Introduction to Modern Real Estate Practice

involves bringing buyers and sellers together and negotiating real estate transactions between them.

Real Estate Brokerage

perform brokerage activities and may specialize in one or more types of real property.

Broker and Sales Agents

Every licensee must work with a ______, and all compensation must go through that ______. ______ are responsible for the acts of all licensees who work under them.

Broker

must understand the roles of interrelated disciplines in order to provide guidance and referrals to their clients.

Licensees

consists of 12 members who are appointed to two-year terms.

The Texas Education Standards Advisory Committee

formed the ESAC to improve the quality of real estate education in the state.

The Texas Legislature

reviews existing standards and courses, and makes recommendations to the Texas Real Estate Commission for improvements to real estate education.

The ESAC

economic and physical characteristics.

Land has

include its scarcity, improvements, permanence of investment, and situs (location).

Economic characteristics of land

include its immobility, indestructibility, and uniqueness (non homogeneity).

Physical characteristics of land

The _________ ___________ will affect a property's tax basis.

depreciated value

A capitalization rate is often used to determine _________ ________.

investment value

The _________ _______ is used to calculate property taxes.

assessed value

_______ ______ is the price agreed to by the buyer and seller.

Market value

_____ ______ is the amount for which a property is offered for sale.

List price

____ can be objective or subjective

Value

The value of real estate depends on ___ ____ _ _____ _.

the market it is located in

are economic factors that determine price.

Supply and demand

Supply and demand generally move in

opposite directions.

is cyclical in natural and is significantly impacted by supply and demand

The real estate industry

If supply is ___ , their price goes ___.

down, up.

_____ refers to how many of a particular item that consumers are willing and able to buy at a given time for a given price

Demand

move in the same direction. If demand is up, the price goes up. If demand is down, the price goes down.

Demand and price

Types of real estate markets (based on supply and demand)

Buyers market, Seller's market, Stable market, and Stagnant market

(low demand, high supply)

Buyer's market

(high demand, low supply)

Seller's market

(Equal demand and supply)

Stable market

(downcycle)

Stagnant market

The supreme source of law. Federal and state laws cannot supersede or conflict with it.

The U.S. Constitution

Based on the U.S. Constitution and are the basis for state laws and regulations. They also establish a framework for how state government functions

State constitutions

May be specific, or set broad standards of conduct and establish enforcement agencies

Laws passed by state legislatures and the U.S. Congress

Laws that apply only to individuals living within the state; may not conflict with or attempt to supersede constitutional rights.

State laws and regulations

Laws created by judicial rulings, which clarify and interpret the Constitution, laws, and regulations. Case law can be used to modify or overturn other sources of law

Court decisions (aka case law)

Administrative laws issued by federal agencies, boards, or commission. These laws define how other laws are implemented and enforced.

Federal laws

May not conflict with state and federal law. These laws and ordinances are enacted by government agencies at the city, state, federal, or county levels, such as the Federal Housing Administration, state real estate commissions, and local planning boards.

Administrative laws and ordinances

Governs the use of contracts, and the required elements to make a contract valid. It also covers what happens in the case of a breach of contract, and how contracts may be terminated.

The law of contracts

Covers the forms of ownership and tenancy in real property, and its distinction from personal property within the common law legal system. It also covers the rights of ownership and tenancy and the government's rights and authority under eminent domain and various police powers.

General property law

Address the landlord-tenant relationship. They establish everything from the duties and responsibilities of each party to the state laws for handling lease agreements to fair housing considerations for tenants and other tenants' rights issues.

Landlord/tenant law

Relate to the requirements of a licensee when performing real estate activities within the state, namely that an individual must have a real estate license in order to conduct real estate activities in exchange for compensation. License law, continuing education requirements, supervisory requirements, and prohibited conduct are all covered by license law.

Real estate license law

Covers how an agency relationship is created, and the duties of an agent to the principal.

Laws of agency

Ensure that the licensed professionals in a state treat consumers (including their customers and clients) with fairness. These laws (and their associated rules) are designed to protect consumers from unfair or unethical business practices, fraud, misrepresentation, and more.

Consumer protection laws

professionals such as appraisers, real estate counselors, lenders/investors, urban planners, home inspectors, escrow agents, developers, property managers, real estate educators, and petroleum landsmen /landswomen, to name a few.

roles of interrelated disciplines