National Examination Specifications Salesperson Course Outline Checklist - (PreLicense Course)  Instructor: Jim VanErmen

School:  Central Alabama Real Estate Academy

Textbook:  "Real Estate An Introduction To The Profession by Charles J. Jacobus, 10th ed. 2005"

Course Topic

Textbook Page

Class 

1. Listing Property 

A. Listing

  
1. Legal description of property "Ch. 2, Pg. 18" 2
2. Calculation of lot size "Ch. 2, Pp. 28-29" 2
3. Calculation of physical dimensions of structure "Ch. 18, pg.326"  10
4. Appurtenances (e.g., easements and water rights) "Ch. 2, Pg. 17" 2
5. Utilities (types and availability) Class Lecture 10
6. Determine or obtain type of construction "Ch. 24, Pg. 457" 13
7. Encumbrances (e.g., liens, encroachments, restrictions) "Ch. 3, Pp. 37-43" 2
8. Compliance with building codes Ch. 24, Pg. 457" 13
9. Ownership of record "Ch. 6, Pp. 92-96" 3
10. Homeowners association documents and expenses "Ch. 23, Pp. 437-440" 12
11. Brokerage fee "Ch. 20, Pp. 378-380" 11
12. Property taxes "Ch. 15, Pp. 264-268" 9

B. Assessment of Property Value

  
1. Location "Ch. 18, Pg. 321" 10
2. Anticipated changes (e.g., zoning and use) "Ch. 15, Pp. 267-268" 9
3. Depreciation "Ch. 18, Pp. 327-329, 333" 10
4. Deterioration (e.g., physical) "Ch. 18, Pg. 328" 10
5. Obsolescence (e.g., usefulness, outdated characteristics) "Ch. 18, Pg. 329" 10 " 10
6. Improvements (e.g., additions) "Ch. 15, Pp. 268-270" 9
7. Economic trends Class Lecture 10
8. Market data "Ch. 18, Pg. 316" 10

C. Services to the Seller

  
1. Responsibilities of the licensee and the listing firm "Ch. 20, Pg. 378" 11
2. Explain the concept of property subdivision "Ch. 2, Pg. 26 & 29" 2
3. Inquire about hidden defects known by the owner "Ch. 21, Pp. 408-409" 11
4. Information about required disclosures (e.g., lead based paint) "Ch. 8, Pg. 133 Ch. 21, Pp. 406-409" 4
5. Property included in and excluded from sale (e.g., land, minerals, water, crops, fixtures) "Ch. 2, Pg. 14 & 17" 2
6. Personal property and real property differences "Ch. 2, Pg. 14" 2
7. Net proceed estimation Math Review 5
8. Completion of listing agreement, provision to seller, explanation "Ch. 20, Pp. 378-380" 11
9. Determination that parties holding title have signed listing agreement Class Lecture 14
10. Explain showing of the house and ways to safeguard property Class Lecture 14
11. Describe methods of marketing property Class Lecture 14
12. Presentation of offers to the seller "Ch. 7, Pg. 111" 4
13. Property tax information "Ch. 15, Pp. 264-268" 9
14. Develop and maintain transaction files AL Law Class Lecture
15. Deed restrictions and covenants "Ch. 24, Pg. 458" 13
16. Forms of ownership interests in real estate, issues related to conveyance of real property. "Ch. 4, Pp. 56-63" 3
17. Fair housing laws "Ch. 22, Pp. 417-422" 12
18. Comparative market analysis - sales comparison approach "Ch. 18, Pg. 317" 10
19. Comparative market analysis - income derived from property use "Ch. 18, Pp. 329-333" 10
20. Independent appraisal necessity "Ch. 18, Pp. 334-340" 10
21. Determine when inspections are necessary Class Lecture 14
22. Non-ownership interests in real property (e.g., leasehold interests of tenants) "Ch. 17, Pg. 304" 9
23. Planning and zoning (e.g., variance, zoning changes, and special study zones such as floods and geological hazards) "Ch. 24, Pp. 453-457" 13

2. Selling Property

A. Services to the Buyer

  
1. Relationship and responsibilities of licensees and selling firm to buyer Class Lecture 4
2. Rights of ownership (e.g., bundle of rights) "Ch. 3, Pp. 36-48" 2
3. Types of ownership (e.g., joint tenancy and tenancy in common) "Ch. 4, Pp. 56-63" 3
4. Determination of buyer's price range and eligibility for various types of financing Class Lecture 6
5. Identification of property that meets buyers needs and specification Class Lecture 14
6. Current market conditions Class Lecture 14
7. Review and choose properties to show to prospective buyers Class Lecture 14
8. Characteristics of property "Ch. 18, Pg. 340" 10
9. Material facts concerning property (e.g., taxes, zoning, building codes, and other land use restrictions) Class Lecture 3
10. Physical condition of property (e.g., defects and environmental hazards) Class Lecture 14
11. Psychological impact related to property (e.g., murder or suicide) Class Lecture 14
12. Income tax implications of home ownership "Ch. 15, Pp. 270-273" 9
13. Tax implications for real estate investments "Ch. 25, Pp. 464-471"
14. Required disclosure statements "Ch. 21, Pp. 408-410" 11
15. Sales contract forms and provisions, including contingencies Class Lecture 4
16. Recommendation that buyer seek legal counsel Class Lecture 4
17. Preparation of offers and counteroffers Class Lecture 4
18. Presentation of offers and counteroffers "Ch. 7, Pp. 111-112" 4
19. Planning and zoning (e.g., variance, zoning changes, and special study zones such as floods and geological hazards) Class Lecture 13
20. Availability of home protection plans (e.g., home warranties) Class Lecture 14
21. Need for insurance (e.g., fire, hazard, liability) "Ch. 16, Pg. 287" 9
22. Policy for complying with fair housing laws "Ch. 22, Pg. 422" 12

B. Advising Buyers of Outside Services

  
1. Inspection reports Class Handout 14
2. Survey reports Class Handout 14
3. Appraisal reports "Ch. 22, Pg. 427" 12
4. Environmental reports Class Lecture 14

3. Property Management

A. Leasing and Management

1. Negotiation of property management agreements Class Lecture 9
2. Negotiation of lease agreements used in property management Class Lecture 9
3. Preparation of rental and lease agreements "Ch. 17, Pp. 304-305" 9
4. Explanation of rental and lease agreements "Ch. 17, Pp. 305-308" 9
5. Methods of marketing property Class Lecture 9
6. Rental market evaluation Class Lecture 9
7. Disclosure of material facts to lessee Class Lecture 9
8. Obtaining tenants Class Lecture 9
9. Showing property to prospective tenants Class Lecture 9
10. Occupancy terms Class Lecture 9
11. Applicant screening according to laws and regulations Class Lecture 9
12. Complaints and conflict resolution among tenants Class Lecture 9
13. Prorating of rents and leases "Ch. 16, Pg. 288" 9
14. Operating budgets Class Lecture 9
15. Trust accounts "Ch. 21, Pg. 400" 11
16. Financial statements for owners Class Lecture 14
17. Income, expenses, and rate of return Class Lecture 14
18. Environmental and safety hazards Class Lecture 14
19. Compliance with federal requirements (e.g., ADA, fair housing, lead-based paint disclosures) Class Lecture 12
20. Eviction proceedings "Ch. 17, Pg. 310" 9
21. Maintenance and repair management Class Lecture 9
22. Fees, security deposits, and rent "Ch. 17, Pp. 308-309" 9
23. Insurance coverage to protect tenant and owner Class Lecture14

4. Settlement/Transfer of Ownership

A. Tax Issues

  
1. Tax implications of interest expenses "Ch. 15, Pg. 274" 9
2. Real property taxes "Ch. 15, Pp. 264-269" 9
3. Tax shelters "Ch. 25, Pg. 465" 13
4. Capital improvements "Ch. 15, Pp. 270-271" 9
5. Property taxation (e.g., ad valorem, special assessments) "Ch. 15, Pp. 264-269" 9
6. Tax deferred exchange 1031 Web Page 9

B. Titles

  
1. Need for title search "Ch. 6, Pg. 93" 3
2. Title insurance (e.g., owner and mortgagee) "Ch. 6, Pg. 96" 3
3. Title problems "Ch. 6, Pg. 96" 3
4. Legal procedures (e.g., quiet title, foreclosure, bankruptcy, declaratory judgment) "Ch. 6, Pp.100-101" 3
5. Preparation of title abstracts "Ch. 6, Pp. 95-96" 3
6. Liens and order of priority (e.g., mortgages, trust deeds, construction/mechanics liens, judgments by court) "Ch. 3, Pp. 41-43" 2
7. Importance of recording "Ch. 6, Pg. 89" 3

C. Settlement Procedures

  
1. Purposes and procedures of settlement "Ch. 16, Pg. 280 & 282" 9
2. Obligations of settlement agent "Ch. 16, Pp. 282-284" 9
3. Calculations regarding proration/prepayment "Ch. 16, Pp. 287-290" 9
4. Warranties associated with deeds (e.g., grant, quitclaim) "Ch. 5, Pp. 69-77" 3
5. Settlement statement (HUD-1 form) "Ch. 16, Pg. 296" 9
6. Other settlement documents (e.g., deed, bill of sale, note, deed of trust "Ch. 16, Pp. 281-284" 9
7. Real Estate Settlement Procedures Act "Ch. 16, Pg. 295" 9
8. Transfer tax "Ch. 15, Pg. 275" 9

D. Completion of the Transaction

    
1. Negotiations between buyers and sellers leading to an agreement "Ch. 8, Pg. 134" 4
2. Contract requirements and fulfillment of contingencies leading to closing "Ch. 16, Pp. 280-284" 9
3. Federal statutory requirements (related to closing procedures) "Ch. 16, Pg. 284" 9
4. Rights of home ownership (e.g., homestead, rights of husband and wife) "Ch. 5, Pp. 81-82" 3 " 3
5. Rights of others related to property (e.g., adverse possession, adjoining owners, encroachments) "Ch. 5, Pp. 79-81" 3
6. Nature and types of common interest ownership (e.g., condominium, planned unit development, cooperative, townhouse) "Ch. 23, Pp. 436-448" 12
7. Eminent domain proceedings "Ch. 3, Pp. 34-35" 2
8. Legal proceedings against property (e.g., attachments and notice of pending legal action) "Ch. 9, Pg. 158" 4
9. Determine if securities law applies and provide referrals Class Lecture 10
10. Situations where experts are required (e.g., financial planning and legal advice) Class Lecture 10
11. Closing statements (e.g., calculate amount owed by buyer and net to seller) "Ch. 16, Pg. 282" 9

5. Financing A. Sources of Financing

A. Sources of Financing

  
1. Institutional (e.g., savings and loans, banks, mortgage brokers) "Ch. 13, Pp. 223-241" 6
2. Seller financing (e.g., land contract, purchase money mortgage) "Ch. 13, Pp. 224-229" 6
3. Assumption of financing "Ch. 14, Pp. 253-254" 6
4. Other sources of financing "Ch. 13, Pg. 229" 6

B. Types of Loans

      
1. Security for loans (e.g., trust deeds, land contracts, mortgages) "Ch. 9, Pp. 161-163" 4
2. Repayment methods (e.g., adjustable rate mortgage, fully/partially/nonamortized, renegotiated rate "Ch. 11, Pp. 183-189" 5
3. Forms of financing (such as FHA, VA, FmHA, conventional loan) "Ch. 11, Pp. 182-199" 5
4. Secondary mortgage markets (e.g., Fannie Mae, FHLMC, GNMA) "Ch. 13, Pp. 230-236" 6
5. Other types of mortgage loans (e.g., wraparound, blanket, package) "Ch. 14, Pp. 248-257" 6
6. Down payment assistance programs "Ch. 14, Pp. 250-253" 6

C. Terms and Conditions

  
1. Compliance with provisions of federal regulations (e.g., Truth-in-Lending Act, Equal Credit Opportunity Act) "Ch. 22, Pp. 414-428 TIL: Ch.12, Pg. 204" 12
2. Loan origination costs (appraisal fee, credit reports, points) "Ch. 11, Pg. 189" 5
3. Lender requirements (e.g., property insurance, escrow, deposits, underwriting criteria) "Ch. 16, Pp. 280-298" 9
4. Conditional approval "Ch. 24, Pg. 456" 13
5. Default "Ch. 8, Pg. 131" 4
6. Foreclosure and redemption rights "Ch. 9, Pp. 156-159" 4
7. Nonrecourse provision "Ch. 25, Pg. 467" 13

D. Common Clauses and Terms in Mortgage Instruments

  
1. Clauses and terms in mortgage (e.g., prepayment, interest rates, release, due-on-sale, subordination) "Ch. 9, Pp. 150-156" 4
2. Escalation "Ch. 17, Pg. 308" 9
3. Acceleration "Ch. 9, Pg. 150" 4

6. Professional Responsibilities/Fair Practice/Administrative

1. Complete and accurate records of business transactions Class Lecture 7
2. Keep informed of market trends, availability of financing, rates, and conditions of obtaining credit Class Lecture 10
3. Resolving misunderstandings among parties to real estate transactions Class Lecture 10
4. Commissions from sales of real estate Class Lecture 10
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