Real estate license exams dummies

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	Foolish Assumptions
	Icons Used in This Book
	Beyond This Book
	Where to Go from Here
Part 1 Putting Real Estate License Exams into Perspective
	Chapter 1 Sold! Taking a Glance at Real Estate License Exams
		Checking Out Licensing and Exam Basics
			Figuring out licensing procedures
			Knowing the difference between salesperson and broker licensing and exams
			Looking at the format and other exam details
		Sign Me Up: Registering for the Exam
		Knowing What to Take to the Exam . . . and What to Leave at Home
		Scoring High: Figuring Out How Scores Are Determined
		Take Two: Retaking the Exam
	Chapter 2 Using Successful Study and Test-Taking Techniques
		One Word to Get You Through: PREPARE
			Provide
			Review
			Evaluate
			Practice
			Arrive
			Relax
			Enjoy
		Trying Terrific Test-Taking Strategies
			It’s all in the timing
			Reading everything carefully
			Avoiding too much analyzing
			Guessing
			Second-guessing
			Number crunching: Tackling math questions
Part 2 So You Want to Sell Real Estate: The Job and Basic Laws
	Chapter 3 The Job: It Isn’t Just Driving People Around
		Recognizing Those in the Real Estate Business and How They Got There
			The buck stops here: Brokers
			Movin’ on up: Salespeople
			In between: Associate brokers
			Making it legal: Looking at license law
		Knowing What a Real Estate Broker/Salesperson Does
			Perusing a list of common activities
			Checking out a typical real estate transaction
		Understanding How a Real Estate Broker/Salesperson Gets Paid
		Working Hard: Career Opportunities
			Considering independent brokerages and national franchises
			Checking out corporations (in and out of the real estate world)
			Building business with builders
			Going into government
			Appreciating appraising
			Homing in on home inspections
		Property Management: A Special Kind of Career Opportunity
			Taking care of business: The duties of a property manager
			Saying yes: The property management agreement
		Managing a Real Estate Office: You’re the Boss, Ms. or Mr. Broker
			Keeping an eye out: Supervision
			Teach me! Training
			Setting office policy: Rules are rules
		Working As an Independent Contractor
		Focusing on Job-Related Laws That You Need to Understand
			The price isn’t right: Price fixing
			Bad break: Market allocation
			Feeling shunned: Group boycotts
			What’s your condition? Tie-in arrangements
		Review Questions and Answers
	Chapter 4 Understanding Agency Law
		Becoming Someone’s Real Estate Agent: You’re Hired
			Picking sides: Representation in agency relationships
			Establishing the agency relationship (and doing it in writing)
		Keeping the Faith: The Relationship between an Agent and a Principal
			Who has the money? Accounting
			Better be careful: Care
			Shhhhh! It’s a secret: Confidentiality
			You’d better tell: Disclosure
			A friend to the end: Loyalty
			Yes ma’am: Obedience
		Meeting Obligations: The Relationship Between an Agent and a Customer
			Discovering defects
			Looking at stigmatized properties
			Respecting Megan’s Law
			Finding out about fraud and negligent misrepresentation
		Making Money (No, Not at the Copy Machine)
			Pay up! Deciding who needs to pay an agent
			Ready to go: Knowing when an agent should be paid
		Parting Is Such Sweet Sorrow: Ending an Agency Relationship
		Review Questions and Answers
	Chapter 5 Knowing the Fair Housing Laws for Selling Real Estate
		Practicing Fair Housing: The Basics
			Understanding federal fair housing laws
			Researching state and local laws
			Displaying the fair housing poster
		Don’t Do It: Avoiding Discriminatory Actions
			No way: Refusing to sell or rent
			On one condition . . . or a few: Changing terms for rental, sale, or services
			You need not apply: Discriminatory advertising
			All lies: Telling someone that property isn’t available (when it really is)
			Scaring people into selling: Blockbusting
			Telling people where to live: Steering
			No money for you: Changing loan conditions
			Put away that crayon: Redlining
			You can’t join: Denying membership in real estate organizations
		Feeling Safe: Identifying Who’s Protected
			Knowing the federal protected classes
			Recognizing state and local protected classes
		Bending the Rules: Understanding Exceptions to the Law
		Extra Coverage: Protecting the Disabled from Discrimination
		Staying Strong: Enforcing the Law
		Review Questions and Answers
Part 3 It’s All Mine: Owning and Transferring Real Estate
	Chapter 6 Owning It: Estates and Interests
		What Do You Own? Understanding Ownership Terms
			Looking at land
			Recognizing real estate
			Defining real property
			Checking out personal property
		Estates (Even Without the Castles)
			Pick and choose: The bundle of rights
			Figuring out freehold estates
			Understanding leasehold estates
		Eyeing Different Ownership Rights
			Going for a swim: Water rights
			Don’t forget to look up and down: Other rights
		Review Questions and Answers
	Chapter 7 Understanding Forms of Real Estate Ownership
		Real Estate Ownership: A Solo or Group Activity
			One is the loneliest number: Owning real estate by yourself
			Join the crowd: Owning real estate with other people
			Getting hitched: Owning real estate when you’re married
			Who do you trust? Ownership in trust
			All business: Ownership by a business
		Special Types of Ownership: Cooperatives, Condominiums, and More
			Share and share alike: Cooperative ownership
			More individuality: Condominium ownership
			Mix it up: Planned unit developments
			Check your watch: Time shares
		Review Questions and Answers
	Chapter 8 Knowing the Limitations on Real Estate Ownership
		Carrying a Not-So-Heavy Encumbrance: Private Limitations on Property Use
			Looking at liens
			Easing into easements
			It won’t let you drive, but it’s still a license
			No, you can’t paint your house purple: Deed restrictions
			I thought I owned it: Encroachments and adverse possession
		Land-Use Regulation: A Major Public Limitation
			To the drawing board: Making master plans
			You’re in the zone: Understanding zoning ordinances
			Many from one: Subdivisions
			Building a house out of paper: Regulations for construction
			Getting that house built
		The Government Has Its Say: Other Public Limitations on Property Use
			The city wants to build a library: Eminent domain
			You didn’t know the government was part of your family: Escheat
			Pay or lose: Taxation
		Review Questions and Answers
	Chapter 9 Transferring Ownership: Deeds and Title Closing
		Doing the Deed: Delving into Deed Basics
			Making it right: Requirements for a valid deed
			The deeds of the many: Examining various kinds of deeds
			Painting the right picture: Property descriptions in deeds
		Getting Closure: Title Closing
			Nearing the finish line: Before the closing
			The big day: At the closing
			A little paperwork: After the closing
		Review Questions and Answers
	Chapter 10 Giving Up or Losing Property
		Fine by Me: Giving Up Property Voluntarily
			All for the government: Dedication
			From me to you: Gifts
			A treat from Uncle Sam: Public grants
			The usual way: Sales
		By Force: Losing Property Involuntarily
			It’s really mine: Adverse possession
			You can’t fight nature: Avulsion and erosion
			We need that, please: Eminent domain
			Deep in debt: Foreclosures
			Ignoring the rules: Forfeiture
			Making the split: Partitioning
		Losing Property Very Involuntarily: Passing Title After Passing Away
			Where there’s a will, there are heirs and relatives
			Where there’s no will, there still may be heirs and relatives: Laws of descent
			The court has its say: Probate
		Review Questions and Answers
Part 4 A House Is Made of Lots of Paper: Legal and Physical Issues
	Chapter 11 Contracts 101
		Agreeing to Do Something: The Basics of Making a Contract
			Exploring how a contract is created
			What makes a contract valid?
		So Many Choices: Examining Types of Real Estate Contracts
			Finding out about agency agreements
			Examining sales contracts
			Discovering options
			Looking at land contracts
			Checking out leases
		The End of the Line: Discharging a Contract
		Breaching a Real Estate Contract
			When the buyer refuses to go ahead with the contract
			When the seller refuses to go ahead with the contract
		Review Questions and Answers
	Chapter 12 Leasing Property
		Identifying Who’s Who and What’s What
			Owning property: Leased fee estates
			Renting property: Leasehold estates
		The Usual Suspects: Preparing a Typical Lease
			Looking at laws governing leases
			Examining typical provisions of a lease
		Distinguishing among Various Types of Leases
			Gross lease
			Ground or land lease
			Lease for oil or gas rights
			Net lease
			Percentage lease
			Proprietary lease
			Variable lease
		Breaking a Lease: Types of Eviction
		Getting What You Paid For
			Nonresidential building layouts
			Adding on and taking away
		Review Questions and Answers
	Chapter 13 Dealing with Environmental Government Regulations and Issues
		Deciphering the Federal Government Alphabet Soup
			CERCLA
			EPA
			HMTA
			HUD
			LUST (It’s not what you think)
			OSHA
			SARA
			SDWA
		Assessing the Environmental Effects of Building Developments
			Making a statement: Environmental impact statements
			Having suspicions: Environmental assessments
		This Stuff Can Make You Sick: Examining Environmental Pollutants and Situations
			Asbestos
			Brownfields
			Building-related illness
			Electromagnetic fields
			Lead
			Radon
			Sick building syndrome
			Solid waste (radioactive and otherwise)
			Underground tanks
			A few more quick definitions to keep in mind
		Go with the Flow: Water and Waste Issues
			Water pollution
			Sanitary waste disposal
			Storm water disposal
		Review Questions and Answers
Part 5 You Want How Much? Valuation and Financing of Real Estate
	Chapter 14 Appraising Property
		Figuring Out Appraisal Basics
			Knowing what an appraisal is
			Seeking an appraisal: Why you need one
		Understanding the Importance of Location!
			You can’t move it
			You’re not on Gilligan’s Island
			You can’t make any more of it
		Arriving at Different Types of Value
			Going to market . . . value, that is
			Value in use
			Investment value
			Assessed value
		Creating, Changing, and Affecting Values: Some Economic Factors
			Anticipation
			Balance
			Change
			Competition
			Conformity
			Contribution
			Externalities
			Highest and best use
			Increasing and decreasing returns
			Opportunity cost
			Plottage
			Regression and progression
			Substitution
			Supply and demand
			Surplus productivity
		Finding Value by Analyzing Comparable Sales
			Understanding the basics
			Adjusting the sales price
			It isn’t old, it’s mature: Making age adjustments
			Having time to adjust for time
			Figuring adjustment values
		Finding Value by Analyzing Replacement Cost and Depreciation
			A journey begins with the first step . . . or a formula
			Estimating replacement and reproduction costs
			Estimating depreciation
			Dirt costs money, too: Estimating land value
		Finding Value by Analyzing a Property’s Income
			Grossing out the rent
			Capitalizing the income
		Reconciling a Property’s Value
		Review Questions and Answers
	Chapter 15 Finding the Money: Mortgages
		The Way Things Work: Mortgage Basics
			The nuts and bolts of the mortgage process
			Liens, notes, and a mistake most people make
			I have a theory . . . on mortgage loans
			Common conditions of a mortgage loan
		Examining Sources of (and Insurance for) Funding
			Number one: The primary mortgage market
			Number two: The secondary mortgage market
			See your uncle . . . Sam, that is: Federal loan insurance programs
			A private matter: Private mortgage insurance
		Considerations for Lenders Accepting Mortgages
			Checking out the property value
			Examining the borrower’s ability to pay
		Grasping the Different Types of Mortgages
			Blanket mortgage
			Construction loan
			Home equity loan
			Open mortgage
			Open-end mortgage
			Package mortgage
			Purchase money mortgage
			Reverse mortgage
			Sale leaseback
			Shared equity mortgage
			Temporary loan
			Wraparound mortgage
		Comprehending Mortgage Repayment Plans
			It’s in your interest: Fixed and adjustable rates
			Doing the math: Amortized loan
			On the straight and narrow: Straight loan
			A good mix: Partially amortized loan
			Fast times: Growing equity mortgage
		Endings You Didn’t Anticipate: Foreclosures, Assumptions, and Assignments
			Shut down: Foreclosures
			Who owes whom? Assumption and assignment
		Being Fair: Consumer Protection Laws
			The Community Reinvestment Act
			The Equal Credit Opportunity Act
			The National Affordable Housing Act
			The Truth in Lending Act
		Review Questions and Answers
	Chapter 16 It’s So Taxing: Real Estate Assessment and Taxes
		Who Wants Your Money, and What Do They Want with It? Collecting Taxes
		Recognizing What’s So Special about Assessments
		Go Figure! Calculating Taxes Step by Step
			Oh so valuable: Assessing property for taxes
			The numbers game: Understanding tax rates
			Doing the decimal diddle: Calculating the taxes due
			A nice balance: Using equalization rates
		Home Free (Sort of): Eyeing Property Tax Exemptions
			A free ride: Fully tax-exempt properties
			Just a small piece: Partial tax exemptions
		That’s Not Right: Protesting Assessments
		Pay or Lose: Tax Liens and Sales
		Review Questions and Answers
	Chapter 17 Investing in Real Estate
		Focusing on Property Investment
			So many choices: Examining different investment properties
			In charge: Looking at management issues
			Ask the experts: Knowing when to get help
			Oh no: Some not-so-good news about investing in real estate
		Partnering Up: Real Estate Investment Organization Structures
			Real estate investment syndicates
			Real estate investment trusts
			Real estate mortgage investment conduits
		Spending Spree: Acquiring and Building Investments
			Getting more for less: The joys of leverage
			Pyramiding: Not just for the pharaohs
			Empty promise: Considering vacant land
		Making Money by Investing in Real Estate
			Up and down: Buying low and selling high — capital appreciation
			Plenty of room: Rentals on property
			Letting someone else pay off the mortgage: Equity buildup
		Getting Uncle Sam’s Help: The Government’s Role in Investing
			More than your money’s worth: Capital gains
			Feeling worn-out: Depreciation
			On the way down: Tax deductions and tax credits
			Real estate exchanges
		By the Numbers: Analyzing Investment Properties
		Review Questions and Answers
	Chapter 18 All in the Numbers: Real Estate Mathematics
		Don’t Lose the Faith, but You May Have to Convert
		Land and Buildings: Measuring Area and Volume
			Calculating the area of a square or a rectangle
			Figuring out the area of a triangle
			Calculating the area of a circle
			Figuring out the area of an irregular shape
			Determining the volume of almost anything
		Percentages: Pinpointing What You Really Need to Know
		Commissions: Tracking Your Moolah
			Figuring out how much you and everyone else earns
			Determining how much a house should sell for based on a commission rate
		Making Mortgage Calculations without a Fancy Calculator
			Calculating interest
			Figuring out monthly payments
		Oh, the Pain: Calculating Taxes
			Calculating the assessed value of a property
			Calculating taxes due
		Putting Proration into Perspective
		Appreciating Appreciation and Depreciation
			Getting more or less: Appreciation and depreciation of a property’s value
			Depreciation: The government kind
		Estimating Appraised Value
			The capitalization method
			The gross rent multiplier method
		Review Questions and Answers
Part 6 You’re Ready: Taking Practice Exams
	Chapter 19 Practice Exam One
	Chapter 20 Answers and Explanations to Practice Exam One
	Chapter 21 Practice Exam Two
	Chapter 22 Answers and Explanations to Practice Exam Two
	Chapter 23 Practice Exam Three
	Chapter 24 Answers and Explanations to Practice Exam Three
	Chapter 25 Practice Exam Four
	Chapter 26 Answers and Explanations to Practice Exam Four
Part 7 The Part of Tens
	Chapter 27 Ten Things to Find Out from Your State’s Real Estate Law
		Agency Law
		Fair Housing
		License Law
		Limitations on Land Use
		Money Stuff
		Ownership Rights, Forms, and Theories
		Property Disclosure
		Tenants’ Rights and Rent Control
		Transferring Ownership Involuntarily
		Transferring Ownership Voluntarily
	Chapter 28 Ten Tips to Help You Succeed on the Exam
		Taking the Exam as Soon as You Can
		Knowing the Rules (and Following Them)
		Studying Your State License Law
		Remembering Important Vocabulary
		Focusing on Key Concepts
		Eating Something
		Staying Cool, Calm, and Collected
		Paying Attention (without Overthinking)
		Going with Your Initial Instinct
		Finishing the Job
Appendix A Glossary
Index
EULA