Dearborn Modern Real Estate Practice in Illinois (8 th edition) Examination Outline National Portion

Transcription

1 Dearborn Modern Real Estate Practice in Illinois (8 th edition) Examination Outline National Portion Testing Outline Chapter 1. Agency Relationships and Contracts, 28 questions A. Agency Relationships 1. Creating Agency 4 2. Types of Agency (including implied agency) 4 3. Rights, Duties and Obligations of the Parties 4 4. Termination and Remedies for Non-Performance Disclosure (related to representation) 4 B. General Legal Principles, Theory, and Concepts about Contacts 1. Unilateral/Bilateral Validity Void and Voidable Notice of Delivery / Acceptance Executory / Executed Enforceability Addenda to Contracts 11 C. Purchase Contracts (contracts between seller and buyer) 1. General Principles and Legal Concepts Purchase Contract (contract of sale, purchase and sale agreement, etc Options (contractual right to buy) Basic Provisions / Purpose / Elements Conditions for Termination / Breach of Contract Offer & Acceptance (counter & multiple offers, negotiation, earnest money)11 7. Contingencies 7 8. Duties and Obligations of the Parties 11 D. Service/Listing Buyer Contracts (contracts between licensee and seller or buyer) 1. General Principles and Legal Concepts 6 2. Basic Provisions / Purpose / Elements 6 3. Duties and Obligations of the Parties 6 4. Conditions for Termination/Breach of Contract 6 5. Remuneration / Consideration / Fees 6 6. Types of Service / Listing Contracts 6 E. Employment Agreements between Broker & other Licensees (including supervision) 5 2. Real Property Ownership/Interest, 14 questions A. Freehold Estates (rights of ownership) 7 B. Types of Ownership (estates in land) 1. Joint Tenancy 8 2. Tenancy in Common 8 3. Condominiums 8 C. Leasehold Interest 1. Basic Concepts and Terminology Types of Leases Basic Elements and Provisions of Leases

2 4. Rights and Duties of the Parties Remedies for Default / Non-Performance 17 D. Forms of Business Ownership 1. Sale Proprietorship 8 2. General or Limited Partnership 8 3. LLC 8 E. Private Restrictions on Real Property/Land Use & Matters Affecting Ownership 1. Liens 7 a. Voluntary 7 b. Involuntary 7 c. Priority 7 2. Easements / Rights of Way / Licenses 7 3. Preexisting Leases or Other Agreements 7 4. Encroachment 7 5. Deed Conditions, Covenants, and Restrictions 7 6. Property Owner Association Agreements 8 F. Government Powers and Control of Land Use 1. Americans with Disabilities Act (ADA) Land Use Restrictions and Regulations (i.e., zoning) Police Powers 7 4. Eminent Domain 7 5. Property Taxation 7 6. Subdivision Regulations (e.g., condominiums, cooperatives, planned unit developments) Finance, 15 questions A. Basic Concepts and Terminology 1. Equity Loan-to-Value Ratio Term and Payment Principal and Interest Direct and Indirect Costs (points, discounts) Return on Investment / Rate of Return 15 B. Types of Financing 1. Amortized Interest Only ARM Construction Home Equity 16 C. Methods of Financing 1. Government Programs (e.g., FHA, VA) Conventional Owner-financed Land Contract 15 D. Financing Instruments (Mortgages, Trust Deeds, Promissory Notes) 1. Basic Elements and Provisions of Financing Instruments Legal Principles Non-Performance 15 E. Government Oversight 1. RESPA 16, Regulation Z 15,

3 3. Truth in Lending Act Antitrust 5, 6, Mortgage Fraud Equal Credit Opportunity Act 16, 21 F. Lending Process 1. Pre-approval & Pre-qualification (e.g., debt ratios, credit scoring, & history) Parties to the Lending Process (e.g., loan originator, underwriter, mortgage broker) Real Property, 14 questions A. Methods of Legal Description of Land 1. Metes and Bounds 9 2. Rectangular Survey 9 3. Lot and Block 9 B. Methods of Measurement 1. Structures (space and volume) 9 2. Livable Area 9 3. Land Measurement 9 C. Property Valuation 1. Basic Concepts and Terminology Influences and Characteristics Affecting Value 2,19 3. Comparative Market Analysis (performed by a real estate licensee) 6, Broker Price Opinion Real Property (e.g., fixtures vs. personal property (e.g., chattel)) 2,19 D. Methods of Valuation (Performed by an Appraiser) 1. Sales Comparison (Market Data) Approach Cost Approach Income Analysis Approach Appraisal Process / Procedure 19 E. Conveyance of Real Property 1. Definition of Clear (Marketable) Title Matters Affecting Title Recordation Title Insurance Deeds Will Court-Ordered Sale (e.g., foreclosure) 12, Adverse Possession Settlement Procedures (closing the transaction) Marketing Regulations (purchase and rental), 8 questions A. Property Advertising (including Fair Housing) Disclosures 1. Environmental Concern (e.g., lead-based paint; radon) Property Condition 5, 6 B. Licensee Advertising 1. Antitrust 5 2. Do-not-Call List 5 3. CAN-SPAM Act 5 4. Fair Housing (e.g., blockbusting, steering)

4 6. Property Management, 8 questions A. General Principles of Property Management Agreements 18 B. Basic Provisions / Purpose / Elements of Property Management Agreements 18 C. Types of Contracts 18 D. Duties and Obligations of the Parties 18 E. Market Analysis and Tenant Acquisition 18 F. Accounts and Disbursement 18 G. Property Maintenance and Improvements 18 H. Evictions Real Estate Calculations, 13 questions A. Compensation, Commission, and Fees 5 B. Valuation / Market Sale Price and Yields 19 C. Net to Seller, Cost to Buyer (credits & debits) 23 D. Tax and Other Prorations 23 E. Amortization 16 F. Points 15 G. Prepayment Penalties 15 H. Loan-to-Value Ratios 16 I. Measurement (e.g., square footage, acreage, volume) 19 J. Property Management / Investment (e.g., rate of return) 18 TOTAL NATIONAL QUESTIONS:

5 Dearborn Modern Real Estate Practice in Illinois (8 th edition) Examination Outline Illinois-Specific Topics Testing Outline Chapter 1. Licensing Requirements, 10 questions A. License exemptions 14 B. Activities requiring a license 14 C. Types of licenses Broker Managing Broker Leasing Agent 14 D. Personal assistants 5, 14 E. Eligibility for licensing, including sponsor card 14 F. Examination 14 G. License renewal 14 H. Continuing education 14 I. Change in licensee information 14 J. Reciprocity 14 K. Real Estate Recovery Fund Laws and Rules Regulating Real Estate Practice, 20 questions A. Purpose of license law 14 B. Advertising (other than disclosure) 14 C. Broker/Managing Broker relationship 4, 14 D. Commissions 1. Finder's fee/referral fee Rental finding services 14, 17 E. Ownership issues 8 1. Land trust 8 2. Homestead 8 3. Land Sales Registration Act/Time share 8 F. Handling of monies 1. Escrow accounts 1 2. Security deposits 17 G. Handling of documents 5, 14 H. Performing activities exceeding scope of real estate licensing 1. Law Securities 14 I. Transfer tax stamps/affordable housing 12 J. Intestacy 13 K. Legal description/plat Act 9 L. Real estate taxes and exemptions 3, 10, 11, 23 M. Illinois Human Rights Act 21 N. Interference with contracts or listings

6 3. Disclosures, 10 questions A. Agency 1. Designated agencies a. seller 4, 14 b. buyer 4, 14 c. dual 4, 14 B. Ministerial activities 4, 14 C. Advertising 4, 14 D. Property disclosures 4, Residential Real Property Disclosure Act 4 2. AIDS (HIV) 4 3. Stigmatized property 4 4. Material defects 4 TOTAL ILLINOIS-SPECIFIC QUESTIONS: