Course Outline

Real Estate Topics Include:

Introduction to the Real Estate Business:

  • List and describe the various career opportunities available in the real estate industry.
  • State the purpose and responsibilities of the Real Estate Board (REB) and the common Interest Community (CIC) Board.
  • Discuss the role of primary professional real estate organizations, including the services and designations they offer the real estate practitioner.
  • List requirements and exemptions for licensing in Virginia.
  • List and describe the different classifications and characteristics of real property.
  • Explain the factors which influence and affect supply and demand in the real estate market.

Real Property and the Law:

  • Discuss the concepts of land and ownership rights in real property.
  • Distinguish between real and personal property and the differences in transferring ownership and title.

Fair Housing:

  • Explain the significance of the Civil Rights Act of 1868 and the constitutional legal framework as they relate to and affect equal opportunity in housing.
  • Describe and explain the various federal laws which protect Americans from
    unfair housing practices.
  • Describe blockbusting, steering, redlining and other abusive housing practices.
  • List the various recourses available to the aggrieved person who believes illegal discrimination has occurred including acts against real estate licensees.
  • Describe the importance of real estate brokers and salespeople understanding and complying with fair housing laws.
  • Describe the makeup and responsibilities of the Virginia Fair Housing Office and Virginia Fair Housing Board and define exemptions under Virginia fair housing law.
  • Identify unlawful discriminatory housing practices and explain the procedure for enforcement of the Virginia fair housing law.

Interests in Real Estate:

  • Explain the limitations of private property rights for the welfare of the public.
  • Identify and describe the various types of estates.
  • Explain the difference between liens and all other types of encumbrances.
  • Describe the concepts of riparian and littoral water rights.

Forms of Real Estate Ownership:

  • Explain the limitations of private property rights for the welfare of the public.
  • Identify and describe the various types of estates.
  • Explain the difference between liens and all other types of encumbrances.
  • Describe the concepts of riparian and littoral water rights.
  • Define and explain the distinction between ownership in severalty and co-ownership.
  • Describe the various forms of co-ownership in real estate.
  • Describe forms of ownership including cooperative, condominium, and time-share.
  • Describe the key elements of trusts, partnerships, corporations, and LLCs.
  • Identify and describe the types of property ownership for common-interest properties.
  • Explain a transfer of interest through eminent domain, descent and distribution, or easement.
  • Define the different types of tenancy used in Virginia.

Land Description:

  • Identify and explain the methods for describing a real property.
  • Explain the process involved in identifying and measuring property rights including those above and below the surface

Transfer of Title:

  • Describe the fundamental concepts of “title” as it relates to the ownership of land, and the processes and instruments employed in a practical application of them.
  • Describe the circumstances and conditions which may provide for the involuntary transfer of title.
  • Define and explain testate, intestate, wills and the probate process.
    Explain the requirements for a valid conveyance of title and a transfer of title by adverse possession and by will.
  • Review the responsibilities of a settlement agent and the procedures involved with title examination and title insurance.
  • Explain the public recordation system and its importance to the title insurer.
  • Explain the benefits of title insurance and the difference between an owner’s policy and lender’s policy.

Real Estate Brokerage and Virginia Real Estate Law:

  • Describe the fundamentals of real estate brokerage and licensing laws.
  • Identify other state and federal legislation affecting real estate practice.
  • Describe the purpose and basic elements of antitrust laws including price-fixing, boycotts and allocation of markets.
  • Explain how real estate professionals should use technology in real estate practice to comply with law and ethical standards.
  • Describe how to originate and terminate a brokerage relationship.
  • Explain the disclosure requirements for brokerage relationships and agency representation.
  • List the statutory duties for clients and customers.
  • Discuss the typical components of listing and buyer agency agreements.
  • Explain agency concepts and terminology.
  • Explain the difference between express and implied agency.
  • Define the types of agency and identify which, if any, are involved in a real estate agent’s practice.
  • Describe and explain the agent’s duties to third party customers especially regarding misstatements, misrepresentation and potential fraud.

Client Representation Agreements:

  • Describe the types of listing agreements and agency considerations of each.
  • Describe the listing process and causes for termination.
  • Identify and explain the listing agreement terms and responsibilities of both parties.
  • Describe the types of buyer representation agreements and cause for termination.

Real Estate Contracts:

  • Describe the essential elements of contracts.
  • Explain the various means by which a contract may either enforced, terminated, assigned or replaced.
  • Describe the primary written agreements and forms used in real estate sales and leasing.
  • Identify methods of describing real estate in Virginia.
  • List items typically found in a sales contract and describe the types of contingencies and statutory inclusions in a contract.
  • Discuss other contract procedures including warranties.

Real Estate Taxes and Other Liens:

  • Describe the characteristics of both statutory and equitable liens.
  • Describe and explain general taxes and special assessment taxes.
  • Describe and explain real property liens, including judgments and taxes, as well as the protection and limitations they offer the respective parties.
  • Describe taxation liens, including exemptions and special assessments.
  • Explain a mechanic’s lien and how it may be implemented, as well as judgments and other types of liens.

Real Estate Financing:

  • Explain the elements of debt and security instruments and how their use differs in “title theory states and lien theory states”.
  • Describe the terms, conditions and use of the promissory note.
  • Describe the mortgage or deed of trust and the roles, rights and obligations of the parties involved.
  • Explain the elements of a land contract and when it would likely be used.
  • Explain the distinction between a judicial foreclosure and a non-judicial foreclosure, and the process involved in each.
  • Review the process for foreclosing on deed of trust.
  • Explain the primary and secondary mortgage market places, the roles of the parties in each and the impact on them through government influence.
  • Describe the various types of real estate financing.
  • Describe the difference between conventional, government and private loan programs available for real estate financing.
  • Describe the various alternative and special purpose loan programs which lend themselves to the borrower’s special needs.
  • Explain the primary government regulations which govern real estate lending and provide consumer protection against unfair lending practices.
  • Explain the purpose and actions of the Virginia Housing Development Authority.

Real Estate Appraisal:

  • Describe appraisal concepts and the process employed by the appraiser.
  • Describe the principle characteristics of value and price and how they differ.
  • Describe the three approaches to value.

Closing the Real Estate Transaction:

  • Describe the specific steps and processes involved in order to achieve conveyance of clear and marketable title.
  • Describe the closing procedures and the respective roles of all parties including compliance with all laws as applicable.
  • Explain the provisions of the Real Estate Settlement Procedures Act (RESPA).
  • Define and explain the Controlled Business Arrangement including disclosures which may be required under the law.
  • Describe and explain all buyer’s and seller’s charges and credits contained in the closing statement.
  • Explain the financial entries and mathematical calculations contained in the closing statement.

Leasing Real Estate:

  • Explain the essential elements of leasehold interests.
  • Describe the essential terms of the lease agreement.
  • Describe and explain the types of leases.
  • Explain the means by which the lease may be terminated and discharged and the remedies available to the parties for its breach.
  • Review the general principles of leasing real estate in Virginia.
  • Describe the obligations and remedies that apply to landlords and tenants under the Virginia Residential Landlord and Tenant Act.

Property Management:

  • Describe the various property management specialties available in the property management field and the role of the property manager in each.
  • Explain the essential elements of the property management plan and agreement.
  • List and explain the primary responsibilities of the property manager.
  • List the statutory duties for clients and customers.
  • Describe the various federal laws with which the property manager must be knowledgeable and comply in the performance of his or her duties.
  • Describe the implementation of risk management procedures to insure the safety and security of the property’s tenants as well as protecting the landlord from liability and loss.

Land-Use Controls and Property Development:

  • Explain the concept of police power and the provisions under it which protect the public health, safety and welfare.
  • Explain zoning, ordinances, permits and property use
  • Define building codes as they relate to the requirements and restrictions placed on construction standards.
  • Explain the issues and regulations involved in subdivisions.
  • Explain non-governmental (private) land use restrictions: covenants, conditions and restrictions (CC&Rs).
  • Describe the various laws and agencies which regulate land sales.

Environmental Issues and the Real Estate Transaction:

  • Identify the basic environmental hazards the real estate licensee should be aware of for the protection of their clients’ interests as well as the personal risk of liability to the licensee for non-disclosure.
  • Describe the elements of groundwater and the water table and the provisions of the Safe Drinking Water Act.
  • Describe the issues involved with underground storage tanks, and the associated legal requirements with which the property owner is faced.
  • Explain the process and regulation involved in the creation and operation of the waste disposal site.
  • List the various federal laws which protect the public from uncontrolled hazardous waste and the liability issues facing the person who violates any of these federal laws.
  • Explain the responsibility and duties of the real estate licensee regarding environmental issues.

Investing in Real Estate:

  • Identify both the advantages and disadvantages of investing in real estate.
  • Describe real estate investment objectives and the inherent financial concepts involved in the investment process.
  • Explain the essential benefits of leverage, including pyramiding, in the acquisition of real estate investments.
  • Describe and explain the tax benefits inherent in real property investments.
  • Describe the mechanics of real estate investment syndication, trust and mortgage conduits.

Virginia Real Estate Law:

  • Explain the purpose and responsibilities of the Real Estate Board (REB) and the Common Interest Community (CIC) Board, describe the use of the Virginia Real Estate Transaction Recovery Fund.
  • List the requirements and exemptions for real estate licensing in Virginia and describe the continuing education requirements for license renewal.
  • Discuss the Real Estate Board Standards of Conduct and review the rights and responsibilities of a broker.
  • Explain the changes to the Virginia Residential Property Disclosure Act.
  • Identify state and federal legislation affecting real estate practice.
  • Discuss the process for filing complaints and the associated disciplinary actions.