It’s important for real estate agents to understand home inspection basics, as it’s a key part of the home purchase process. So does the realtor go to the home inspection? The short answer is that you should go to at least a few home inspections. You will spend plenty of time reading through inspection reports…
Identify areas of government & judicial regulations
III. Interests & Estates
Define estates in real property
Define interests & estates in land,
Distinguish freehold from leasehold estates,
Describe types of fee simple estate,
Describe types of life estate,
Describe types of leasehold estate
IV. Ownership
Define the forms of ownership
Define sole ownership
Define & distinguish forms of co-ownership
Describe how joint tenancy is created
Define the mechanics of an estate in trust
Identify the features of a land trust
Define condominium ownership
Define cooperative ownership
Define time-share ownership
V. Encumbrances & Liens
Define encumbrance
Identify types and priority of liens
Describe the types of lien
Define lien priority
Describe foreclosure processes
Describe the types of easements
Define deed restrictions
Define encroachment
VI. Transferring & Recording Title
Distinguish legal & equitable title
Define actual and constructive notice
List & describe processes of voluntary & involuntary transfer
Describe components of a deed of conveyance
Identify types of deed • Identify types of will
Describe probate processes
Define title & title records
Describe the forms of title evidence
VII. Real Estate Leases
Identify the principal types of leasehold estates
List the rights & obligations of landlord and tenant
List the legal requirements of a lease contract
Describe major lease clauses
Define the major types of lease
Define default and termination
Describe the areas regulated by URLTA
VIII. Land Use Planning & Control
Describe the goals and process of land use planning
Describe the zoning & zoning appeals process
Define the types of zone
Describe the process of taking by eminent domain
Describe the major environmental legislation
Describe the major types of private land use control
IX. Legal Descriptions
Define legal description
Describe the metes and bounds method
Interpret a metes and bounds description
Describe the rectangular survey method
Identify ranges, tiers and townships
Identify sections of a township
Calculate acreage of fractions of a section
Describe a section fraction
Interpret a rectangular survey description
Describe the recorded plat method
Describe the use of elevation reference points
X. Real Estate Contract Law
Identify the basic legal concepts of contracts
Describe requirements for contract validity
Describe the creation & termination of contracts
XI. Agency
Define the agency relationship
Describe the fiduciary duties of agency
Identify the forms of real estate agency
Describe the rules of agency disclosure
Identify problem areas for real estate agents
XII. Listing Agreements
Describe the basis of listing agreements in contract and agency law
Identify the types of listing agreement
Describe how an agent fulfills an agreement and earns compensation
Identify the basic provisions of a listing agreement
XIII. The Brokerage Business
Identify the activities, scope & organization of brokerage
Identify who may/may not broker real estate
Define broker-salesperson relationships
Calculate a commission split
XIV. Contracts for the Sale of Real Estate
Describe the characteristics and provisions of a contract for sale
Describe the characteristics and provisions of an option-to-buy contract
Describe the characteristics of a contract for deed
XV. Real Estate Market Economics
Describe the elements of the market system
Define the economic characteristics of real estate
Describe real estate supply and demand
XVI. Appraising & Estimating Value
Define real estate value
Describe economic foundations of real estate value
Identify major types of value
Define market value
Define appraisal
Describe the appraisal process
Describe the three approaches to value
Define comparative market analysis
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
XVII. Real Estate Finance
Define mortgage financing
Describe loan transactions
Calculate loan financial components
Identify major elements of mortgage & trust deed
Describe the underwriting & loan application processes
Describe the major laws that affect mortgage lending
Calculate the loan amount for which a borrower qualifies
Describe the primary & secondary mortgage markets
Describe common loan types and structures
XVIII. Real Estate Investment
Describe the investment characteristics of real estate
Identify investment entities & describe the tax treatment of real estate investments
Perform investment analysis and tax calculations
XIX. Real Estate Taxation
Identify taxing entities
Describe ad valorem taxation
Perform basic tax calculations
Describe the enforcement of tax liens
XX. Ethics: Laws & Practices
Identify and describe the fair housing laws & fair financing laws
Identify fair housing and financing problem areas for real estate agents
Identify acceptable ethical and professional practices
XXI. Closings
Describe the process of a real estate closing
Describe the requirements of RESPA
Define buyer’s & seller’s debits and credits
Define and calculate prorations
Identify and calculate taxes due at closing
Complete a closing statement
XXII. Real Estate Licensing & Regulation
Describe the role of state license law
Describe the procedure & requirements for obtaining and retaining a real estate license
Identify services requiring a license
Identify the types of real estate license
Describe the role of the state real estate commission
XXIII. Risk Management
Define risk & risk management
Explain the four basic risk management strategies
Describe the four primary risk management procedures in real estate practice
Identify the primary risk areas for real estate licensees
XXIV. Property Management
Describe the major functions of the property manager
Identify the nature and components of a management agreement
Describe elements of various lease types of most interest to a property manager
Identify sources of management business, the role of the management plan in securing business, and sources of professional training for property managers
Identify rules & procedures for handling documents
Describe trust accounts
Understand non-agency disclosures
Define drafting instruments
Identify CMA & BPO regulations
XXX. NC Sales Contracts
Describe NC Contracts & addenda
Understand offer to purchase & contract
XXXI. NC Property Management
Define property management
Understand landlord-tenant relations
Identify NC Vacation Rental Act
Identify rental notice & document handling
XXXII. NC Property Insurance
Understand basic insurance concepts
Identify standard policy features
Define Flood Insurance
Describe insurance issues
XXXIII. Other NC Laws & Practices
Identify rights in Real Estate
Define ownership
Understand encumbrances & liens
Define transferring & recording title
Describe land use planning & control
Understand real estate contract law
Define recording
Identify construction-related issues
Understand real estate finance
Describer real estate taxation
Define ethics
Understand closings
XXXIV. Real Estate Mathematics
Practice using basic equations to solve real estate mathematical problems
Missouri 72-Hour Pre Examination and Practice Course Course Outline
Missouri Pre Examination Course (48 Hours)
I. The Real Estate Business
Describe real estate activities
Identify real estate professions
Define residential, commercial, investment
Identify primary brokerage activities
Define specializations
List skills & knowledge needed
Identify major professional organizations
Identify regulated areas
List general areas of license law
II. Rights in Real Estate
Define land and real estate
Distinguish categories of property
Identify the bundle of rights
Define air, surface, subsurface & water rights
Identify areas of government & judicial regulations
III. Interests & Estates
Define estates in real property
Define interests & estates in land,
Distinguish freehold from leasehold estates,
Describe types of fee simple estate,
Describe types of life estate,
Describe types of leasehold estate
IV. Ownership
Define the forms of ownership
Define sole ownership
Define & distinguish forms of co-ownership
Describe how joint tenancy is created
Define the mechanics of an estate in trust
Identify the features of a land trust
Define condominium ownership
Define cooperative ownership
Define time-share ownership
V. Encumbrances & Liens
Define encumbrance
Identify types and priority of liens
Describe the types of lien
Define lien priority
Describe foreclosure processes
Describe the types of easements
Define deed restrictions
Define encroachment
VI. Transferring & Recording Title
Distinguish legal & equitable title
Define actual and constructive notice
List & describe processes of voluntary & involuntary transfer
Describe components of a deed of conveyance
Identify types of deed
Identify types of will
Describe probate processes
Define title & title records
Describe the forms of title evidence
VII. Real Estate Leases
Identify the principal types of leasehold estates
List the rights & obligations of landlord and tenant
List the legal requirements of a lease contract
Describe major lease clauses
Define the major types of lease
Define default and termination
Describe the areas regulated by URLTA
VIII. Land Use Planning & Control
Describe the goals and process of land use planning
Describe the zoning & zoning appeals process
Define the types of zone
Describe the process of taking by eminent domain
Describe the major environmental legislation
Describe the major types of private land use control
IX. Legal Descriptions
Define legal description
Describe the metes and bounds method
Interpret a metes and bounds description
Describe the rectangular survey method
Identify ranges, tiers and townships
Identify sections of a township
Calculate acreage of fractions of a section
Describe a section fraction
Interpret a rectangular survey description
Describe the recorded plat method
Describe the use of elevation reference points
X. Real Estate Contract Law
Identify the basic legal concepts of contracts
Describe requirements for contract validity
Describe the creation & termination of contracts
XI. Agency
Define the agency relationship
Describe the fiduciary duties of agency
Identify the forms of real estate agency
Describe the rules of agency disclosure
Identify problem areas for real estate agents
XII. Listing Agreements
Describe the basis of listing agreements in contract and agency law
Identify the types of listing agreement
Describe how an agent fulfills an agreement and earns compensation
Identify the basic provisions of a listing agreement
XIII. The Brokerage Business
Identify the activities, scope & organization of brokerage
Identify who may/may not broker real estate
Define broker-salesperson relationships
Calculate a commission split
XIV. Contracts for the Sale of Real Estate
Describe the characteristics and provisions of a contract for sale
Describe the characteristics and provisions of an option-to-buy contract
Describe the characteristics of a contract for deed
XV. Real Estate Market Economics
Describe the elements of the market system
Define the economic characteristics of real estate
Describe real estate supply and demand
XVI. Appraising & Estimating Value
Define real estate value
Describe economic foundations of real estate value
Identify major types of value
Define market value
Define appraisal
Describe the appraisal process
Describe the three approaches to value
Define comparative market analysis
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
XVII. Real Estate Finance
Define mortgage financing
Describe loan transactions
Calculate loan financial components
Identify major elements of mortgage & trust deed
Describe the underwriting & loan application processes
Describe the major laws that affect mortgage lending
Calculate the loan amount for which a borrower qualifies
Describe the primary & secondary mortgage markets
Describe common loan types and structures
XVIII. Real Estate Investment
Describe the investment characteristics of real estate
Identify investment entities
Describe the tax treatment of real estate investments
Perform basic real estate investment analysis and tax calculations
XIX. Real Estate Taxation
Identify taxing entities
Describe ad valorem taxation
Perform basic tax calculations
Describe the enforcement of tax liens
XX. Ethics: Laws & Practices
Identify and describe the fair housing laws & fair financing laws
Identify fair housing and financing problem areas for real estate agents
Identify acceptable ethical and professional practices
XXI. Closings
Describe the process of a real estate closing
Describe the requirements of RESPA
Define buyer’s & seller’s debits and credits
Define and calculate prorations
Identify and calculate taxes due at closing
Complete a closing statement
XXII. Real Estate Licensing & Regulation
Describe the role of state license law
Describe the procedure & requirements for obtaining and retaining a real estate license
Identify services requiring a license
Identify the types of real estate license
Describe the role of the state real estate commission
XXIII. Risk Management
Define risk & risk management
Explain the four basic risk management strategies
Describe the four primary risk management procedures in real estate practice
Identify the primary risk areas for real estate licensees
XXIV. Property Management
Describe the major functions of the property manager
Identify the nature and components of a management agreement
Describe elements of various lease types of most interest to a property manager
Identify sources of management business, the role of the management plan in securing business, and sources of professional training for property managers
XXV. Missouri Rules
Define terms as listed in Chapter 339 of the Missouri Statutes
Describe the organization of RE Commission according to Missouri Rules 2250
Recall licensing requirements according to Missouri Rules 2250
Identify educational requirements according to Missouri Rules 2250
XXVI. Missouri Business Conduct & Practices
Recognize Missouri rules with regard to branch offices, personnel, advertising, listings, offers, earnest money, commission, and agency disclosure
Identify actions that constitute improper use of license and office
Recognize standard forms and when to use them
XXVII. Missouri Disciplinary Proceedings
Describe the complaint and investigation process.
Distinguish between actions by the MREC and the AHC, and when cases are sent to each
Define violations
Recognize penalties for violations
XXVIII. Missouri Closings & Computations
Prepare closing documents and calculate costs
Missouri Practice Course (24 Hours)
I. Agency
Define the agency relationship
Describe the fiduciary duties of agency
Identify the forms of real estate agency
Describe the rules of agency disclosure
Identify problem areas for real estate agents
II. Listing Agreements
Describe the basis of listing agreements in contract and agency law
Identify the types of listing agreement
Describe how an agent fulfills an agreement and earns compensation
Identify the basic provisions of a listing agreement
III. The Brokerage Business
Identify the activities, scope & organization of brokerage
Identify who may/may not broker real estate
Define broker-salesperson relationships
Calculate a commission split
IV. Contracts for the Sale of Real Estate
Describe the characteristics and provisions of a contract for sale
Describe the characteristics and provisions of an option-to-buy contract
Describe the characteristics of a contract for deed V. Appraising & Estimating Value
Define real estate value
Describe economic foundations of real estate value
Identify major types of value
Define market value
Define appraisal
Describe the appraisal process
Describe the three approaches to value
Define comparative market analysis
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
VI. Real Estate Finance
Define mortgage financing
Describe loan transactions
Calculate loan financial components
Identify major elements of mortgage & trust deed
Describe the underwriting & loan application processes
Describe the major laws that affect mortgage lending
Calculate the loan amount for which a borrower qualifies
Describe the primary & secondary mortgage markets
Describe common loan types and structures
VII. Closings
Describe the process of a real estate closing
Describe the requirements of RESPA
Define buyer’s & seller’s debits and credits
Define and calculate prorations
Identify and calculate taxes due at closing
Complete a closing statement
VIII. Risk Management
Define risk & risk management
Explain the four basic risk management strategies
Describe the four primary risk management procedures in real estate practice
Identify the primary risk areas for real estate licensees
IX. Types of Construction
Identify characteristics for styles of residential construction
List components of residential construction
Recognize common materials in home building
Michigan 40 Hour Salesperson Pre License Course Outline
I. The Real Estate Business
Describe real estate activities
Identify real estate professions
Define residential, commercial, investment
Identify primary brokerage activities
Define specializations
List skills & knowledge needed
Identify major professional organizations
Identify regulated areas
List general areas of license law
II. Rights in Real Estate
Define land and real estate
Distinguish categories of property
Identify the bundle of rights
Define air, surface, subsurface & water rights
Identify areas of government & judicial regulations
III. Interests & Estates
Define estates in real property
Define interests & estates in land,
Distinguish freehold from leasehold estates,
Describe types of fee simple estate,
Describe types of life estate,
Describe types of leasehold estate
IV. Ownership
Define the forms of ownership
Define sole ownership
Define & distinguish forms of co-ownership
Describe how joint tenancy is created
Define the mechanics of an estate in trust
Identify the features of a land trust
Define condominium ownership
Define cooperative ownership
Define time-share ownership
V. Encumbrances & Liens
Define encumbrance
Identify types and priority of liens
Describe the types of lien
Define lien priority
Describe foreclosure processes
Describe the types of easements
Define deed restrictions
Define encroachment
VI. Transferring & Recording Title
Distinguish legal & equitable title
Define actual and constructive notice
List & describe processes of voluntary & involuntary transfer
Describe components of a deed of conveyance
Identify types of deed
Identify types of will
Describe probate processes
Define title & title records
Describe the forms of title evidence
VII. Real Estate Leases
Identify the principal types of leasehold estates
List the rights & obligations of landlord and tenant
List the legal requirements of a lease contract
Describe major lease clauses
Define the major types of lease
Define default and termination
Describe the areas regulated by URLTA
VIII. Land Use Planning & Control
Describe the goals and process of land use planning
Describe the zoning & zoning appeals process
Define the types of zone
Describe the process of taking by eminent domain
Describe the major environmental legislation
Describe the major types of private land use control
IX. Legal Descriptions
Define legal description
Describe the metes and bounds method
Interpret a metes and bounds description
Describe the rectangular survey method
Identify ranges, tiers and townships
Identify sections of a township
Calculate acreage of fractions of a section
Describe a section fraction
Interpret a rectangular survey description
Describe the recorded plat method
Describe the use of elevation reference points
X. Real Estate Contract Law
Identify the basic legal concepts of contracts
Describe requirements for contract validity
Describe the creation & termination of contracts
XI. Agency
Define the agency relationship
Describe the fiduciary duties of agency
Identify the forms of real estate agency
Describe the rules of agency disclosure
Identify problem areas for real estate agents
XII. Listing Agreements
Describe the basis of listing agreements in contract and agency law
Identify the types of listing agreement
Describe how an agent fulfills an agreement and earns compensation
Identify the basic provisions of a listing agreement
XIII. The Brokerage Business
Identify the activities, scope & organization of brokerage
Identify who may/may not broker real estate
Define broker-salesperson relationships
Calculate a commission split
XIV. Contracts for the Sale of Real Estate
Describe the characteristics and provisions of a contract for sale
Describe the characteristics and provisions of an option-to-buy contract
Describe the characteristics of a contract for deed
XV. Real Estate Market Economics
Describe the elements of the market system
Define the economic characteristics of real estate
Describe real estate supply and demand
XVI. Appraising & Estimating Value
Define real estate value
Describe economic foundations of real estate value
Identify major types of value
Define market value
Define appraisal
Describe the appraisal process
Describe the three approaches to value
Define comparative market analysis
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
XVII. Real Estate Finance
Define mortgage financing
Describe loan transactions
Calculate loan financial components
Identify major elements of mortgage & trust deed
Describe the underwriting & loan application processes
Describe the major laws that affect mortgage lending
Calculate the loan amount for which a borrower qualifies
Describe the primary & secondary mortgage markets
Describe common loan types and structures
XVIII. Real Estate Investment
Describe the investment characteristics of real estate
Identify investment entities & describe the tax treatment of real estate investments
Perform investment analysis and tax calculations
XIX. Real Estate Taxation
Identify taxing entities
Describe ad valorem taxation
Perform basic tax calculations
Describe the enforcement of tax liens
XX. Ethics: Laws and Practices
Identify and describe the fair housing laws & fair financing laws;
Identify fair housing and financing problem areas for real estate agents;
Identify acceptable ethical and professional practices
XXI. Closings
Describe the process of a real estate closing
Describe the requirements of RESPA
Define buyer’s & seller’s debits and credits
Define and calculate prorations
Identify and calculate taxes due at closing
Complete a closing statement
XXII. Real Estate Licensing & Regulation
Describe the role of state license law
Describe the procedure & requirements for obtaining and retaining a real estate license
Identify services requiring a license
Identify the types of real estate license
Describe the role of the state real estate commission
XXIII. Risk Management
Define risk & risk management
Explain the four basic risk management strategies
Describe the four primary risk management procedures in real estate practice
Identify the primary risk areas for real estate licensees
XXIV. Property Management
Describe the major functions of the property manager;
Identify the nature and components of a management agreement;
Describe elements of various lease types of most interest to a property manager;
Identify sources of management business, the role of the management plan in securing business, and sources of professional training for property managers
XXV. Michigan Licensing Regulations
Department of Licensing and Regulatory Affairs
Licensing Requirements
XXVI. Rules Governing Michigan Licensees
Advertising
Consideration
Licensee as Buyer or Seller
Handling Contracts
Handling Money
Prohibited Acts
XXVII. Contractual Relationships in Michigan
Agency
Service Provision Agreements
Broker/Salesperson Relationship
XXVIII. Michigan Housing Regulations
Michigan State Housing
Development Authority
Michigan Fair Housing
Landlord-Tenant Relationships Act & Truth in Renting Act
Homeowners Association Regulations
XXIX. Michigan Property Disclosures
Seller’s Disclosure Statement
Other Material Facts
XXX. Other Points of Michigan Law & Practice
Land Division Act
State Transfer Tax
Michigan Condominium Act
Michigan Antitrust Reform Act
Michigan Right to Farm Act
Changes in Land Contract Laws
Foreclosures and Short Sales
XXXI. Real Estate Math
Add and multiply fractions;
Multiplying using percentages
Calculate area of basic shapes
Calculate area from legal description
Calculate commission
Calculate Goodwill
Calculate Percentage of Listing Price
Calculate Earnest Money Deposits
Calculate Rent Escalations
Calculate FIRPTA Withholdings
Adjust Comparables for Appraisals
Calculate Income Capitalization
Calculate Loan Amounts, Rates, and Payments
Calculate Loan-to-Value Ratio
Calculate Income Underwriting Ratio
Calculate Debt Underwriting Ratio
Calculate Points
Calculate Appreciation
Calculate Equity
Calculate Pre-tax Cash Flow
Calculate Tax Liability
Calculate Annual Depreciation Expense
Calculate Capital Gain
Calculate Return, Rate of Return, and Investment Amount
Calculate Tax Rate
Calculate Special Assessments
Calculate Prorations
Illinois 30-Hour Pre License Managing Broker Course
I. Licensing
Identify who must be licensed and describe the requirements for broker and managing broker licensing
Identify the various forms of business entities and licensing requirements for the business and branch offices
Explain the requirements of an employment agreement and distinguish between an employee and an independent contractor
II. Operations
Describe the hiring process a managing broker would use in securing agents and the employment laws directly affecting a brokerage company
Describe the issues and options for the managing broker to consider when deciding to obtain an errors and omissions (E&O) insurance policy
Describe the characteristics of employees and independent contractors and the issues associated with each
Explain the purpose and characteristics of the business plan and the budgeting process.
III. Handling the Money
Identify the requirements for opening an escrow account, depositing and disbursing from the escrow account, and procedures for dispute resolution for escrow
Explain how compensation is paid to licensees and licensed or unlicensed personal assistants
IV. Recruiting
Identify the steps in the recruiting process and the characteristics of potential recruits
Describe the process of interviewing and selecting the right agent
V. Brokerage Support
Describe the reasons for training and training techniques, the importance of further training and designations, and the importance and types of compensation plans for agent retention
Describe the purpose and characteristics of a good business plan and the components of a policy and procedures manual
VI. Transaction Supervision
Identify the managing broker’s supervision requirements
Explain the types of agency relationships and agency disclosures required by the license act
Explain the duties licensees owe clients and customers
Explain buyer and seller issues, the licensee’s role in the closing process, and the disclosures required by the TILA-RESPA Integrated Disclosure (TRID) rule
VII. Marketing and Advertising
Identify the requirements for internet advertising and the role the Illinois Real Estate License Act and social media play in marketing and advertising
Explain the requirements of the National Do Not Call Registry, CAN-SPAM Act, and the Junk Fax Act and the rules for misrepresentation and team advertising
VIII. Dispute Resolution
Identify the types of dispute resolution methods available to sponsoring/managing brokers and distinguish between mediation and arbitration
Describe the role of the managing broker in resolving disputes
IX. Company Policies
Identify the protected classes and prohibited practices under the federal and state fair housing laws
Describe the various antitrust laws, their relation to real estate activities, and guidelines for compliance
Describe the dangers to agent safety, and how sexual harassment and the unauthorized practice of law might occur
Explain the provisions of TRID, rules for controlled business arrangements, and distinguish between the various types of agency relationships a brokerage company can offer
X. Disclosure Issues
Explain the lead-based paint and TRID disclosure requirements and the relationship between the Loan Estimate and Closing Disclosure
Explain state disclosure requirements and the differences between a material fact, latent defect, and a stigmatized property
Explain the Real Estate License Act disclosure requirements and other disclosure issues
XI. Industry Issues
Describe the types of mortgage fraud, describe what is considered a distressed property and the differences between a short sale, foreclosure, and REO, and the characteristics of the HARP program
Explain the role of a property manager
Illinois 15-Hour Illinois Managing Broker Applied Real Estate Principles
I. Unit 1: Brokerage Contract Disputes with Clients
Case Study 1: Broker and Client Disputes
Discuss Illinois licensing requirements
Illustrate understanding of laws and rules regulating real estate practice
Recognize Illinois disclosures
Interpret roles/responsibilities of a managing broker
Apply understanding of training and supervision of licensees
II. Unit 2: Minimum Services
Case Study 2: Minimum Services
Illustrate understanding of laws and rules regulating real estate practice
Recognize Illinois disclosures
Interpret roles/responsibilities of a managing broker
Apply understanding of agency relationships and property representations
Apply understanding of training and supervision of licensees
III. Unit 3: Team
Case Study 3: Team Activities
Discuss Illinois licensing requirements
Illustrate understanding of laws and rules regulating real estate practice
Recognize Illinois disclosures
Interpret roles/responsibilities of a managing broker
Apply understanding of agency relationships and property representations
Apply understanding of training and supervision of licensees
IV. Unit 4: Commission Disputes in Office and Co-op Office
Case Study 4: In-Office
Case Study 5: Co-Op Fees
Case Study 6: Buyer Incentives
Discuss Illinois licensing requirements
Illustrate understanding of laws and rules regulating real estate practice
Recognize Illinois disclosures
Interpret roles/responsibilities of a managing broker
Demonstrate understanding of agency relationships and property representations
Discuss handling money
Apply understanding of training and supervision of licensees
V. Unit 5: Dual Agency
Case Study 7: Dual Agency
Case Study 8: Dual Agency and Disclosure – Material Defects vs. Stigmatized Property
Discuss Illinois licensing requirements
Illustrate understanding of laws and rules regulating real estate practice
Recognize Illinois disclosures
Interpret roles/responsibilities of a managing broker
Apply understanding of agency relationships and property representations
Demonstrate understanding of fair housing and other governmental regulations
Discuss handling money
Apply understanding of training and supervision of licensees
VI. Unit 6: Escrow Documents
Case Study 9: Escrow Money and Interest
Case Study 10: Earnest Money
Illustrate understanding of laws and rules regulating real estate practice
Recognize Illinois disclosures
Interpret roles/responsibilities of a managing broker
Apply understanding of agency relationships and property representations
Demonstrate understanding of fair housing and other governmental regulations
Discuss handling money
Apply understanding of training and supervision of licensees
VII. Unit 7: Confidentiality
Case Study 11: Agent Inquiries
Case Study 12: Buyer Inquiries
Demonstrate understanding of fair housing and other governmental regulations
Apply understanding of training and supervision of licensees
VIII. Unit 8: Ethics
Case Study 13: Fair Housing
Case Study 14: Sexual Harassment
Interpret roles and responsibilities of a managing broker
Demonstrate understanding of agency relationships and property representations
Apply understanding of training and supervision of licensees
IX. Unit 9: Short Sale, Foreclosure and Clear Title
Case Study 15: RESPA and Mortgage Fraud
Case Study 16: Short Sales and Foreclosures
Case Study 17: Clear Title
Discuss Illinois licensing requirements
Illustrate understanding of laws and rules regulating real estate practice
Recognize Illinois disclosures
Interpret roles and responsibilities of a managing broker
Demonstrate understanding of agency relationships and property representations
Demonstrate understanding of fair housing and other governmental regulations
Discuss handling money
Apply understanding of training and supervision of licensees
X. Unit 10: Internet Marketing and Social Media
Case Study 18: Broker Website and Social Media Use
Laws and Rules Regulating Real Estate Practice
Recognize Illinois disclosures
Interpret roles/responsibilities of a managing broker
Apply understanding of agency relationships and property representations
Demonstrate understanding of fair housing and other governmental regulations
Apply understanding of training and supervision of licensees
Georgia 75 Hour Course Outline
I. The Real Estate Business
Describe real estate activities
Identify real estate professions
Define residential, commercial, investment
Identify primary brokerage activities
Define specializations
List skills & knowledge needed
Identify major professional organizations
Identify regulated areas
List general areas of license law
II. Rights in Real Estate
Define land and real estate
Distinguish categories of property
Identify the bundle of rights
Define air, surface, subsurface & water rights
Identify areas of government & judicial regulations
III. Interests & Estates
Define estates in real property
Define interests & estates in land,
Distinguish freehold from leasehold estates,
Describe types of fee simple estate,
Describe types of life estate,
Describe types of leasehold estate
IV. Ownership
Define the forms of ownership
Define sole ownership
Define & distinguish forms of co-ownership
Describe how joint tenancy is created
Define the mechanics of an estate in trust
Identify the features of a land trust
Define condominium ownership
Define cooperative ownership
Define time-share ownership
V. Encumbrances & Liens
Define encumbrance
Identify types and priority of liens
Describe the types of lien
Define lien priority
Describe foreclosure processes
Describe the types of easements
Define deed restrictions
Define encroachment
VI. Transferring & Recording Title
Distinguish legal & equitable title
Define actual and constructive notice
List & describe processes of voluntary & involuntary transfer
Describe components of a deed of conveyance
Identify types of deed
Identify types of will
Describe probate processes
Define title & title records
Describe the forms of title evidence
VII. Real Estate Leases
Identify the principal types of leasehold estates
List the rights & obligations of landlord and tenant
List the legal requirements of a lease contract
Describe major lease clauses
Define the major types of lease
Define default and termination
Describe the areas regulated by URLTA
VIII. Land Use Planning & Control
Describe the goals and process of land use planning
Describe the zoning & zoning appeals process
Define the types of zone
Describe the process of taking by eminent domain
Describe the major environmental legislation
Describe the major types of private land use control
IX. Legal Descriptions
Define legal description
Describe the metes and bounds method
Interpret a metes and bounds description
Describe the rectangular survey method
Identify ranges, tiers and townships
Identify sections of a township
Calculate acreage of fractions of a section
Describe a section fraction
Interpret a rectangular survey description
Describe the recorded plat method
Describe the use of elevation reference points
X. Real Estate Contract Law
Identify the basic legal concepts of contracts
Describe requirements for contract validity
Describe the creation & termination of contracts
XI. Agency
Define the agency relationship
Describe the fiduciary duties of agency
Identify the forms of real estate agency
Describe the rules of agency disclosure
Identify problem areas for real estate agents
XII. Listing Agreements
Describe the basis of listing agreements in contract and agency law
Identify the types of listing agreement
Describe how an agent fulfills an agreement and earns compensation
Identify the basic provisions of a listing agreement
XIII. The Brokerage Business
Identify the activities, scope & organization of brokerage
Identify who may/may not broker real estate
Define broker-salesperson relationships
Calculate a commission split
XIV. Contracts for the Sale of Real Estate
Describe the characteristics and provisions of a contract for sale
Describe the characteristics and provisions of an option-to-buy contract
Describe the characteristics of a contract for deed
XV. Real Estate Market Economics
Describe the elements of the market system
Define the economic characteristics of real estate
Describe real estate supply and demand
XVI. Appraising & Estimating Value
Define real estate value
Describe economic foundations of real estate value
Identify major types of value
Define market value
Define appraisal
Describe the appraisal process
Describe the three approaches to value
Define comparative market analysis
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
XVII. Real Estate Finance
Define mortgage financing
Describe loan transactions
Calculate loan financial components
Identify major elements of mortgage & trust deed
Describe the underwriting & loan application processes
Describe the major laws that affect mortgage lending
Calculate the loan amount for which a borrower qualifies
Describe the primary & secondary mortgage markets
Describe common loan types and structures
XVIII. Real Estate Investment
Describe the investment characteristics of real estate
Identify investment entities & describe the tax treatment of real estate investments
Perform investment analysis and tax calculations
XIX. Real Estate Taxation
Identify taxing entities
Describe ad valorem taxation
Perform basic tax calculations
Describe the enforcement of tax liens
XX. Ethics: Laws and Practices
Identify and describe the fair housing laws & fair financing laws;
Identify fair housing and financing problem areas for real estate agents;
Identify acceptable ethical and professional practices
XXI. Closings
Describe the process of a real estate closing
Describe the requirements of RESPA
Define buyer’s & seller’s debits and credits
Define and calculate prorations
Identify and calculate taxes due at closing
Complete a closing statement
XXII. Real Estate Licensing & Regulation
Describe the role of state license law
Describe the procedure & requirements for obtaining and retaining a real estate license
Identify services requiring a license
Identify the types of real estate license
Describe the role of the state real estate commission
XXIII. Risk Management
Define risk & risk management
Explain the four basic risk management strategies
Describe the four primary risk management procedures in real estate practice
Identify the primary risk areas for real estate licensees
XXIV. Property Management
Describe the major functions of the property manager;
Identify the nature and components of a management agreement;
Describe elements of various lease types of most interest to a property manager;
Identify sources of management business, the role of the management plan in securing business, and sources of professional training for property managers
XXV. Georgia Licensing Regulation & Enforcement
Definitions
The Real Estate Commission
License Requirements
Disciplinary Actions
Violations & Unfair Trade Practices
XXVI. Georgia Brokerage Regulation
BRRETA
Management Responsibilities
Managing Trust Accounts
Advertising
Handling Transactions
XXVII. Other Georgia Laws
Taxes and Liens
Foreclosures
Owner’s Rights
Mortgage Instruments
Leases
Basic Requirements
Rights and Duties
Security Deposits
Fair Practices and Anti-Trust Issues
Condominiums
Timeshare Code
Miscellaneous Laws
Georgia Variations on National Practices
XXVIII. Real Estate Math
Add and multiply fractions;
Multiplying using percentages
Calculate area of basic shapes
Calculate area from legal description
Calculate commission
Calculate Goodwill
Calculate Percentage of Listing Price
Calculate Earnest Money Deposits
Calculate Rent Escalations
Calculate FIRPTA Withholdings
Adjust Comparables for Appraisals
Calculate Income Capitalization
Calculate Loan Amounts, Rates, and Payments
Calculate Loan-to-Value Ratio
Calculate Income Underwriting Ratio
Calculate Debt Underwriting Ratio
Calculate Points
Calculate Appreciation
Calculate Equity
Calculate Pre-tax Cash Flow
Calculate Tax Liability
Calculate Annual Depreciation Expense
Calculate Capital Gain
Calculate Return, Rate of Return, and Investment Amount
Calculate Tax Rate
Calculate Special Assessments
Calculate Prorations
Arizona 90-Hour Salesperson Pre License Course Outline
I. The Real Estate Business
Describe real estate activities
Identify real estate professions
Define residential, commercial, investment
Identify primary brokerage activities
Define specializations
List skills & knowledge needed
Identify major professional organizations
Identify regulated areas
List general areas of license law
II. Rights in Real Estate
Define land and real estate
Distinguish categories of property
Identify the bundle of rights
Define air, surface, subsurface & water rights
Identify areas of government & judicial regulations
III. Interests & Estates
Define estates in real property
Define interests & estates in land,
Distinguish freehold from leasehold estates,
Describe types of fee simple estate,
Describe types of life estate,
Describe types of leasehold estate
IV. Ownership
Define the forms of ownership
Define sole ownership
Define & distinguish forms of co-ownership
Describe how joint tenancy is created
Define the mechanics of an estate in trust
Identify the features of a land trust
Define condominium ownership
Define cooperative ownership
Define time-share ownership
V. Encumbrances & Liens
Define encumbrance
Identify types and priority of liens
Describe the types of lien
Define lien priority
Describe foreclosure processes
Describe the types of easements
Define deed restrictions
Define encroachment
VI. Transferring & Recording Title
Distinguish legal & equitable title
Define actual and constructive notice
List & describe processes of voluntary & involuntary transfer
Describe components of a deed of conveyance
Identify types of deed • Identify types of will
Describe probate processes
Define title & title records
Describe the forms of title evidence
VII. Real Estate Leases
Identify the principal types of leasehold estates
List the rights & obligations of landlord and tenant
List the legal requirements of a lease contract
Describe major lease clauses
Define the major types of lease
Define default and termination
Describe the areas regulated by URLTA
VIII. Land Use Planning & Control
Describe the goals and process of land use planning
Describe the zoning & zoning appeals process
Define the types of zone
Describe the process of taking by eminent domain
Describe the major environmental legislation
Describe the major types of private land use control
IX. Legal Descriptions
Define legal description
Describe the metes and bounds method
Interpret a metes and bounds description
Describe the rectangular survey method
Identify ranges, tiers and townships
Identify sections of a township
Calculate acreage of fractions of a section
Describe a section fraction
Interpret a rectangular survey description
Describe the recorded plat method
Describe the use of elevation reference points
X. Real Estate Contract Law
Identify the basic legal concepts of contracts
Describe requirements for contract validity
Describe the creation & termination of contracts
XI. Agency
Define the agency relationship
Describe the fiduciary duties of agency
Identify the forms of real estate agency
Describe the rules of agency disclosure
Identify problem areas for real estate agents
XII. Listing Agreements
Describe the basis of listing agreements in contract and agency law
Identify the types of listing agreement
Describe how an agent fulfills an agreement and earns compensation
Identify the basic provisions of a listing agreement
XIII. The Brokerage Business
Identify the activities, scope & organization of brokerage
Identify who may/may not broker real estate
Define broker-salesperson relationships
Calculate a commission split
XIV. Contracts for the Sale of Real Estate
Describe the characteristics and provisions of a contract for sale
Describe the characteristics and provisions of an option-to-buy contract
Describe the characteristics of a contract for deed
XV. Real Estate Market Economics
Describe the elements of the market system
Define the economic characteristics of real estate
Describe real estate supply and demand
XVI. Appraising & Estimating Value
Define real estate value
Describe economic foundations of real estate value
Identify major types of value
Define market value
Define appraisal
Describe the appraisal process
Describe the three approaches to value
Define comparative market analysis
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
XVII. Real Estate Finance
Define mortgage financing
Describe loan transactions
Calculate loan financial components
Identify major elements of mortgage & trust deed
Describe the underwriting & loan application processes
Describe the major laws that affect mortgage lending
Calculate the loan amount for which a borrower qualifies
Describe the primary & secondary mortgage markets
Describe common loan types and structures
XVIII. Real Estate Investment
Describe the investment characteristics of real estate
Identify investment entities & describe the tax treatment of real estate investments
Perform investment analysis and tax calculations
XIX. Real Estate Taxation
Identify taxing entities
Describe ad valorem taxation
Perform basic tax calculations
Describe the enforcement of tax liens
XX. Ethics: Laws & Practices
Identify and describe the fair housing laws & fair financing laws
Identify fair housing and financing problem areas for real estate agents
Identify acceptable ethical and professional practices
XXI. Closings
Describe the process of a real estate closing
Describe the requirements of RESPA
Define buyer’s & seller’s debits and credits
Define and calculate prorations
Identify and calculate taxes due at closing
Complete a closing statement
XXII. Real Estate Licensing & Regulation
Describe the role of state license law
Describe the procedure & requirements for obtaining and retaining a real estate license
Identify services requiring a license
Identify the types of real estate license
Describe the role of the state real estate commission
XXIII. Risk Management
Define risk & risk management
Explain the four basic risk management strategies
Describe the four primary risk management procedures in real estate practice
Identify the primary risk areas for real estate licensees
XXIV. Property Management
Describe the major functions of the property manager
Identify the nature and components of a management agreement
Describe elements of various lease types of most interest to a property manager
Identify sources of management business, the role of the management plan in securing business, and sources of professional training for property managers
XXV. Real Estate Law in Arizona
Identify sources of real estate law;
Review Title 32, Chapter 20- Code of Real Estate;
Describe ADRE’s disciplinary process and procedures
XXVI. Arizona Licensing Law & Regulations
Identify who must be licensed;
Identify exemptions;
Define unlicensed personnel;
Describe general license requirements;
Describe license status and types;
Define activated licenses;
Define active licenses;
Define temporary real estate licenses;
Define appraisal licenses
XXVII. Easements, Encumbrances, Ownership & Conveyances in Arizona
Describe easements particular to Arizona;
Describe encumbrances particular to Arizona;
Describe ownership particular to Arizona;
Describe conveyances particular to Arizona
XXVIII. Arizona Land and Environmental Laws
Define Arizona Water Law;
Review environmental regulation specific to Arizona;
Review land descriptions specific to Arizona;
Define Subdivision Law specific to Arizona
XXIX. Disclosure and Consumer Protection in Arizona
Define disclosure;
Review consumer protections
XXX. Regulated Activities and Relationship in Arizona
Review advertising;
Review commissions and fees;
Review contracts;
Describe agency relationships;
Review handling of funds
XXXI. Arizona Finance and Taxation Practices
Review financing;
Describe foreclosures;
Describe land contract financing;
Review Arizona property tax concepts;
Review tax aspects of ownership
XXXII. Leasing and Property Management in Arizona
Review definitions;
Explain the Arizona Residential Landlord and Tenant Act; • Review property management;
Review lease agreements
XXXIII. Other Related Arizona Practices and Laws
Review business brokerage transactions;
Describe Realtor Boards and MLS;
Explain compensation to public;
Describe bankruptcy effect on real estate contracts;
Review property insurance and warranties;
Review Arizona real estate math;
Review appraisal;
Review Arizona closing issues
XXXIV. Real Estate Math
Add and multiply fractions;
Multiplying using percentages
Calculate area of basic shapes
Calculate area from legal description
Calculate commission
Calculate Goodwill
Calculate Percentage of Listing Price
Calculate Earnest Money Deposits
Calculate Rent Escalations
Calculate FIRPTA Withholdings
Adjust Comparables for Appraisals
Calculate Income Capitalization
Calculate Loan Amounts, Rates, and Payments
Calculate Loan-to-Value Ratio
Calculate Income Underwriting Ratio
Calculate Debt Underwriting Ratio
Calculate Points
Calculate Appreciation
Calculate Equity
Calculate Pre-tax Cash Flow
Calculate Tax Liability
Calculate Annual Depreciation Expense
Calculate Capital Gain
Calculate Return, Rate of Return, and Investment Amount
Calculate Tax Rate
Calculate Special Assessments
Calculate Prorations
Alabama Salesperson Pre License Course Outline
I. The Real Estate Business
Describe real estate activities
Identify real estate professions
Define residential, commercial, investment
Identify primary brokerage activities
Define specializations
List skills & knowledge needed
Identify major professional organizations
Identify regulated areas
List general areas of license law
II. Rights in Real Estate
Define land and real estate
Distinguish categories of property
Identify the bundle of rights
Define air, surface, subsurface & water rights
Identify areas of government & judicial regulations
III. Interests & Estates
Define estates in real property
Define interests & estates in land,
Distinguish freehold from leasehold estates,
Describe types of fee simple estate,
Describe types of life estate,
Describe types of leasehold estate
IV. Ownership
Define the forms of ownership
Define sole ownership
Define & distinguish forms of co-ownership
Describe how joint tenancy is created
Define the mechanics of an estate in trust
Identify the features of a land trust
Define condominium ownership
Define cooperative ownership
Define time-share ownership
V. Encumbrances & Liens
Define encumbrance
Identify types and priority of liens
Describe the types of lien
Define lien priority
Describe foreclosure processes
Describe the types of easements
Define deed restrictions
Define encroachment
VI. Transferring & Recording Title
Distinguish legal & equitable title
Define actual and constructive notice
List & describe processes of voluntary & involuntary transfer
Describe components of a deed of conveyance
Identify types of deed • Identify types of will
Describe probate processes
Define title & title records
Describe the forms of title evidence
VII. Real Estate Leases
Identify the principal types of leasehold estates
List the rights & obligations of landlord and tenant
List the legal requirements of a lease contract
Describe major lease clauses
Define the major types of lease
Define default and termination
Describe the areas regulated by URLTA
VIII. Land Use Planning & Control
Describe the goals and process of land use planning
Describe the zoning & zoning appeals process
Define the types of zone
Describe the process of taking by eminent domain
Describe the major environmental legislation
Describe the major types of private land use control
IX. Legal Descriptions
Define legal description
Describe the metes and bounds method
Interpret a metes and bounds description
Describe the rectangular survey method
Identify ranges, tiers and townships
Identify sections of a township
Calculate acreage of fractions of a section
Describe a section fraction
Interpret a rectangular survey description
Describe the recorded plat method
Describe the use of elevation reference points
X. Real Estate Contract Law
Identify the basic legal concepts of contracts
Describe requirements for contract validity
Describe the creation & termination of contracts
XI. Agency
Define the agency relationship
Describe the fiduciary duties of agency
Identify the forms of real estate agency
Describe the rules of agency disclosure
Identify problem areas for real estate agents
XII. Listing Agreements
Describe the basis of listing agreements in contract and agency law
Identify the types of listing agreement
Describe how an agent fulfills an agreement and earns compensation
Identify the basic provisions of a listing agreement
XIII. The Brokerage Business
Identify the activities, scope & organization of brokerage
Identify who may/may not broker real estate
Define broker-salesperson relationships
Calculate a commission split
XIV. Contracts for the Sale of Real Estate
Describe the characteristics and provisions of a contract for sale
Describe the characteristics and provisions of an option-to-buy contract
Describe the characteristics of a contract for deed
XV. Real Estate Market Economics
Describe the elements of the market system
Define the economic characteristics of real estate
Describe real estate supply and demand
XVI. Appraising & Estimating Value
Define real estate value
Describe economic foundations of real estate value
Identify major types of value
Define market value
Define appraisal
Describe the appraisal process
Describe the three approaches to value
Define comparative market analysis
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
XVII. Real Estate Finance
Define mortgage financing
Describe loan transactions
Calculate loan financial components
Identify major elements of mortgage & trust deed
Describe the underwriting & loan application processes
Describe the major laws that affect mortgage lending
Calculate the loan amount for which a borrower qualifies
Describe the primary & secondary mortgage markets
Describe common loan types and structures
XVIII. Real Estate Investment
Describe the investment characteristics of real estate
Identify investment entities & describe the tax treatment of real estate investments
Perform investment analysis and tax calculations
XIX. Real Estate Taxation
Identify taxing entities
Describe ad valorem taxation
Perform basic tax calculations
Describe the enforcement of tax liens
XX. Ethics: Laws & Practices
Identify and describe the fair housing laws & fair financing laws
Identify fair housing and financing problem areas for real estate agents
Identify acceptable ethical and professional practices
XXI. Closings
Describe the process of a real estate closing
Describe the requirements of RESPA
Define buyer’s & seller’s debits and credits
Define and calculate prorations
Identify and calculate taxes due at closing
Complete a closing statement
XXII. Real Estate Licensing & Regulation
Describe the role of state license law
Describe the procedure & requirements for obtaining and retaining a real estate license
Identify services requiring a license
Identify the types of real estate license
Describe the role of the state real estate commission
XXIII. Risk Management
Define risk & risk management
Explain the four basic risk management strategies
Describe the four primary risk management procedures in real estate practice
Identify the primary risk areas for real estate licensees
XXIV. Property Management
Describe the major functions of the property manager
Identify the nature and components of a management agreement
Describe elements of various lease types of most interest to a property manager
Identify sources of management business, the role of the management plan in securing business, and sources of professional training for property managers
XXV. Alabama Regulatory Environment
Describe the AL Real Estate Commission
Identify Disciplinary Actions
Explain the AL Recovery Fund
XXVI. Alabama Licensing Regulation
Identify AL Licensing Requirements
Explain AL License Statuses
XXVII. Alabama Brokerage Regulation
Define Broker and Company Licenses
Identify Trust Fund Requirements
Describe AL Estimated Closing Statement Requirements
Explain AL Advertising Rules
Identify AL Record-Keeping Requirements
XXVIII. Alabama Agency
Identify RECAD
Explain AL Brokerage Disclosure Requirements
Describe AL Misrepresentation Regulations
Define AL Listing Requirements
XXIX. Alabama License Law Violations
Describe General Issues with AL License Law
Describe Honesty and Good Faith Issues
Identify Accountability and Reporting Issues
Identify Representation Issues
Kansas Real Estate Practice Course Outline (30 Hours)
I. Brokerage Agreements
BRRETA Brochure:
What to present
When to present the brochure
How to present the brochure
Listing a Property:
Examples
Types of Seller Agency Agreements
Exclusive Right to Sell
Exclusive Agency
Open
Net
Who’s Who in the Agency Agreement
Signing the Agreement
Broker’s Responsibilities
Which Agreement Your Company Uses
Pay Day
Information for Servicing the Listing
Flood Plain Issues
Lead Paint
Title Issues
Death, Divorce, and Other Issues
Buyer Representation:
Examples
Types of Buyer Agency Agreements
Exclusive Representation
Non-Exclusive Representation
Review of Customer/Client Relationship
Who’s Who in the Agency Agreement
Signing the Agreement
Broker’s Responsibilities
Which Agreement Your Company Uses
Pay Day
Information for Servicing the Listing
In-Depth Discussion, Examples & Exercises
Acting as a Transaction Broker:
Definition of “Transaction Broker”
Obligations and Responsibilities of a Transaction Broker
Written Brokerage Agreement
Cooperation with Other Brokers
“Presumption of Transaction Broker”
Transaction Broker Addendum
TBA-RES
TBA-COMM
TBA-DA
TBA-AG
Termination of Brokerage Relationships:
Public’s Right to Terminate
Consequence of Terminations
Compensation:
K.S.A. 58-30, 105 in BRRETA
Things to Remember when Working with Another Company:
Types of agency relationships
When to disclose agency
Ask and tell
Listing Agents, Subagents, Single Agents:
Listing broker’s obligations to the seller/client
Listing broker’s obligations to the buyer/customer
Buyer broker’s obligations to the buyer/client
Buyer broker’s obligations to the seller/customer
Subagent
Single agent
Designated agency
Showing Another Firm’s Listing:
Refusal
Subagency
Agents of the purchaser
Giving permission to show your listing
Responses for subagency
Responses for buyer’s agent
II. Property Valuations
Pricing Residential Property:
Market analysis
Where to find information
When to use a market analysis
How financing affects selling price
Steps to complete a market analysis
Sample market analysis
Who and what determines property value
Pricing Non-Residential Property:
Factors that affect the values of income- producing property
Where to find information
Steps to follow when using the income approach
The Appraiser’s Role:
Difference between an appraisal and a market analysis
Comparables used by appraisers
Who appraisers work for
III. Financing and Closing Costs
Types of Financing:
Importance of financially qualifying the purchaser
When and how to qualify the purchaser
Pre-qualification vs. pre-approval
Conventional loans
FHA Loans
VA Loans
Other sources of financing
Buyers Estimated Closing Costs:
What is required by state law
When to prepare an estimate
How to prepare an estimate
Sellers Estimated Closing Costs:
What is required by state law
When to prepare an estimate
How to prepare an estimate
IV. Contracts, Earnest Money, and Misrepresentation
How to Avoid Problems when Writing a Sales Contract:
Offer to purchase
Addendums and amendments
Counteroffers and multiple offers
Agency’s effect on negotiation
Breach of contract
Consulting your broker
Legal advice
Spouses
Second contract for lender
Cancellation
Contingencies
Title Issues
Things to Remember About Earnest Money Before Writing a Sales Contract:
Define earnest money
Requirement of earnest money
Amount of earnest money
How to process earnest money
Divergences from state law
Entitlement
Appraisal fees
Definitions and Types of Misrepresentation:
Intentional misrepresentation
Negligent misrepresentation
Misrepresentation Red Flags:
Buyer’s perspective
Seller’s perspective
Agent’s perspective
Property value
Legal access to property
Title defects
Condition of improvements
Quality of construction
Age of improvements
Quantity of land
Right of parties
Termites and other pests
Public services and utilities
Boundaries and easements
Zoning, subdivision regulations, building codes, restrictive covenants
Taxes and municipal assessments
Neighborhood
Loan qualification
Owner financing
Closing costs
Market conditions
Economic conditions
NOI
Earnest money
Risk of loss
Mortgage contingency
Performance obligations
Remedies
Dual contracts
Advertising
Ways to Avoid Misrepresentation:
Errors
Inspection of property
Seller statements
Disclaimers
“Red flags”
Opinions
Facts
“Puffing”
Interpreting contracts
Establish procedures
“Paper trails”
Seller’s disclosure
Flood plain issues
Lead paint
Latent defects
Procedure Upon Discovery:
Disclosure
Nature of the misrepresentation
Caution the party
V. Environmental Issues
EPA
Red Flags
Lead paint
Radon
Wells
Septic tanks
Asbestos
Mold
Meth labs
VI. Land and Improvements
Structures:
Construction
Style
Plumbing & Heating
VII. Legal Issues
New legal developments
Advertising and fair housing
Megan’s law
Stigmatized properties
Kansas Principles of Real Estate Course Outline (30 Hours)
I. Real Property
Real Estate Activities:
Describe real estate activities
Identify real estate professions
Define residential, commercial, investment
Identify primary brokerage activities
Define specializations
List skills & knowledge needed
Identify major professional organizations
Identify regulated areas
List general areas of license law
Elements of Real Property:
Define elements of real property
Distinguish categories of real property
Define land and real estate,
Identify the bundle of rights,
Define air, surface, subsurface &water rights,
Identify areas of government & judicial regulations
Methods of Legal Description:
Define the methods of legal description
Describe the metes and bounds method,
Interpret a metes and bounds description,
Describe the rectangular survey method,
Identify ranges, tiers and townships,
Identify sections of a township,
Calculate acreage of fractions of a section,
Describe a section fraction,
Interpret a rectangular survey description,
Describe the recorded plat method,
Describe the use of elevation reference points
Estates in Real Property:
Define estates in real property
Define interests & estates in land,
Distinguish freehold from leasehold estates,
Describe types of fee simple estate,
Describe types of life estate,
Describe types of leasehold estate
Forms of Ownership:
Define the forms of ownership
Define sole ownership,
Define & distinguish forms of co-ownership,
Describe how joint tenancy is created,
Define the mechanics of an estate in trust,
Identify the features of a land trust,
Define condominium ownership,
Define cooperative ownership,
Define time-share ownership
Transfer/Alienation of Real Property:
Defines, list & describe processes of voluntary transfer AND define, list & describe processes of involuntary transfer
Distinguish legal &equitable title,
Define actual and constructive notice,
Describe components of a deed of conveyance,
Identify types of deed,
Describe characteristics and elements of deeds
Identify types of will,
Describe probate processes,
Define warranties
Describe assurances of title
Define title & title records
Land Use Controls:
Define public land use controls
Describe the goals and process of land use planning,
Describe the zoning & zoning appeals process,
Define the types of zone,
Describe the process of taking by eminent domain,
Describe the major environmental legislation,
Describe the major types of private land use control
Encumbrances:
Define encumbrance
Identify types and priority of liens
Describe the types of lien,
Define lien priority,
Describe foreclosure processes
Describe easements
Define deed restrictions
Define encroachment
II. Government Controls and Laws Affecting Real Estate
Real Property Tax Computations:
Perform basic tax calculations
Identify taxing entities
Describe ad valorem taxation
Income Tax Considerations and Computations:
Owner-occupied property
Describe the investment characteristics of real estate
Investment property
Identify investment entities,
Describe the tax treatment of real estate investments
Perform basic real estate investment analysis and tax calculations
Other income tax considerations
Refinance
Capital gains on sale
Federal Fair Housing & ADA:
Identify and describe the fair housing laws & fair financing laws
Identify fair housing and financing problem areas for real estate agents
Identify and describe aspects of the American with Disabilities Act
III. Valuation and Appraisal
Types of value
Define real estate value
Principles of value
Describe economic foundations of real estate value
Identify major types of value
Influences on value
Define market value
Describe approaches to value
Define comparative market analysis
Describe the appraisal process
Define appraisal
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
IV. Real Estate Finance
Financing components
Define mortgage financing
Calculate loan financial components
Describe the underwriting & loan application processes
Sources
Describe the primary & secondary mortgage markets
Elements/Provisions
Describe loan transactions
Calculate the loan amount for which a borrower qualifies
Loan Types
Describe common loan types and structures
Instruments
Notes
Identify major elements of mortgages
Identify major elements of deeds of trust
Lender Requirements
Truth in Lending
Describe the major laws that affect mortgage lending
Other Financing Issues
V. Settlement/Closing
Settlement Procedures
Describe the process of a real estate closing
Documents
Identify and calculate taxes due at closing,
Complete a closing statement
RESPA
Describe the requirements of RESPA
Closing Costs/Pro-rations
Define buyer’s & seller’s debits and credits
Define and calculate pro-rations
VI. Contracts/Agency
Agency:
Agency Relationships and Responsibilities
Define the agency relationship
Describe the fiduciary duties of agency
Types/Characteristics
Identify the forms of real estate agency
Elements/Requirements
Describe the rules of agency disclosure
Identify problem areas for real estate agents
Listing Contracts:
Types
Identify the types of listing agreement
Identify the basic provisions of a listing agreement
Describe the basis of listing agreements in contract and agency law
Rights and Obligations of the Parties
Describe how an agent fulfills an agreement and earns compensation
Specific Property Data
Termination/Expirations
Purchase/Sales Contract:
Purchase/Sales Contract:
Describe the characteristics and provisions of a contract for sale,
Describe the characteristics and provisions of an option-to-buy contract,
Describe the characteristics of a contract for deed
Disclosures
Property
Agency
Environmental
Federal Fair Housing
Property Management Contracts:
Management contracts
Describe the major functions of the property manager
Identify the nature and components of a management agreement
Identify sources of management business, the role of the management plan in securing business, and sources of professional training for property managers
Describe elements of various lease types of most interest to a property manager
Lease/Rental Agreements:
Leases/Rental Agreements
Identify the principal types of leasehold estates,
List the rights & obligations of landlord and tenant,
List the legal requirements of a lease contract,
Describe major lease clauses,
Define the major types of lease,
Define default and termination,
Describe the areas regulated by URLTA
BRRETA:
Brokerage Relationships in Real Estate Transactions
Define terms found in BRRETA
Describe agency agreements
Illustrate misrepresentation
Define what licensees can’t do
Describe exclusive right to sell
Define ‘who is doing what and for whom’
Describe licensee duties
Describe compensation
Define termination of relationships
VII. Duties and Powers of the Kansas Real Estate Commission
Duties and powers of KREC
Identify general powers and duties
Describe membership
Examination of records
Describe examination of records
Investigations, hearings, and appeals
Describe investigations, hearings, and appeals
VIII. Kansas Licensing Requirements
Activities requiring a license
Identify activities requiring a license
Exemptions from licensure
Qualifications, examinations, denial of license
Nonresident license
Restricted license
Corporations, partnerships, associations, and LLCs
Temporary license
Renewal of license
Education requirements
Change in license
Deactivated “inactive” license
IX. Requirements Governing Activities of Licensees
Prohibited acts
Describe prohibited acts and penalties for violations
Place of business and company names
Define place of business and company name
Handling of trust funds and accounts
Describe handling of trust funds and accounts
Records
Describe record maintenance
Recommending legal advice
Illustrate recommending legal advice
Reporting requirements
Describe reporting requirements
Advertising
Illustrate advertising requirements
X. Penalties for Violations
Penalties for Violations
License revocation
Suspension and restriction
Censure of license
Civil fines
Criminal Prosecution
XI. Kansas Real Estate Recovery Revolving Fund
KS Recovery Revolving Fund
Describe the conditions required to recover funds
Define reimbursement
Indiana Real Estate Pre License 90-Hour Course Outline
I. The Real Estate Business
Describe real estate activities
Identify real estate professions
Define residential, commercial, investment
Identify primary brokerage activities
Define specializations
List skills & knowledge needed
Identify major professional organizations
Identify regulated areas
List general areas of license law
II. Rights in Real Estate
Define land and real estate
Distinguish categories of property
Identify the bundle of rights
Define air, surface, subsurface & water rights
Identify areas of government & judicial regulations
III. Interests & Estates
Define estates in real property
Define interests & estates in land,
Distinguish freehold from leasehold estates,
Describe types of fee simple estate,
Describe types of life estate,
Describe types of leasehold estate
IV. Ownership
Define the forms of ownership
Define sole ownership
Define & distinguish forms of co-ownership
Describe how joint tenancy is created
Define the mechanics of an estate in trust
Identify the features of a land trust
Define condominium ownership
Define cooperative ownership
Define time-share ownership
V. Encumbrances & Liens
Define encumbrance
Identify types and priority of liens
Describe the types of lien
Define lien priority
Describe foreclosure processes
Describe the types of easements
Define deed restrictions
Define encroachment
VI. Transferring & Recording Title
Distinguish legal & equitable title
Define actual and constructive notice
List & describe processes of voluntary & involuntary transfer
Describe components of a deed of conveyance
Identify types of deed • Identify types of will
Describe probate processes
Define title & title records
Describe the forms of title evidence
VII. Real Estate Leases
Identify the principal types of leasehold estates
List the rights & obligations of landlord and tenant
List the legal requirements of a lease contract
Describe major lease clauses
Define the major types of lease
Define default and termination
Describe the areas regulated by URLTA
VIII. Land Use Planning & Control
Describe the goals and process of land use planning
Describe the zoning & zoning appeals process
Define the types of zone
Describe the process of taking by eminent domain
Describe the major environmental legislation
Describe the major types of private land use control
IX. Legal Descriptions
Define legal description
Describe the metes and bounds method
Interpret a metes and bounds description
Describe the rectangular survey method
Identify ranges, tiers and townships
Identify sections of a township
Calculate acreage of fractions of a section
Describe a section fraction
Interpret a rectangular survey description
Describe the recorded plat method
Describe the use of elevation reference points
X. Real Estate Contract Law
Identify the basic legal concepts of contracts
Describe requirements for contract validity
Describe the creation & termination of contracts
XI. Agency
Define the agency relationship
Describe the fiduciary duties of agency
Identify the forms of real estate agency
Describe the rules of agency disclosure
Identify problem areas for real estate agents
XII. Listing Agreements
Describe the basis of listing agreements in contract and agency law
Identify the types of listing agreement
Describe how an agent fulfills an agreement and earns compensation
Identify the basic provisions of a listing agreement
XIII. The Brokerage Business
Identify the activities, scope & organization of brokerage
Identify who may/may not broker real estate
Define broker-salesperson relationships
Calculate a commission split
XIV. Contracts for the Sale of Real Estate
Describe the characteristics and provisions of a contract for sale
Describe the characteristics and provisions of an option-to-buy contract
Describe the characteristics of a contract for deed
XV. Real Estate Market Economics
Describe the elements of the market system
Define the economic characteristics of real estate
Describe real estate supply and demand
XVI. Appraising & Estimating Value
Define real estate value
Describe economic foundations of real estate value
Identify major types of value
Define market value
Define appraisal
Describe the appraisal process
Describe the three approaches to value
Define comparative market analysis
Perform basic calculations used in appraisal
Identify regulated appraisal activities and professional standards
XVII. Real Estate Finance
Define mortgage financing
Describe loan transactions
Calculate loan financial components
Identify major elements of mortgage & trust deed
Describe the underwriting & loan application processes
Describe the major laws that affect mortgage lending
Calculate the loan amount for which a borrower qualifies
Describe the primary & secondary mortgage markets
Describe common loan types and structures
XVIII. Real Estate Investment
Describe the investment characteristics of real estate
Identify investment entities & describe the tax treatment of real estate investments
Perform investment analysis and tax calculations
XIX. Real Estate Taxation
Identify taxing entities
Describe ad valorem taxation
Perform basic tax calculations
Describe the enforcement of tax liens
XX. Ethics: Laws & Practices
Identify and describe the fair housing laws & fair financing laws
Identify fair housing and financing problem areas for real estate agents
Identify acceptable ethical and professional practices
XXI. Closings
Describe the process of a real estate closing
Describe the requirements of RESPA
Define buyer’s & seller’s debits and credits
Define and calculate prorations
Identify and calculate taxes due at closing
Complete a closing statement
XXII. Real Estate Licensing & Regulation
Describe the role of state license law
Describe the procedure & requirements for obtaining and retaining a real estate license
Identify services requiring a license
Identify the types of real estate license
Describe the role of the state real estate commission
XXIII. Risk Management
Define risk & risk management
Explain the four basic risk management strategies
Describe the four primary risk management procedures in real estate practice
Identify the primary risk areas for real estate licensees
XXIV. Property Management
Describe the major functions of the property manager
Identify the nature and components of a management agreement
Describe elements of various lease types of most interest to a property manager
Identify sources of management business, the role of the management plan in securing business, and sources of professional training for property managers
