Real Estate Finance

This course provides an introduction to residential real estate finance, including information on the underwriting process for FHA, VA, FNMA and FHLMC loans. It includes the following lessons:Introduction to Loans Conventional Loans FHA Loans VA Loans The Basics of Real Estate Financing Real Estate PracticeIn this course the student will learn the basics of the different types of loans available and the advantages and disadvantages of each; loan applications; appraisals; escrow; titles; and credit reports, including qualifying for loan amounts and verifying income and assets.The student will also learn how to calculate loan amounts, estimate monthly payments from property taxes, hazard and mortgage insurance, qualifying ratios and income.

Real Estate Appraisal

In order to own and convey property in a market economy it is necessary for that property to be assigned a specific monetary value. This process, unlike, say, that of assigning value to durable goods which have specific materials, production and marketing costs can be somewhat more involved. With property, the fixed costs building materials and labor costs are always accompanied by more esoteric factors that go to make property more (or less) valuable. Becoming a member of the group that understands and applies these factors is a bit more complex than simply being able to understand a balance sheet.The objective of this course is to familiarize the student with the principles, theories, duties and activities that pertain to real estate appraisal and valuation. Developing an opinion of value is what the real estate appraiser does, but, as weve alluded to, this is far from an effortless process. Understanding the obligation of the real estate industry to promote professionalism and ethical business practices is a beginning to being able to carry out this process such that it is beneficial to licensees, consumers and the market in which they do business. As well as touching upon general standards by which the value of property should be established, this course is broken down into separate lessons which cover: Role of a Real Estate Appraiser Federal Legislation and National Agencies Governing the Industry An Overview of Basic Value Principles Dynamics of the Real Estate Market Three Approaches to Appraisal Appraisal Process Real Estate Appraisal Practice Exercises Completing this course will leave the student with a good understanding of fundamental principles of appraisal, methods of real estate valuation, the various kinds of appraisal licensure and certification, the diverse types of appraisal, and what license or certificate is appropriate for given ones. In addition, the course examines the ways in which appraisal can affect both the larger economy and the availability of housing. The course concludes with real-world practice lessons in which students apply their new knowledge to examples and case studies.

Environmental Hazards

This course covers major environmental hazards. Licensees need to familiarize themselves with environmental issues because they have a responsibility to disclose to buyers any information that might affect their decision to buy. Environmental hazards can dramatically affect a propertys value, so buyers, sellers, lenders and licensees all can be affected by them. This course includes the following lessons:The Indoor Environment The External Environment Legislation Disclosure and Site Assessment Real Estate PracticeStudents will learn throughout this course 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 course 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 course presents real world dilemmas and applications of the information presented. As the student completes this course, he or she should try to paint a big picture of environmental issues, which the course will address with comprehensive content questions, practices and case studies.

Code of Ethics – Core->TN
This course covers the standards of conduct and ethical judgment by addressing the different concepts that contribute to ethical business practices. This course will introduce the student to ethics and morals by defining both terms in order to distinguish differences between the two. The student will also learn the four approaches to ethical decision-making; therefore, after learning the Articles and Standard Practices of the NAR® Code of Ethics, the student will be able to use the model identify any violations of the Code. This course addresses the following topics: – Definition of Ethics and Morals- The Four Approaches to Ethical Decisions- Articles in the Code of Ethics- Using the Model for Ethical Decision-Making- Basics of the Professional Standards Enforcement Process through the Local REALTOR® Board of Association- More Risk Management in Action to Improve Business- Real Estate PracticeThis course will include seven lessons. Lesson One will introduce the concept of ethics and morals. Lesson Two will introduce four approaches to making ethical business decisions and a model for ethical decision making. Lesson Three will present an overview of the NAR® Code of Ethics including the concept of aspirations within the Pre-Amble and the Articles and Standard Practices in the NAR® Code of Ethics. In Lesson Four, participants will use case studies to apply the model for making ethical decisions, which includes using the four approaches to business ethics while utilizing the NAR® Code of Ethics. Lesson Five focuses on ethics complaints, arbitration and mediation. Lesson 6 will conclude the course with a discussion of unethical conduct, antitrust laws and violations of antitrust laws and professional and ethical business practices. Lesson 7 will conclude the course with a presentation of real world situations and applications of the information presented. As the student completes this course, he or she should try to paint a big picture of the code of ethics, which the course will address with comprehensive content questions, practices, and case studies.

Liens, Taxes and Foreclosures

This course discusses liens, taxes and foreclosures. There are many types of liens, as well as several kinds of taxes, that can attach to a parcel of real estate. When borrowers default on a debt, foreclosure is the process by which lienholders collect the unpaid portion of a debt. Because liens represent an interest in real property, it is crucial that real estate licensees develop an in-depth understanding of liens and lien-related issues. Such knowledge also helps licensees to better advise buyers and sellers.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.

1031 Real Estate Exchanges

Section 1031 of the Internal Revenue Code allows for a tax deferment on the exchange of ‘like kind- income-producing property. In essence, an individual may trade an old income-producing or commercial capital asset for a new one of ‘like kind- without paying tax on any of the gains. Instead, the tax is deferred until the chain of exchanges is permanently broken.Commercial real property can qualify for a tax-deferred exchange, providing that the transaction is properly managed through the cooperation of many different professionals. This module outlines the uses of 1031 exchanges, covering what constitutes exchangeable property, the definition of ‘like kind,- the roles of different professionals in 1031 exchanges, the benefits and drawbacks, as well as the different types of exchanges commonly used for real estate transactions. A real estate professional familiar with the Section 1031, its meaning, use and scope, will be able to expand his or her clientele base and will be better equipped to advise investor and commercial clients over the course of their transactions, from the property finding phase through closing.

Closing and Settlement Costs

In many states, a licensee has no official duties throughout the closing process. This leads some real estate licensees to believe that their job ends when the purchase and sales contract is signed, but this is not a prudent stance. Transactions can and do fall apart during the closing stage. Licensees who are familiar with closing procedures and settlement costs can stay involved and use their skills to help ensure that their transactions end well.This module covers a broad range of issues related to closing and settlement to help the student learn ways to help clients through this sometimes complicated process. It includes the following lessons:Real Estate Closings Expenses The HUD-1 Settlement StatementIn 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 try to develop a broad picture of closing and settlement 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.

Property Management

Property management is a special category of real estate work. The term property management generally refers to the group of services which an owner hires a professional property manager or management firm to perform. The quality of management directly affects the profitability of the property being managed. A skilled property manager thus protects the owners capital investment in real estate and makes sure that the property generates profit. In many cases, property managers must be licensed real estate brokers. This course includes the following lessons:Introduction to Property Management Management Agreements A Property Managers Typical DutiesInteracting with Tenants Property Management and Leases Real Estate Practice Lesson We will cover a property managers basic functions, including administrative duties, leasing practices and the managers 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 carry out.The 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 course, he or she should try to develop a broad picture of property management and how it fits 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.

Home Inspection

As the market becomes more competitive, only a business comprised of well-rounded licensees who provide comprehensive advice will continue to stand out. This course instructs real estate licensees on the basics of home inspection. An understanding of this information will allow the student to serve his or her clients and customers better. 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.

Tax – Favorable Real Estate Transactions – Core->TN
The objective of this course is to teach real estate professionals how they can help their clients with the process of buying and selling property on a tax-favorable basis. The first two lessons describe a method of real estate purchase using pre-tax dollars and of growing the estate within a qualified product. We will discuss the current tax advantages of using both qualified and non-qualified tax products such as IRAs, SEP IRAs, 401(k)s, Roth IRAs and charitable gift annuities. The use of these applications provides the real estate professional with an 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.Lessons three and four 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, the licensee and the other parties involved in the transaction. The student will learn which properties qualify under Section 1031 and how to use the various types of 1031 exchanges to enhance the clients position in the investment real estate market. The 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 tax-favorable real estate transactions 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.

Real Property Ownership and Land Use

This course explores the meaning of real property ownership and the differences between real estate and personal property. Although these terms are often used interchangeably in everyday conversation, there are different rights associated with these different commodities. It is important that licensees understand the differences between them and are able to explain the distinctions to their clients and customers. This course addresses the following topics: – Personal and Real Property Ownership- Land Description- Controlling Development- Real Estate Practice LessonThroughout this course, the student will learn how different commodities land, real estate, and real property !! transfer and relate 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 course covers legal descriptions as well as informal descriptions, the development of these concepts and the role they play in the real estate industry. This courses 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 course, 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.

Estimating the Gross Living Areas

This course covers broad issues and describes the procedures for measuring the total square footage of detached single-family homes and multifamily gross building areas. The methods employed will standardize the calculation process and enable the users of this information to obtain accurate and reproducible measurements for total gross living area of residential properties. The student will learn how to treat the finished areas above and below grade, 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 for this information.

Real Estate Math

Provider Approval #0238 / Course Approval #03-00-104-24757

This course covers math principles essential in the practice of real estate. Some of these topics may already be familiar to the student. The course will elaborate on how the subject matter pertains to real estate in everyday use. It is important that licensees understand the mathematical concepts presented here in order to be competent in the practice of real estate. This course includes the following lessons:The Language of Math Measurement of Dimensions Financial Math Valuation Math Real Estate PracticeThe course includes fractions, decimals and percentages: the mathematical language used to express many aspects of real estate practice. Area and volume will be discussed so that the licensee will be able to determine and express the amount of commodity in a particular parcel of realty. While not a real estate finance course, this course will review concepts of interest, amortization and loan rate and discount. These concepts must be understood fully so that the licensee may grasp the essential elements used in the purchase of and financing for real property. Additionally, the principle of prorating will depict the importance of time in the transfer of realty.The conclusion of this course offers real world examples and applications of the information presented. Upon completion of this course the student will comprehend the language and principles of mathematics necessary to successfully function in the practice of real estate.

Using the Internet to Serve Clients

Provider Approval #0238 / Course Approval #04-00-104-24761

The real estate industry, along with many other industries, is being revolutionized by the Internet. As time goes on, increasing numbers of people gain access to the Internet and use it to satisfy their real estate needs. To avoid being left behind, real-estate professionals need to cultivate an online presence. In this module students will learn about the Internet and how it has affected the real estate industry. Students will also learn about the elements of Web sites and how to market themselves and their sites on the Internet. The final lesson teaches students to communicate effectively over email. 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 Internet issues, which the module will address with comprehensive content questions, practices and case studies.

Fair Housing

This course covers broad issues on fair housing laws. Specifically, the student will learn: what fair housing laws exist, what classes of individuals are covered under these laws, how discrimination is defined in real estate, how can one avoid discriminating practices, and what the consequences are for non-compliance with fair housing laws.

If you are located in Texas please note the following information:

Texas Provider Approval #0238 / Course Approval #04-00-104-24750

 

Asset Management

Provider Approval #0238 / Course Approval #03-00-053-18144

Asset Management is the term used for the decision-making process involved in maximizing returns on real property investments. This process includes such decisions as whether or not to renew a lease for a tenant, purchase or lease more assets, improve, sell or rent ones current assets, etc. The asset manager must be aware of market trends and indicators and must be able to accurately predict the cash inflows and outflows of his or her own holdings. This course 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 course 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.

Code of Ethics

This course covers the standards of conduct and ethical judgment by addressing the different concepts that contribute to ethical business practices. This course will introduce the student to ethics and morals by defining both terms in order to distinguish differences between the two. The student will also learn the four approaches to ethical decision-making; therefore, after learning the Articles and Standard Practices of the NAR® Code of Ethics, the student will be able to use the model identify any violations of the Code.

Tax – Favorable Real Estate Transactions

Provider Approval #0238 / Course Approval #04-00-104-24760

The objective of this course is to teach real estate professionals how they can help their clients with the process of buying and selling property on a tax-favorable basis. The first two lessons describe a method of real estate purchase using pre-tax dollars and of growing the estate within a qualified product. We will discuss the current tax advantages of using both qualified and non-qualified tax products such as IRAs, SEP IRAs, 401(k)s, Roth IRAs and charitable gift annuities. The use of these applications provides the real estate professional with an 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.Lessons three and four 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, the licensee and the other parties involved in the transaction. The student will learn which properties qualify under Section 1031 and how to use the various types of 1031 exchanges to enhance the clients position in the investment real estate market. The 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 tax-favorable real estate transactions 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.

Contracts, Purchase & Sales Agreements

Clear, mutually-acceptable agreements are an essential component of the legal transference of ownership. In the practice of real estate, contracts are the instruments used to describe and record the agreements surrounding the conveyance of property. Some type of contract is nearly always involved, whether a salesperson is promising to sell a property within a specified period of time, a prospective buyer is placing an offer on a house or a seller is considering an offer on property. 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 ones 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 you will learn about the types of general contracts as well as the different kinds of real estate contracts. The module provides 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. This module includes the following lessons: – Types of Contracts- Features of a Legally Valid Contract- Contract Fulfillment- Real Estate ContractsThe fifth 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.