Contents
Part 1: Introduction to the Real Estate Business
1 Why Real Estate as a Career?
Career Benefits
Career Responsibilities
Who Becomes Real Estate Professionals?
Other Real Estate Positions
Financial Expectations
Outlook for the Future
2 Taking the Real Estate Exam
Registration Requirements
Registering for the Exam
The Pass/Fail Method of Licensing
State Agencies and Getting Licensed
Local Board Membership
What Happens After You Pass?
What Happens If You Fail Your Exam?
3 Successful Exam Strategies
Successful Studying Strategies
Practice Test and Quizzes
How to Read the Questions
Solving Math Problems
Part 2: The Job Basics
4 The REALTOR Job
REALTOR 101
Licensing Levels
Which Brokerage Is Right for You?
Understanding the Commission Structure
The Sherman Antitrust Issues in Real Estate
The Fiduciary Responsibilities of Agency
How Is an Agency Created?
How to Terminate an Agency
The Relationship Between Salesperson and Broker
Calculating Your Commission
Avoiding Common Issues
6 Contract Law
What Makes a Contract?
Types of Contracts in Real Estate
Real Estate Risk Management
7 Fair Housing
What Is Fair Housing?
State Versus Federal Fair Housing Requirements
Understanding the Federal Protected Classes
Exceptions to the Fair Housing Act
Violations of Fair Housing
Fair Housing Enforcement Procedures
What Fair Housing Means to Real Estate Licensees
8 Ethics
What Is Ethics?
The Role of Ethics in Real Estate
The Difference Between Ethical and Legal
License Law and Code of Ethics
Reporting Ethics Violations
Part 3: Ownership and Transference
9 Estates and Interests
What Is Real Property?
What Is an Estate in Land?
Surface, Subsurface, Air, and Water Rights
10 Forms of Ownership
Governmental Powers in Real Estate
Taking Ownership in Real Estate
11 Encumbrances
What Is an Encumbrance?
Types of Encumbrances
Creating Easements
Removing Easements
Understanding Zoning
12 Deeds and Titles
What Is a Title?
What Is a Deed?
Transfer Tax and Calculations
Closing the Transaction
13 Transferring Property
Transfer by Conveyance
Transfer by Operation of Law
Probate
Part 4: Legal Ramifications
14 Contracts 101
What Is a Contract?
Terms Within Contract Law
Formation and Discharge of Contracts
Termination and Breach of Contract
Common Contracts Used in Real Estate
15 Leasing Versus Renting
The Differences Between Leasing and Renting in Real Estate
Leasehold Versus Freehold Estate
Common Lease Clauses
Residential Versus Commercial Leases
Evictions
16 Land Use Regulations
Government Rules and Regulations
Environmental Rules in Real Estate
Homeowner Associations (HOAs)
Part 5: Evaluation and Financing
17 Appraisals
The Importance of Real Estate Appraisals
Who Do Appraisers Work For?
Determining Value
Understanding Market Value
Appraisal Methods
Making Comparisons with Comps
Some Appraisals Math
Reconciliation
18 Financing and Mortgages
Promissory Notes
Mortgages and Deeds of Trust
The Lien Theory Versus Title Theory System
The Primary Mortgage Market
Common Financing Types
Other Financing Types
Governmental Loans
Financing Legislation
Foreclosures
19 Taxes and Assessments
Taxes and Real Estate
Exemptions for Real Estate Owners
Tax Lien Sales
20 Real Estate Investing
Getting Started Investing
The Pros and Cons of Investing
Working with Real Estate Investors
Types of Investing Structures
Technology Helpful with Real Estate Investing
Taxes for the Investor
IRS Code Section 1031: Tax-Deferred Exchanges
21 Mathematics in Real Estate
General Math Concepts
Unit Analysis for Real Estate
Real Estate Math
Part 6: Practice Exams and Solutions
Test 1: Rights, Interest and Estates, Ownership
Test 2: Encumbrances, Liens, Title Transfers, Leasing
Test 3: Land Use, Legal Land Descriptions, Contract Law
Test 4: Agency and Listing Agreements
Test 5: Sales Contracts, Brokerages Business, Fair Housing
Test 6: Economics, Appraisals
Test 7: Finance
Test 8: Investments, Taxes, Ethics
Test 9: Closings, Risk, and Property Management
Test 10: Real Estate Math
Appendixes
A Glossary
B National Sample Test and Answers
C Sample Real Estate Documents