REAL ESTATE General Content Outlines

ALASKA State Content Outlines General Exam Content Outline for Salespersons and Brokers Effective: June 01, 2020

The general portion of the real estate exam is made up of eighty (80) scored items, which are distributed as noted in the following content outline. The general examination also contains five (5) pretest items that are not counted toward the score. These items are used to gather statistics on performance and to help assess appropriateness for use on future examinations. Because pretest items look exactly like items that are scored, candidates should answer all the items on the examination.

I. REAL CHARACTERISTICS, 2. Types of LEGAL DESCRIPTIONS, AND PROPERTY USE 3. Title transfer (SALES 9; BROKER 9) a. Voluntary alienation A. vs. personal property b. Involuntary alienation 1. Fixtures, trade fixtures, emblements 4. Recording the title 2. Attachment, , and bill of sale a. Constructive and actual notice B. Characteristics of real property b. Title abstract and 1. Economic characteristics c. Marketable title and cloud on title 2. Physical characteristics d. Attorney title opinion, quiet title lawsuit, and title C. Legal descriptions insurance 1. Methods used to describe real property III. PROPERTY VALUE AND APPRAISAL 2. Survey (SALES 11; BROKER 10) D. Public and private land use controls – A. Concept of value 1. Public controls – governmental powers 1. Market value vs. market price a. Police power, , taxation, escheat 2. Characteristics of value b. ordinances 3. Principles of value 2. Private controls, restrictions, and encroachments B. Appraisal process a. Covenants, conditions, and restrictions (CC&Rs), HOAs 1. Purpose and steps to an appraisal b. Easements 2. Federal oversight of the appraisal process c. Licenses and encroachments C. Methods of estimating value and Broker Price Opinions (BPO) II. FORMS OF OWNERSHIP, TRANSFER, AND RECORDING OF TITLE (SALES 8; BROKER 8) 1. Sales comparison approach (market data) A. Ownership, estates, rights, and interests 2. Cost approach 1. Forms of ownership a. Improvements and depreciation 2. Freehold estate b. Physical deterioration, functional, and economic a. Fee simple absolute obsolescence b. Fee simple defeasible, determinable, and condition c. Reproduction or replacement costs subsequent 3. Income approach c. Life estate 4. Gross rent and gross income multipliers d. Bundle of rights 5. Comparative Market Analysis (CMA) 3. Leasehold estates and types of 6. Broker Price Opinion (BPO) a. Estate for years and from period to period 7. Assessed value and tax implications (periodic estate) IV. REAL ESTATE CONTRACTS AND AGENCY b. Estate at will and estate at sufferance (SALES 16; BROKER 17) c. Gross, net, and percentage leases A. Types of contracts 4. Liens and lien priority 1. Express vs. implied 5. Surface and sub-surface rights 2. Unilateral vs. bilateral B. , title, transfer of title, and recording of title B. Required elements of a valid contract 1. Elements of a valid deed

Alaska Real Estate Content Outlines page 01 C. Contract performance 4. Antitrust laws 1. Executed vs. executory 5. Fraud and misrepresentation 2. Valid vs. void 6. Types of insurance 3. Voidable vs. unenforceable a. Errors and Omissions 4. Breach of contract, rescission, and termination b. General Liability 5. Liquidated, punitive, or compensatory damages VI. PROPERTY DISCLOSURES AND ENVIRONMENTAL 6. Statute of Frauds ISSUES (SALES 8; BROKER 8) 7. Time is of the essence A. Property conditions and environmental issues D. Sales contract 1. Hazardous substances 1. Offer and counteroffer a. Lead-based paint 2. Earnest money and liquidated damages b. Asbestos, radon, and mold 3. Equitable title c. Groundwater contamination and underground storage tanks 4. Contingencies d. Waste disposal sites and brownfields 5. Disputes and breach of contract e. Flood plains, flood zones, and 6. Option contract and installment sales contract 2. Clean Air and Water Acts E. Types of agency and licensee-client relationships 3. Environmental Protection Agency (EPA) F. Creation and termination of agency a. Comprehensive Environmental Response, G. Licensee obligations to parties of a transaction Compensation, and Liability Act (CERCLA) V. REAL ESTATE PRACTICE (SALES 14; BROKER 13) b. Superfund Amendment and Reauthorization Act (SARA) A. Responsibilities of broker c. Environmental site assessments (including Phase I and 1. Practicing within scope of expertise II studies) and impact statements 2. Unauthorized practice of law d. Wetlands protection B. Brokerage agreements between the broker and B. Disclosure obligations and liability principal (seller, buyer, , or tenant) VII. FINANCING AND SETTLEMENT (SALES 7; BROKER 7) 1. Seller representation – Types of listing agreements A. Financing concepts and components a. Exclusive right-to-sell and exclusive agency listing 1. Methods of financing b. Non-exclusive or open listing a. Mortgage financing – conventional and non-conventional c. Net listing (conflict of interest) loans d. (MLS) b. Seller financing – land contract/contract for deed 2. Buyer representation 2. Lien theory vs. title theory and deed of trust 3. agreement 3. Sources of financing (primary and secondary mortgage markets, and seller financing) a. Accounting for funds 4. Types of loans and loan programs b. Property maintenance 5. Mortgage clauses c. Leasing property d. Collecting rents and security deposits B. Lender Requirements 4. Termination of agreements 1. FHA requirements 5. Services, fees, and compensation 2. VA requirements C. Fair Housing 3. Buyer qualification and Loan to Value (LTV) 4. Hazard and flood insurance 1. Equal opportunity in housing 5. Private (PMI) and mortgage insurance 2. Protected classes premium (MIP) 3. Fair housing laws C. Federal Financing Regulations and Regulatory Bodies 4. Illegal practices, enforcement, and penalties 1. Truth-in-Lending and Regulation Z 5. Prohibited advertising 2. TILA-RESPA Integrated Disclosures (TRID) 6. Housing and Urban Development (HUD) a. Consumer Financial Protection Bureau (CFPB) 7. Americans with Disabilities Act (ADA) b. Loan Estimate (LE) D. Risk management c. Disclosure (CD) 1. Supervision 3. Real Estate Settlement Procedures Act (RESPA) 2. Compliance with federal regulations; including Privacy and a. Referrals Do Not Contact b. Rebates 3. Vicarious liability

Content Outlines page 02 Alaska Real Estate 4. Equal Credit Opportunity Act (ECOA) 5. and predatory lending D. Settlement and closing the transaction Real Estate VIII. REAL ESTATE MATH CALCULATIONS General/National Resources (SALES 7; BROKER 8) A. Property area calculations • Mastering Real Estate Principles, Gerald R. Cortesi, 1. Square footage 7th Edition, Dearborn 2. Acreage total • Modern Real Estate Practice, Fillmore W. Galaty, B. Property valuation Wellington J. Allaway, Robert C. Kyle, etc., 20th 1. Comparative Market Analysis (CMA) edition, Dearborn 2. Net Operating Income (NOI) • Principles of Real Estate Practice, Stephen Mettling, 3. 6th Edition, Performance Programs Company 4. Gross rent multiplier- Broker Only • Property Management, Robert C. Kyle, 10th Edition, 5. Gross income multiplier- Broker Only Dearborn 6. Equity in property • Real Estate Finance, J. Keith Baker and John 7. Establishing a listing price P Wiedemer, 10th Edition, OnCourse Learning 8. Assessed value and property taxes Publishing C. Commission/compensation • Real Estate Fundamentals, Wade E. Gaddy, 10th D. Loan financing costs Edition Dearborn 1. Interest • Real Estate Law, Charles J. Jacobus, 3rd Edition, 2. Loan to Value (LTV) OnCourse Learning Publishing 3. Fees • Real Estate Law, Elliot Klayman, 10th Edition, 4. Amortization, discount points, and prepayment penalties Dearborn E. Settlement and closing costs 1. Purchase price and down payment • The Language of Real Estate, John W. Reilly, 8th Edition, Dearborn 2. Monthly mortgage calculations- principal, interest, taxes, and insurance (PITI) Pearson VUE does not endorse any particular 3. Net to the seller prelicensing provider or study materials. 4. Cost to the buyer 5. Prorated items 6. Debits and credits 7. Transfer tax and recording fee F. Investment 1. Return on investment 2. Appreciation 3. Depreciation 4. Tax implications on investment G. Property management calculations 1. Property management and budget calculations 2. Tenancy and rental calculations

Alaska Real Estate Content Outlines page 03 Alaska State Law Content Outline For Salesperson and Broker Exams Effective Date: October 1, 2015

The state law portion of the Alaska examination consists of forty (40) scored items for the salesperson examination, and sixty (60) scored items for the broker examination. Both examinations also contain 5-10 pretest items. These pretest items are not identified and will not affect a candidate’s score in any way.

I. POWERS OF THE ALASKA REAL ESTATE COMMISSION IV. ADDITIONAL TOPICS (SALES: 14% / BROKER: 20%) (SALES: 5% / BROKER: 5%) A. Common interest ownership / A. Investigations, hearings and appeals B. Landlord and Tenant Act B. Recovery fund C. Residential Real Property Transfer Disclosure C. Sanctions V. BROKER ONLY (SALES: 0% / BROKER: 30%) 1. Disciplinary actions A. Trust accounts 2. Penalties B. Supervision D. Examination of records C. Place of business II. LICENSING (SALES: 5% / BROKER: 5%) D. Recordkeeping A. Activities requiring a license B. Change in license status C. Licensed and unlicensed assistants III. REQUIREMENTS GOVERNING THE ACTIVITIES OF LICENSEES (SALES: 76% / BROKER: 40%) A. Advertising B. Broker/salesperson relationship C. Compensation D. Conflict of interest E. Handling of documents F. Handling of monies G. Listings H. Property management I. Prohibited conduct J. Property disclosure K. Licensee relationships and duties

Content Outlines page 04 Alaska Real Estate