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