 |
|---|
Broker Pre License Course Section 4
| This course is designed to prepare a real estate licensee for the responsibilities involved in performing the duties of a real estate qualifying broker in Alabama, including; legal aspects of brokerage, business administration of a company, knowledge of important documents, training and supervision of agents, and other significant areas of real estate brokerage and management. | ||
 |
The
Broker Pre License Course (2007) has been designed to be taught in 5 Sections
for a total of 60 hours. Each Section link provides specific
information on, OBJECTIVES and a DETAILED OUTLINE of the subject
matter to be taught.
|
|
|
SECTION FOUR – Trust Accounts; Risk Management; Advertising Laws; Valuation of Real PropertyCourse Objectives are to:
|
|
|
I. Trust Accounts, Earnest Money, and Security Deposits (3 hours)A. Define a trust account B. Opening a trust account C. Accounting procedures in the office D. Keeping records and documentation E. Receiving and releasing earnest money and other trust monies F. Receiving and releasing tenant security deposits G. Methods to avoid liabilities – AREC “Advisory Trust Account Guidelines” (Appendix A5) H. License law §34-27-36(a)(8) and Rule 790-X-3-.03 II. Risk Management, Property Representation, and Environmental Issues (3 hours)A. Brokerage and broker’s duties to several parties1. Public 2. Clients 3. Customers 4. Licensees 5. Other real estate companies 6. Alabama Real Estate Commission B. Do not call/fax/email policies C. Inspections (licensee’s role) D. Licensed and unlicensed assistants E. Unwarranted expertise (ex: tax advice) F. Gifts, kickbacks, and rebates G. Licensee owned property H. Lender fraud I. E&O insurance J. Anti-trust K. Environmental issues 1. Hazardous substances 2. Hazardous situations 3. Property representation and the duty to speak 4. Disclosures and buyer beware III. Advertising Laws (2 hours)A. Fair housingB. Antitrust C. Truth in lending D. Licensee owned property E. Internet F. Minimum services G. Puffing/misrepresentation IV. Valuation of Real Property (4 hours)A. The difference between market value and the price of property1. Relationship and motivation of the parties 2. Timing and purpose of the appraisal 3. Accuracy of information B. The effect of the local economy on real estate prices 1. External influences 2. Non-diversifiable risks 3. Monopolies C. The appraisal process and different types of appraisal reports 1. Uniform Standards of Professional Appraisal Practice 2. Uniform Residential Appraisal Report 3. Land and Project Feasibility Studies D. The importance of the Secondary Mortgage Market and the dependence of lenders on estimates of true market value to properly evaluate borrowers and their collateral 1. Liquidity in the marketplace 2. Standardization of mortgage quality 3. Risk/reward for FNMA securities certificate holders E. Factors that influence the value of real property 1. Principles of value 2. Elements of risk and effects on rates of return 3. Principle of substitution F. Appraisal from a licensed appraiser G. Residential 1. CMA 2. CRV H. Commercial 1. Income approach (Capitalization) 2. User property cost approach I. Land 1. Development property 2. Agricultural property 3. Timberland J. New Homes K. Capital Gain Tax 1. Personal residence 2. Investment property 3. 1031 Tax Deferred Exchange | |
| Back to Broker Pre License Course Page | ||
|
Central Alabama Real Estate Academy was issued a Private School License by the State of Alabama Post Secondary Education license #1220-1 on May 3, 2004, and granted official approval as a real estate school by the Alabama Real Estate Commission, school code #76477 on May 11, 2004. The first course of instruction, 60 - Hour Pre-License Course, began the first part of June 2004 with continuing education courses being taught throughout the summer of 2004. |
|
