Real Estate License Exams For Dummies with Online Practice Tests

John A. Yoegel, PhD, is a certified real estate instructor and a member of the Real Estate Educators Association. He is the author of several real estate books including Cliffs Test Prep California Real Estate Salesperson Exam and Cliffs Test Prep Florida Real Estate Sales Associate Exam.

Introduction 1


About This Book 1


Foolish Assumptions 3


Icons Used in This Book 3


Where to Go from Here 4


Part 1: Putting Real Estate License Exams into Perspective 7


Chapter 1: Sold! Taking a Glance at Real Estate License Exams 9


Checking Out Licensing and Exam Basics 9


Sign Me Up: Registering for the Exam 12


Knowing What to Take to the Exam and What to Leave at Home 13


Scoring High: Figuring Out How Scores Are Determined 14


Take Two: Retaking the Exam 15


Chapter 2: Using Successful Study and Test-Taking Techniques 17


One Word to Get You Through: PREPARE 17


Trying Terrific Test-Taking Strategies 21


Part 2: So You Want to Sell Real Estate: The Job and Basic Laws 25


Chapter 3: The Job: It Isn’t Just Driving People Around 27


Recognizing Those in the Real Estate Business and How They Got There 28


Knowing What a Real Estate Broker/Salesperson Does 30


Understanding How a Real Estate Broker/Salesperson Gets Paid 32


Working Hard: Career Opportunities 33


Property Management: A Special Kind of Career Opportunity 35


Managing a Real Estate Office: You’re the Boss, Ms or Mr Broker 39


Working as an Independent Contractor 40


Focusing on Job-Related Laws That You Need to Understand 41


Review Questions and Answers 43


Chapter 4: Understanding Agency Law 47


Becoming Someone’s Real Estate Agent: You’re Hired 48


Keeping the Faith: The Relationship between an Agent and a Principal 54


Meeting Obligations: The Relationship Between an Agent and a Customer 57


Making Money (No, Not at the Copy Machine) 59


Parting Is Such Sweet Sorrow: Ending an Agency Relationship 61


Review Questions and Answers 62


Chapter 5: Knowing the Fair Housing Laws for Selling Real Estate 67


Practicing Fair Housing: The Basics 67


Don’t Do It: Avoiding Discriminatory Actions 69


Feeling Safe: Identifying Who’s Protected 73


Bending the Rules: Understanding Exceptions to the Law 74


Extra Coverage: Protecting the Disabled from Discrimination 76


Staying Strong: Enforcing the Law 76


Review Questions and Answers 76


Part 3: It’s All Mine: Owning and Transferring Real Estate 81


Chapter 6: Owning It: Estates and Interests 83


What Do You Own? Understanding Ownership Terms 83


Estates (Even Without the Castles) 85


Eyeing Different Ownership Rights 88


Review Questions and Answers 90


Chapter 7: Understanding Forms of Real Estate Ownership 93


Real Estate Ownership: A Solo or Group Activity 93


Special Types of Ownership: Cooperatives, Condominiums, and More 98


Review Questions and Answers 100


Chapter 8: Knowing the Limitations on Real Estate Ownership 103


Carrying a Not-So-Heavy Encumbrance: Private Limitations on Property Use 103


Land-Use Regulation: A Major Public Limitation 111


The Government Has Its Say: Other Public Limitations on Property Use 117


Review Questions and Answers 119


Chapter 9: Transferring Ownership: Deeds and Title Closing 123


Doing the Deed: Delving into Deed Basics 123


Getting Closure: Title Closing 135


Review Questions and Answers 143


Chapter 10: Giving Up or Losing Property 147


Fine by Me: Giving Up Property Voluntarily 147


By Force: Losing Property Involuntarily 148


Losing Property Very Involuntarily: Passing Title After Passing Away 151


Review Questions and Answers 152


Part 4: A House Is Made of Lots of Paper: Legal and Physical Issues 157


Chapter 11: Contracts 101 159


Agreeing to Do Something: The Basics of Making a Contract 159


So Many Choices: Examining Types of Real Estate Contracts 162


The End of the Line: Discharging a Contract 167


Breaching a Real Estate Contract 168


Review Questions and Answers 169


Chapter 12: Leasing Property 173


Identifying Who’s Who and What’s What 173


The Usual Suspects: Preparing a Typical Lease 175


Distinguishing Among Various Types of Leases 177


Breaking a Lease: Types of Eviction 178


Getting What You Paid For 178


Review Questions and Answers 180


Chapter 13: Dealing with Environmental Government Regulations and Issues 183


Deciphering the Federal Government Alphabet Soup 184


Assessing the Environmental Effects of Building Developments 186


This Stuff Can Make You Sick: Examining Environmental Pollutants and Situations 187


Go with the Flow: Water and Waste Issues 191


Review Questions and Answers 192


Part 5: You Want How Much? Valuation and Financing of Real Estate 195


Chapter 14: Appraising Property 197


Figuring Out Appraisal Basics 197


Understanding the Importance of Location! 200


Arriving at Different Types of Value 201


Creating, Changing, and Affecting Values: Some Economic Factors 202


Finding Value by Analyzing Comparable Sales 205


Finding Value by Analyzing Replacement Cost and Depreciation 208


Finding Value by Analyzing a Property’s Income 213


Reconciling a Property’s Value 217


Review Questions and Answers 218


Chapter 15: Finding the Money: Mortgages 221


The Way Things Work: Mortgage Basics 221


Examining Sources of (and Insurance for) Funding 226


Considerations for Lenders Accepting Mortgages 231


Grasping the Different Types of Mortgages 233


Comprehending Mortgage Repayment Plans 235


Endings You Didn’t Anticipate: Foreclosures, Assumptions, and Assignments 240


Being Fair: Consumer Protection Laws 243


Review Questions and Answers 245


Chapter 16: It’s So Taxing: Real Estate Assessment and Taxes 249


Who Wants Your Money, and What Do They Want with It? Collecting Taxes 249


Recognizing What’s So Special about Assessments 250


Go Figure! Calculating Taxes Step by Step 250


Home Free (Sort of): Eyeing Property Tax Exemptions 256


That’s Not Right: Protesting Assessments 257


Pay or Lose: Tax Liens and Sales 258


Review Questions and Answers 259


Chapter 17: Investing in Real Estate 263


Focusing on Property Investment 263


Partnering Up: Real Estate Investment Organization Structures 267


Spending Spree: Acquiring and Building Investments 268


Making Money by Investing in Real Estate 270


Getting Uncle Sam’s Help: The Government’s Role in Investing 272


By the Numbers: Analyzing Investment Properties 276


Review Questions and Answers 278


Chapter 18: All in the Numbers: Real Estate Mathematics 283


Don’t Lose the Faith, but You May Have to Convert 284


Land and Buildings: Measuring Area and Volume 284


Percentages: Pinpointing What You Really Need to Know 288


Commissions: Tracking Your Moolah 289


Making Mortgage Calculations without a Fancy Calculator 293


Oh, the Pain: Calculating Taxes 295


Putting Proration into Perspective 297


Appreciating Appreciation and Depreciation 298


Estimating Appraised Value 301


Review Questions and Answers 303


Part 6: You’re Ready: Taking Practice Exams 307


Chapter 19: Practice Exam One 309


Chapter 20: Answers and Explanations to Practice Exam One 321


Chapter 21: Practice Exam Two 333


Chapter 22: Answers and Explanations to Practice Exam Two 345


Chapter 23: Practice Exam Three 357


Chapter 24: Answers and Explanations to Practice Exam Three 369


Chapter 25: Practice Exam Four 383


Chapter 26: Answers and Explanations to Practice Exam Four 395


Part 7: The Part of Tens 409


Chapter 27: Ten Things to Find Out From Your State’s Real Estate Law 411


Agency Law 412


Fair Housing 412


License Law 412


Limitations on Land Use 413


Money Stuff 413


Ownership Rights, Forms, and Theories 413


Property Disclosure 414


Tenants’ Rights and Rent Control 414


Transferring Ownership Involuntarily 415


Transferring Ownership Voluntarily 415


Chapter 28: Ten Tips to Help You Succeed on the Exam 417


Taking the Exam as Soon as You Can 417


Knowing the Rules (and Following Them) 418


Studying Your State License Law 419


Remembering Important Vocabulary 419


Focusing on Key Concepts 419


Eating Something 420


Staying Cool, Calm, and Collected 420


Paying Attention (without Overthinking) 420


Going with Your Initial Instinct 421


Finishing the Job 421


Index 423