Principles of Real Estate Practice - Colibri Group

1 PrinciplesofReal Estate Practice5th EditionStephen MettlingDavid CusicPerformance Programs CompanyMaterial in this book is not intended to represent legal advice and should not be soconstrued. Readers should consult legal counsel for advice regarding points of law. 2015 by Performance Programs CompanyAll rights reserved. No part of this book may be reproduced in any form by any means without the expresswritten consent of the of Contents1. The real Estate Estate Estate and Rights in real Estate as Versus Personal of real Property Interests and and Estates in in Encumbrances and Transferring and Recording Title To real to real of Title real Estate Lease of and Residential Landlordand Tenant Act (Urlta).

2 928. Land Use Planning And Estate Land Use Land Use Legal of Legal and Rectangular Survey Plat g real Estate Contract Validity and of Agency of real Estate Disclosure Listing of Legal of Listing and Agreement The Brokerage and Broker-salesperson a real Estate and securities Contracts for the Sale of real for Contract for real Estate Market Market Estate Market Appraising and Estimating Market Estate Market Sales Comparison Cost Income Capitalization of Appraisal Practice ..23417. real Estate of Mortgage a Mortgage for a Mortgage a Affecting Mortgage The Mortgage of real Estate real Estate Estate as an Estate Investment of real Estate Analysis of a Analysis of an Income real Estate Valorem Lien Ethics: Laws and Housing Closing Estate Settlement Procedures Settlement of the Due at Cost real Estate Licensing and License a real Estate License.

3 329 License Risk Management Management Areas of Property Management ..363 Management Management Management Tests Answer Examination Answer Key ..428 real Estate Formulas and Estate Estate Mathematics: Answer of Style & Construction of General real Estate the textPrinciples of real Estate Practice is a modern learning tool for the student preparing toenter the real Estate business as a licensed professional. It contains the essentials of realestate law, Principles , and practices taught in real Estate schools and colleges across thecountry, including all those fundamentals that real Estate educators, practicingprofessionals, national testing services, and state licensing officials agree are necessaryfor basic competence.

4 Principles of real Estate Practice covers the nationalrequirements for the initial 30-90 hours of classroom study, or its equivalent, mandatedby state license laws across the of real Estate Practice is tailored to the needs of the pre-license student. Itis designed to make it easy for students to learn the material prepare students for numerous career applications stress practical, rather than theoretical, skills and is more streamlined, direct and to-the-point than other books. It includes morelearning reinforcements. It has a student-oriented organization, both within each chapterand from chapter to chapter.

5 Its examples and exercises are grounded in the authors fifty combined years in real Estate education. Regarding use of the terms agent and real Estate agent in this book, readers shouldunderstand that these are colloquial terms that refer to a licensee whether the licensee isan agent according to the law or not. In some states, agency laws have beensupplanted by state statutes, and the term agent is no longer technically accurate. As itis impossible for terminology in a national textbook to be completely compatible with all50 states, the key for the student is to learn the appropriate terminology for the student sstate and to use it the coverEach chapter begins with an overview of the main section heads covered in the chapter.

6 As each of these heads is expanded, the subheads are displayed in the margin. Key termsare printed in bold type the first time they are used and defined. The chapters concludewith a study aid called the "Snapshot Review," which compresses the main points of thechapter into one or two the authorsFor over forty years, Stephen Mettling and David Cusic have operated one of the nation'smost successful custom training organizations specializing in real Estate programdevelopment. Mr. Mettling has also served as vice president and author for a major realestate training and publishing organization. Under various capacities, he has managedthe acquisition, development, and sale of national real Estate textbooks and publications,as well as directed the country's largest affiliated Group of real Estate schools.

7 Mr. Cusic,an author and educator with international real Estate training experience, has beenengaged in vocation-oriented education since 1966. Specializing in real Estate trainingsince 1983, he has developed numerous real Estate training programs for corporate andinstitutional clients around the 1: The real Estate Business 31 real Estate PROFESSIONSReal Estate activitiesProfessional specialtiesProperty type specializationThe real Estate BusinessReal Estate ProfessionsReal Estate BrokerageProfessional OrganizationsRegulation and LicensingIn its broadest sense, the real Estate industry is the largest single industry in theAmerican economy.

8 Within it one might include the construction industry , itselfoften considered our country's largest business. In addition, the real Estate industrymay be said to include the creation, management, and demolition of every residenceand business facility in the nation: offices, warehouses, factories, stores, and specialpurpose buildings such as hospitals and government facilities. The real estatebusiness would include as well the managing of all the undeveloped land in thecountry: national parks, forests, and the vast quantity of unused federal Estate professionals are individuals and business organizations whose soleenterprise is performing a real Estate -related service or function.

9 A wide range ofprofessions is available to persons wishing to enter the real Estate estateactivities real Estate professionals perform the following property-related functions:<creation and improvement<management and maintenance<demolition<investment ownership<regulation<transferCreation and improvement. Creating real properties from raw land involvescapital formation, financing, construction contracting, and regulatory approvals. The key parties involved in this aspect of the business are generally the developer,the landowner, and the mortgage lender. Also involved are market analysts,4 Principles of real Estate Practice architects, engineers, space planners, interior designers, and who manage the legal aspects of the development project include real estateattorneys, title companies, surveyors, property insurance companies, and governmentregulatory officials.

10 The brokerage community, with the assistance of professionalappraisers, usually handles the ownership and leasing transactions that occur over the many phases of development. Management and maintenance. All real Estate , whether raw land or improvedproperty, must be managed and maintained. The two principal types of managersare property managers and asset managers. Property managers and their staffoversee specific properties on behalf of the owners, making sure the condition of theproperty and its financial performance meet specific standards. Asset managers oversee groups of properties, or portfolios. Their role is to achievethe investment objectives of the owners as opposed to managing personnel include engineers, systems technicians, janitorial staff, and other employees needed to maintain the property's Demolition experts in conjunction with excavation and debris removalexperts serve to remove properties that are no longer economically viable from ownership.