SYLLABUS RELE 1301 REAL ESTATE PRINCIPLES AND PRACTICES I McLennan Community College Waco, Texas Prepared by Mark L. Buckingham Revised 2010-2011
McLENNAN COMMUNITY COLLEGE Waco, Texas Syllabus: REAL ESTATE PRINCIPLES AND PRACTICES I, RELE 1301 Prepared by: Mark L. Buckingham Office Phone: 254/299-8695 E-Mail: mbuckingham@mclennan.edu Office Hours: Wednesdays 8:00 PM 10:00 PM I. INTRODUCTION and COURSE DESCRIPTION Introduction: For a majority of the people in this country, the acquiring and owning of real estate is the biggest financial investment in their life. It is a major means of capital accumulation in the free enterprise system. Because even the simplest real estate transaction brings into action a body of complex law and services, it can be very important, emotional, complicated and perhaps confusing time. The study of real estate should help an individual to make sound investment decisions. The study of real estate offers the potential of many interesting careers. This course is a basic real estate course. It is assumed that the student has little or no knowledge of real estate. Course Description: An overview of licensing as a real estate broker and salesperson, ethics of practice, title to and conveying of real estate, legal, descriptions, law of agency, deeds, encumbrances and liens, distinctions between personal and real property, contracts, appraisal, finance and regulations, closing procedures, and real estate mathematics. Also includes federal, state and local laws relating to housing discrimination, housing credit discrimination, and community reinvestment. Presents the fundamentals of real estate for those preparing for real estate licensure and for persons who have a personal or business interest related to real estate. Covers the business, ownership, brokerage, legal, financing, transfer of title, and title records of real estate. Texas Real Estate Commission (TREC) requires this course before sitting for the salesperson and broker licensure exam. Credit: Semester Hours 3 (3 lec) Official ADA Statement. In accordance with the requirements of the Americans with Disabilities Act (ADA) and the regulations published by the U.S. Department of Justice 28 C.F.R. 35.107(a), MCC s designated ADA coordinators, Mr. Gene Gooch, Vice President, Finance and Administration and Dr. Santos Martinez, Vice President, Student Services, shall be responsible for coordinating the college s efforts to comply with and carry out its responsibilities under ADA.Students with disabilities requiring physical, classroom or testing accommodations should contact Marc Sweatt, Disability Specialist, at 299-8122 or msweatt@mclennan.edu.
II. OBJECTIVES and LEARNING OUTCOMES A. To introduce students to the ethics and principles of the real estate profession and the methods by which they are carried out. B. To give the students a basic definition and understanding of the terms used in the real estate business. C. To provide students with an overview of licensing as a real estate broker and salesman or appraiser. D. To give the students a firm foundation upon which to base further research, activities, and study in real estate including, but not limited to, titles to and conveying of real estate, legal description, law of agency, deeds, encumbrances and liens, distinctions between personal and real property, contracts, appraisal, finance and regulations, Fair housing, CRA, ECOA, DTPCP, RESPA, closing statements and procedures, and real estate mathematics. E. To provide some of the approved required classroom or semester hours necessary to comply with the Texas Real Estate License Act. The student will demonstrate a comprehensive working knowledge of the principles of real estate and how they apply to the real estate industry. III. COURSE MATERIAL A. TEXT: Modern Real Estate Practice in Texas., 13 th Edition, Cheryl Peat Nance, Real Estate Education Company, Chicago, Illinois. B. Any other material introduced by the instructor. See suggested list of out-side reading. IV. COURSE REQUIREMENTS Students are expected to participate in class discussion boards, study course material, complete assignments, study assigned reading, and take tests and quizzes as required. Nonparticipation in the above items will have a detrimental impact on grades and credit. Students are encouraged to do outside reading. V. GRADING
No student shall receive credit for the course without meeting the attendance requirements as set forth in the College catalog and having a passing grade average on all work. A student who fails may retake the course for credit. Grades will be assigned as follows: Discussion Board Points 20 % Daily Work / Assignments 20 % Chapter Quizzes 10 % 4 Unit Tests 30 % Final Examination 20% TOTAL 100 % 90-100 % A 80-89.999 % B 70-79.999 % C 60-69.999 % D 0-59.999 % F VI. CLASS PROCEDURES A. Media presentations B. Student participation C. Written work D. Quizzes and Tests E. Class discussion and group work F. The amount of time spent and the depth of coverage of certain areas may vary according the interest and background of the students. VII. COURSE CREDIT No student shall receive credit for the course without meeting the course requirements and
having a passing grade average on all work. A student who fails may retake the course for credit. VIII. CONTENTS A. Introduction to class, textbook, course materials and procedures, grading, assignments, testing and exam requirements. Introduction of class objectives. B. Discussion of Texas real estate licensing requirements. C. Introduction to real estate practice. The importance of real estate, basis of real estate law, the need for real estate professionals, and professional organizations. D. Definition of land and real estate, real versus the valuation of real estate. E. Discussion of the real estate profession, major areas and services, classes of real estate, the economics of real estate, the real estate market compared to the ideal market, factors influencing the supply and demand of real estate, and sources of market information. F. Consideration of the idea of home ownership and the factors influencing it, mortgage terms, trends and interest rates, the affect of community standards on real estate, newer developments in home ownership, tax advantages, insurance, and Federal Flood Insurance. G. Definition of the brokerage of real estate, review of the Texas License law, consideration of the nature of the business, legal rights, obligations, and relationships, compensation, brokerage business organizations and special services. H. Discussion of the operation of a real estate brokerage, the listing, pricing, selling, and advertising of real property. I. Introduction of interests in real estate, the history of real estate interests, government powers over real estate rights, the degrees, qualities, nature, and extent of interests, and encumbrances. J. Discussion of the basic ways real property may be owned: severalty, co-ownership, and trust. K. Consideration of land units and measurements, and legal descriptions used in real estate: metes and bounds, rectangular or government survey, and lot and block. L. Discussion of real estate liens: taxes, mortgages, mechanic and materialman's liens and judgments.
M. Consideration of the Fair Housing Act, Equal Credit Opportunity Act, and Community Reinvestment Act. N. Introduction of the transference of title: devise, descent, involuntary and voluntary alienation. O. Discussion of the classification, filing and recording of public records involved in real estate. P. Introduction of closing procedures, RESPA, closing statements, prorations, and other mathematics. X. COMPETENCIES Having successfully completed this course a student should: A. Understand the ethics and principles of the real estate profession and the methods by which they are carried out. B. Know a basic definition and have an understanding of the terms used in the real estate business. C. Have an overview of licensing as a real estate broker and salesmen and be familiar with the Texas Real Estate License Act. D. Have a firm foundation upon which to base further research, activities, and study in real estate including, but not limited to, titles to and conveying of real estate, legal descriptions, law of agency, deeds, encumbrances and liens, distinctions between personal and real property, contracts, appraisal, finance and regulations, Fair Housing, CRA, ECOA, RESPA, TDCP, closing procedures, and real estate mathematics. E. Have acquired some of the approved, required classroom or semester hours necessary to comply with the licensing requirements of the Texas Real Estate License Act. F. Be able to pass competencies tests that are objective and/or subjective in nature. Attendance Policy: Attendance in this course is based solely upon the student s weekly participation in the course assignments and /or quizzes and tests. Regular and punctual participation in the course assignments and/or quizzes and tests is expected of all students, and a complete record of participation will be
kept by the instructor for the entire length of each course. Students will be counted absent from class meetings missed, beginning with the first official day of classes. (A student is considered absent for the week if they do not turn in least one of the mandatory assignments and/or quizzes or tests due that week.) Students, whether present or absent, are responsible for all material presented or assigned for a course, and will be held accountable for such materials in the determination of course grades. Absence from more than 25 percent or three consecutive weeks (whichever occurs first) of scheduled class will be taken as evidence that a student does not intend to complete the course. If a student exceeds 25 percent absences or three consecutive weeks of the scheduled class then the student will be dropped from the class by the instructor. The instructor may reinstate the student if satisfied that the student will resume regular attendance and will complete the course. If the student's absences of more than 25 percent are accumulated before the official drop date, the instructor will assign a grade of W. The instructor may reinstate the student if satisfied that the student will resume regular attendance and will complete the course. If the student's absences of more than 25 percent are reached after the official drop date, the instructor either will assign a W, if the student is passing, or an F if the student is not passing. In extenuating circumstances, the instructor may assign a W to a student who is not passing. Regardless of the reason for a particular absence, each absence will count toward attendance requirements in each course. BIBLIOGRAPHY Suggested Outside Reading PERIODICALS: Local community newspapers. The Advisor, Texas Real Estate Commission, Austin, Texas, Quarterly. The Waco-Tribune Herald. The Wall Street Journal BOOKS: Agency Relationships in Real Estate, John W. Reilly, Chicago: Real Estate Education Company. Appraising Residences and Income Property, Henry Harrison, The H 2 Publishing Company, New Haven, Connecticut. Effective Real Estate Sales and Marketing, Johnnie Rosenauer, Longman Financial, Chicago, Illinois.
Essentials of Real Estate Finance, David Sirota, Real Estate Education Company, Chicago. Financing Residential Real Estate, Megan Dorsey and David L. Rockwell, Rockwell Publishing Company, Bellevue, Washington. Mastering Real Estate Mathematics, William L. Ventolo, Jr., Wellington J. Allaway, and G. E. Irby, Real Estate Education, Chicago, Illinois. Modern Real Estate Practice, Galaty, Allaway and Kyle, Real Estate Education Company, Chicago. Perceptions of Value, J. Wesley Tomblin, Silver Star Publishing, Inc., San Marcos, Texas. Principles of Real Estate Appraisal, National Association of Independent Fee Appraisers. Property Management, Robert Kyle and Floyd M. Baird, Real Estate Education, Chicago, Illinois. Real Estate Principles, Bruce Harwood and Charles Jacobus, Prentice Hall, Englewood Cliffs, New Jersey. Texas Agency Law, James I. Wiedemer, Bellaire, Texas: Published own text. Texas Earnest Money Contracts, James I. Wiedemer, Bellaire, Texas: Published own text. Texas Real Estate, Charles Jacobus, Prentice Hall, Inc., Englewood Cliffs, New Jersey. Texas Real Estate Agency, John Reilly, Real Estate Education Company, Chicago. Texas Real Estate Law, Madeline Johnson, G. E. Irby, Gibson, Carp and Klayman, Chicago: Real Estate Education Company. Texas Real Estate Principles and Practices, Samuel DeRobertis and Joseph Irwin, Gorsuch Scarisbrick Publishers, Scottsdale, Arizona. The Language of Real Estate, John W. Reilly, Real Estate Education Company, Chicago. TEXAS LAWS, RULES, AND REGULATIONS 1. Provisions of the Real Estate License Act, Texas Civil Statutes, Article 6573a 2. Rules of the Texas Real Estate Commission, 22 Texas Administrative Code, Chapters 531-543 3. Texas Constitution, Article 16, Section 15, Sections 50-51, Section 52 4. Family Code, Section 5.01 et seq., 5.81 et seq. 5. Tax Code, Sections 11.13, 11.41, 34.21 6. Business and Commerce Code, Section 17, 42-17.50, Section 36.01 et seq., Section 26.01
7. Probate Code, Sections 37-38 8. Property Code, Section 5.008, Sections 24.001 et seq., 54.041 et seq., 92.001, 51.002, 51.004,13.001 et seq. 53.001 et seq. 9. Natural Resources Code, Sections 33.135, 61.025 10. Water Code, Section 49.452 11. Texas Civil Statutes, Article 8886 12. Texas Civil Statutes, Article 6252-13c