Mapping PSI Candidate Bulletin Outline to PA Course Content

Transcription

1 Mapping PSI Candidate Bulletin Outline to PA Course Content PSI administers the real estate licensing exam in Pennsylvania. They provide a Candidate Bulletin that contains a content outline for the examination content ( Here s where you can find that content in the course: National Content Property Ownership Course Level Section Units Lessons Classes of Property Real vs. personal property Defining fixtures Land characteristics and legal descriptions Physical characteristics of land Economic characteristics of land Types of legal property descriptions Usage of legal property descriptions Physical descriptions of property and improvements Mineral, air and water rights -6 Encumbrances and effects on property ownership Liens (types and priority) Easements and licenses Encroachments ; ; ; ; -6 - Types of Ownership Types of estates Forms of ownership Leaseholds Common interest ownership properties -6 - Copyright The CE Shop. rights reserved.

2 Bundle of rights Land Use Controls and Regulations Course Level Section Units Lessons Government Rights in Land Property taxes and special assessments Eminent domain, condemnation, escheat ; ; ; -; - Police power ; ; ; 6;, 6 Public controls based in police power Zoning and master plans Building codes Environmental impact reports Regulation of special land types (floodplain, coastal, etc.) -, 6 - Regulation of environmental hazards Abatement, mitigation and cleanup requirements Restrictions on sale or development of contaminated property Types of hazards and potential for agent or seller liability 6 ; ; 6 Private controls Deed conditions or restrictions Homeowners association (HOA) regulations - Valuation and Market Analysis Course Level Section Units Lessons Value, - Market value and market price Value o Types and characteristics of value o Principles of value o Market cycles and other factors affecting property value Copyright The CE Shop. rights reserved.

3 Methods of estimating value/appraisal process Market or sales comparison approach Replacement cost or summation approach Income approach Basic appraisal terminology (e.g., replacement versus reproduction cost, reconciliation, depreciation, kinds of obsolescence) Competitive/Comparative Market Analysis (CMA) Selecting and adjusting comparables Contrast CMA and appraisal o Price per square foot o Gross rent and gross income multipliers o Capitalization rate - Appraisal practice; situations requiring appraisal by a certified appraiser Financing Course Level Section Units Lessons General concepts LTV ratios, points, origination fees, discounts, broker commissions - - Mortgage insurance (PMI) Lender requirements, equity, qualifying buyers, loan application procedures - Types of loans and sources of loan money Term or straight loans Amortized and partially amortized (balloon) loans Adjustable rate mortgage (ARM) loans Conventional versus insured Reverse mortgages; equity loans; subprime and other nonconforming loans Seller/owner financing Primary market Copyright The CE Shop. rights reserved.

4 Secondary market Down payment assistance programs Government programs FHA VA Other federal programs - Mortgages/deeds of trust Mortgage clauses (assumption, due-on-sale, alienation, acceleration, prepayment, release Lien theory versus title theory Mortgage/deeds of trust and note as separate documents + Financing/credit laws Lending and disclosures o Truth in lending o RESPA o Integrated Disclosure Rule (TRID) o Equal Credit Opportunity Fraud and lending practices o Mortgage fraud o Predatory lending practices (risks to clients) o Usury lending laws o Appropriate cautions to clients seeking financing - General Principles of Agency Course Level Section Units Lessons Nature of agency relationships Types of agents and agencies (special, general, designated, subagent, etc.) Nonagents (transactional/facilitational) Copyright The CE Shop. rights reserved.

5 Fiduciary responsibilities Creation and disclosure of agency and agency agreements Agency and agency agreements Disclosure when acting as principal or other conflict of interest ; ; Responsibilities of agent/principal Duties to client/principal (buyer, seller, tenant or landlord) Traditional common law agency duties; effect of dual agency on agent s duties - -6 Responsibilities of agent to customers and third parties, including disclosure, honesty, integrity, accounting for money Termination of agency Expiration Completion/performance Termination by force of law Destruction of property/death of principal Mutual agreement Property Condition and Disclosures Course Level Section Units Lessons Property Condition disclosure 6 Property owner s role regarding property condition Licensee s role regarding property condition Warranties Purpose of home or construction warranty programs Scope of home or construction warranty programs Copyright The CE Shop. rights reserved.

6 6 Need for inspection and obtaining/verifying information Explanation of property inspection process and appropriate use Agent responsibility to inquire about red flag issues Responding to non-client inquiries Material facts related to property condition or location Land/soil conditions Accuracy of representation of lot or improvement size, encroachments or easements affecting use Pest infestation, toxic mold and other interior environmental hazards Structural issues such as roof, gutters, downspouts, doors, windows, foundation Condition of electrical and plumbing systems, and of equipment or appliances that are fixtures Location within natural hazard or specifically regulated area, potentially uninsurable property Known alterations or additions Material facts related to public controls, statutes of public utilities Zoning and planning information Boundaries of school/utility/taxation districts, flight paths Local taxes and special assessments, other liens External environmental hazards Stigmatized/psychologically impacted property, Megan s Law issues & & & 6 & 6 Contracts Course Level Section Units Lessons General knowledge of contract law Requirements for validity Copyright The CE Shop. rights reserved. 6

7 7 When contract is considered performed/discharged Assignment and novation Breach of contract and remedies for breach Contract clauses - - Listing Agreements General requirements for valid listing Exclusive listings Non-exclusive listings Buyer/tenant representation agreements, including key elements and provisions of buyer and/or tenant agreements Offers/purchase agreements General requirements When offer becomes binding (notification) Contingencies Time is of the essence Counteroffers/multiple counteroffers Counteroffer cancels original offer Priority of multiple counteroffers Leases Types of leases, e.g., percentage, gross, net, ground Lease with obligation to purchase or lease with an option to purchase Other real estate contracts Options Right of first refusal 6 Transfer of Title Course Level Section Units Lessons Copyright The CE Shop. rights reserved. 7

8 8 Title insurance What is insured against Title searches, title abstracts, chain of title Cloud on title, suit to quiet title Deeds Purpose of deed, when title passes Types of deeds (general warranty, special warranty, quitclaim) and when used Essential elements of deeds Importance of recording ; - ; - - Escrow or closing; tax aspects of transferring title to real property Responsibilities of escrow agent Prorated items Settlement Statements Estimating closing costs Property and income taxes Special processes Foreclosure/short sale Real estate owned (REO) of Real Estate Course Level Section Units Lessons Trust/escrow accounts 6 Purpose and definition of trust accounts, including monies held in trust accounts Responsibility for earnest money and other trust monies, including commingling/conversion Federal fair housing laws Protected classes o Covered transactions o Specific laws and their effects Copyright The CE Shop. rights reserved. 8

9 9 Compliance o Types of violations and enforcement o Exceptions Advertising and Technology Incorrect factual statements versus puffing o Truth in advertising o Fair housing issues in advertising Fraud, technology issues o Uninformed misrepresentation versus deliberate misrepresentation (fraud) o Technology issues in advertising and marketing Agent supervision and broker-associate relationship Liability/responsibility for acts of associated licensees (employees or independent contractors) and unlicensed employees Responsibility to train and supervise associated licensees (employees or independent contractors) and unlicensed employees Commissions and fees Procuring cause/protection clauses Referrals and other finder fees General ethics Practicing within area of competence Avoiding unauthorized practice of law Antitrust laws Antitrust laws and purpose Antitrust violations in real estate Real Estate Calculations Course Level Section Units Lessons Basic math concepts Copyright The CE Shop. rights reserved. 9

10 0 Area Loan-to-value ratios Discount points Equity Down payment/amount to be financed Calculations for transactions, including mortgage calculations Property tax calculations Prorations (utilities, rent, property taxes, insurance, etc.) Commission and commission splits Seller s proceeds of sale Transfer tax/conveyance tax/revenue stamps Amortization tables Interest rates Interest amounts Monthly installment payments Buyer qualification ratios 6 - Calculations for valuation Competitive/comparative market analyses (CMA) Net operating income Depreciation Capitalization rate Gross rent and gross income multipliers (GRM, GIM) State Content Real Estate Commission Course Level Section Units Lessons Duties and power Complaints, investigations, hearings and appeals Real Estate Recovery Fund Copyright The CE Shop. rights reserved. 0

11 Licensure Course Level Section Units Lessons Activities requiring license Types of licenses- standard or reciprocal (broker, salesperson, cemetery broker, builder-owner salesperson, timeshare salesperson) Eligibility for license License renewal and reactivation Change of employment Exclusions from licensure Suspension and revocation Advertising Broker/Salesperson relationship Agency relationships Compensation o Employment of associate broker/salesperson Duties of licensees generally Prohibited conduct Disclosures o Agency disclosures o Property disclosure o Conflict of interest Documents, contracts, and forms Funds and accounts Timeshares Regulation of Conduct of Licensees Course Level Section Units Lessons Additional State Topics Course Level Section Units Lessons Pennsylvania Human Relations Act The Real Estate Business Course Level Section Units Lessons Kinds of Professional Activity Kinds of Property 6 7 Copyright The CE Shop. rights reserved.

12 Factors Affecting Real Estate Markets Industry Trends - Copyright The CE Shop. rights reserved.