br />
  604. 604. 16 Leases<br />Fair Housing and Civil Rights Laws<br /><ul><li>Affect landlords and tenants
  605. 605. Cannot discriminate against protected classes</li></ul>Modern Real Estate Practice17th Edition<br />
  606. 606. Chapter 17Property Management<br />A property manager is also a “people manager” and relationships are important. This manager may be checking a property’s plans for adequate fire planning, for upgrading the HVAC system, or for a remodeling project.<br />
  607. 607. 17 Property Management<br />Learning Objectives<br /><ul><li>Identify the basic elements of a management agreement
  608. 608. Describe a property manager’s functions
  609. 609. Explain the role of environmental regulations and the Americans with Disabilities Act in the property manager’s job
  610. 610. Distinguish the various types of insurance alternatives</li></ul>Modern Real Estate Practice17th Edition<br />
  611. 611. 17 Property Management<br />Elements of a Management Agreement<br /><ul><li>Description of the property
  612. 612. Time period
  613. 613. Definition of the manager’s responsibilities
  614. 614. Statement of the owner’s purpose
  615. 615. Extent of the manager’s authority</li></ul>Modern Real Estate Practice17th Edition<br />
  616. 616. 17 Property Management<br />Elements of a Management Agreement<br /><ul><li>Reporting requirements
  617. 617. Compensation
  618. 618. Allocation of costs
  619. 619. Antitrust provisions
  620. 620. Equal opportunity housing statement</li></ul>Modern Real Estate Practice17th Edition<br />
  621. 621. 17 Property Management<br />Manager’s Responsibilities<br /><ul><li>Financial Reports
  622. 622. Renting the Property
  623. 623. Marketing
  624. 624. Selecting Tenants
  625. 625. Collecting Rents
  626. 626. Maintaining Good Tenant Relations</li></ul>Modern Real Estate Practice17th Edition<br />
  627. 627. 17 Property Management<br />Manager’s Responsibilities<br /><ul><li>Maintaining the Property
  628. 628. Preventive
  629. 629. Repair or Corrective
  630. 630. Routine
  631. 631. Construction
  632. 632. Tenant Improvements</li></ul>Modern Real Estate Practice17th Edition<br />
  633. 633. 17 Property Management<br />Federal Laws Affecting Property Management<br /><ul><li>ECOA
  634. 634. Fair Housing Act
  635. 635. The Americans with Disabilities Act</li></ul>Modern Real Estate Practice17th Edition<br />
  636. 636. 17 Property Management<br />Modern Real Estate Practice17th Edition<br />
  637. 637. 17 Property Management<br />Risk Management<br /><ul><li>Risk Management Techniques
  638. 638. Tenant Security</li></ul>Modern Real Estate Practice17th Edition<br />
  639. 639. 17 Property Management<br />Risk Management<br /><ul><li>Insurance
  640. 640. Flood
  641. 641. Consequential loss, use and occupancy
  642. 642. Contents and personal property
  643. 643. Liability
  644. 644. Fire and hazard
  645. 645. Casualty
  646. 646. Surety bonds
  647. 647. Handling Environmental Concerns</li></ul>Modern Real Estate Practice17th Edition<br />
  648. 648. Chapter 18Real Estate Appraisal<br />Measurement is vital to the appraiser. Not just physical measurement in feet and inches, but measurement of value and cost.<br />
  649. 649. 18 Appraisal<br />Learning Objectives<br /><ul><li>Identify the different types and basic principles of value
  650. 650. Describe the three basic valuation approaches used by appraisers
  651. 651. Explain the steps in the appraisal process
  652. 652. Distinguish the four methods of determining reproduction or replacement cost</li></ul>Modern Real Estate Practice17th Edition<br />
  653. 653. 18 Appraisal<br />Appraisal Process<br />1. State the problem<br />2. List the data needed<br />3. Gather, record, verify, and analyze data<br /><ul><li>General data
  654. 654. Specific data
  655. 655. Data for each approach</li></ul>4. Determine the highest and best use<br />5. Estimate the land value<br />6. Estimate value by each of the three approaches<br />7. Reconcile the estimated values<br />8. Report the final value estimate<br />Modern Real Estate Practice17th Edition<br />
  656. 656. 18 Appraisal<br />Value<br /><ul><li>Market value
  657. 657. Market value vs. Market price
  658. 658. Market value vs. Cost</li></ul>Modern Real Estate Practice17th Edition<br />
  659. 659. 18 Appraisal<br />Basic Principles of Value<br /><ul><li>Anticipation
  660. 660. Change
  661. 661. Competition
  662. 662. Conformity
  663. 663. Contribution
  664. 664. Highest and best use</li></ul>Modern Real Estate Practice17th Edition<br />
  665. 665. 18 Appraisal<br />Basic Principles of Value<br /><ul><li>Increasing and diminishing returns
  666. 666. Plottage
  667. 667. Regression and progression
  668. 668. Substitution
  669. 669. Supply and demand</li></ul>Modern Real Estate Practice17th Edition<br />
  670. 670. 18 Appraisal<br />Sales Comparison Approach to Value<br /><ul><li>Subject property vs. comparable properties
  671. 671. Property rights
  672. 672. Financing concessions
  673. 673. Market conditions
  674. 674. Conditions of sale
  675. 675. Market conditions since date of sale
  676. 676. Location
  677. 677. Physical features and amenities</li></ul>Modern Real Estate Practice17th Edition<br />
  678. 678. 18 Appraisal<br />Cost Approach to Value<br /><ul><li>Reproduction cost vs. Replacement cost new
  679. 679. Square-foot method
  680. 680. Unit-in-place method
  681. 681. Quantity-survey method
  682. 682. Index method
  683. 683. Depreciation
  684. 684. Physical deterioration
  685. 685. Functional obsolescence
  686. 686. External obsolescence</li></ul>Modern Real Estate Practice17th Edition<br />
  687. 687. 18 Appraisal<br />Income Approach to Value<br /><ul><li>Annual potential income
  688. 688. Effective gross income
  689. 689. Annual operating expenses
  690. 690. Capitalization rate
  691. 691. Gross rent multiplier (GRM)
  692. 692. Gross income multiplier (GIM)</li></ul>Modern Real Estate Practice17th Edition<br />
  693. 693. Chapter 19Land-Use Controls and Property Development<br />Issues controlled by local land-use controls include how close developers can place units to each other, and how to protect historic characteristics of an area.<br />
  694. 694. 19 Land-Use Controls and <br /> Property Development<br />Learning Objectives<br /><ul><li>Identify the various types of public and private land-use controls
  695. 695. Describe how a comprehensive plan influences local real estate development
  696. 696. Explain the various issues involved in subdivision
  697. 697. Distinguish the function and characteristics of building codes and zoning ordinances</li></ul>Modern Real Estate Practice17th Edition<br />
  698. 698. 19 Land-Use Controls and <br /> Property Development<br />The Comprehensive Plan<br /><ul><li>Land Use
  699. 699. Housing needs
  700. 700. Movement of people and goods
  701. 701. Community facilities and utilities
  702. 702. Energy conservation</li></ul>Modern Real Estate Practice17th Edition<br />
  703. 703. 19 Land-Use Controls and <br /> Property Development<br />Zoning Permits<br /><ul><li>Zoning hearing board
  704. 704. Nonconforming use
  705. 705. Conditional use
  706. 706. Variance</li></ul>Modern Real Estate Practice17th Edition<br />
  707. 707. 19 Land-Use Controls and <br /> Property Development<br />Zoning Ordinances<br /><ul><li>Buffer zones
  708. 708. Bulk zoning
  709. 709. Aesthetic zoning
  710. 710. Incentive zoning
  711. 711. 14th Amendment and Takings Clause (5th Amendment)
  712. 712. Inverse condemnation</li></ul>Modern Real Estate Practice17th Edition<br />
  713. 713. 19 Land-Use Controls and <br /> Property Development<br />Subdivision<br /><ul><li>Subdivider vs. Developer
  714. 714. Land planning
  715. 715. plat
  716. 716. Subdivision plan
  717. 717. Density
  718. 718. Curvilinear street pattern
  719. 719. Gridiron street pattern
  720. 720. Clustering for open space</li></ul>Modern Real Estate Practice17th Edition<br />
  721. 721. 19 Land-Use Controls and <br /> Property Development<br />Subdivision<br /><ul><li>Private Land-Use Controls
  722. 722. Restrictivecovenants
  723. 723. May be more restrictive than zoning ordinances
  724. 724. Regulation of Land Sales
  725. 725. Interstate Land Sales Full Disclosure Act</li></ul>Modern Real Estate Practice17th Edition<br />
  726. 726. Chapter 20Fair Housing and Ethical Practices<br />Fair housing is not just “nice to have”—it’s the law. Fair housing practices are established by local, state, and national laws and regulations, and the judicial system actively enforces them.<br />
  727. 727. 20 Fair Housing and Ethical Practices<br />Learning Objectives<br /><ul><li>Identify the classes of people who are protected against discrimination in housing by various federal laws
  728. 728. Describe how the Fair Housing Act is enforced
  729. 729. List the exemptions allowed in the Fair Housing Act</li></ul>Modern Real Estate Practice16th Edition<br />
  730. 730. 20 Fair Housing and Ethical Practices<br />Learning Objectives<br /><ul><li>Explain how fair housing laws address a variety of discriminatory practices and regulate real estate advertising
  731. 731. Distinguish the protections offered by the Fair Housing Act, the Housing and Community Development Act, the Fair Housing Amendments Act, the Equal Credit Opportunity Act and the Americans with Disabilities Act</li></ul>Modern Real Estate Practice16th Edition<br />
  732. 732. 20 Fair Housing and Ethical Practices<br />Equal Opportunity<br /><ul><li>Civil Rights Act of 1866
  733. 733. Fair Housing Act
  734. 734. HUD
  735. 735. “housing”
  736. 736. “familial status”
  737. 737. “disability”
  738. 738. Prohibited Actions
  739. 739. Exemptions</li></ul>Modern Real Estate Practice16th Edition<br />
  740. 740. Modern Real Estate Practice16th Edition<br />
  741. 741. 20 Fair Housing and Ethical Practices<br />Equal Opportunity<br /><ul><li>Jones v. Mayer
  742. 742. Equal Credit Opportunity Act
  743. 743. Americans with Disabilities Act</li></ul>Modern Real Estate Practice16th Edition<br />
  744. 744. 20 Fair Housing and Ethical Practices<br />Fair Housing Issues<br /><ul><li>Blockbusting
  745. 745. Steering
  746. 746. Advertising
  747. 747. Appraising
  748. 748. Redlining
  749. 749. Intent and Effect
  750. 750. Response to Concerns of Terrorism</li></ul>Modern Real Estate Practice16th Edition<br />
  751. 751. Chapter 21Environmental Issues and the Real Estate Transaction<br />Pollution, such as hazardous runoff into local waterways, is a serious issue for homeowners, developers, and real estate professionals.<br />
  752. 752. 21 Environmental Issues and the <br /> Real Estate Transaction<br />Learning Objectives<br /><ul><li>Identify the basic environmental hazards an agent should be aware of in order to protect his or her client’s interests
  753. 753. Describe the warning signs, characteristics, causes and solutions for the various environmental hazards most commonly found in real estate transactions
  754. 754. Explain the fundamental liability issues arising under environmental protection laws
  755. 755. Distinguish lead-based paint issues from other environmental issues</li></ul>Modern Real Estate Practice17th Edition<br />
  756. 756. 21 Environmental Issues and the <br /> Real Estate Transaction<br />Hazardous Substances<br /><ul><li>Asbestos
  757. 757. Lead-based Paint and Other Lead Hazards
  758. 758. Radon
  759. 759. Formaldehyde
  760. 760. Carbon Monoxide
  761. 761. Polychlorinated Biphenyls (PCBs)
  762. 762. Chlorofluorocarbons (CFCs)
  763. 763. Mold
  764. 764. Electromagnetic Fields</li></ul>Modern Real Estate Practice17th Edition<br />
  765. 765. 21 Environmental Issues and the <br /> Real Estate Transaction<br />Modern Real Estate Practice17th Edition<br />
  766. 766. 21 Environmental Issues and the <br /> Real Estate Transaction<br />Groundwater Protection<br /><ul><li>Groundwater
  767. 767. Water table
  768. 768. Safe Drinking Water Act (SDWA)</li></ul>Underground Storage Tanks (USTs)<br /><ul><li>Registration and administrative requirements
  769. 769. Exempted types of tanks</li></ul>Modern Real Estate Practice17th Edition<br />
  770. 770. 21 Environmental Issues and the <br /> Real Estate Transaction<br />Waste Disposal and Clean-up<br /><ul><li>Landfills
  771. 771. capping
  772. 772. Hazardous and radioactive waste
  773. 773. Brownfields
  774. 774. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
  775. 775. Superfund Amendments and Reauthorization Act</li></ul>Modern Real Estate Practice17th Edition<br />
  776. 776. 21 Environmental Issues and the <br /> Real Estate Transaction<br />Agent Liability<br /><ul><li>Discovery of environmental hazards
  777. 777. Environmental site assessments
  778. 778. Environmental Impact Statements (EIS)
  779. 779. Disclosure of environmental hazards</li></ul>Modern Real Estate Practice17th Edition<br />
  780. 780. Chapter 22Closing the Real Estate Transaction<br />Some closings are face-to-face, and some are conducted through escrow. But in all cases, once again, it’s a people-related business.<br />
  781. 781. 22 Closing the Real Estate Transaction<br />Learning Objectives<br /><ul><li>Identify the issues of particular interest to the buyer and the seller as a real estate transaction closes
  782. 782. Describe the steps involved in preparing a closing statement
  783. 783. Explain the general rules for prorating
  784. 784. Distinguish the procedures involved in face-to-face closings from those in escrow closings</li></ul>Modern Real Estate Practice17th Edition<br />
  785. 785. 22 Closing the Real Estate Transaction<br />Modern Real Estate Practice17th Edition<br />Preclosing Procedures<br />Buyer’s Issues<br /><ul><li>Title evidence
  786. 786. Seller’s deed
  787. 787. Removal of liens and encumbrances
  788. 788. Survey
  789. 789. Inspection results
  790. 790. Leases</li></ul>Seller’s Issues<br /><ul><li>Payment
  791. 791. Buyer financing
  792. 792. Compliance with buyer requirements</li></li></ul><li>22 Closing the Real Estate Transaction<br />Modern Real Estate Practice17th Edition<br />The Closing<br /><ul><li>Face-to-Face Closing
  793. 793. Closing in Escrow</li></li></ul><li>22 Closing the Real Estate Transaction<br />RESPA Requirements<br /><ul><li>Controlled Business Arrangements
  794. 794. Disclosure Requirements
  795. 795. Information Booklet
  796. 796. Good-faith estimate of settlement costs
  797. 797. Uniform Settlement Statement (HUD-1)
  798. 798. Prohibition on Kickbacks and Referral Fees</li></ul>Modern Real Estate Practice17th Edition<br />
  799. 799. 22Closing the Real Estate Transaction<br />Closing Statement<br /><ul><li>Debits and Credits
  800. 800. Broker’s Commission
  801. 801. Attorney’s Fees
  802. 802. Recording Expenses
  803. 803. Transfer Tax
  804. 804. Title Expenses
  805. 805. Loan Fees
  806. 806. Tax and Insurance Reserves
  807. 807. Appraisal Fees
  808. 808. Survey Fees
  809. 809. Other Fees</li></li></ul><li>22 Closing the Real Estate Transaction<br />Prorations<br /><ul><li>Accrued Items
  810. 810. Prepaid Items
  811. 811. Rules for Prorating
  812. 812. ownership on closing day
  813. 813. calendar for calculating prorations
  814. 814. taxes
  815. 815. assessments
  816. 816. Interest
  817. 817. rents
  818. 818. security deposits</li></ul>Modern Real Estate Practice17th Edition<br />
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