Principles of California Real Estate



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Principles of California Real Estate Chapter 1: The Nature of Real Property What Is Real Property Appurtenance Air Rights Water Rights Solid Mineral Rights Oil and Gas Rights Other Appurtenant Rights Attachments Natural Attachments Man-made Attachments: Fixtures Methods of Legal Description Metes and Bounds Government Survey Recorded Map Other Methods of Land Description Chapter 2: Estates in Land and Methods of Holding Title Estates Freehold Estates Leasehold Estates Methods of Holding Title Ownership in Severalty Concurrent Ownership Forms of Business Ownership Condominiums and Cooperatives Chapter 3: Transfer of Real Property Alienation Voluntary Alienation Patents Deeds Wills Involuntary Alienation Dedication Intestate Succession and Escheat Condemnation Court Decisions Adverse Possession Accession Recording Title Insurance

Principles of California Real Estate 2 Chapter 4: Encumbrances Encumbrances Financial Encumbrances (Liens) Types of Liens Lien Priority The Homestead Law Nonfinancial Encumbrances Easements Profits Licenses Encroachments Nuisances Private Restrictions Chapter 5: Public Restrictions on Land Land Use Controls Comprehensive Planning Zoning Building Codes Subdivision Regulations Environmental Laws Eminent Domain Taxation General Real Estate Taxes Special Assessments Documentary Transfer Tax Chapter 6: Contract Law Legal Classifications of Contracts Elements of a Valid Contract Capacity Mutual Consent Lawful Objective Consideration The Writing Requirement Legal Status of Contracts Discharging a Contract Breach of Contract Tender Chapter 7: Types of Real Estate Contracts Broker/Salesperson Agreements Listing Agreements Earning a Commission Elements of a Listing Agreement

Principles of California Real Estate 3 Deposit Receipts Typical Provisions Amendments Land Contracts Option Agreements Leases Requirements for a Valid Lease Landlord/Tenant Law Transferring Leased Property Termination of a Lease Types of Leases Chapter 8: Real Estate Agency Law Introduction to Agency Creating an Agency Relationship Express Agreement Ratification Estoppel Implication The Legal Effects of Agency Scope of Authority Actual vs. Apparent Authority Vicarious Liability Imputed Knowledge Duties in an Agency Relationship The Agent s Duties to the Principal The Agent s Duties to Third Parties Breach of Duty Terminating an Agency Real Estate Agency Relationships Agency Relationships: A Historical Perspective Types of Agency Relationships Agency Disclosure Requirements The Broker/Salesperson Relationship Chapter 9: Principles of Real Estate Financing The Economics of Real Estate Finance Real Estate Cycles Interest Rates and Federal Policy Real Estate Finance Markets Primary Market Secondary Market Real Estate Finance Documents Promissory Notes Security Instruments Security Instrument Provisions Foreclosure Procedures Types of Mortgage Loans Land Contracts

Principles of California Real Estate 4 Chapter 10: Applying for a Residential Loan Choosing a Lender Types of Mortgage Lenders Loan Costs Truth in Lending Act California Finance Disclosure Requirements The Loan Application Process Basic Loan Features Loan Term Amortization Loan-to-Value Ratios Secondary Financing Fixed and Adjustable Interest Rates Residential Financing Programs Conventional Loans FHA-Insured Loans VA-Guaranteed Loans Cal-Vet Loans Chapter 11: Real Estate Appraisal Introduction to Appraisal Purpose and Function of an Appraisal The Appraiser-Client Relationship Licensing and Certification of Appraisers Value Types of Value Principles of Value The Appraisal Process Gathering Data Methods of Appraisal Sales Comparison Approach to Value Cost Approach to Value Income Approach to Value Site Valuation Reconciliation and Final Estimate of Value Chapter 12: Closing Real Estate Transactions Escrow Closing Costs and Settlement Statements Preparing a Settlement Statement Guide to Settlement Statements Income Tax Aspects of Closing 1099-S Reporting FIRPTA Real Estate Settlement Procedures Act Transactions Covered by RESPA RESPA Requirements Uniform Settlement Statement

Principles of California Real Estate 5 Chapter 13: Income Taxation and Real Estate Basic Taxation Concepts Progressive Tax Income Deductions and Tax Credits Gains and Losses Basis Realization Recognition and Deferral Classifications of Real Property Nonrecognition Transactions Installment Sales Involuntary Conversions Sales of Low-Income Housing Tax-Free Exchanges Exclusion of Gain from the Sale of a Principal Residence Deductions Available to Property Owners Depreciation and Cost Recovery Deductions Uninsured Casualty or Theft Loss Deductions Repair Deductions Property Tax Deductions Mortgage Interest Deductions Deductibility of Points and Other Loan Costs Rental Payment Deductions California Income Tax Chapter 14: Civil Rights and Fair Housing The Civil Rights Act of 1866 The Civil Rights Act of 1964 The Federal Fair Housing Act Exemptions Prohibited Acts Handicap and Familial Status Enforcement Federal Fair Lending Laws Equal Access to Facilities (Americans with Disabilities Act) California Antidiscrimination Legislation Unruh Civil Rights Act Fair Employment and Housing Act Housing Financial Discrimination Act Real Estate Law and Regulations Discriminatory Restrictive Covenants

Principles of California Real Estate 6 Chapter 15: Real Estate Construction, Ownership, and Investment Construction Architectural Styles Building Codes and Regulations The Role of the Architect Plans and Specifications Wood Frame Construction Glossary of Construction Terms To Rent or to Buy? Factors to Consider When Choosing a Home Investing in Real Estate Types of Investments Investment Characteristics Advantages and Disadvantages of Investing in Real Estate Choices When Investing in Real Estate Chapter 16: California Real Estate License Law Administration of the Real Estate Law Real Estate Licenses When a License is Required When a License is Not Required License Qualifications License Application and Term Miscellaneous License Provisions Special Licenses and Activities Business Opportunities Disciplinary Action Disciplinary Procedures Grounds for Disciplinary Action Examples of Unlawful Conduct The Real Estate Fund Trust Funds Definition of Trust Funds Handling Trust Funds Trust Accounts Trust Fund Records Documentation Requirements Advertising Regulations Antitrust Laws and Their Effect on Licensees

Principles of California Real Estate 7 Chapter 17: Real Estate Math Solving Math Problems Decimal Numbers Area Problems Squares and Rectangles Triangles Odd Shapes Volume Problems Percentage Problems Solving Percentage Problems Commission Problems Loan Problems Profit or Loss Problems Capitalization Problems Tax Assessment Problems Seller s Net Problems Proration Problems Property Tax Prorations Insurance Prorations Rent Prorations Mortgage Interest Prorations