Real Estate Practice
,Table of Contents
CHAPTER 1: INTRODUCTION TO AGENCY.............................................................. 5
CHAPTER TOPICS ...................................................................................................... 5
CHAPTER LEARNING OBJECTIVES .................................................................................. 5
INTRODUCTION ........................................................................................................ 6
AGENCY AND AGENCY LAW .......................................................................................... 6
HOW AN AGENCY IS CREATED AND TERMINATED ............................................................. 17
CHAPTER SUMMARY ................................................................................................. 39
CHAPTER 2: REAL ESTATE AGENCY RELATIONSHIPS ........................................... 41
CHAPTER TOPICS .................................................................................................... 41
CHAPTER LEARNING OBJECTIVES ................................................................................ 41
INTRODUCTION ...................................................................................................... 42
AGENCY DISCLOSURE............................................................................................... 42
TYPES OF AGENCY RELATIONSHIPS .............................................................................. 71
CHAPTER SUMMARY ................................................................................................. 77
CHAPTER 3: LISTING AGREEMENTS AND PROPERTY DISCLOSURES...................... 79
CHAPTER TOPICS .................................................................................................... 79
CHAPTER LEARNING OBJECTIVES ................................................................................ 79
INTRODUCTION ...................................................................................................... 80
TYPES OF LISTING AGREEMENTS ................................................................................. 80
ELEMENTS OF A LISTING AGREEMENT ........................................................................... 83
MANDATORY DISCLOSURES CONCERNING THE PROPERTY .................................................. 96
CHAPTER SUMMARY ................................................................................................117
CHAPTER 4: LISTING REGULATIONS, PART 1 .....................................................119
CHAPTER TOPICS ...................................................................................................119
CHAPTER LEARNING OBJECTIVES ...............................................................................119
INTRODUCTION .....................................................................................................120
THE REAL ESTATE LAW ...........................................................................................120
ANTI-DISCRIMINATION LAWS ...................................................................................126
CHAPTER SUMMARY ................................................................................................158
CHAPTER 5: LISTING REGULATIONS, PART 2 .....................................................161
CHAPTER TOPICS ...................................................................................................161
CHAPTER LEARNING OBJECTIVES ...............................................................................161
INTRODUCTION .....................................................................................................162
ANTITRUST LAWS AND LISTING PRACTICES ...................................................................162
ENVIRONMENTAL ISSUES .........................................................................................168
,CHAPTER SUMMARY ................................................................................................186
CHAPTER 6: EVALUATING AND PRICING PROPERTY............................................188
CHAPTER TOPICS ...................................................................................................188
CHAPTER LEARNING OBJECTIVES ...............................................................................188
INTRODUCTION .....................................................................................................189
THE AGENT’S ROLE IN PRICING PROPERTY VALUE ..........................................................189
COMPETITIVE MARKET ANALYSIS ...............................................................................200
THE PROBLEM OF A LOW APPRAISAL ...........................................................................202
CHAPTER SUMMARY ................................................................................................203
CHAPTER 7: SALES TECHNIQUES AND PRACTICES ..............................................206
CHAPTER TOPICS ...................................................................................................206
CHAPTER LEARNING OBJECTIVES ...............................................................................206
INTRODUCTION .....................................................................................................207
LISTING PRACTICES ................................................................................................207
SELLING PRACTICES ...............................................................................................221
SAFETY ISSUES .....................................................................................................230
REAL ESTATE ASSISTANTS .......................................................................................232
CHAPTER SUMMARY ................................................................................................234
CHAPTER 8: PREPARING AND NEGOTIATING OFFERS .........................................236
CHAPTER TOPICS ...................................................................................................236
CHAPTER LEARNING OBJECTIVES ...............................................................................236
INTRODUCTION .....................................................................................................237
MAKING AN OFFER TO PURCHASE ...............................................................................237
COUNTEROFFERS AND NEGOTIATIONS .........................................................................243
ACCEPTING AN OFFER .............................................................................................247
CONTRACT AMENDMENTS.........................................................................................249
GOOD FAITH DEPOSITS ...........................................................................................249
FAIR HOUSING CONSIDERATIONS ...............................................................................250
CHAPTER SUMMARY ................................................................................................251
CHAPTER 9: DEPOSIT RECEIPTS ........................................................................253
CHAPTER TOPICS ...................................................................................................253
CHAPTER LEARNING OBJECTIVES ...............................................................................253
INTRODUCTION .....................................................................................................254
REQUIREMENTS FOR A VALID PURCHASE AGREEMENT ......................................................254
THE CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA) ...........................................262
CHAPTER SUMMARY ................................................................................................290
CHAPTER 10: CONTINGENT TRANSACTIONS ......................................................291
CHAPTER TOPICS ...................................................................................................291
CHAPTER LEARNING OBJECTIVES ...............................................................................291
INTRODUCTION .....................................................................................................292
, HOW CONTINGENCIES WORK ....................................................................................292
TYPES OF CONTINGENCIES .......................................................................................296
UNFULFILLED CONTINGENCIES ..................................................................................300
CHAPTER SUMMARY ................................................................................................303
CHAPTER 11: LOAN QUALIFYING .......................................................................304
CHAPTER TOPICS ...................................................................................................304
CHAPTER LEARNING OBJECTIVES ...............................................................................304
INTRODUCTION .....................................................................................................305
PREQUALIFYING BUYERS ..........................................................................................305
THE UNDERWRITING PROCESS ..................................................................................310
CHOOSING A LOAN .................................................................................................313
CHAPTER SUMMARY ................................................................................................338
CHAPTER 12: REAL ESTATE FINANCING FEATURES.............................................340
CHAPTER TOPICS ...................................................................................................340
CHAPTER LEARNING OBJECTIVES ...............................................................................340
INTRODUCTION .....................................................................................................341
BASIC LOAN FEATURES............................................................................................341
CONVENTIONAL LOANS ............................................................................................361
CHAPTER SUMMARY ................................................................................................369
CHAPTER 13: FINANCING PROGRAMS ................................................................371
CHAPTER TOPICS ...................................................................................................371
CHAPTER LEARNING OBJECTIVES ...............................................................................371
INTRODUCTION .....................................................................................................372
GOVERNMENT-SPONSORED LOAN PROGRAMS ................................................................372
SELLER FINANCING ................................................................................................394
CHAPTER SUMMARY ................................................................................................399
CHAPTER 14: CLOSING THE TRANSACTION ........................................................400
CHAPTER TOPICS ...................................................................................................400
CHAPTER LEARNING OBJECTIVES ...............................................................................400
INTRODUCTION .....................................................................................................401
THE CLOSING PROCESS ...........................................................................................401
CLOSING COSTS ....................................................................................................407
LAWS THAT AFFECT CLOSING ....................................................................................410
CHAPTER SUMMARY ................................................................................................412
CHAPTER 15: PROPERTY MANAGEMENT .............................................................414
CHAPTER TOPICS ...................................................................................................414
CHAPTER LEARNING OBJECTIVES ...............................................................................414
INTRODUCTION .....................................................................................................415
INVESTING IN REAL ESTATE......................................................................................415
TYPES OF MANAGED PROPERTIES ...............................................................................422
,Table of Contents
CHAPTER 1: INTRODUCTION TO AGENCY.............................................................. 5
CHAPTER TOPICS ...................................................................................................... 5
CHAPTER LEARNING OBJECTIVES .................................................................................. 5
INTRODUCTION ........................................................................................................ 6
AGENCY AND AGENCY LAW .......................................................................................... 6
HOW AN AGENCY IS CREATED AND TERMINATED ............................................................. 17
CHAPTER SUMMARY ................................................................................................. 39
CHAPTER 2: REAL ESTATE AGENCY RELATIONSHIPS ........................................... 41
CHAPTER TOPICS .................................................................................................... 41
CHAPTER LEARNING OBJECTIVES ................................................................................ 41
INTRODUCTION ...................................................................................................... 42
AGENCY DISCLOSURE............................................................................................... 42
TYPES OF AGENCY RELATIONSHIPS .............................................................................. 71
CHAPTER SUMMARY ................................................................................................. 77
CHAPTER 3: LISTING AGREEMENTS AND PROPERTY DISCLOSURES...................... 79
CHAPTER TOPICS .................................................................................................... 79
CHAPTER LEARNING OBJECTIVES ................................................................................ 79
INTRODUCTION ...................................................................................................... 80
TYPES OF LISTING AGREEMENTS ................................................................................. 80
ELEMENTS OF A LISTING AGREEMENT ........................................................................... 83
MANDATORY DISCLOSURES CONCERNING THE PROPERTY .................................................. 96
CHAPTER SUMMARY ................................................................................................117
CHAPTER 4: LISTING REGULATIONS, PART 1 .....................................................119
CHAPTER TOPICS ...................................................................................................119
CHAPTER LEARNING OBJECTIVES ...............................................................................119
INTRODUCTION .....................................................................................................120
THE REAL ESTATE LAW ...........................................................................................120
ANTI-DISCRIMINATION LAWS ...................................................................................126
CHAPTER SUMMARY ................................................................................................158
CHAPTER 5: LISTING REGULATIONS, PART 2 .....................................................161
CHAPTER TOPICS ...................................................................................................161
CHAPTER LEARNING OBJECTIVES ...............................................................................161
INTRODUCTION .....................................................................................................162
ANTITRUST LAWS AND LISTING PRACTICES ...................................................................162
ENVIRONMENTAL ISSUES .........................................................................................168
,CHAPTER SUMMARY ................................................................................................186
CHAPTER 6: EVALUATING AND PRICING PROPERTY............................................188
CHAPTER TOPICS ...................................................................................................188
CHAPTER LEARNING OBJECTIVES ...............................................................................188
INTRODUCTION .....................................................................................................189
THE AGENT’S ROLE IN PRICING PROPERTY VALUE ..........................................................189
COMPETITIVE MARKET ANALYSIS ...............................................................................200
THE PROBLEM OF A LOW APPRAISAL ...........................................................................202
CHAPTER SUMMARY ................................................................................................203
CHAPTER 7: SALES TECHNIQUES AND PRACTICES ..............................................206
CHAPTER TOPICS ...................................................................................................206
CHAPTER LEARNING OBJECTIVES ...............................................................................206
INTRODUCTION .....................................................................................................207
LISTING PRACTICES ................................................................................................207
SELLING PRACTICES ...............................................................................................221
SAFETY ISSUES .....................................................................................................230
REAL ESTATE ASSISTANTS .......................................................................................232
CHAPTER SUMMARY ................................................................................................234
CHAPTER 8: PREPARING AND NEGOTIATING OFFERS .........................................236
CHAPTER TOPICS ...................................................................................................236
CHAPTER LEARNING OBJECTIVES ...............................................................................236
INTRODUCTION .....................................................................................................237
MAKING AN OFFER TO PURCHASE ...............................................................................237
COUNTEROFFERS AND NEGOTIATIONS .........................................................................243
ACCEPTING AN OFFER .............................................................................................247
CONTRACT AMENDMENTS.........................................................................................249
GOOD FAITH DEPOSITS ...........................................................................................249
FAIR HOUSING CONSIDERATIONS ...............................................................................250
CHAPTER SUMMARY ................................................................................................251
CHAPTER 9: DEPOSIT RECEIPTS ........................................................................253
CHAPTER TOPICS ...................................................................................................253
CHAPTER LEARNING OBJECTIVES ...............................................................................253
INTRODUCTION .....................................................................................................254
REQUIREMENTS FOR A VALID PURCHASE AGREEMENT ......................................................254
THE CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA) ...........................................262
CHAPTER SUMMARY ................................................................................................290
CHAPTER 10: CONTINGENT TRANSACTIONS ......................................................291
CHAPTER TOPICS ...................................................................................................291
CHAPTER LEARNING OBJECTIVES ...............................................................................291
INTRODUCTION .....................................................................................................292
, HOW CONTINGENCIES WORK ....................................................................................292
TYPES OF CONTINGENCIES .......................................................................................296
UNFULFILLED CONTINGENCIES ..................................................................................300
CHAPTER SUMMARY ................................................................................................303
CHAPTER 11: LOAN QUALIFYING .......................................................................304
CHAPTER TOPICS ...................................................................................................304
CHAPTER LEARNING OBJECTIVES ...............................................................................304
INTRODUCTION .....................................................................................................305
PREQUALIFYING BUYERS ..........................................................................................305
THE UNDERWRITING PROCESS ..................................................................................310
CHOOSING A LOAN .................................................................................................313
CHAPTER SUMMARY ................................................................................................338
CHAPTER 12: REAL ESTATE FINANCING FEATURES.............................................340
CHAPTER TOPICS ...................................................................................................340
CHAPTER LEARNING OBJECTIVES ...............................................................................340
INTRODUCTION .....................................................................................................341
BASIC LOAN FEATURES............................................................................................341
CONVENTIONAL LOANS ............................................................................................361
CHAPTER SUMMARY ................................................................................................369
CHAPTER 13: FINANCING PROGRAMS ................................................................371
CHAPTER TOPICS ...................................................................................................371
CHAPTER LEARNING OBJECTIVES ...............................................................................371
INTRODUCTION .....................................................................................................372
GOVERNMENT-SPONSORED LOAN PROGRAMS ................................................................372
SELLER FINANCING ................................................................................................394
CHAPTER SUMMARY ................................................................................................399
CHAPTER 14: CLOSING THE TRANSACTION ........................................................400
CHAPTER TOPICS ...................................................................................................400
CHAPTER LEARNING OBJECTIVES ...............................................................................400
INTRODUCTION .....................................................................................................401
THE CLOSING PROCESS ...........................................................................................401
CLOSING COSTS ....................................................................................................407
LAWS THAT AFFECT CLOSING ....................................................................................410
CHAPTER SUMMARY ................................................................................................412
CHAPTER 15: PROPERTY MANAGEMENT .............................................................414
CHAPTER TOPICS ...................................................................................................414
CHAPTER LEARNING OBJECTIVES ...............................................................................414
INTRODUCTION .....................................................................................................415
INVESTING IN REAL ESTATE......................................................................................415
TYPES OF MANAGED PROPERTIES ...............................................................................422
