The document provides an overview of the real estate industry. It discusses the various types of real estate properties including residential, commercial, industrial, and agricultural. It also outlines the different careers within real estate like brokerage, appraisal, property management, and financing. The document then covers topics like agency relationships, home ownership concepts, real estate brokerages, and the laws and regulations that govern the industry.

1. By- Chaim Citronenbaum
WELCOME

2. 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.
Introduction to the Real Estate
Business

3. 1 Introduction to the Real Estate Business
Learning Objectives
Identify the various careers available in real estate,
and the professional organizations that support them
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

4. 1 Introduction to the Real Estate Business
A Business of Many Specializations
Brokerage
Appraisal
Property management
Financing
Subdivision and development
Home inspection
Counseling
Education

5. 1 Introduction to the Real Estate Business
Types of Real Property
Residential
Commercial
Industrial
Agricultural
Special Purpose

6. 1 Introduction to the Real Estate Business
The Real Estate Market
Supply and Demand
Factors Affecting Supply
Factors Affecting Demand

7. 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.
Real Property and the Law

8. 2 Real Property and the Law
Learning Objectives
Identify the rights that convey with ownership of real
property and the characteristics of real estate
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

9. 2 Real Property and the Law
Land - The earth’s surface extending downward to
the center of the earth and upward to infinity,
including permanent natural objects
Real Estate - Land at, above and below the
earth’s surface, plus all things permanently attached
to it, whether natural or artificial
Real Property - The interests, benefits and rights
that are automatically included in the ownership of
land and real estate

10. 2 Real Property and the Law

11. Bundle of Legal Rights
2 Real Property and the Law

12. 2 Real Property and the Law
Real Property Rights
Surface Rights
Subsurface Rights
Air Rights
Water Rights

13. 2 Real Property and the Law
Personal Property
All property that does not fit the definition of real property
Manufactured Housing
Plants
Fixtures
Intent
Method of annexation
Adaptation to real estate
Agreement
Trade Fixtures

14. 2 Real Property and the Law
Characteristics of Real Property
Economic Characteristics
Scarcity
Improvements
Permanence of investment
Location
Physical Characteristics
Immobility
Indestructibility
Uniqueness

15. 2 Real Property and the Law
Laws Affecting Real Estate
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

16. A variety of housing types are available under the general
heading of “home ownership”: single family, small
multifamily residences, and high-rise condos.
Concepts of Home Ownership

17. 3 Concepts of Home Ownership
Learning Objectives
Identify the various types of housing choices
available to home buyers
Describe the 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

18. 3 Concepts of Home Ownership
Types of Housing
Apartment Complex
Condominium
Cooperative
Planned Unit Development (PUD)
Retirement Community

19. 3 Concepts of Home Ownership
Types of Housing
Highrise Development
Converted-use Property
Manufactured Housing
Modular Homes
Time-share

20. 3 Concepts of Home Ownership
Housing Affordability
Mortgage Terms
Ownership Expenses and Ability to Pay
Investment Considerations
Tax Benefits

21. 3 Concepts of Home Ownership
Homeowner’s Insurance
Coverage and Claims
Basic vs. Broad-form Policies
Liability
Coinsurance Clause
National Flood Insurance Program

22. 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.
Agency

23. 4 Agency
Learning Objectives
Identify the various types of agency relationships
common in the real estate profession and the
characteristics of each
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

24. 4 Agency

25. 4 Agency

26. 4 Agency
Real Estate Agency
Common-law history
Definitions:
Agent
Subagent
Principal
Agency
Fiduciary
Client
Customer
Nonagent

27. 4 Agency
Fiduciary Duties of an Agent
Care
Obedience
Loyalty
Disclosure
Accounting
Confidentiality

28. 4 Agency
Creation
Express Agency
Implied Agency
Creation and Termination of Agency
Termination
Completion, performance
or fulfillment
Death or incapacity
Destruction or
condemnation of the
property
Expiration
Mutual agreement
Breach
Operation of law

29. 4 Agency
Limitations on Authority
Universal Agent
Empowered to do
anything the
principal could
do personally
General Agent
Represents the
principal in a
broad range of
matters related
to a particular
business or
activity
Special Agent
Authorized to
represent the
principal in one
specific act or
business trans-
action under
detailed
instructions

30. 4 Agency
Types of Agency Relationships
Single Agency
Subagency
Seller Representation
Buyer Representation
Owner as Principal

31. 4 Agency
Types of Agency Relationships
Dual Agency
Disclosed Dual Agency
Designated Agency
Undisclosed Dual Agency
Disclosure Laws
Nonagency
Agency Statutes

32. 4 Agency
Customer-Level Services
Reasonable care and skill in performance
Honest and fair dealing
Disclosure of all facts the licensee knows (or
should be expected to know) that materially
affect the value or desirability of the property
State law may require additional services or
disclosures

33. 4 Agency
Puffing
Exaggeration of a
property's benefits
Misrepresentation
Fraud: Intentional
misrepresentation of a
material fact to harm or
take advantage of another
Negligent Misrepresentation:
Broker should have known a
statement was false

34. 4 Agency
Property Conditions
Latent Defect
A hidden structural defect that would not
be discovered by ordinary inspection
Stigmatized Property
Properties branded “undesirable” because
of actual or rumored criminal, tragic or
scandalous events that occurred on the
property

35. 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.
Real Estate Brokerage

36. 5 Real Estate Brokerage
Learning Objectives
Identify the role of technologies, personnel and
license laws in the operation of a real estate business
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

37. 5 Real Estate Brokerage
Brokerage
The business of bringing parties together.
Real Estate Broker
A person licensed to buy, sell, exchange or
lease real property for others and to charge a
fee for these services.

38. 5 Real Estate Brokerage
Broker-Salesperson Relationship
A real estate salesperson is licensed to
perform real estate activities on behalf of a
licensed real estate broker
Employee – broker may require employee to
follow rules for hours, attendance, etc.
Independent Contractor – broker cannot
require specific office hours, attendance, etc.

39. 5 Real Estate Brokerage
Technology
Computers and Laptops
Internet, Web Sites, E-mail
Cell Phones, Digital Cameras, PDAs
Internet Advertising
Security
Electronic Contracting

40. 5 Real Estate Brokerage
Broker’s Compensation
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

41. 5 Real Estate Brokerage
Broker’s Compensation
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

42. 5 Real Estate Brokerage
Salesperson’s Compensation
Amount and method of compensation is set by
agreement between the broker and the salesperson
Fixed salary
Share of commission
100% Commission Plan
Graduated Commission Split

43. 5 Real Estate Brokerage

44. 5 Real Estate Brokerage
Antitrust Laws
Price-fixing
Group boycotting
Allocation of customers or markets
Tie-in agreements
Penalties

45. 5 Real Estate Brokerage
Recent Issues
Fee-for-Services
Minimum Level of Service
Do-Not-Call Registry

46. THANK YOU