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978-0324787504 Chapter 1 Lecture Notes
1 Chapter 1 CHAPTER 1: Introduction to Real Estate I. Explain benefits of “How to Read this Book” and instruct students to read this section II. Explain the Transaction Overview flow of the textbook III. Explain the many […]
978-0324787504 Chapter 10 Lecture Notes
COMPARISON OF A MORTGAGE WITH DEED OF TRUST 1 Chapter 10 CHAPTER 10: Deed of Trust I, Discuss and dene the Parties to a Deed of Explain the purpose of the parties and their role in the Trust mortgaging procedure. […]
978-0324787504 Chapter 11 Lecture Notes
1 Chapter 11 CHAPTER 11: Lending Practices I. Term Loans A. Interest only B. Pay off at Maturity C. Loan Renewal II. Amortized Loans A. Repayment Methods B. Monthly Payments repayment methods. C. Loan […]
978-0324787504 Chapter 12 Lecture Notes
1 Chapter 12 CHAPTER 12: The Loan and the Consumer I. Discuss the Truth in Lending Act, explain the pplication A. Advertising B. Trigger Terms C. Annual Percentage Rate D. Lending Disclosures E. Who Must Comply? F. Exempt […]
978-0324787504 Chapter 13 Lecture Notes
1 Chapter 13 CHAPTER 13: Sources of Financing !”## $%$ ##%$ #& ‘& ($ )&#*+ ,#&%$ + -%% $% *# .& ’/&%(0 %(,1 ! 2(0% 3,%% 4” $’/&%)0 56# & !)# ’/&%(, […]
978-0324787504 Chapter 14 Lecture Notes
1 Chapter 14 CHAPTER 14: Types of Financing I. Mortgages according to Payments T A. Adjustable Rate Mortgages 1. Current Format 2. Interest Rate 3. Margin 4. Adjustment Period 5. Interest Rate Cap 6. Payment Cap 7. […]
978-0324787504 Chapter 15 Lecture Notes
1 Chapter 15 CHAPTER 15: Taxes and Assessments I. Discuss the purpose of Property Taxes A. Budget and Appropriation B. Appraisal and Assessment C. Tax Rate Calculation D. Applying the Rate II. Discuss the effect of Unpaid Property Taxes […]
978-0324787504 Chapter 16 Lecture Notes
1 Chapter 16 CHAPTER 16: Title Closing and Escrow I. Discuss the purpose of a Buyer’s Walk-Through II. Define Title Closing Role Playing may be helpful here. It can be fun and a III. Discuss the Closing or Settlement Meeting […]
978-0324787504 Chapter 17 Lecture Notes
1 Chapter 17 CHAPTER 17: Real Estate Leases I. The Leasehold Estate II. Creating a Valid Lease A. Explain The Lease Document B. Discuss Conveyance in a lease C. Discuss Contract Aspects III. Discuss the Landlord-Tenant Laws applicable in your […]
978-0324787504 Chapter 18 Lecture Notes
1 Chapter 18 CHAPTER 18: Real Estate Appraisal I. Define Appraisal II. Explain Real Property Valuation Process A. Value Approaches B. Market Value Defined III. Discuss the Market Comparison Approach A. Comparables B. Sales Records C. Verification D. Number of […]
978-0324787504 Chapter 19 Lecture Notes
1 Chapter 19 CHAPTER 19: Licensing Laws and Professional Affiliation I. Rationale for Licensing (public need for Loyalty, Honesty, and Truthfulness) II. Persons required to be Licensed A. Define Broker in your state B. Define […]
978-0324787504 Chapter 2 Lecture Notes
Real estate, or real property, is defined as land and the improvements made to land, and the rights to use them. 1 Chapter 2 CHAPTER 2: Nature and Description of Real Estate I. Define Land and Appurtenances II. Define Improvements […]
978-0324787504 Chapter 20 Lecture Notes
1 Chapter 20 CHAPTER 20: The Principal-Broker Relationship: Employment I. Explain a listing agreement as an employment contract A. Purpose and need to specify Brokerage Commission B. Protecting the Broker C. Protecting the Owner II. Discuss types of Listing Agreements […]
978-0324787504 Chapter 21 Lecture Notes
1 Chapter 21 CHAPTER 21: The Principal-Broker Relationship: Agency I. Discuss creating the Agency and Establishing the Agent’s Authority II. Discuss the Broker’s Obligations to his Principal A. Faithful performance B. Loyalty to principal C. Protecting the Owner’s Interest D. […]
978-0324787504 Chapter 22 Lecture Notes
1 Chapter 22 CHAPTER 22: Fair Housing, ADA, Equal Credit, and Community Reinvestment I. Discuss Fair Housing Laws as an expanding, changing area A. Discuss the constitutional basis for fair ! housing and the need for protected […]
978-0324787504 Chapter 23 Lecture Notes
1 Chapter 23 CHAPTER 23: Condominiums, Cooperatives, PUDs, and Timeshares I. Discuss the history of shared facilities housing II. Define Condominium in your state These are statutory in every state. Discuss whatever pecu- A. Separate and Common Elements liarities your […]
978-0324787504 Chapter 24 Lecture Notes
1 Chapter 24 CHAPTER 24: Property Insurance I. Dene Property Damage A. Modem Fire Coverage Explain that lots and slabs are usually not insured. B. Endorsements II. Explain the concerns of a property owner for Public Liability III. Discuss Homeowner […]
978-0324787504 Chapter 25 Lecture Notes
1 Chapter 24/25 CHAPTER 25/24: Land-Use Control I. Discuss the usefulness of Zoning A. Zoning Symbols B. Land-Use Restrictions C. Enforcement D. Nonconforming Use E. Amendment F. Variance G. Conditional-Use Permit H. Spot Zoning I. Downzoning […]
978-0324787504 Chapter 26 Lecture Notes
1 Chapter 26 CHAPTER 26: Real Estate and the Economy I. Define how an Economic Base is important to a community A. Effect on Property Values B. Vulnerability C. Employment Multiplier II. Explain the Short-Run Demand for Housing A. Increase […]
978-0324787504 Chapter 27 Lecture Notes
1 Chapter 25/27 CHAPTER 27/25: Investing in Real Estate I. Discuss the Benefits of Real Estate Investing A. Cash Flow B. Tax Shelter C. 1987-1988 Tax Rules D. Loss Limitations II. Give examples of Calculating Depreciation III. Define Gain on […]
978-0324787504 Chapter 3 Lecture Notes
1 Chapter 3 CHAPTER 3: Rights and Interests in Land I. Discuss the history of the Feudal and A1lodial Discuss the unique characteristics of allodial ownership in Systems America. This is a good time to be patriotic in your presentation! […]
978-0324787504 Chapter 4 Lecture Notes
1 Chapter 4 CHAPTER 4: Forms of Ownership I. Discuss Sole Ownership II. Define and discuss the elements of Tenancy in Common A. Words of Conveyance B. No Right of Survivorship C. Co-owner Responsibilities D. “What ifs” III. Discuss Joint […]
978-0324787504 Chapter 5 Lecture Notes
1 Chapter 5 CHAPTER 5: Transferring Title I. Discuss Deeds as conveyance documents A. Explain the Essential Elements of a Deed is no need for 1. Words of Conveyance 2. Signature 3. Delivery and Acceptance B. […]
978-0324787504 Chapter 6 Lecture Notes
1 Chapter 6 CHAPTER 6: Recordation, Abstracts, and Title Insurance I. Explain the Need for Public Records A. Define Constructive Notice B. Define Inquiry Notice C. Define Actual Notice D. Discuss Recording Acts in your state E. Explain the effect […]
978-0324787504 Chapter 7 Lecture Notes
1 Chapter 7 CHAPTER 7: Contract Law I. Explain how a Contract is created Stress the importance of contracts. It’s probably A. Define Bilateral Contras the area of the law most commonly encountered B. Define Unilateral Contract by students yet […]
978-0324787504 Chapter 8 Lecture Notes
1 Chapter 8 CHAPTER 8: Real Estate Sales Contracts I. Discuss the Purpose of Sales Contracts II. Discuss the typical Purchase Contract provisions A. Need for Earnest Money Deposit? B. Deed and Condition of Title as a contingency C. Closing […]
978-0324787504 Chapter 9 Lecture Notes
1 Chapter 9 CHAPTER 9: Mortgage and Note I. Discuss the relationship between the Note and Mortgage II. Explain the contract and purpose of the Promissory Note A. Define Obligor, Obligee B. Explain what Principal is C. Discuss Acceleration Clause […]
Chapter 10 A newly recorded trust deed a. conveys the entire estate
Chapter 10—Deed of Trust MULTIPLE CHOICE 1. A neutral third party would be found in a. a regular mortgage. b. an equitable mortgage. c. a deed of trust. d. a land sale contract. 2. A deed given as security for […]
Chapter 11 What is the annual interest on $50,000 calculated
Chapter 11—Lending Practices MULTIPLE CHOICE 1. The type of loan whereby the borrower makes interest only payments during the life of the loan with the entire principal due for the final payment is called a. a discounted loan. b. an […]
Chapter 12 The Truth in Lending Act covers credit extended for a
Chapter 12—The Loan and the Consumer MULTIPLE CHOICE 1. The Truth in Lending Act covers credit extended for a a. business or commercial transaction. b. large apartment building. c. mobile home which is used as a residence. d. loan secured […]
Chapter 13 A primary mortgage lender is one whoa. lends to FNMA
Chapter 13—Sources of Financing MULTIPLE CHOICE 1. A primary mortgage lender is one who a. lends to FNMA, FHLMC and GNMA. b. pools, insures, guarantees and sells first mortgage loans. c. lends to borrowers, services the loans and perhaps sells […]
Chapter 14 All of the following may be used for setting ARM interest rates
Chapter 14—Types of Financing MULTIPLE CHOICE 1. The interest rate of a loan from a local savings and loan may be increased or decreased during the life of the loan. This is an example of a. a variable interest rate. […]
Chapter 15 A lot measured 50’ on a county road and 80’ deep
Chapter 15—Taxes and Assessments MULTIPLE CHOICE 1. Property taxes are a. levied according to square footage. b. a lien until paid. c. based on income of the owner. d. an encroachment until paid. 2. Plottage is likely to have which […]
Chapter 16 Costs And You b Submission Good Faith Estimate
Chapter 16—Title Closing and Escrow MULTIPLE CHOICE 1. A seller received $81,000 at the close of escrow after paying $1,750 in closing costs and a 6% brokerage fee. What was the sales price of the house? a. $82,750 b. $87,480 […]
Chapter 17 They were still living in the apartment as of December 12
Chapter 17—Real Estate Leases MULTIPLE CHOICE 1. Upon termination of a rental contract, a. ownership reverts to the lessor. b. possession is returned to the lessor. c. possession is returned to the lessee. d. ownership reverts to the lessee. 2. […]
Chapter 18 The most commonly used methods of real estate appraisal area
Chapter 18—Real Estate Appraisal MULTIPLE CHOICE 1. The most commonly used methods of real estate appraisal are a. market approach, income, and cost. b. income, reproduction, and cost. c. residual, cost, and market data. d. comparison, income, and capitalization. 2. […]
Chapter 19 The basic intent for real estate license laws and regulations was
Chapter 19—Licensing Laws and Professional Affiliation MULTIPLE CHOICE 1. The first state to legislate licensing requirements for real estate agents was a. Texas. b. Rhode Island. c. California. d. New York. 2. The basic intent for real estate license laws […]
Chapter 2 Which of the following is real property
Chapter 2—Nature and Description of Real Estate MULTIPLE CHOICE 1. Which of the following are considered to be real estate? a. Trade Fixtures b. Emblements c. Mulberry bush d. Garden hose 2. Which of the following is real property? ANS: […]
Chapter 20 In whose name does a salesperson take a listing
Chapter 20—The Principal-Broker Relationship: Employment MULTIPLE CHOICE 1. In whose name does a salesperson take a listing? a. His broker’s b. His own name c. The seller’s d. The Real Estate Commission 2. A listing agreement authorizes the broker to […]
Chapter 21 When creating an agency relationship, agency authority
Chapter 21—The Principal-Broker Relationship: Agency MULTIPLE CHOICE 1. When creating an agency relationship, agency authority a. expects that to become an agent, one must agree to perform and actually be paid for the performance. b. enables the principal to grant […]
Chapter 22 The first applicant was a black man whom she turned down
Chapter 22—Fair Housing, ADA, Equal Credit, and Community Reinvestment MULTIPLE CHOICE 1. Jones v. Mayer a. affirmed the 1968 Fair Housing Law. b. affirmed the Civil Rights Act of 1866. c. allowed discrimination based on race. d. was the first […]
Chapter 23 The Rules Which Owners Association Operates Are
Chapter 23—Condominiums, Cooperatives, PUDS, and Timeshares MULTIPLE CHOICE 1. If a condominium owner fails to pay his portion of maintenance fees, the response of the owners’ association will be to a. evict him. b. place a lien against his unit. […]
Chapter 24 The New York fire insurance forma. was originally
Chapter 24—Property Insurance MULTIPLE CHOICE 1. The concept of insurance is to a. reimburse the insured for financial losses. b. insure that a loss-causing event will not occur. c. both a and b. d. neither a nor b. 2. The […]
Chapter 25 A licensed agent must be aware of local zoning ordinances
Chapter 25—Land-Use Control MULTIPLE CHOICE 1. A licensed agent must be aware of local zoning ordinances for all of the following reasons EXCEPT a. zoning requirements are material facts. b. licensees must report zoning violations to the proper authorities. c. […]
Chapter 26 Industries which produce goods and services for export are referred
Chapter 26—Real Estate and the Economy MULTIPLE CHOICE 1. Industries which produce goods and services for export are referred to by all of the following terms EXCEPT a. base industries. b. export industries. c. primary industries. d. backbone industries. 2. […]
Chapter 27 You are offered a four-unit residential building in which each unit
Chapter 25/27—Investing in Real Estate MULTIPLE CHOICE 1. You are offered a four-unit residential building in which each unit rents for $500 per month. Given a 5 percent vacancy rate, operating expenses of $700 per month, and mortgage payments of […]
Chapter 3 The power of governments to appropriate private property for
Chapter 3—Rights and Interests in Land MULTIPLE CHOICE 1. Property taxes are characteristic of the a. allodial system of land ownership. b. feudal system of land ownership. c. Napoleonic system of land ownership. d. English common system of land ownership. […]
Chapter 4 A couple purchased a condominium taking title as joint tenants
Chapter 4—Forms of Ownership MULTIPLE CHOICE 1. Property owned in severalty a. is owned concurrently by at least two persons. b. cannot be sold without the consent of several owners. c. is an estate of inheritance. d. may be willed. […]
Chapter 5 A grantor warrants the extent and quality of title by using
Chapter 5—Transferring Title MULTIPLE CHOICE 1. A deed is a. the only way to transfer title to land. b. the most commonly used means of land title conveyance. c. a recorded instrument. d. valid for a predetermined period of time. […]
Chapter 6 The recording of an instrument in the proper county provides
Chapter 6—Recordation, Abstracts, and Title Insurance MULTIPLE CHOICE 1. An instrument effecting the title to a parcel of real estate gives constructive notice to the world when it is recorded with the a. county recorder. b. city clerk. c. real […]
Chapter 7 Ban Executory Contract Contract Which Certain Things
Chapter 7—Contract Law MULTIPLE CHOICE 1. All of the following are real estate contracts EXCEPT a. an exclusive right to sell listing. b. a sales agreement. c. a closing statement. d. a lease. 2. A meeting of the minds creating […]
Chapter 8 An earnest money agreement signed by all parties is
Chapter 8—Real Estate Sales Contracts MULTIPLE CHOICE 1. A real estate purchase agreement contract used by a multiple listing member may be all of the following EXCEPT a. receipt for earnest money. b. contract up to the date of closing. […]
Chapter 9 In the United States, the instrument most commonly used to
Chapter 9—Mortgage and Note MULTIPLE CHOICE 1. A promissory note a. describes the property being hypothecated. b. is the primary evidence of a loan. c. is an agreement not to do a certain thing. d. is not negotiable when secured […]