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Free Real Estate License Exam Class Review for RETI Alumni

July 18 @ 8:30 am - July 19 @ 4:00 pm

Free
"real estate class"

Two days of free exam class review for Real Estate Training Institute Alumni

Instructor Broker Jim Clauson

Free Real Estate License Exam Class Review

Must have graduated from 2017 or sooner.
All others will have fees.

exam class review

Exam Class Review Topics

Property Ownership

Land Use Controls and Regulations

Valuation and Market Analysis

Financing

General Principles of Agency

Property Disclosure

Contracts

Leasing and Property Management

Transfer of Title

The practice of Real Estate

Real Estate Calculations

Real Estate License Courses – Approved by the Mississippi Real Estate Commission to supply instruction in Mississippi Real Estate Courses – Real Estate Training Institute – Biloxi – Hattiesburg – Oxford – Southaven – Online

Online Course

Exam Outline

SALESPERSON/BROKER GENERAL PORTION

I. Property ownership (Salesperson 8%; Broker 10%)

A. Real versus personal property; conveyances

B. Land characteristics and legal descriptions

. Types of legal descriptions; Metes and bounds, Lot and block, a government survey

2. Measuring structures

3. Livable, rentable, and usable area

4. Land Measurement

5. Mineral, air, and water rights

C. Encumbrances and effects on property ownership

1. Liens

2. Easements and licenses

3. Encroachments

4. Other potential encumbrances of title

D. Types of ownership

1. Tenants in common

2. Joint tenancy

3. Common- interest ownership

a) Timeshares

b) Condominiums

c) Co-ops

4. Ownership in severalty/sole ownership

5. Life Estate ownership

6. Property ownership held in trust (BROKER ONLY)

II. Land use controls and regulations (Salesperson 5%; Broker 5%)

A. Government rights in land

1. Property taxes and special assessments

2. Eminent domain, condemnation, escheat B. Government controls

1. Zoning and master plans

2. Building codes

3. Regulation of special land types

a) Flood zones

b) Wetlands

4. Regulation of environmental hazards

a) Types of hazards

b) Abatement and mitigation

c) Restrictions on contaminated property

C. Private controls

1. Deed conditions or restrictions

2. Covenants, conditions, and restrictions (CC&Rs)

3. Homeowners association regulations

III. Valuation and market analysis (Salesperson 7%; Broker 7%)

A. Appraisals

1. Purpose and use of appraisals for valuation

2. General steps in the appraisal process

3. Situations requiring an appraisal by a certified appraiser

B. Estimating Value

1. Effect of economic principles and property characteristics

2. Sales or market comparison approach

3. Cost approach

4. Income analysis approach

C. Competitive/Comparative Market Analysis

1. Selecting comparables

2. Adjusting comparables

IV. Financing (Salesperson 10%; Broker 8%)

A. Basic concepts and terminology

1. Points

2. LTV

3. PMI

4. Interest

5. PITI

6. Financing instruments (mortgage, promissory note, etc.)

B. Types of loans

1. Conventional loans

2. FHA Insured loans

3. VA guaranteed loans

4. USDA/rural loan programs

5. Amortized loans

6. Adjustable-rate mortgage loans

7. Bridge loans

8. Owner financing (installment and land contract/contract for deed)

C. Financing and lending

1. Lending process application through closing

2. Financing and credit laws and rules

a) Truth in lending

b) RESPA

c) Equal Credit Opportunity

d) CFPB/TRID rules on financing and risky loan features

3. Underwriting

a) Debt ratios

b) Credit scoring

c) Credit history

V. General principles of agency (Salesperson 13%; Broker 11%)

A. Agency and non-agency relationships

1. Types of agents and agencies

2. Other brokerage relationships (non-agents)

a) Transactional

b) Facilitators

B. Agent’s duties to clients

1. Fiduciary responsibilities

2. Traditional agency duties (COALD)

3. Powers of attorney and other delegation of authority

C. Creation of agency and non-agency agreements; disclosure of conflict of interest

1. Agency and agency agreements

a) Key elements of different types of listing contracts

b) Key elements of buyer brokerage/tenant representation contracts

2. Disclosure when acting as principal or other conflicts of interest

D. Responsibilities of an agent to customers and third parties, including disclosure, honesty, integrity, accounting for money

E. Termination of agency

1. Expiration

2. Completion/performance

3. Termination by force of law

4. Destruction of property/death of principal

5. Mutual agreement

VI. Property disclosures (Salesperson 6%; Broker 7%)

A. Property condition

1. Property condition that may warrant inspections and surveys

2. Proposed uses or changes in uses that should trigger inquiry about public or private land use controls

B. Environmental issues requiring disclosure

C. Government disclosure requirements (LEAD) D. Material facts and defect disclosure

VII. Contracts (Salesperson 17%; Broker 18%)

A. General knowledge of contract law

1. Requirements for validity

2. Factors affecting the enforceability of contracts

3. Void, voidable, unenforceable contracts

4. Rights and obligations of parties to a contract

5. Executory and executed contracts

6. Notice, delivery and acceptance of contracts

7. Breach of contract and remedies for breach

8. Termination, rescission, and cancellation of contracts

9. Electronic signature and paperless transactions

10. Bilateral vs. unilateral contracts (option agreements)

B. Contract Clauses, including amendments and addenda

C. Offers/purchase agreements

1. General requirements

2. When an offer becomes binding

3. Contingencies

4. Time is of the essence

D. Counteroffers/multiple offers

1. Counteroffers

2. Multiple offers

VIII. Leasing and Property Management (Salesperson 3%; Broker 5%)

A. Basic concepts/duties of property management

B. Lease Agreements

1. Types of leases, e.g., percentage, gross, net, ground

2. Key elements and provisions of lease agreements

C. Landlord and tenant rights and obligations

D. Property manager’s fiduciary responsibilities

E. ADA and Fair Housing compliance in property management

F. Setting rents and lease rates (BROKER ONLY)

IX. Transfer of Title (Salesperson 8%; Broker 7%)

A. Title Insurance

1. What is insured against

2. Title searches, title abstracts, chain of title

3. Marketable vs insurable title

4. Potential title problems and resolution

5. Cloud on the title, suit to quiet title (BROKER ONLY)

B. Deeds 1. Purpose of the deed, when title passes

2. Types of deeds and when used

3. Essential elements of deeds

4. Importance of recording

C. Escrow or closing; tax aspects of transferring title to real property

1. Responsibilities of escrow agent

2. Prorated items

3. Closing statements/TRID disclosures

4. Estimating closing costs

5. Property and income taxes

D. Special processes

1. Foreclosure

2. Short sale

E. Warranties

1. Purpose of home or construction warranty programs

2. Scope of home or construction warranty programs

X. Practice of real estate (Salesperson 13%; Broker 14%)

A. Trust/escrow accounts

1. Purpose and definition of trust accounts, including monies held in trust, accounts

2. Responsibility for trust monies, including commingling/conversion

B. Federal fair housing laws and the ADA

1. Protected classes

2. Prohibited conduct (red-lining, blockbusting, steering)

3. Americans with Disabilities (ADA)

4. Exemptions

C. Advertising and technology

1. Advertising practices a) Truth in advertising

b) Fair housing issues in advertising

2. Use of technology

a) Requirements for confidential information

b) Do-Not-Call List

D. Licensee and responsibilities

1. Employee

2. Independent Contractor

3. Due diligence for real estate transactions

4. Supervisory responsibilities (BROKER ONLY)

a) Licensees b) Unlicensed personnel

E. Antitrust laws

1. Antitrust laws and purpose 2. Antitrust violations in real estate

XI. Real estate calculations (Salesperson 10%; Broker 8%)

A. Basic math concepts

1. Loan-to-value ratios

2. Discount points

3. Equity

4. Down payment/amount to be financed

B. Calculations for transactions

1. Property tax calculations

2. Prorations

3. Commission and commission splits

4. Seller’s proceeds of sale

5. Buyer funds needed at closing

6. Transfer fee/conveyance tax/revenue stamps

7. PITI (Principal, Interest, Taxes and Insurance) payments

C. Calculations for valuation, rate of return (BROKER ONLY)

1. Net operating income

2. Depreciation

3. Capitalization rate

4. Gross Rent and gross income multipliers

SALESPERSON/BROKER STATE PORTION

Powers and Duties of the Real Estate Commission (Salesperson 4 Items, Broker 4 Items)

1. Hearings, including subpoena power

2. Purpose and jurisdiction

3. Violations

4. Penalties MREC can impose

Licensing Requirements and License Maintenance (Salesperson 4 Items, Broker 4 Items)

1. General licensing requirements

2. Continuing and Post-licensing ed req

3. E & O insurance

4. Disqualifying issues

5. Activities Requiring License (incl. timeshares, auctions, prop mgmnt)

6. Exemptions from licensure

7. Inactive license 8. Rules about receiving and Sharing Commissions.

Property Condition Disclosures (Salesperson 4 Items, Broker 6 Items)

1. Disclosure form (delivery, who completes)

2. Stigmatizing factors

3. Licensee responsibility to advise client, ensure completeness

4. Exemptions from Disclosure – no exemption for new construction

5. Disclosure form is not part of contract (see form) but is attached to listing

6. Material changes allow buyer to void contract

Agency Disclosure and Duties to Parties (Salesperson 8 Items, Broker 8 Items)

1. Dual Agency Disclosure

2. Working with a Real Estate Broker

3. Disclosure of licensed status if a principal

4. Timing of disclosure, Rules about parties to whom disclosure must be made

5. Buyer may withdraw from Buyer-Broker agreement w 15 days’ notice 6. General Duties to all Parties

Out-of-State Brokers and Developers (Salesperson 4 Items, Broker 3 Items)

1. Cooperative agreements

2. Reciprocal licenses Trust Accounts (Salesperson 4 Items, Broker 3 Items)

1. Handling of earnest money

2. General acctg practices; no commingling

3. The broker is account holder; Salesperson may not establish prop mgt escrow acct independent of the broker

4. Disbursement issues (interpleader) Broker Responsibilities, Including

Supervision of Sales Associates (Salesperson 6 Items, Broker 5 Items)

1. Supervision of associated licensees

2. Inform MREC of change in associate status/termination

3. Responsibility for acts of associates

4. License display; place of business

5. Broker Price Opinion

6. Associates’ Compensation

Records and Documents (Salesperson 3 Items, Broker 4 Items)

1. Length of time to keep (Routine, if litigation)

2. Records that are included in this requirement

3. Disposition of records after close of a business

4. Electronic records OK

Advertising/Marketing/Internet (Salesperson 3 Items, Broker 3 Items)

1. Social media and the internet are advertising (part of “ALL advertising”)

2. Must advertise in broker’s name

3. The broker must permit/approve advertising

4. Private controls

Mississippi Real Estate Commission Forms

MREC License Law and Administrative Rules

exam class review

 

Venue

Biloxi – Real Estate Training Institute
284 Eisenhower Drive
Biloxi,MS39532United States
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Phone:
2283548585
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