30-Hour Principles of Real Estate
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