(0112) Principles of Real Estate II - Book format

Course Description
Texas Principles of Real Estate Part Two is a 30 hour course required by the Texas Real Estate Commission (TREC) for anyone who wishes to become a licensed real estate agent in Texas. The course provides a comprehensive overview of real estate principles. TREC mandates that all real estate agents obtain a total of 60 hours of course work in the principles of real estate. For this reason, there is an additional, 30 hour, part of this course, Texas Principles of Real Estate Part One. While both courses work independently of the other, we suggest that for continuity and convenience, you take both parts together.

Texas Principles of Real Estate Part Two contains the following modules:

  • Deeds
  • Titles and Records
  • Liens, Taxes, and Foreclosures
  • Listing Agreements
  • Closing and Settlement Costs
  • Real Estate Appraisal
  • Real Estate Finance
  • Real Estate Math

 

Modules begin with an introduction, learning objectives, and key terms. As students work through the course, they can keep the learning objectives in mind and refer to the key terms as necessary. The modules are divided into lessons, which are followed by quizzes to test student comprehension. Modules conclude with activities and case studies that allow students to apply the knowledge they have gained to real-world situations; each module is followed by a final quiz. The introductions, lesson summaries and module summaries are all available in a printable format for reference purposes.

Learning Objectives

  • List the general requirements of a legally enforceable contract.
  • Describe the difference between the concepts of “title” and “deed.”
  • Explain the basic use and purpose of deeds.
  • Identify the elements of a deed for voluntary land conveyance.
  • Recognize the different types of deeds and identify what type of deed should be used, depending on the quality of estate and condition of title to be transferred.
  • Describe the differences in the role of a real estate professional from the role of a licensed attorney.
  • Describe state-specific laws pertaining to title conveyance.
  • Outline the general steps involved in recording.
  • Distinguish between different types of public records.
  • Describe the difference between constructive and actual notice.
  • Explain the common methods of property conveyance.
  • Identify evidence of titles.
  • Explain title insurance and coverage.
  • Describe the different types of property ownership.
  • Differentiate between the various types of deeds.
  • Define the terms lien and tax lien and understand their operation.
  • Recognize the different types of liens and know how their priority is established.
  • Identify and describe types of non-tax liens.
  • Understand how ad valorem taxes and special assessments are levied.
  • Identify how homeowners and investors can save on federal income taxes and capital gains taxes through the use of tax shelters.
  • Describe and list different types of foreclosures.
  • Recognize alternatives to foreclosure and common scams related to foreclosure.
  • Identify the types of liens in Texas.
  • Determine tax exemptions in Texas.
  • Describe foreclosures in the state of Texas.
  • Describe the broker/owner relationship.
  • Outline the legal aspects of the broker/owner relationship and other responsibilities created by listing agreements.
  • Identify various types of listing agreements and explain the differences they make in a business relationship.
  • Explain the listing process and the basic marketing strategies needed to obtain listings.
  • Describe the basic concept of Comparative Market Analysis (CMA) and the process involved in preparing one.
  • State the basic content and form of a listing agreement.
  • Name other forms typically executed along with a listing agreement, including forms required by federal law and others required by most states.
  • Describe marketing strategies needed to obtain a buyer while maintaining customer loyalty.
  • Outline buyer and seller concerns that arise throughout the closing process.
  • Describe the buyer and the seller’s responsibilities to prepare for closing.
  • List the documents that the buyer and the seller must complete to close a typical real estate transaction.
  • Explain a licensee’s responsibility with respect to IRS Form 1099-S and HUD’s “Notice to the Homebuyer” form.
  • Name and distinguish the different types of closings.
  • Describe the licensee’s role in the closing process.
  • Outline the basic requirements and regulations imposed by the Real Estate Settlement Procedures Act (RESPA).
  • Identify each party’s expense responsibility in a typical closing transaction.
  • Explain the concept of credit and the concept of debit.
  • Prorate prepaid items and accrued expenses.
  • Understand the HUD-1 Settlement Statement Form
  • Determine the regulations regarding closing and settlement costs in Texas.
  • Identify the basic capacities and skills of a qualified appraiser.
  • Differentiate between appraisal licensure and certification.
  • Identify and explain the fundamental concepts and terminology used in real estate valuation and appraisal.
  • Recognize the valuation principles used in real estate appraisal.
  • Apply value theories to arrive at purchase prices of real estate.
  • Characterize a favorable market for real estate sales.
  • Differentiate the three approaches to value commonly used in appraisal.
  • Follow the eight-step appraisal process to arrive at an accurate purchase price.
  • Analyze and interpret an appraisal report.
  • Understand the basic concepts and key terms of real estate financing.
  • Describe how to qualify a buyer for the most common types of loans.
  • Understand the use and function of escrow accounts.
  • Define private mortgage insurance.
  • Understand the process of underwriting its guidelines.
  • Identify the three most common types of loans: conventional, FHA, and VA.
  • Explain the advantages and disadvantages of conventional loans.
  • Distinguish how to use conventional qualifying ratios.
  • Identify the differing FHA qualification ratios.
  • State the advantages and disadvantages of FHA loans.
  • Explain the advantages and disadvantages of VA loans.
  • Describe VA eligibility and qualification periods.
  • Calculate the amount of VA entitlement used.
  • Calculate VA loan amounts and required down payments.
  • Explain the process and qualifications for assuming VA and FHA loans.
  • Identify other types of loans available.
  • Understand how to underwrite and close loans.
  • Name key terms used in real estate math problems.
  • Apply fractions, decimals and percentages.
  • Translate fractions into decimal and percentage forms.
  • Determine the area and volume of a given object or parcel.
  • Manipulate the principles involved in rate calculations.
  • Use equations to calculate interest.
  • Grasp the concept of amortization.
  • Comprehend the principles of prorating and how to apply them.
  • Understand and solve for appreciation and depreciation.
  • Identify and apply calculation formulas to determine value and profit.
  • Apply interest rates and loan discount rates.