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

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