REAL ESTATE principles - lumbleau.com

1 real ESTATE principles (Blank Page). real ESTATE principles LUMBLEAU real ESTATE SCHOOL. LUMBLEAU real ESTATE SCHOOL. real ESTATE principles First Edition, 2020. 2020 by Derf V. Fredericks ISBN 978-16-9128-585-3. All Rights Reserved No part of this book or the method of application of questions to paragraphs for application and retention may be reprinted, reproduced, transmitted, stored in a retrieval system or otherwise utilized in any form or by any means electronic or mechanical, including photocopying or recording, now existing or hereinafter invented, nor may any part of this course be used for teaching without the prior written permission of this publisher.

2 Printed in the United States of America DISCLAIMERS. Although every effort has been made to provide accurate and current information in this text, the ideas, suggestions, general principles , and conclusions presented in this text are subject to local, state, and federal laws and regulations, court cases, and any revisions of the same. The author and/or publisher is not engaged in rendering legal, tax, or other professional services. The reader is thus urged to consult with his/her employing broker and/or seek legal counsel regarding any points of law. This publication should not be used as a substitute for competent legal advice. Further, the reader of this material hereby releases and forever discharges the publisher from any and all causes of action and/or claims for relief which have been or may be sustained as a result of the information contained herein.

3 PUBLISHING. Lumbleau real ESTATE School was founded in 1938, making it one of the oldest and best recognized names in approved real ESTATE schools in California real ESTATE education. Over 600,000 students have passed through our courses. The Lumbleau real ESTATE School now delivers online real ESTATE classes to students in the comfort and convenience of their homes. Lumbleau real ESTATE School is staffed with a team of dedicated real ESTATE professionals who are available to answer students' questions and provide valuable insight into the real ESTATE industry. acknowledgments WE WISH TO THANK OUR STUDENTS AND BROKER PARTNERS. for their contributions that help us maintain the most current real ESTATE education textbooks available.

4 Input from Community College instructors, brokers and agents is invaluable. El Camino College Compton Community College Santa Monica Community College Lumbleau real ESTATE School Staff Lumbleau Tech Staff Lumbleau Editorial Staff Lumbleau Publishing Staff Lumbleau Creative Design Team California Community College real ESTATE Education Center WE WISH TO THANK OUR GRAPHIC DESIGNERS. WHO DESIGNED THIS BOOK SERIES. Kat Maurus & Lisa M. Barker from Blu Echo Design preface In 1938 Walter J. Lumbleau believed that there is no reason why a real ESTATE broker should not be an intelligent broker. It would not cost him/her anything of material value to be well informed, and it may cost him/her a fortune to work in ignorance.

5 Walt published The real Estater and The real ESTATE Educator in the 1940's. His son, John J. Lumbleau, became president of the Lumbleau real ESTATE School of California in 1952 publishing The Creation of a Successful real ESTATE Salesman in 1966. In 2000 Lumbleau real ESTATE School went online to make real ESTATE education more affordable and convenient. Students can now learn at their own pace in the comfort of their home. New management, websites, updates and input from some of California's most experienced brokers has enhanced our educational material and made it available to even more students. Over 800,000 students have experienced the Lumbleau training method.

6 Our staff is comprised of licensed agents, brokers and real ESTATE educators to provide our students with the best support possible. WALT AND JOHN WOULD BE PROUD! Contents Acknowledgments vi Preface vii Chapter 1: Regulation & Control Of real ESTATE Licensees 1. Learning Objectives 1. Opportunities in real ESTATE 2. Residential real ESTATE Sales 3. Income Producing Residential Sales 3. Commercial Property Sales 3. Industrial Property Sales 4. Business Opportunities 4. Land Sales 5. Recreation and Farm Lands 5. Mineral, Oil and Gas Properties 5. Federal and State Government Lands ..6. real ESTATE Exchanges .. 6. Mortgage Loan Brokerage 6. Property Management .. 7.

7 Appraising 8. real ESTATE Counselor 9. Regulations of the real ESTATE Commissioner 9. Brokerage Operations 10. Trust Fund Accounts 10. Trust Fund Handling 10. Trust Account Records 11. Contracts 12. Principals 12. Broker/Salesperson 12. Broker Supervision 12. Legal Action to Collect Commission 13. Salesperson Responsibility 13. Cooperating Brokers 13. State Workers' Compensation 13. Income Withholding Taxes 14. Salesperson Acting as an Independent Contractor 14. Self-Employment Taxes 15. REALTOR 15. Realtists 15. Summary of Some Sections from the real ESTATE Law 16. General Provisions 16. The real ESTATE Commissioner 16. Advance Fee Regulations 18. Hearings 18.

8 real ESTATE Broker 19. Record Retention 24. LUMBLEAU real ESTATE SCHOOL. Licenses 25. Business and Residence Addresses of Licensees 29. Prepaid Rental Listing Service 30. Continuing Education 31. Disciplinary Action 32. real ESTATE Recovery Program 36. Notice to be Served on Judgment Debtor 37. Final Decision Settlement 37. Notice of Decision 37. Notice of Denial Order Directing Payment 38. Limitations for Any One Licensee 38. License Suspension 38. Mobilehomes 38. Manufactured Home 39. real ESTATE Words 40. Chapter 1 Summary 42. Chapter 1 Quiz 43. Chapter 2: Agency 45. Learning Objectives 45. The Agency Relationship 46. The Agent 46. Higher Standard 47. Agent and Principal Considered as One 47.

9 The Employing Broker 48. The Agent as Fiduciary 49. Duties Owed to Principal 50. Duty of Loyalty 51. Duty to Use Skill, Care and Diligence 53. Duty to Account 54. Duty to Obey Reasonable Instructions 55. Other General Duties 55. Duties of a Fiduciary 55. Duties Owed by Agent to Third Parties 55. Honesty and Fair Dealing 55. Duty to Warrant Authority 56. Civil Code Provisions 56. Disclosure Format 57. Disclosure of Agency Representation 58. Misrepresentation 58. Alquist-Priolo Special Studies Act 59. When Fiduciary Duties are Not Owed 59. Middleman 60. Waiver 60. Dual Agency 60. Consent Required 61. The Gratuitous Agent 61. Duties of the Gratuitous Agent 61. Creation of the Agency Relationship 62.

10 Express Contract 62. Ratification 63. real ESTATE principles . Ostensible Agency 63. Actual and Ostensible Agencies 63. Summary of Facts Involving Agency 65. Termination of the Agency Relationship 66. Subagents 66. Disclosure Requirements 67. Agency Not Based on Compensation 67. Associate Licensees 67. Restrictions for the Dual Agent 67. Disclosure of Physical Conditions 68. Seller Responsibility 69. Broker Responsibility 69. Chapter 2 Summary 72. Chapter 2 Quiz 75. Chapter 3: Acquisition & Transfer Of Property 77. Learning Objectives 77. Property 78. real Property 78. Fixtures 79. Trade Fixtures 80. Mineral, Oil & Gas Rights 80. Emblements 80. Acquisition and Transfer of real Property 81.