This 15 hour MCE package includes everything you need to renew your real estate license in Texas. Click the “add to cart” button to enroll, complete the course and you’re done. We will report your credits to TREC for you.

What’s included?

• TREC Legal Update Course (3 Credit Hours – Mandatory Class)
• TREC Ethics Update Course (3 Credit Hours – Mandatory Class)
• Real Estate Math Course (3 Credit Hours – Elective Class)
• Real Estate Appraisal Course (3 Credit Hours – Elective Class)
• Estimating the Gross Living Area Course (3 Credit Hours – Elective Class)

Course Description

TREC Legal Update (2009 – 2010)

The purpose of this course is to communicate recent updates, changes, and addendum to laws, regulations, legal definitions, and forms as they apply to real estate practice in the state of Texas. (View Details)

TREC Ethics Update (2009 – 2010)

The Texas MCE Ethics Update was written to provide guidance and discussion of the ethical requirements and concerns affecting a real estate agent. We will start of with the five canons of professional ethics and conduct, discuss managing agency relationships and explore the specific requirements for agents in making offers to clients, disclosures of information, and resolving any disputes that may arise in the course of real estate transactions. (View Details)

Real Estate Math

This MCE course covers math principles essential to the practice of real estate. It is important that licensees understand the mathematical concepts presented here in order to be competent in the practice of real estate. The course will elaborate on how the subject matter pertains to real estate in everyday use. (View Details)

Real Estate Appraisal

An appraiser must conduct him or herself professionally, ethically and honestly. TREC has outlined professional and ethically correct behavior and these guidelines are covered in this course. In a nutshell, the entire appraisal process should be carried out impartially and this course will teach you how. (View Details)

Estimating the Gross Living Area

This continuing education course describes the procedures for measuring the total square footage of detached single-family homes and multi-family gross building areas. We will introduce you to industry standards for the calculation process that enable agents to obtain accurate and reproducible measurements for total gross living area of residential properties. (View Details)

Topics Covered

Topics to be Included in Course:

• Legal Concepts of Real Estate
• Land Description
• Real Property Rights and Estates in Land
• Contracts
• Conveyance
• Encumbrance
• Foreclosures
• Recording Procedures
• Evidence of Titles

Please note: This course contains a number of forms and contracts. In order to view these forms, you will need to have Adobe Acrobat Reader. It is recommended that, when you view the forms, you print them as well, so that you may use them as a reference throughout the course.

Learning Objectives

• Describe the relationship between the listing agent and broker
• Describe the relationship between the selling agent and broker
• Identify the elements of a contract and its addenda, when used
• Identify which form(s) are appropriate to define the agreement of the parties
• Describe how to qualify the buyer for conventional, FHA and VA financing
• Estimate the monthly mortgage payment and the estimated closing costs for the buyer
• Present and negotiate single or multiple offers
• Write offers for conventional, FHA, VA and assumption transactions

Course Outline

Lesson 1 – The Role of the Licensee (2 hours)

• The Process of Working Buyers and Sellers
• Brokerage Services and Representation

Lesson 2 – Contract Law and Terminology (7 hours)

• Introduction
• Elements of A Contract
• Contract Terminology
• History Of The Joint Broker-Lawyer Committee
• Rules For The Use Of Contracts
• Deceptive Trade Practices Act
• The Federal Fair Housing Law

Lesson 3 – Promulgated Forms (7 hours)

• One To Four Family Residential Contract (Resale)
• Condominium Contract
• New Home Contracts
• Farm and Ranch Contract
• Unimproved Property Contract
• Other helpful forms

Lesson 4 – Presenting Offers and Licensee’s Responsibilities (3 hours)

• Presenting The Offer
• The Licensee’s Responsibilities
• Breach Of Contracts

Lesson 5 – Calculations (4 hours)

• PITI (Principal, Interest, Taxes, Insurance)
• Escrow Accounts
• Calculations
• Liens, Taxes and Proration

Lesson 6 – Credit Scoring and Exercises (2 hours)

• The Power of Credit Scoring
• Conventional Exercises

Lesson 7 – HUD Settlement and Closing Costs (2 hours)

• HUD-1 Settlement Statement
• Buyers Estimated Closing Costs

Lesson 8 – FHA and VA Contract Information (3 hours)

• Loan Limits
• Down Payment and Minimum Investment
• Mortgage Insurance Premium (MIP)
• FHA Benefits
• Home Inspection Guidelines

Learning Objectives

• Define the role of the agency in real estate practice
• Describe the various types of agencies
• Identify the role of the parties in an agency relationship
• Determine the agent’s responsibilities and liabilities in a real estate
• transaction

• Describe the methods of establishing agency relationships
• Describe the Amendments to the Texas Real Estate License Act by Senate Bill No. 489
• List the different types of disclosures of representation
• List different kinds of listing contracts and buyer broker agreements
• Describe Employment Law and its various nuances
• Describe the Texas Deceptive Trade Practices Act
• List what steps agents can take to protect themselves against liability

Course Outline

Lesson 1 – Fundamentals of Agency (3 hours)

• Fundamentals of Agency Law
• History of Real Estate Agency
• Role of Agency in Real Estate
• The Principal-Agent Relationship

Lesson 2 – Texas Agency Law (5 hours)

• Chapter 1101, Texas Occupations Code – The Real Estate License Act
• Rules of The Texas Real Estate Commission

Lesson 3 – Creation and Termination of the Agency Relationship (4 hours)

• Express Contracts
• Implied Agency
• Gratuitous Agency
• Termination of Agency Relationship

Lesson 4 – Authority and Liability (2 hours)

Lesson 5 – Types of Real Estate Agency Relationships (3 hours)

• Seller’s Agent
• Buyer’s Agent
• Subagency Relationship
• Dual Agency and Intermediaries

Lesson 6 – Disclosures and Other Duties (2 hours)

• Disclosure
• Agent’s Duty to the Principal
• Agent’s Duty to the Third Party (Customer)
• Principal’s Duties
• Customer’s Duties

Lesson 7 – Agency Agreements (2 hours)

• Listing Contracts
• Types of Listing Agreements
• Termination of Listings
• Buyer-Broker Agreements

Lesson 8 – Sales and Commissions (3 hours)

• Suit for Commission
• Procuring Cause of the Sale
• Agent’s Duties to the Customer
• Broker Employment
• Commission Rates
• Selling Your Services

Lesson 9 – Employment Law (2 hours)

• Principal-Agent vs. Master-Servant
• Internal Revenue Service
• Employment Anti-Discrimination
• Workmen’s Compensation Laws
• Personal Assistants

Lesson 10 – The Texas Deceptive Trade Practices Act (2 hours)

• Deceptive Trade Practices Act
• How it affects a Real Estate Licensee
• How to protect yourself
• Some Really Bad Words in Real Estate

Lesson 11 – Real Estate Practice (2 hours)

• Introduction to Real Estate Practice
• Insight into Agency Law
• Field Applications of Agency Law

Throughout this module, the student will learn how to achieve the goals and plans set forth in the business plan. The student will also become familiar with the different factors that influence a business’s success, such as market presence, finances, communication, prospecting and management. Once the student has learned and mastered the lessons presented in this module, he or she should have a firm grasp of the basic components of starting a business.

Learning Objectives

• Identify motivated buying and selling clients
• Describe the attributes of qualified and non-qualified products and how they can be of benefit to the sales process
• Gather and organize all information needed to make an accurate market analysis of a property
• Evaluate the ability of a prospect to buy real estate
• Discuss how the real estate professional can help their clients with the buying and selling of property on a tax favorable basis
• Discuss how real estate professionals can create a long standing and profitable relationship with their clients
• List the penalties for non-compliance with fair housing laws
• Describe the HUD advertising guidelines
• Define acceptable and unacceptable words and phrases to use in advertisements
• Identify important steps for a new sales person
• Discuss the importance of setting goals
• Use verbal and non-verbal effectively
• Discuss the dynamics of the salesperson and client relationship
• List the techniques used to market a property effectively
• Use effective sales strategies
• Identify recent laws that have an impact on environmental problems, including lead disclosure laws
• Identify required conduct of Real Estate Professionals as outlined in the National Association of REALTORS® Code of Ethics

Course Outline

Pricing to Financing: 8 hours

Lesson 1 – Comparative Market Analysis

• Marketing A Property Using A Computer Software
• Economic Indicators
• Housing Market Conditions
• Neighborhood Influences
• Condition Of The Property
• Interpreting The Information

Lesson 2 – House Measuring

• Accurately Measuring Square Footage
• Tools Needed For Measuring Structures
• Measuring The Structure
• Special Measuring Challenges
• Calculating The Square Footage

Lesson 3 – Lender and FHA Requirements

• Introduction To Handbook 4150.2
• Selection Of Appraiser
• FHA Register
• Lender Selection Of The Appraiser

Lesson 4 – Location Analysis

• Location Requirements
• Special Neighborhood Hazards And Nuisances

Lesson 5 – Property Analysis

• Appraisal Requirements
• Analysis Of Site
• Analysis Of Physical Improvements
• Remaining Economic Life Of Building Improvements
• Code Enforcement For Existing Properties

Lesson 6 – Valuation Conditions

• Introduction
• As-Repaired Appraisal
• Valuation Conditions Form
• Soil Contamination

Lesson 7 – Regulatory Environment, Enforcement and Sanctions

• Regulatory Environment
• Enforcement
• Applicable Remedies And Sanctions

Lesson 8 – Manufacture Homes

• Introduction
• Property Standards For Title II Mortgage Insurance
• Property Description
• Appraiser Qualifications For Manufactured Homes Classified As Personal Property
• Manufactured Home Lot Appraisals

Lesson 9 – Planned Unit Developments and Condominiums

• Planned Unit Developments (PUD)
• Condominiums

Lesson 10 – Preparing a Property for Mortgage

• Appendix B: Special Programs
• 203k Consultant to Inspect the Property
• Appraiser’s Role
• B-2 Section 255: Home Equity Conversion Mortgages (Reverse Mortgages)
• B-3 Section 233 (E) Mortgage Insurance Program
• B-4 Title I Property Improvement And Manufactured Home Loan Program
• B-5 Solar Energy
• D-2 Valuation Condition Requirements

Lesson 11 – Appraiser’s Role in Location Considerations

• VC-1 Location Hazards And Nuisances
• VC-2 Soil Contamination
• VC-3 Grading and Drainage
• VC-4 Well, Individual Water Supply and Septic
• VC-5 Wood Destroying Insects
• VC-6 Private Road Access and Maintenance
• VC-7 Structural Conditions
• VC-8 Foundation Basement
• VC-9 Roofing
• VC-10 Mechanical Systems
• VC-11 Other Health and Safety Deficiencies
• VC-13 Condominiums and Planned Urban Developments (PUD)
• D-3 Homebuyer Summary
• Valuation Conditions Protocol

Lesson 12 – Appraiser and the Real Estate Sales Person’s Role in a Deal that Falls Apart

• Problems In A Deal Falling Apart
• HUD’s FHA Loan Programs
• HUD’s Policy

Lesson 13 – Required Forms, URAR and Other Appraiser Issues

• Homebuyer Summary Form
• The Valuation Conditions Form
• The URAR and Other Issues

Skills for Professional Success: 8 hours

Lesson 1 – Introduction to Tax-Favorable Transactions

• Qualified Products
• Non-Qualified Products
• Annuities
• The Market
• Ownership of the Asset Is Key
• Developing a Game Plan

Lesson 2 – Estate Liquidation Strategies Estate Liquidation Strategies

• Charitable Gift Annuity (CGA)
• Requirements of a CGA
• Legislation
• History
• Summary of Benefits and Tax Advantages
• Target Market Profile
• Types of Properties to Consider
• Transaction Overview
• Networking

Lesson 3 – Introduction to 1031 Exchanges

• IRC Section 1031
• History of Tax Deferred Exchanges
• Types of Exchanges
• Examples of Typical Exchanges
• Investor Motives
• Treatment of Deferred Exchanges
• Relevant Issues
• Definition of “Like-Kind”
• What Properties Qualify for a Like Kind Exchange?
• What Properties Do Not Qualify for a Like-Kind Exchange?

Lesson 4 – Exchanges

• The Two-Party Trade Format
• The Three-Party Format
• The Role of the Qualified Intermediary
• 1031 Exchange Documentation
• The Steps in an Exchange
• Highlights of a Valid Delayed Exchange
• Title Parking
• The Reverse Exchange

Lesson 5 – Case Studies and Real World Practice

• Real World Practice Case Studies

Lesson 6 – Introduction to Notes and Loans

• Overview of Real Estate Financing
• Promissory Notes
• Secured vs. Unsecured Notes
• Default
• Amortization
• Assumption
• Escrow Accounts
• Self-Acceleration
• Loan Payments
• Types of Loans
• Qualifying the Buyer
• Loan Application Checklist
• Underwriting Guidelines

Lesson 7 – Conventional Loans

• Conventional Financing
• Qualifying the Buyer
• Underwriting Guidelines

Lesson 8 – FHA Loans

• Who Qualifies
• Income Qualifications
• Mortgage Insurance Premium (MIP)
• Underwriting Guidelines
• Down Payment Requirements
• Minimum Investment
• FHA Appraisal
• Direct Endorsement
• Additional Facts
• Programs
• Advantages and Disadvantages
• Practice

Lesson 9 – VA Loans

• VA Eligibility Requirements
• Use of Veterans Entitlement
• Assuming VA Loans
• Closing Costs
• Certificate of Reasonable Value
• Qualifying the Buyer
• Practice

Lesson 10 – The Nuts and Bolts

• Loan Payment Plans
• Additional Loan Payment Plans
• Closing Real Estate Loans
• Closing Costs

Lesson 11 – Case Studies

• Conventional Loans
• Adjustable Rate Mortgages
• Graduated Payment Mortgages
• FHA Loans
• Permanent Buy-Downs
• Closing
• VA Loans
• Entitlement
• Income
• Principal and Interest

Lesson 12 – Introduction to Fair Housing

• The Federal Fair Housing Laws
• Persons Covered by the Fair Housing Act
• What the Fair Housing Laws Protect Against
• Transactions That Are Not Covered Under Federal Law
• Fair Housing Trends

Lesson 13 – Discrimination

• Discrimination Defined
• The Acts That Are Considered Discriminatory under the Fair Housing Act
• The Changing Face of Fair Housing Laws

Lesson 14 – Other Legal Protections against Discrimination

• The Federal Equal Credit Opportunity Act
• The Americans with Disabilities Act

Lesson 15 – Enforcement of Fair Housing Laws

• Fair Housing Complaints
• Complaint Investigation
• Penalties for Non-Compliance with Fair Housing Laws
• Civil Proceedings

Lesson 16 – How to Avoid Discrimination

• General Recommendations
• The HUD/NAR Partnership
• HUD Advertising Guidelines
• Acceptable/Unacceptable Words and Phrases
• Other Advertising Considerations
• Evidencing Non-Discrimination

Lesson 17 – Real World Practice

• Real World Practice
• Case Studies

Lesson 18 – Texas State Laws and Regulations

• The Texas Fair Housing Act
• Filing Fair Housing Complaints in Texas
• Texas Real Estate Commission Code of Ethics

Lesson 19 – Overview of the Inspection Business

• A Brief History Of Home Inspection
• What Is Home Inspection?
• Real Estate Associates And Home Inspectors
• Inspection Skills
• Traits of Successful Home Inspectors

Lesson 20 – Licensing and Credentials

• Licensing And Credentials Requirement
• Building Codes
• Code Authoring Organizations

Lesson 21 – Tools and Conduct

• Essential Tools
• Miscellaneous Equipment
• Education
• Conduct At The Inspection

Lesson 22 – Report Formats

• Field Generated Reports
• Reference Book Style
• Narrative
• Benefits and Client’s Expectations
• Liability
• Real Estate Sales Persons As A Source Of Business

Lesson 23 – Report Writing

• Client Relationship and Role Play
• The Roles Inspectors Play
• Home Inspectors Acting as Code-Enforcement Officials
• Home Inspectors Acting as Engineers
• What is the inspector’s basis for this (engineering) conclusion?
• Does this report actually constitute the practice of engineering?
• How could the inspector have avoided this relationship?
• Accountability

Lesson 24 – The Home Inspector

• Home Inspectors Acting As Environmental Health Expert
• Disclosure in Lead Based Paint and other Lead Hazards
• Waste Disposal Sites
• Home Inspectors Acting As A Structural Pest Inspector
• Simple Disclosure Vs. Meaningful Disclosure
• Grammar
• Disclosure in Real Estate Transaction
• Latent Defects and Disclosure
• Disclosure in Stigmatized Properties
• Disclosure in Specific Situations
• Disclosure of Material Facts

How to Build a Successful Business: 6 hours

Lesson 1 – New Into the Market

• Professional Image
• First Impression May Be The Last
• Project Confident Image
• How Can I Market Myself
• Important Choices For New Sales Person
• Qualify Your Buyers
• Chronology Of Working With Buyers
• How Do I Get Business When I Am Brand New?

Lesson 2 – Planning and Goal Setting

• Introduction
• Why a business plan
• Why Planning & Goal Setting
• Specific “How To” Of Career Goals
• Characteristics Of Good Goal Setting
• The Sales Funnel and Sales Cycle
• Sales And Financial Goals

Lesson 3 – A Workable Business Plan

• Composing a Vision and Mission Statement.
• Projecting Future Income
• Compiling a “Source of Business List” and a Marketplace Survey.
• Setting Up Your Business
• Farming
• Prospecting
• Budgeting
• Team Building
• Planning for the Future

Lesson 4 – Time Management

• The Seven Criteria For A Good Time Management Plan
• The Three Categories Of Time
• The Five Steps To Time Management
• Ten Commandments of Real Estate Time Management
• Time Management Tool – A Personal Assistant

Lesson 5 – Principles of Effective Communication

• Communication Techniques
• Recognizing Perceptual Blocks
• Non-verbal Communication Skills

Lesson 6 – Improving Sales Skills

• What Is Sales Ability
• Kinds Of Sales Personalities
• Telephoning
• 8 strategies to boost your telephone success

Lesson 7 – Negotiating

• Steps to successful negotiations
• Tips for effectiveness
• Negotiation roadblocks

Lesson 8 – Marketing a Listing

• The Listing Interview
• The Successful Salesman
• Summary Of Services For Seller
• How To Create Your Most Effective Ad
• Truth In Lending
• Marketing Tips For Listing And Showings
• Qualifying The Buyer

Risk Management: 8 hours

Lesson 1 – Client-Level Advertising

• Owners Input Into Advertising
• What Does Advertising Do?
• Accurately Represent Property
• Accurately Representing The Owner’s Position
• Required Brokerage Information
• Laws Governing Advertising Of Financing
• Advertising Licensee’s Personal Property
• Non-Discriminatory Language In Ads

Lesson 2 – Introduction to Fair Housing

• Introduction
• What Are The Federal Fair Housing Laws?
• Who Is Covered By The Fair Housing Act?
• What Do The Fair Housing Laws Protect Against?
• What Transactions Are Not Covered Under Federal Law?

Lesson 3 – Discrimination

• What Is Discrimination?
• What Acts Are Considered Discriminatory Under The Fair Housing Act?

Lesson 4 – Other Legal Protections to Prevent Discrimination

• The Federal Equal Credit Opportunity Act
• The Americans with Disabilities Act

Lesson 5 – Enforcement of Fair Housing Laws

• Fair Housing Complaints
• Complaint Investigation
• Penalties For Non-Compliance With Fair Housing Laws
• Civil Proceedings

Lesson 6 – How to Avoid Discrimination

• General recommendations
• The HUD/NAR Partnership
• HUD Advertising Guidelines
• Acceptable/Unacceptable Words and Phrases
• Other Advertising Considerations
• Evidencing Non-Discrimination

Lesson 7 – Case Studies

• Adoption of Final Guidelines
• The Commenters

Lesson 8 – Real World Practice

• Real World Practice

Lesson 9 – Environmental Issues

• Impact On Land Value
• Environmental Assessments For Home Loans
• Environmental Assessments For Commercial Loans
• Environmental Requirements Of The Secondary Market
• A Licensee’s Disclosure Of Environmental Factors

Lesson 10 – Principal Environmental Problems

• Lead poisoning
• Indoor air pollution
• Toxic waste sites
• Wetlands protection
• Endangered species protection
• Underground storage tanks
• Electromagnetic forces

Lesson 11 – Leading Poisoning and Indoor Pollution

• Sources of Lead Poisoning
• Testing For Lead
• Minimize Potential Risk Of Indoor Air Pollution
• Adverse Effects Of Lead Based Paint

Lesson 12 – Hazardous Gas

• Formaldehyde Gas
• Radon Gas
• Asbestos

Lesson 13 – Toxic Waste Sites

• CERLA
• Liability of Responsible Parties
• Extent of Liability
• Hazardous Materials Covered by CERCLA
• Innocent Landowner Defense
• Private Insurance for Superfund Liabilities
• Clean Water Act

Lesson 14 – Wetlands Protection

• Rule Favoring Small Landowners
• Restrictions
• Wetlands Definition

Lesson 15 – Endangered Species Protection

• Kinds of Endangered Species
• Taking is Prohibited
• Penalties and Enforcement
• Taking is Prohibited
• “Safe Harbor Agreement”

Lesson 16 – Electromagnetic Forces

• Electromagnetic Forces (EMF)
• Real Estate Agents and EMF

Lesson 17 – Water Damage

• Acts of God
• What the Neighbor at fault must pay for
• Water Damage: Tips for Homeowners
• Homeowner’s Insurance

Lesson 18 – Mold

• What are biological pollutants?
• Overview – Mold
• Prevention
• What Should Real Estate Agents Do?

Lesson 19 – Environmental Site Assessment

• Definition of Environmental Impact Statement (EIS)
• Environmental Site Assessment (ESA)
• Requirements for an ESA
• Standard for an ESA?
• Varying responses to Site Assessments
• Considerations in hiring inspectors
• Agent involvement

Lesson 20 – Contamination

• Defining the Issues
• A look at the Appraisal Foundation Advisory Opinion
• Impact Valuation Issues
• Evaluation of Environmental Professionals

Lesson 21 – Risk Reduction

• Risk Reduction Through Professional Practice
• Risk Reduction Through Client Level Service
• Risk Reduction Through Development Of A Personal Code Of Ethics Risk
• Reduction Through Professional Practice
• Risk Reduction Through Client Level Service
• Risk Reduction Through Development Of A Personal Code Of Ethics

Lesson 22 – NAR’s Code of Ethics and Standards of Practice Part I

• Preamble
• Duties To Clients And Customers

Lesson 23 – NAR’s Code of Ethics and Standards of Practice Part II

• Duties To The Public

Lesson24 – NAR’s Code of Ethics and Standards of Practice Part III

• Duties To Realtors

Lesson 25 – NAR’s Code of Ethics and Standards of Practice Part IV

• How to Recognize and Avoid Conduct Likely to Cause Disciplinary Action
• How to Recognize Situations that Could Violate Anti-trust Laws
• Business Practices that Foster a High Level of Ethics and Professionalism
• The Benefits of Adhering to the NAR Code of Ethics

• Texas Salesperson Exam Prep
• National Salesperson Exam Prep

PSI – Questions for Texas Salespersons

An Exam Prep for Texas Real Estate License Candidates Based upon the Required PSI Exam

This exam prep is provided to those students who are preparing to take the state-mandated exam to become Real Estate Licensees in Texas. It is not an official or otherwise sanctioned testing mechanism, and is meant merely to provide a determination of your preparedness for taking the Proctored Exam given by PSI (Psychological Services, Inc.) in Texas. This is the national portion of the exam. In order for this testing module to be truly effective you should have completed pre-license educational coursework.

Like the official exam that you will take to gain your license, this test is comprised of questions dealing with issues applicable nationwide, and with Texas -specific issues. To help you retain the information presented here, these subject areas are presented separately and all questions have feedback to explain the correct answer.

You will study the following subjects:

• Property Ownership
• Land Use Controls and Regulations
• Valuation and Market Analysis
• Financing
• Laws of Agency
• Mandated Disclosures
• Contracts
• Transfer of Property
• Practice of Real Estate
• Real Estate Calculations
• Specialty Areas

PSI – Questions for National Salespersons

An Exam Prep for Texas Real Estate License Candidates Based upon the Required PSI Exam

This exam prep is provided to those students who are preparing to take the state-mandated exam to become Real Estate Licensees in their state. It is not an official or otherwise sanctioned testing mechanism, and is meant merely to provide a determination of your preparedness for taking the Proctored Exam given by PSI (Psychological Services, Inc.) in your state. This is the national portion of the exam. In order for this testing module to be truly effective you should have completed pre-license educational coursework.

Like the official exam that you will take to gain your license, this test is comprised of questions dealing with issues applicable nationwide, and with state-specific issues. To help you retain the information presented here, these subject areas are presented separately and all questions have feedback to explain the correct answer.

You will study the following subjects:

• Property Ownership
• Land Use Controls and Regulations
• Valuation and Market Analysis
• Financing
• Laws of Agency
• Mandated Disclosures
• Contracts
• Transfer of Property
• Practice of Real Estate
• Real Estate Calculations
• Specialty Areas

• Texas Broker Exam Prep
• National Broker Exam Prep

PSI – National Questions for Texas Brokers

An Exam Prep for Real Estate Broker Candidates Based upon the Required PSI Exam

This exam prep is provided to those students who are preparing to take the state-mandated exam to become Real Estate Brokers in Texas. It is not an official or otherwise sanctioned testing mechanism, and is meant merely to provide a determination of your preparedness for taking the Proctored Exam given by PROMISSOR in Texas. This is the national portion of the exam. In order for this testing module to be truly effective you should have completed broker educational coursework.

Like the official exam that you will take to gain your license, this test is comprised of questions dealing with issues applicable nationwide, and with Texas -specific issues. To help you retain the information presented here, these subject areas are presented separately and all questions have feedback to explain the correct answer.

You will study the following subjects:

• Property Ownership
• Land Use Controls and Regulations
• Valuation and Market Analysis
• Financing
• Laws of Agency
• Mandated Disclosures
• Contracts
• Transfer of Property
• Practice of Real Estate
• Real Estate Calculations
• Specialty Areas

PSI – National Questions for Brokers

An Exam Prep for Real Estate Broker Candidates Based upon the Required PSI Exam

This exam prep is provided to those students who are preparing to take the state-mandated exam to become Real Estate Brokers in their state. It is not an official or otherwise sanctioned testing mechanism, and is meant merely to provide a determination of your preparedness for taking the Proctored Exam given by PSI (Psychological Services, Inc.) in your state. This is the national portion of the exam. In order for this testing module to be truly effective you should have completed broker educational coursework.

Like the official exam that you will take to gain your license, this test is comprised of questions dealing with issues applicable nationwide, and with state-specific issues. To help you retain the information presented here, these subject areas are presented separately and all questions have feedback to explain the correct answer.

You will study the following subjects:

• Property Ownership
• Land Use Controls and Regulations
• Valuation and Market Analysis
• Financing
• Laws of Agency
• Mandated Disclosures
• Contracts
• Transfer of Property
• Practice of Real Estate
• Real Estate Calculations
• Specialty Areas

Topics Covered

It includes the following lessons:

• Real Estate Closings
• Expenses
• The HUD-1 Settlement Statement

In addition, this module includes a final practice lesson. This concluding lesson presents real-world dilemmas and concrete applications of the information presented in the rest of the course. As the student completes this module, he or she should develop a broad picture of closing and settlement procedures and should understand how they fit into the larger practice of real estate. The last lesson will help with this project by presenting comprehensive content questions, practice problems and case studies.

Approved Course Number:

04-00-100-7469

Before entering into a legally binding agreement, real estate professionals must fully understand the contracts that govern their industry. Failure to understand contracts opens a licensee to various kinds of liability and can seriously damage one’s professional reputation. Therefore, it is vital that real estate professionals learn this material so that they can protect themselves against errors, oversights and misunderstandings.

In this module, the student will learn about the types of general contracts as well as the different kinds of real estate contracts. The module begins by providing the student with an overview of the various types of contracts: bilateral, unilateral, implied, express, executed, executory, valid, void, voidable and unenforceable. Once the student is introduced to the different types of contracts, he or she learns what makes a contract legally enforceable, this being the five components that make a contract valid: mutual assent, legally competent parties, consideration, lawful objective and adherence to a statute of frauds.

Topics Covered

This module includes the following lessons:

• Introduction to Contracts
• Contract Fulfillment
• Real Estate Contracts
• Contracts, Purchase and Sales Agreements in Texas

The fourth and concluding lesson in this module presents real-world dilemmas and concrete applications of the information presented in the rest of the course. As the student completes this module, he or she should try to develop a broad picture of environmental issues and how they fit into the larger practice of real estate; the last lesson will help with this project by presenting comprehensive content questions, practice problems and case studies.

Approved Course Number:

04-00-100-7470

This is an introduction to the financial option of leasing. The course presents the student with a comprehensive study of residential and commercial leases, describes the various types of leases and explains the characteristics of lease agreements. The process of lease origination, execution and termination are covered in depth.

The course also describes leases in the context of landlord and tenant law. It explains the importance and the usage of lease agreements in drafting and executing a rental agreement.

This Leases Course utilizes interactive technology and audio in an appealing way to facilitate the learning of the leasing process.

Learning Objectives

At the conclusion of your study material, you should be able to:

• Understand the importance of the rental market within the national housing market
• Describe what a lease is and who the signatories on a lease contract are
• Explain the characteristics that make a lease legally enforceable
• Identify and explain the terms and elements of a lease agreement
• Differentiate between the different types of tenancy agreements and their respective characteristics
• Be able to calculate lease amounts for gross, net and percentage leases
• Understand the landlord’s rights and responsibilities in a lease agreement
• Understand the tenant’s rights and responsibilities in a lease agreement
• Comprehend the importance and validity of the Federal Fair Housing Act
• Explain the key characteristics of the Uniform Residential Landlord Tenant Act of 1972
• Differentiate between commercial and residential leasing
• Understand the different types of commercial lease agreements
• Understand the applicative nature of the Americans with Disabilities Act within commercial leasing
• Identify the various ways in which a lease agreement may be terminated
• Describe causes of termination
• Describe eviction procedures

Approved Course Number:

04-00-100-7476

Environmental hazards can dramatically affect a property’s value, so buyers, sellers, lenders and licensees all can be affected by them. Students will learn throughout this module to identify internal and external environmental issues. They will learn about health hazards, environmental legislation, liability and responsibility for cleanup and protection. They will also learn about actions they should take and how issues affect licensees and lending. Licensees are not expected to be environmental experts, but in this module students will acquire a competency with environmental issues which will help them to elucidate issues for buyers, sellers and lenders. Knowledge of environmental issues also will help protect them from charges of nondisclosure. The conclusion of this module presents real world dilemmas and applications of the information presented. As the student completes this module, he or she should try to paint a big picture of environmental issues, which the module will address with comprehensive content questions, practices and case studies.

Topics Covered

• INTRODUCTION
• Lesson 1: The Indoor Environment
• Lesson 2: The External Environment
• Lesson 3: Legislation
• Lesson 4: Disclosure and Site Assessment
• Lesson 5: Real-Estate Practice

Learning Objectives

• Identify recent laws that have an impact on environmental issues, including lead-based paint disclosure laws
• Know the procedures used to locate toxic waste sites, the responsibilities for cleanup and steps that may be taken to minimize future liabilities
• Understand the nature of major air pollutants and the remedies that may be applied to minimize their effects
• Be able to list at least three sources of human exposure to PCBs and at least two effects of this PCB exposure on humans
• Understand landowners’ responsibility for the protection of wetlands areas on their property
• Identify the issues landowners and developers face regarding endangered-species protection
• Comprehend the nature of electromagnetic forces and the possible need for testing
• Be able to describe at least two major provisions of the Small Business Liability Relief and Brownfields Revitalization Act
• Know the current status of environmental laws and their effect on property insurance and mortgage lending

Approved Course Number:

04-00-100-7472

Topics Covered

This module addresses the following topics:

• Introduction to Fair Housing
• Discrimination
• Additional Legal Protections to Prevent Discrimination
• Enforcement of Fair Housing Laws
• Avoiding Discriminatory Practices
• Real World Practice
• Texas State Laws and Regulations

Learning Objectives

Upon completion of this course the student will:

• Understand the purpose of the Federal Fair Housing Laws and be able to identify the protected classes covered by the Fair Housing Act.
• Be aware of the seven activities considered illegal as a result of the Fair Housing Laws.
• Know the five exemptions from the Federal Fair Housing Laws for property owners.
• Be able to recognize discrimination in real estate practice.
• Be able to identify acts considered discriminatory under the Fair Housing Act of 1968 as amended in 1972 and 1988.
• Understand the purpose of the Federal Equal Credit Opportunity Act (ECOA) and know the classes it protects.
• Understand the purpose of the Americans with Disabilities Act ADA).
• Know how the ADA affects real estate practice.
• Know how Fair Housing Complaints are handled.
• Know the penalties for non-compliance with Fair Housing Laws.
• Know how to incorporate business practices designed to prevent discrimination by real estate professionals.
• Understand the purpose of the HUD/NAR Partnership and why it is important.
• Know the most important principle in following HUD Advertising Guidelines.
• Be able to identify acceptable and unacceptable words and phrases for use in advertisements.
• Have learned how to apply those practices that will assist a REALTOR® in evidencing that he or she does not discriminate.
• Know what the differences are between federal regulations and Texas State regulations on fair housing.

Approved Course Number:

04-00-100-7474

We will cover a property manager’s basic functions, including administrative duties, leasing practices and the manager’s legal relationships with the owner and the tenants of the property. The course also discusses the way to construct a management agreement so that the manager and the owner clearly understand one another’s roles. Licensees will benefit from understanding the various types of property management, as well as the duties that successful property managers must perform.

Learning Objectives

Upon completion of this course, the student will be able to:

• Describe the purpose and the various kinds of property management.
• Outline the manager’s legal relationship with the owner.
• Identify the day-to-day tasks of the property manager.
• Describe effective ways for a property manager to interact with tenants and potential tenants.
• Recognize the various types of leases and leasing procedures.

Approved Course Number:

04-00-100-7479

• Residential Market Analysis and Highest and Best Use
• Residential Site Valuation and Cost Approach
• Residential Sales Comparison & Income Approaches

Topics Covered

• Legal Concepts of Real Estate
• Land Description
• Real Property Rights and Estates in Land
• Contracts
• Conveyance
• Encumbrance
• Foreclosures
• Recording Procedures
• Evidence of Titles

The breakdown is as follows:

• Part I – Introduction to Real Estate Finance
• Part II – Lending Rules
• Part III – How the Loan Process Works
• Part IV – Other Types of Financing
• Part V – Qualifying by the Numbers
• Part VI – Appendix

You will also learn how to calculate loan amounts, affordable monthly payments, property taxes, hazard and mortgage insurances (Conventional and FHA), qualifying ratios and income.

Learning Objectives

• Identify and discuss the Federal and State laws affecting real estate.
• Describe mortgage loan programs and the mortgage markets
• Calculate loan amounts, affordable monthly payments, property taxes, hazard and mortgage insurances (conventional and FHA), qualifying ratios and income
• Explain theoretical aspects of financing including sources of money for mortgages, various types of mortgages based on payment structure and financial agreement, and the different kinds of loans available in the market
• Utilize the basics applications of escrow, title, private mortgage insurance and credit reports
• Verify the required documentation in the mortgage lending practice

Topics Covered

Lesson 1: Real Estate Math for Finance

• Numbers
• Arithmetical Operations
• Solving Equations
• Sums
• Activity: Think of a Number

Lesson 2: The Effect of the Market and the Government on Real Estate

• Supply and Demand inflation
• The Federal Reserve
• Taxes
• The Department of Housing and Urban Development
• Real Estate Investment Trusts
• Activity: Critical Thinking
• Case Study

Lesson 3: Introduction to Real Estate Finance

• Mortgages Amortization
• Discount Points
• Lien Theory and Title Theory
• Assumptions
• Activity: Crossword Puzzle
• Case Study: Monthly Payment

Lesson 4: Financial Qualifications

• Income
• Credit
• Source of Funds
• Debt
• Net Worth
• Activity: Matching
• Case Study: Borrower Qualification

Lesson 5: Property Valuation

• Eight Steps of the Appraisal Process
• Appraisal Methods
• Cap Rate Analysis
• Pro Forma
• Discounted Cash Flow Analysis
• Taxes and Depreciation
• Activity: Critical Thinking
• Case Study: Net Present Value

Lesson 6: The Financing Process

• Mortgage Brokers Loan Officers
• Application
• Title
• Survey
• Earnest Money Contract
• Deed
• Closing
• Activity: Fill in the Blank
• Case Study: Caveat Emptor

Lesson 7: Closing

• Legal Requirements Required Documents
• Prorations
• Closing Costs
• Activity: Closing
• Case Study: Proration

Lesson 8: Foreclosure

• Default
• Foreclosure
• Properties in Distress
• Activity: Matching
• Case Study: Forbearance

Lesson 9: Conventional Loans

• Conforming Loan Limits
• Private Mortgage Insurance
• Fannie Mae Underwriting Guidelines
• Freddie Mac Underwriting Guidelines
• Activity: Underwriting
• Case Study: Conventional Loan

Lesson 10: Variations

• Adjustable Rate Mortgage
• 80-10-10 Piggie Back Loans
• Graduated Payment Mortgages
• Growth Equity Mortgages
• Balloon Mortgages
• Wraparound Mortgages
• Reverse Annuity Mortgages
• Blanket Mortgages
• Open End Mortgages
• Sale-Leaseback Mortgage
• Permanent Buydowns
• Temporary Buydowns
• Activity: Crossword Puzzle
• Case Study: Adjustable Rate Mortgage

Lesson 11: FHA Loans

• Qualifications
• FHA Programs
• Mortgage Insurance Premium
• FHA Underwriting Requirements
• Activity: The Percentage is Right
• Case Study: FHA Loan vs. Conventional Loan with PMI

Lesson 12: VA Loans

• Underwriting Requirements
• Eligibility
• Entitlement
• Documentation
• Activity: Matching
• Case Study: VA Loan

Lesson 13: 1031 Exchanges

• Like Kind Property Capital Gains
• Simultaneous Exchanges
• Delayed Exchanges
• Qualified Intermediaries
• Three-Party Trades
• Reverse Exchanges
• Installment Sales
• Activity: Exchanging Numbers
• Case Study: Delayed Exchange

Lesson 14: Real World Practice

• Activity
• Critical Thinking Questions
• Case Studies

There are five sections or modules to this course and their learning objectives are listed below:

1. Effective Communication

• Explain the difference between “artistic” and “inartistic” information and the order in which they should appear in a well-structured argument.
• Define the three different approaches (ethos, pathos and logos) used to present persuasively artistic information.
• Define “rhetoric” as the act of identifying and utilizing the means of persuasion available in a given situation.
• Use and present effectively inartistic information, or data.
• Present himself or herself as a respectable professional whom people will trust.
• Produce and manage emotions in a negotiation session.
• Utilize logic, emotion and the appearance of ethical character as persuasive tools.
• Identify the common persuasive tools that other people may attempt to utilize.

2. Emotional Intelligence

• Describe the development of emotional intelligence.
• Define emotional intelligence.
• Explain the relationship between cognitive and emotional intelligence.
• Develop his or her emotional intelligence.
• Utilize emotionally intelligent strategies to encourage successful negotiation sessions.
• Maintain a mutually beneficial mindset during negotiation sessions.
• Handle real estate transactions better by acting in an emotionally intelligent manner.

3. General Negotiations

• Explain why conflict is a common event in human life, and be able to describe common responses to conflict.
• Apply his understanding of conflict reactions to make judgments about which response is appropriate in a particular conflict.
• Describe the central role of concessions and commitments in negotiation.
• Discover and evaluate her best alternative to a negotiated agreement.
• Know how to rank his alternatives in terms of preference, and be able to explain how these preferences determine the scope of negotiation.
• Name and apply some basic strategies for evaluating the offers made during negotiation.
• Recognize the basic considerations she must explore to prepare for negotiation.
• Distinguish between the two common styles of negotiation, and make judgments about which style is appropriate for a particular conflict.
• Outline the central strategies of these negotiation methods, as well as the demands each approach places on negotiators.
• Spell out the purpose of high-pressure negotiating tactics, and give examples of both the tactics themselves and strategies for managing the high-pressure negotiator.
• Apply his ethical standard in negotiations, and be able to explain why unethical behavior is a potential problem in negotiation.
• State the common cognitive errors and psychological tendencies that are the primary pitfalls of the negotiation process, and give details about the problems these issues pose for negotiators.

4. Reading People

• Identify whether a person is lying, frustrated, happy, depressed, etc. from body language exhibited.
• Distinguish between the different types of nonverbal communication.
• Recognize behaviors in both familiar and unfamiliar acquaintances from verbal and nonverbal cues, including vocal traits, habits and physical traits.
• Comprehend the motivations that keep people from seeing objectively.
• Apply techniques to improve communication and aid understanding.
• Discern aspects of personality from environmental context, including office, home, social and geographic environments.
• Recognize hidden communications in conversation.

5. Real Estate Negotiations

• Describe the liability concerns facing all real estate salespeople, and outline how these affect the general negotiation process.
• Explain the basic conflicts common to real estate negotiation.
• Recognize general strategies that can help to minimize conflict in any negotiation.
• Explain why alternatives are important in real estate negotiation.
• Identify the problems created by deciding too much too early in the negotiation process, and the difficulties that result from adopting an overly competitive stance.
• Apply a clear method for determining which issues present problems in a given negotiation, and rank them according to the amount of negotiation it will take to resolve them.
• Describe the basic steps of successful communication.
• Outline the basic steps and purpose of active listening.
• Recognize the role that effective use of language plays in successful real estate negotiation.
• Distinguish the needs, wants and desires of the parties involved in a real estate transaction.
• State the way raw needs, wants and desires are translated into the benefits of a particular property.
• Use benefits to build the framework of a mutually acceptable deal.
• Identify and apply several general strategies for dealing with objections.
• Recognize the signs of concealed objections.
• Distinguish and explain general strategies that help a salesperson manage the offer-counter offer process effectively.
• Determine what kind of preparatory strategies are needed before attempting to close a deal.
• Describe three basic closing methods, and identify what features of a deal would make it appropriate to choose one particular method.
• Recognize when and how it is appropriate to use the purchase agreement as a negotiation tool.

There are seven sections or modules to this course and their learning objectives are listed below:

1. How to Build a Successful Business

• Be able to create a mission statement, business plan and marketing plan
• Be able to recognize the significance of market presence
• Be able to build lasting relationships with partners and clients
• Be able to use various marketing techniques in order to promote the services of a real estate brokerage firm
• Know how to develop effective communication skills
• Know how to hire and train employees
• Understand the characteristics of an effective manager
• Understand the risks and requirements of starting a business
• Understand the importance of referrals, prospecting and farming

2. Asset Management

• Be familiar with the basic concepts of asset management
• Be familiar with the common decisions faced by an asset manager
• Be familiar with the financial ratio methods of valuation, including Price to Earnings Ratios and Cap Rates
• Be familiar with distressed properties and how to handle them
• Be able to apply these concepts in the real world
• Be able to calculate the depreciation of residential and commercial real property held for business or investment
• Know the basics of a Discounted Cash Flow (DCF) analysis
• Know the important factors to consider when refinancing
• Know how to conduct a useful market study
• Know how to create a pro forma projection for a real estate investment alternative
• Know how to use the Net Present Value (NPV) and Internal Rate of Return (IRR) to compare the values of several alternatives
• Know what a Real Estate Investment Trust (REIT) is and the benefits of investing in one
• Understand the risks and rewards associated with real estate investment
• Understand how interest rates affect the real estate market

3. Tax-Favorable Real Estate Transactions

• Identify motivated buying and selling clients.
• Outline the attributes of qualified and non-qualified products and how they can benefit to the sales process.
• Describe the restrictive rulings of the 1031 exchange program.
• Explain how money can be accumulated using pre-tax dollars, accumulating interest on a tax-deferred basis and creating litigation protection.
• State charitable strategies for creating income and tax relief for individuals or families owning highly-appreciated real estate.
• Describe charitable gift annuities and the annuity payments, income benefits and tax advantages associated with them.
• State the parameters that the IRS uses to define a valid “like kind” exchange.
• Explain the advantages and disadvantages of various exchanging alternatives.
• Outline the mechanics of a successful tax-deferred exchange and the role of each party in those exchanges.
• Identify common exchange documentation and describe the role of a qualified intermediary.
• Define “boot” and explain how to deal with it.
• Calculate whether a sale is preferable to an exchange.

4. Code of Ethics

• Identify the definition of ethics used in this course.
• Briefly describe the four business ethics approaches used in this course.
• List major categories of the Articles of the NAR® Code of Ethics.
• Describe the structure of the NAR® Code of Ethics and its supporting materials.
• Identify at least two aspirational concepts in the Preamble to the NAR® Code of Ethics, describe the concept of general business ethics and identify how the Code of Ethics compares and contrasts with the concept of general business ethics.
• Describe the concepts of at least two of the following Articles of the Code of Ethics: Articles 1, 2, 3, 9, 11, 12, 16, and 17.
• Identify possible violations of the NAR® Code of Ethics given interactive learning methods such as case studies, quizzes, role playing and group discussion of fact scenarios.
• Briefly describe the professional standards enforcement process of a local board or association.
• Differentiate between intentional fraud, negligent misrepresentation and negligence.
• List the three violations of antitrust laws: price fixing, group boycotts and market allocations.
• Describe how the existence of and adherence to the NAR® Code of Ethics is good for the real estate profession.

5. Fair Housing

• Understand the purpose of the Federal Fair Housing Laws and be able to identify the protected classes covered by the Fair Housing Act.
• Be aware of the seven activities considered illegal as a result of the Fair Housing Laws.
• Know the five exemptions from the Federal Fair Housing Laws for property owners.
• Be able to recognize discrimination in real estate practice.
• Be able to identify acts considered discriminatory under the Fair Housing Act of 1968 as amended in 1972 and 1988.
• Understand the purpose of the Federal Equal Credit Opportunity Act (ECOA) and know the classes it protects.
• Understand the purpose of the Americans with Disabilities Act ADA).
• Know how the ADA affects real estate practice.
• Know how Fair Housing Complaints are handled.
• Know the penalties for non-compliance with Fair Housing Laws
• Know how to incorporate business practices designed to prevent discrimination by real estate professionals.
• Understand the purpose of the HUD/NAR Partnership and why it is important.
• Know the most important principle in following HUD Advertising Guidelines.
• Be able to identify acceptable and unacceptable words and phrases for use in advertisements.
• Have learned how to apply those practices that will assist a REALTOR® in evidencing that he or she does not discriminate.
• Know what the differences are between federal regulations and Texas State regulations on fair housing.

6. Real Estate Appraisal

• Identify and explain the fundamental concepts and terminology used in real estate valuation and appraisal.
• Identify the basic capacities and skills of a qualified appraiser.
• Recognize the valuation principles used in real estate appraisal.
• Apply value theories to arrive at purchase prices of real estate.
• Characterize a favorable market for real estate sales.
• Differentiate the three approaches to value commonly used in appraisal.
• Follow the eight steps to the appraisal process to arrive at an accurate purchase price.
• Analyze and interpret an appraisal report.
• Differentiate between appraisal licensure and certification.

7. Real Estate Finance

• Understand the basic concepts of real estate financing, and the key terms involved
• Know how to qualify a buyer for the most common types of loans
• Be familiar with the use and function of escrow accounts
• Know what a Mortgage Insurance Premium is
• Know the underwriting guidelines and process
• Be familiar with the three most common types of loans: Conventional, FHA and VA
• Know the advantages and disadvantages of conventional loans
• Know how to use conventional qualifying ratios
• Know the advantages and disadvantages of FHA loans
• Know about the differing FHA qualification ratios
• Know the advantages and disadvantages of VA loans
• Be familiar with VA eligibility and qualification periods
• Be able to calculate the amount of VA entitlement used
• Be able to calculate VA loan amounts and required down payments
• Know the process and qualifications for assuming VA and FHA loans
• Be familiar with other types of loans available
• Know how to underwrite and close loans

The Internet presents an unprecedented opportunity for real estate professionals. Licensees and firms can create Web sites to advertise their services and their listings incorporating pictures of homes, tours, promotions, property information and MLS listings. It is very important that licensees include their Web site name in all advertising efforts; sites should incorporate direct-response marketing and should include effective branding techniques. Because many people begin their online search for a home with search engines, site operators need to optimize their sites. Site operators can create VOWs or integrate IDX on their Web sites to incorporate MLS searches.

Web sites are designed primarily to generate contacts. In many cases Web site visitors first contact a real estate professional by email. Thus, it is crucial that real estate Web site owners master their email skills. This course offers specific advice on how to use email effectively and discusses spam and its implications for real estate professionals.

Learning Objectives

Upon completion of this module, the student will:

• Understand the effects of disintermediation on real-estate professionals
• Be able to explain the issues that apply to Internet Data Exchange and Virtual Office Websites
• Have increased knowledge about the basic components of and terms related to the Internet
• Know how to generate contacts through the development of an effective website
• Evaluate and be able to implement Internet marketing methods
• Understand important guidelines for writing e-mails that will help generate effective dialogues

Approved Course Number:

04-00-100-7484

In accordance with TREC rules Sections 535.71 and 535.72D, the first two lessons of the course seek to provide a method of real estate purchase using pretax dollars and of growing the estate within a qualified product. We will discuss the application of current tax advantages of using both qualified and non-qualified tax products such as IRA’s, SEP IRA, 401k, Roth IRAs and charitable gift annuities. The use of these applications will provide the real estate professional with the opportunity to create a long standing and profitable relationship with his or her clients, as well as attracting a more sophisticated investor wishing to find an alternative to 1031 exchanges.

The final lessons of this module will explain the many important aspects of Internal Revenue Code Section 1031. The course will focus on the benefits of the 1031 exchange for the investor, licensed real estate agent/broker and other parties to the transaction. Upon completion of this course, the student will learn which properties qualify under Section 1031 and how to use the various types of 1031 exchanges to enhance the client’s position in the investment real estate market.

Learning Objectives

Upon completion of this module the student will:

• Be able to identify motivated buying and selling clients.
• Know the attributes of qualified and non-qualified products and how they can be of benefit to the sales process.
• Be able to identify the restrictive rulings of the 1031 exchange program.
• Know how money can be accumulated using pre-tax dollars, accumulate interest on a tax-deferred basis, and create litigation protection.
• Know charitable strategies of creating income and tax relief for individuals or families owning highly-appreciated real estate.
• Know about Charitable Gift Annuities, and the annuity payments, income benefits and tax advantages associated with them.
• Know the parameters that the IRS uses to define a valid like kind exchange.
• Know the pros and cons of various exchanging alternatives.
• Know the mechanics of a successful tax-deferred exchange and the role of each party in those exchanges.
• Be familiar with exchange documentation and the role of a qualified intermediary.
• Understand what constitutes “boot” and how to deal with it.
• Know how to calculate whether a sale is to be preferred over an exchange.

Approved Course Number:

04-00-100-7483

In accordance with TREC rules Sections 535.71 and 535.72D, this module will help the student become familiar with the basic legal concepts and forms used in listing real property and the different types of listing agreements available. In addition, it presents an overview of the listing process through a step-by-step review of the basic listing form and contents.

Although listing agreements vary from broker-to-broker and state-to-state, the underlying core content, form and most of the legal implications associated with them, remain the same. It is these core concepts that this course will address; and, consequently, upon completion of this course, the student will know how to successfully obtain listings (through prospecting and other means), how to maintain listings through quality representation and how to retain loyal clientele and gain referrals for future business.

The conclusion of this module presents real world dilemmas and applications of the information presented. As you complete this module, try to keep in mind how it will impact your role in the field as a real estate licensee, and how you assist consumers.

Learning Objectives

Upon completion of this course, the student will be able to:

• Describe the broker/owner relationship.
• Outline the legal aspects of the broker/owner relationship and other responsibilities created by listing agreements.
• Identify various types of listing agreements and explain the differences they make in a business relationship.
• Explain the listing process and the basic marketing strategies needed to obtain listings.
• Describe the basic concept of Comparative Market Analysis (CMA) and the process involved in preparing one.
• State the basic content and form of a listing agreement.
• Name other forms typically executed along with a listing agreement, including forms required by federal law and others required by most states.
• Describe marketing strategies needed to obtain a buyer while maintaining customer loyalty.

Approved Course Number:

04-00-100-7478

This course covers the theories, rules, duties and activities that guide the real estate appraisal process. An appraiser must also conduct him or herself professionally, ethically and honestly. There are guidelines regarding professionally and ethically correct behavior of appraisers as well which are also covered by this course. The entire appraisal process should be carried out in the best possible way for consumers and licensees as well as the real estate market.

Learning Objectives

Upon completion of this module, the student will be able to:

• Understand the basics of and common terms relating to real estate value estimation and appraisal.
• List the traits that a qualified appraiser must possess.
• Identify the value principles applied in the appraisal of property.
• Employ the value theories in the appraisal process to calculate the price at which property should be traded.
• Identify the characteristics that a real estate market should have to promote trade of property.
• Discuss the three value approached in detail.
• Pursue the eight steps of real estate appraisal to reach a purchase price for a property.
• Understand an appraisal report.
• Know the difference between an appraisal certificate and license.

Approved Course Number:

03-00-100-7480

This module addresses the following topics:

• Personal and Real Property Ownership
• Land Description
• Controlling Development
• Real Estate Practice Lesson

In accordance with TREC rules, Sections 535.71 and 535.72D, this module will describe how different commodities—land, real estate, and real property – transfer and are related and to one another. In addition, the student will learn about land use theory and come to understand how our federal, state, municipal and private authorities govern and plan our communities. This module covers legal descriptions as well as informal descriptions, the development of these concepts and the role they play in the real estate industry.

This module’s final lesson presents real-world dilemmas and provides opportunities to apply the information covered in the rest of the course. As the student completes this module, he or she should try to develop a broad understanding of real property use and to place this understanding within the larger context of real estate practice as a whole. This final lesson aims to help the student achieve this goal using comprehensive content questions, practice examples and case studies.

Learning Objectives

Upon completion of this module, the student will be able to:

• Describe the difference between land, real estate and real property.
• Recognize the difference between real property and personal property.
• State the definition of a fixture.
• Explain the general character of surface, subsurface and air rights, as well as littoral and riparian rights.
• Outline the basic features of the metes and bounds survey method and the rectangular survey method.
• Distinguish the vertical method of land description from other survey methods.
• Name the basic public and private methods employed to control the use and development of land.
• Outline the “highest and best use” theory of land use.

Approved Course Number:

03-00-100-7482

We will cover broad issues and describe the procedures for measuring the total square footage of detached single-family homes and multi-family gross building areas. The methods employed are the industry standard for the calculation process and enable the users of this information to obtain accurate and reproducible measurements for total gross living area of residential properties. You will learn how to treat the finished areas above- and below-grade, the finished living area above the garage, and the unfinished areas within the structure. The standard will allow individuals and organizations to agree and cooperate in communicating these square footage quantities to users of this information.

This standard promotes these goals in the hope that square footage calculation can become an item of agreement rather than a point of contention between groups with different interests and concerns.

This Estimating Gross Living Areas for Residential Properties course utilizes interactive technology and audio in an appealing way to facilitate learning.

Learning Objectives

Upon completion of this course, the student will be able to:

• Define the American National Standard for Single-Family Residential Buildings (ANSI) and associated definitions.
• Understand the scope and purpose of the ANSI.
• Employ the calculation and measurement of square footage.
• Comprehend the Statement of Finished Square Footage.
• Calculate and measure estimated gross living area according to floor plans.
• Identify the different values associated with real property, namely market value.
• Determine the forces affecting market value.
• Apply the appraisal process with regards to the Bundle of Rights and the appraisal process flow chart.
• Define the Uniform Standards of Professional Appraisal Practice (USPAP) and various rules that accompany the USPAP.
• Identify the components of valuation analysis.
• Review a summary of the course and guidelines used for the estimation of the gross living area.

Approved Course Number:

03-00-100-7473

This Real Estate Math course utilizes interactive technology and audio in an appealing way to facilitate learning.

Learning Objectives

Upon completion of this course, the student will be able to:

• Name key terms used in real estate math problems.
• Apply fractions, decimals and percentages.
• Translate fractions into decimal and percentage forms.
• Determine the area and volume of a given object or parcel.
• Manipulate the principles involved in rate calculations.
• Grasp the concept of amortization.
• Comprehend the principles of prorating and how to apply them.
• Understand and solve for appreciation and depreciation.
• Identify and apply calculation formulas to determine value and profit.
• Apply interest rates and loan discount rates.
• Use equations to calculate interest.

Approved Course Number:

03-00-100-7481

This course presents an overview of the home inspection business and explains how it fits into the real estate industry as a whole. In addition, the course covers the regulatory bodies and professional organizations associated with home inspection. At the conclusion of this course, the student will understand the methods used to inspect homes, will know what to look for when examining properties, both inside and out, and will understand the various types of inspection reports and the differences between them.

Learning Objectives

Upon completion of this course, the student will:

• Understand the development of home inspection in the inspection business.
• Appreciate an inspector’s role at closing in residential sales transactions.
• Know the tools needed and conduct expected in the field.
• Distinguish various field report styles and know the benefits and drawbacks to each.
• Understand an inspector’s professional liability.
• Recognize the steps in the examination process.
• Identify common misconceptions about home inspection.
• Value membership to a reputable, non-profit home inspection organization.
• Know the extent of home inspection legislation.
• Appreciate the different ways states regulate the home inspection industry.

Approved Course Number:

03-00-100-7475

The first lesson of this module reviews the requirements of a legally enforceable contract. A deed is a legal contract between two parties for land conveyance; therefore, the requirements for a deed to legally convey the title to real property are also reviewed and explained in detail.

The second lesson of this module covers types of deeds and their different uses. Types of deeds for voluntary land conveyance differ in the extent of covenants and warranties on the title that are offered to the grantee. The most common types of deeds for voluntary land conveyance are general warranty deeds, special warranty deeds, bargain and sale deeds and quitclaim deeds. The lesson then identifies other types of deeds that may be used for special purposes.

All states have distinctive legislation pertaining to title conveyance. As a result, the third lesson of this module outlines relevant state statutes that affect the creation and execution of deeds, including those that differentiate between the unauthorized practice of law and the lawful role of real estate professionals.

The last lesson in this module is a real estate practice lesson in which the student is presented with real world situations that licensees might face in the field. This lesson gives the student an opportunity to employ his or her new knowledge, and to use the material in this module to properly manage ethical predicaments and problematic transactions.

Approved Course Number:

03-00-100-7471

The first lesson presents a general overview of liens. It explains the classification of liens and discusses the types of non-tax liens. Lesson two discusses taxes and tax issues, including ad valorem taxes, real estate tax computation, special assessments, real estate transfer taxes, federal income taxes, capital gains taxes and tax shelters for homeowners and investors. It also discusses the priority of liens. Lesson three addresses the methods of foreclosure, redemption, deficiency judgments, tips for homeowners facing foreclosure and fraudulent behaviors related to foreclosure.

The conclusion of this module presents real world dilemmas and applications of the information presented. As the student completes the module, he or she should try to paint a big picture of the issues surrounding liens, taxes and foreclosures, which the module addresses with comprehensive questions, activities and case studies.

Approved Course Number:

03-00-100-7477

In accordance with TREC rules Sections 535.71 and 535.72D, in this course, you will learn the basics of the different types of loans available, loan applications, appraisals, escrow, titles and credit reports, including qualifying for loan amounts and verifying income and assets.

Upon completion of this module, the student will know how to calculate loan amounts, estimate monthly payments, property taxes, hazard and mortgage insurance (for conventional, FHA and VA) and qualifying ratios and income.

Learning Objectives

Upon Completion of this course, the student will:

• Understand the basic concepts of real estate financing, and the key terms involved
• Know how to qualify a buyer for the most common types of loans
• Be familiar with the use and function of escrow accounts
• Know what a Mortgage Insurance Premium is
• Know the underwriting guidelines and process
• Be familiar with the three most common types of loans: Conventional, FHA and VA
• Know the advantages and disadvantages of conventional loans
• Know how to use conventional qualifying ratios
• Know the advantages and disadvantages of FHA loans
• Know about the differing FHA qualification ratios
• Know the advantages and disadvantages of VA loans
• Be familiar with VA eligibility and qualification periods
• Be able to calculate the amount of VA entitlement used
• Be able to calculate VA loan amounts and required down payments
• Know the process and qualifications for assuming VA and FHA loans
• Be familiar with other types of loans available
• Know how to underwrite and close loans

This NTREIS Listing training course will introduce and familiarize the members of the North Texas Real Estate Information Services, Inc. with an Internet only based Multiple Listing Service and to assist them in their marketing ability to list and sell properties online. The course will focus on the ability to search for properties in a variety of ways, integrate tax information using an online tax database, create maps of properties and the areas around it, download pictures and virtual tours, set up auto-notification, find statistical reports, create a prospect data base and learn how to use the new transaction management online platform.

The course is broken down into four lessons:

1. Introduction to NTREIS
2. Using NTREIS
3. NTREIS Tax Training
4. NTREIS Transactions

Approved Course Number:

02-00-051-8145

This module provides an introduction to the basics of asset management. It introduces the student to the key ideas and concepts of management as well as the techniques a manager will use to evaluate the market and evaluate the financial impact of alternatives in order to make properly informed decisions. The student will learn how to handle distressed properties and how to successfully market a revenue-increasing strategy.

The module ends with case studies and real world practice, which will aid the student in becoming confident and familiar with the various aspects of asset management.

Learning Objectives

Upon completion of this module, the student will:

• Be familiar with the basic concepts of asset management
• Be familiar with the common decisions faced by an asset manager
• Know what a Real Estate Investment Trust (REIT) is and the benefits of investing in one
• Understand the risks and rewards associated with real estate investment
• Know how to conduct a useful market study
• Understand how interest rates affect the real estate market
• Be able to calculate the depreciation of residential and commercial real property held for business or investment
• Be familiar with the financial ratio methods of valuation, including Price to Earnings Ratios and Cap Rates
• Know how to create a pro forma projection for a real estate investment alternative
• Know the basics of a Discounted Cash Flow (DCF) analysis
• Know how to use the Net Present Value (NPV) and Internal Rate of Return (IRR) to compare the values of several alternatives
• Be familiar with distressed properties and how to handle them
• Know the important factors to consider when refinancing
• Be able to apply these concepts in the real world

Assessments

• Quizzes – There is a quiz at the end of each lesson to test comprehension of the subject matter.
• Final Exam – Passing Grade 70%. You can take the final three times.

Approved Course Number:

03-00-059-5968

The relationship between a real estate agent and a client is a fiduciary one, requiring each agent to put clients interests first and adhere to the particular standards and ethics required by law. The varied responsibilities and duties of the real estate agent to different parties may often lead to conflicts of interest. Real estate agents must be aware of these potential conflicts and be aware of how to prevent and deal with them.

The course discusses the specific requirements for agents in making offers to clients, disclosures of information, and resolving any disputes that may arise in the course of real estate transactions. When agents fail to meet the required ethical standards or satisfy other legal requirements they are subject to disciplinary action. This course includes case studies, which help to explore the ethical situations that agents may face, and the potential consequences that may occur when agents fail to behave in accord with the ethical requirements that govern their business transactions. The course concludes with a question and answer exercise about Disclosure of Agency and Intermediary Practice.

Learning Objectives

• Discuss procedures the commission is required to adopt during informal dispositions so as to expedite discipline and avoid formal proceedings.
• Distinguish between when an Information about Brokerage Services form is and is not required.
• State a situation when licensees are not subject to an intermediary’s duty of impartiality.
• Describe what must happen when a broker orally agrees to represent a buyer.
• Discuss minimum services that property managers, builders and sealed bid proceedings must provide, as they relate to technical questioning in compliance with the Real Estate License Act.
• Explain in what instances a party to a real estate transaction may sue a broker for violation of the Deceptive Trade Practices Act (DTPA).
• Explain reasons why the DTPA is particularly hard on brokers who merely rely on the information furnished them by home owners.
• Distinguish between truthful and misleading advertising.
• Explain why mediation should be understood as distinctive from making decisions or granting awards.
• Summarize court case legislation and consequent disciplinary actions.

Assessments

• 7 quizzes with 10 questions each
• 1 final exam with 30 questions

Approved Course Number:

03-03-129-6505

In addition to learning about the recent changes in the legal environment of real estate, students will learn about the blurred distinctions between legal and unethical practices. Since this distinction can be difficult to interpret, understanding the dangers involved in the practices discussed in Section 5 will help students to avoid potential legal pitfalls.

Learning Objectives

• Explain changes to the Real Estate License Act (TRELA) in 2007.
• Name commission adopted limited warranties affecting builders.
• Demonstrate the manner in which licensees should advise clients when mineral rights may be at issue in residential transactions.
• Explain why an option to buy is now an executory contract under law.
• Explain the legal acceptance of electronic records and signatures resulting from the Uniform Electronic Transactions Act (UETA).
• Identify common mistakes made in completing contractual forms.
• Recall recent case law, describing the significance of court rulings.
• Distinguish between mortgage fraud, sub-prime lending, and predatory lending and how their impact affects the real estate market.
• List revised contractual forms and their substantive changes.