California Real Estate Practice



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California Real Estate Practice Chapter 1: Real Estate Agency Relationships Agency and Agency Law Agency Relationships Agent s Duties to the Principal Agent s Duties to Third Parties Other Legal Effects of Agency Relationships How an Agency is Created and Terminated Agency Disclosure Historical Background Agency Disclosure Requirements Acting in Accordance with the Disclosures Licensee Acting as a Principal Types of Agency Relationships Seller Agency Buyer Agency Dual Agency Finder or Middleman Chapter 2: Listing Agreements and Property Disclosures Types of Listing Agreements Elements of a Listing Agreement Basic Legal Requirements Provisions of a Typical Listing Agreement Form Modifying a Listing Agreement Mandatory Disclosures Concerning the Property Transfer Disclosure Statement Environmental Hazards Booklet Natural Hazard Disclosure Statement Residential Earthquake Hazards Report Lead-Based Paint Disclosure Smoke Detector and Water Heater Disclosures Supplemental Statutory Disclosure Form Mello-Roos Lien Disclosure Chapter 3: Listing Regulations The Real Estate Law Commissions Ownership of a Listing Antidiscrimination Laws Federal Fair Housing Act California State Antidiscrimination Laws Complying with Fair Housing Laws Americans with Disabilities Act

California Real Estate Practice 2 Antitrust Laws and Listing Practices Price Fixing Group Boycotts Tie-in Arrangements Environmental Issues Environmental Laws Environmental Hazards Real Estate Agent s Responsibilities Chapter 4: Evaluating and Pricing Property The Agent s Role in Pricing Property Value Types of Value Value vs. Price or Cost Competitive Market Analysis Analyzing the Seller s Property Choosing Comparable Properties Making Adjustments to the Comparables Estimating Market Value Completing a CMA The CMA Form The Problem of a Low Appraisal Request for Reconsideration of Value Chapter 5: Sales Techniques and Practices Listing Practices Listing Sources Listing Presentations Servicing the Listing Selling Practices Finding a Buyer Showing Properties Making an Offer Safety Issues Real Estate Assistants Typical Duties of a Real Estate Assistant Chapter 6: Preparing and Negotiating Offers Making an Offer to Purchase Preparing an Offer How Offers are Presented Multiple Offers Backup Offers Revoking an Offer Counteroffers and Negotiations Making a Counteroffer Multiple Counteroffers The Negotiation Process

California Real Estate Practice 3 Accepting an Offer Communicating Acceptance Manner of Acceptance Contract Amendments Contract Cancellation Good Faith Deposits The Size of the Deposit The Form of the Deposit Handling the Deposit Fair Housing Considerations Chapter 7: Deposit Receipts Requirements for a Valid Purchase Agreement Typical Provisions in a Residential Deposit Receipt Identifying the Parties Property Description Purchase Price and Method of Payment Receipt for Good Faith Deposit Closing Date Transfer of Possession Closing Agent Allocation of Costs Lead-Based Paint Disclosures Included Items Buyer s Investigation and Repairs Conveyance and Title Sale of Buyer s Property Agency Disclosure Default Provisions Dispute Resolution Time is of the Essence Addenda Offer and Acceptance Signatures Chapter 8: Contingent Transactions How Contingencies Work Termination or Removal Good Faith Effort Required Basic Elements of a Contingency Clause Types of Contingencies Financing Contingencies Inspection Contingencies Sale of Buyer s Home Contingencies Purchase of Replacement Property Contingencies Other Types of Contingencies Unfulfilled Contingencies Notices to Perform Canceling the Purchase Agreement

California Real Estate Practice 4 Chapter 9: Loan Qualifying Prequalifying Buyers Prequalifying vs. Preapproval How to Prequalify Buyers The Underwriting Process Income Analysis Net Worth Credit History Low-Documentation Loans Choosing a Loan Truth in Lending Act Other Finance Disclosure Laws Locking in the Interest Rate Other Considerations in Choosing a Loan Chapter 10: Financing Programs Basic Loan Features Repayment Period Amortization Loan-to-Value Ratios Secondary Financing Loan Fees Fixed and Adjustable Interest Rates Conventional Loans Conventional Loans and the Secondary Market Characteristics of Conventional Loans Underwriting Conventional Loans Making Conventional Loans More Affordable Government-Sponsored Loan Programs FHA-Insured Loans VA-Guaranteed Loans Cal-Vet Loans Seller Financing How Seller Financing Works Types of Seller Financing Other Ways Sellers Can Help Chapter 11: Closing the Transaction The Closing Process Escrow Steps in Closing a Transaction The Real Estate Agent s Role in the Closing Process Closing Costs Costs and Credits Estimating the Buyer s Net Cost Estimating the Seller s Net Proceeds Laws that Affect Closing Income Tax Regulations Real Estate Settlement Procedures Act

California Real Estate Practice 5 Chapter 12: Property Management Investing in Real Estate Investment Characteristics Advantages of Investing in Real Estate Types of Managed Properties Residential Rental Property Other Types of Property The Property Management Agreement The Management Plan The Preliminary Study The Management Proposal Management Functions Leasing and Tenant Relations Recordkeeping and Manager/Owner Relations Maintenance