Learning Objectives

1
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

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1 Introduction to the Real Estate Business

• A Business of Many Specializations
• Brokerage
• Appraisal
• Property management
• Financing
• Subdivision and development
• Home inspection
• Counseling
• Education

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1 Introduction to the Real Estate Business

• Types of Real Property
• Residential
• Commercial
• Industrial
• Agricultural
• Special Purpose

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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

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2 Real Property and the Law

• Land - The earths 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
  earths 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

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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

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2 Real Property and the Law

• Characteristics of Real Estate
• Economic Characteristics
• Scarcity
• Improvements
• Permanence of investment
• Area preference
• Physical Characteristics
• Immobility
• Indestructibility
• Uniqueness

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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

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3 Concepts of Home Ownership

• Types of Housing
• Apartment Complex
• Condominium
• Cooperative
• Planned Unit Development (PUD)
• Retirement Community
• Highrise Development
• Converted-use Property
• Manufactured Housing
• Modular Homes
• Time-share

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3 Concepts of Home Ownership

• Housing Affordability
• Mortgage Terms
• Ownership Expenses and Ability to Pay
• Investment Considerations
• Tax Benefits
• Homeowners Insurance
• Coverage and Claims
• Basic v. Broad-form Policies
• Liability
• Coinsurance Clause
• Flood Insurance

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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 customers from those owed to a client

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4 Agency

• Real Estate Agency
• Common-law history
• Definitions
• Agent
• Subagent
• Principal
• Agency
• Client
• Customer
• Nonagent

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4 Agency

• Fiduciary Duties of an Agent
• Care
• Obedience
• Accounting
• Loyalty
• Disclosure

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Creation and Termination of Agency
4 Agency

• Creation
• Express Agency
• Implied Agency

• Termination
• Death or incapacity of a party
• Destruction or condemnation of the property
• Expiration
• Mutual agreement
• Breach
• Operation of law
• Completion, performance or fulfillment

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Limitations on Authority
4 Agency
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Types of Agency Relationships
4 Agency

• Single Agency
• Subagency
• Buyer Agency
• Dual Agency
• Disclosed
• Undisclosed
• Dual Agency
• Disclosure Laws
• Agency Statutes

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Customer-Level Services
4 Agency

• Reasonable care and skill in performance
• Honest and fair dealing
• Disclosure of all facts the licensee knows that
  materially affect the value or desirability of
  the property
• State law may require additional services or
  disclosures

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4 Agency
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4 Agency

• 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

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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 brokers compensation is usually
  determined
• Distinguish employees from independent
  contractors and explain why the distinction is
  important

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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.

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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
• Independent Contractor

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5 Real Estate Brokerage

• Brokers 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 delivered to all
  parties

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5 Real Estate Brokerage

• Brokers 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 sellers terms
  and ready to take positive steps toward
  consummation of the transaction

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5 Real Estate Brokerage

• Salespersons 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

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5 Real Estate Brokerage

• Transactional Brokerage
• A broker who helps both the buyer and the seller
  with the necessary paperwork and formalities. The
  buyer and seller negotiate the sale without
  representation.
• Nonagent
• Facilitator
• Coordinator
• Contract broker

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5 Real Estate Brokerage

• Antitrust Laws
• Price-fixing
• Group boycotting
• Allocation of customers or markets
• Tie-in agreements

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Modern Real Estate Practice 15th Edition