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Home , Blanket loan, Condop, Remainder (law)

75-hour New York Prelicense Course Syllabus

Course Description This Pre- course focuses on New York Real and the everyday practice of approved by the New York Real Estate Commission. This course covers all the subjects mandated by New York Real Estate License Law, for those interested in gaining their license. This course is expressly designed for, and geared to, all those potential licensees as defined by the New York Real Estate Commission, for the purpose of sitting for the real estate salesperson's exam. Anyone who assists or desires to assist others in the sale, leasing, management, or exchange of real estate must hold at least a real estate salesperson's license.

Course Learning Objectives Unit 1: License Law Overview and Procedures for Licensing 1. State the purpose of the NY licensing law, the Department of State and the Board of Real Estate. 2. Explain the rules for obtaining a license in New York, state the types of and their respective requirements. 3. Explain the New York real estate licensing exam requirements, procedures and policies.

Unit 2: License Law Rules and Regulations 1. Define and explain the rules for license issuance, license information changes and branch office management. 2. Define and explain the rules for license renewal, continuing education and reciprocity. 3. Identify at least five Department regulations including handling of kickbacks and proper advertising.

Unit 3: Unlicensed Assistants and License Law Violations 1. Name three allowed and three prohibited activities for unlicensed assistants and list at least five licensee activities that violate NY license law. 2. Explain the hearing process and list the penalties for violating the license law. 3. Identify and explain the four sections of a hearing decision.

Unit 4: Law of Agency 1. Define the following agency terms; agency, principal, client, agent, fiduciary and customer. 2. List the duties licensees owe to clients and to customers. 3. List and explain the types of real estate agencies allowed in NY and explain the NY rules for commissions. 4. Name the federal antitrust statutes and explain these antitrust terms; price fixing, boycotts, market allocation and tying agreements.

Unit 5: Agency Relationships 1. Define the agency terms and parties involved in agency and subagency relationships. 2. Define dual agency and explain the rules for disclosure and designated agency. 3. Explain the various single agency relationships and how they are used. 4. List the ways agency relationships may be terminated.

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Unit 6: Agency Disclosures and Agreements 1. Define the different types of listing agreements. 2. Describe provisions that are typically found in listing agreement forms. 3. Explain how and when to use the agency disclosure forms. 4. Discuss other required disclosures, including the condition disclosure.

Unit 7: Independent Contractor or Employee 1. Describe the difference between an employee and an independent contractor and explain the elements of the independent contractor relationship. 2. Discuss governing independent contractors – both New York State Law and the IRS Code.

Unit 8: Estates and Interests 1. Identify and explain property rights. 2. Describe the difference between and and identify uses of real property. 3. Define the different types of freehold and leasehold estates. 4. Explain different forms of . 5. Describe ways businesses can own real estate and discuss and cooperative ownership.

Unit 9: and 1. Define a and discuss lien types. 2. Explain the different types of specific liens and discuss lien priority. 3. Describe easements and encroachments.

Unit 10: 1. Describe essential elements of a , including legal descriptions. 2. Explain the different types of deeds. 3. Describe how deeds are transferred after death and discuss adverse and rights.

Unit 11: and Costs 1. Define a title closing and describe what happens at closing. 2. Discuss title and homeowner's insurance and explain the requirements of the Real Estate Settlement and Procedures Act (RESPA). 3. Describe how the seller's and buyer's costs are handled at closing. 4. Explain prorations and discuss the Uniform Settlement Statement.

Unit 12: 1. Describe different types of leasehold estates and identify the rights and obligations of the parties. 2. Describe various aspects of standard provisions. 3. Explain how leases are terminated and identify types of leases.

Unit 13: 1. List and explain different types of contracts and their classifications. 2. Describe the essentials of a valid and under what conditions the contract could terminate. 3. Explain the provisions of a sales contract, including an installment sales contract, and describe a lease with option to buy.

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Unit 14: Contract Preparation 1. Discuss contract preparation, including which form to use, what data is needed for the contract prep, and who prepares the contract. 2. Explain mortgage contingencies and issues surrounding down payments and describe contract procedures.

Unit 15: Real Estate Finance 1 1. Discuss the issues surrounding a mortgage, including mortgage clauses, payments, fees, , and how a property with an existing mortgage can sell. 2. Identify specific types of loans and explain their repayment plans. 3. Describe the aspects of a conventional loan, including advantages and disadvantages and the need for private (PMI). 4. Explain a number of loan options that can put a conventional loan within a borrower's reach. 5. Discuss a number of government-backed loans, including FHA, DVA, RHS, and SONYMA.

Unit 16: Real Estate Finance 2 1. Describe the basic mechanics of money flow in the secondary mortgage market and define the major players involved in its activities. 2. Explain the process and key determinants of mortgage lending underwriting, including such decision variables as buyer income, LTV ratios, and quality of the collateral. 3. Describe the general nature of modern predatory lending practice and its most common offenses.

Unit 17: Land Use Regulations 1. Describe the significant forms of private and state environmental land use control including deed restrictions, covenants, and the SEQR. 2. Define and describe salient forms of public land use control including sale disclosures, taxation, , building codes and permits 3. Describe the classifications of and the various land use restrictions imposed by each zoning type. 4. Identify the principal activities that comprise municipal planning and management including master plan development and key zoning actions such as moratoria, housing development approvals, and zoning appeals.

Unit 18: Constructions Issues 1. Identify and describe land use and site requirements necessary for construction pertaining to building permits, codes, wells, , energy, and site use. 2. Describe the principal aspects and components of a building's structure including the foundation, framing, flooring, roofing, and walls. 3. Describe further elements of building construction including insulation, mechanical systems, heating, and A/C systems. 4. Describe further elements of building construction including plumbing systems, electrical systems, and safety systems.

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Unit 19: Environmental Issues 1. Describe principal long-standing environmental issues, their specific inherent hazards, related legislation, and remediation methods. 2. Identify and describe the current environmental issues of asbestos, lead paint and radon, and summarize related regulation and remediation efforts. 3. Identify and describe the current environmental issues of indoor air quality, mold, formaldehyde insulation, and PCBs, and summarize related regulation and remediation efforts. 4. Define and describe key environmental legislation and the current issues of underground storage tanks, electromagnetic fields, and CFCs.

Unit 20: Valuation and Pricing 1. Describe and differentiate key valuation concepts, types of value, and principles of value. 2. Describe the components of a residential market analysis including the types of properties used to derive analysis results. 3. Explain the characteristics and mechanics of the sales comparison, income and cost approaches to valuation. 4. Explain the general mechanics and steps involved in preparing a Comparative Market Analysis (CMA).

Unit 21: Human Rights and Fair Housing 1. Cite and describe principal federal fair housing laws, their central thrust, how they are enforced, and the general responsibilities these laws impose on brokerage practice. 2. Describe additional fair housing laws, particularly New York's Human Rights Law, and the central thrusts of this legislation. 3. Explain the nature of various forms of discrimination in lending and brokerage and how testers contribute to enforcement of anti-discrimination laws. 4. Describe specific ways licensees can conduct their practice to avoid discrimination and reduce their exposure to related liabilities.

Unit 22: Real Estate Math 1. Identify equations for, and compute real estate commissions, loan interest and points, and property appreciation and depreciation. 2. Identify equations for, and compute mortgage payments and real property area and length measurements. 3. Identify equations for, and compute mortgage underwriting ratios and ad valorem and property transfer taxes.

Unit 23: Municipal Agencies 1. Describe what a city or town council does. 2. Explain the functions of a planning board. 3. List the functions of a zoning board of appeals. 4. Describe the activities of an architectural review board. 5. Explain the roles of agencies that deal with environmental management issues. 6. Discuss functions related to building and planning departments. 7. Explain the role of tax assessors and collectors. 8. Describe functions of city, town and village engineers. 9. List the functions of city and county health departments

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Unit 24: Property Insurance 1. Define property insurance and the major types of coverage. 2. Explain how to determine how much insurance a property owner needs. 3. Discuss alternative ways to purchase insurance and various policy topics such as deductibles, cancellations, non-renewals and the agent's role.

Unit 25: Taxes and Assessments 1. Identify General Safety Concerns 2. Establish methods for Safety in the Office 3. Recognize methods for Safety on the road, at open houses, and in home offices 4. Understand licensee safety issues 5. Identify Liability issues regarding accidents and injuries 6. Explain how to reduce risk for licensees

Unit 26: Taxes and Assessments 1. Discuss the purpose of taxation and how real estate taxes are assessed and calculated. 2. Describe the reassessment procedure in New York and equalization between taxing jurisdictions. 3. Discuss special assessments and tax exemptions. (Screens 30 - 40) 4. Explain how property owners can contest and appeal tax assessments, and the possible outcomes.

Unit 27: and Cooperatives 1. Describe the principle documents that legalize the formation of condominium dwellings including the declaration, articles of incorporation, bylaws, and offering plan. 2. Identify the various legal instruments and procedures involved in offering, acquiring and a condominium unit 3. Describe key issues that impact the buyer in a condominium purchase including CCRs, closing costs, title insurance, taxes, and financial qualification. 4. Characterize the legal concept of a cooperative and describe the documents and procedures involved in the legal organization of a cooperative. 5. Describe the co-op "board package," the buyer approval process, and the legal concept of the "."

Unit 28: Types of Investment Properties 1. Identify and describe critical investment concepts that impact residential and investment 2. Describe the various types of real property and their general investment characteristics 3. Contrast the advantages and disadvantages of investing in a specific type of investment property.

Unit 29: Analyzing Investment Property 1. Explain how to derive net operating income of an investment property. 2. Describe the steps used in deriving pre-tax cash flow, taxable income, and cash flow after-tax for an investment property. 3. Describe the elements of an income property's operating statement and how it is used to derive cash-on-cash return 4. Explain the general methods used to estimate an income property's operating results using such tools as comparables, location characteristics, ratio analysis and cap rates.

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Unit 30: Commercial Leases 1. Identify essential dynamics and characteristics of commercial leasing practice including its purposes, advantages, rights issues, how space is measured, and common area considerations 2. Describe various ways leases are structured and how lease costs are established and managed over a lease term. 3. Describe the central thrusts of principal lease clauses in commonly used commercial leases.

Unit 31: Income Tax Issues 1. Identify key tax issues relating to buying and selling residential homes, including income tax liability and capital gain or loss. 2. Calculate or loss and capital gains on the sale of residential and commercial property. 3. Define and describe Section 1031 tax-free exchanges and the qualifications the IRS imposes on capital gains tax treatment. 4. Describe the impacts of deductible financing, points and depreciation on real property tax liability.

Unit 32: Mortgage Brokerage 1. Describe the requirements to become a mortgage broker and mortgage banker, borrower disclosures and penalties for violations. 2. Discuss the differences between mortgage brokers and mortgage bankers, and their roles in the lending process.

Unit 33: 1. Describe the functions performed by a and property management agreements. 2. Discuss skills that are necessary to being an effective property manager. 3. Explain the obligations a property manager owes to an owner.

Timed Course Outline 1. License Law and Procedures for Licensing (1 hr) a. Objectives and key terms b. The i. Listing the Property ii. Negotiating the Purchase Contract iii. Financing the Purchase iv. Settling the Transaction c. New York Department of State d. Board of Real Estate i. Membership ii. Appointments iii. Meetings and Procedures e. Powers and Duties of the Secretary of State f. Powers and Duties of the Board g. Check your understanding and Answers h. Who needs a license i. Categories of 1. Real Estate Broker 2. Associate Broker 3. Salesperson ii. Exemptions to Licensure

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i. License Qualifications j. Education Required for Obtaining a License i. Salespersons ii. Brokers iii. Course Completion and Record Retention k. Check Your Understanding and Answers l. License Exams i. Test Center Policies ii. Exam Specifics iii. Test Scoring and Reporting m. The License Procedure n. License Classes for Brokers i. Individual Broker ii. Associate Broker iii. Trade Name Broker iv. Partnership Broker v. Corporate Broker vi. Limited Liability Company (LLC) or Limited Liability Partnership (LLP) o. Determining Experience for Brokers p. Real Estate Broker Point System for License Salesperson Activity Only i. Residential Sales ii. Residential Rentals iii. Commercial Sales iv. Commercial Leasing v. Commercial Financing vi. Miscellaneous q. Check your Understanding and Answers r. Summary/Review s. Unit Quiz

2. License Law Rules and Regulations (1 hr) a. Objectives and Key terms b. Issuing a License for Individuals i. Dual Licensure c. Issuing a License for Legal Entities i. Partnership Broker ii. Corporate Broker iii. Limited Liability Company or Limited Liability Partnership d. Brokerage Regulations e. Maintaining a License i. Change of Business Address ii. Change of Name or Status iii. Branch Office Requirements iv. Changes of Association or Termination f. Check your Understanding and Answers g. Renewals i. Renewal Procedure ii. Continuing Education

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h. Nonresident Licenses and Reciprocity i. States Having Reciprocal Agreements with New York ii. Reciprocity Requirements i. Other Licenses That Involve Real Estate i. Apartment Information Vendor ii. Apartment-Sharing Agent iii. Appraiser iv. Mortgage Banker v. Mortgage Broker vi. Home Inspector j. Check your Understanding and Answers k. Other Department of State Regulations i. Handling Funds ii. Managing Property for a Client iii. Broker’s Listings iv. Broker’s Property v. Compensation vi. Negotiating a vii. Offering Property for Sale viii. Sign on Property ix. Delivering Duplicate Originals x. Accepting Services of Another Broker’s Salesperson xi. Termination of Association xii. Automatic Continuation of a Listing Contract xiii. Use of Trade or Corporate Name xiv. Net Listings xv. Salesperson Supervision xvi. Ownership of Voting Stock xvii. Record maintenance xviii. Compensation and Fee Splitting xix. Kickbacks l. Advertising Guidelines i. Ads ii. Business Cards iii. Internet m. Check your Understanding and Answers n. Summary/Review o. Unit Quiz

3. Unlicensed Assistants and License Law Violations (1 hr) a. Objectives and Key terms b. Guidelines for Unlicensed Personal Assistants i. Allowed Activities ii. Prohibited Activities iii. Receiving Compensation c. License Law Violations d. Check your Understanding and Answers e. Hearings and Appeals

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f. Penalties for License Law Violations g. Case Studies of Disciplinary Proceedings i. Case Study 1 1. Complaint 2. Findings of Fact 3. Opinion and Conclusions of Law 4. Determination ii. Case Study 2 1. Complaint 2. Findings of Fact 3. Opinion and Conclusions of Law 4. Determination iii. Case Study 3 1. Complaint 2. Findings of Fact 3. Opinion and Conclusions of Law 4. Determination iv. Case Study 4 1. Complaint 2. Findings of Fact 3. Opinion and Conclusions of Law 4. Determination v. Case Study 5 1. Complaint 2. Findings of Fact 3. Opinion and Conclusions of Law 4. Determination h. Check your Understanding and Answers i. Summary/Review j. Unit Quiz

4. Law of Agency (3 hrs) a. Objectives and Key Terms b. Definition of an Agent c. Types of Agency i. Universal Agent ii. General Agent iii. Special Agent d. Client or Customer? e. Fiduciary Duties (COALD) i. Care ii. Obedience iii. Accounting iv. Loyalty 1. Confidentiality v. Disclosure f. Check your Understanding and Answers g. Scope of Authority

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h. Levels of Service i. Duties to Customers j. Misrepresentation i. Fraud 1. Active 2. Passive ii. Intentional Misrepresentation iii. Negligent Misrepresentation iv. Puffing v. Consequences k. Principal’s Duties i. Availability ii. Information iii. Compensation l. Agency and Brokerage m. Check your Understanding and Answers n. Creating Agency o. Types of Agency i. Express Agency ii. Implied Agency iii. Agency Ratification and Estoppel p. Determining Representation q. Compensation i. Broker ii. Salesperson Compensation iii. Commission Splits 1. Example 1 2. Example 2 3. Example 3 4. Example 4 r. Check your Understanding and Answers s. Anti-trust Laws i. Laws ii. Penalties for Antitrust Violations iii. Antitrust Issues in the Real Estate Profession 1. Price Fixing 2. Group Boycotts 3. Market Allocation 4. Tie-In Arrangement t. Check your Understanding and Answers u. Summary/Review v. Unit Quiz

5. Agency Relationships (3 hrs) a. Objectives and Key Terms b. Important Definitions c. Subagency i. Subagent or Buyer’s Broker?

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ii. Who Creates Subagency? iii. Blanket Unilateral Offer iv. Principal – Subagent Relationship v. Subagent Example vi. Subagent Obligations 1. Obligations to the Seller 2. Obligations to the Buyer vii. Subagency Advantages and Disadvantages d. Check your Understanding and Answers e. Dual Agency i. How is Dual Agency Created? ii. Informed Consent iii. Dual Agency Risks iv. Undisclosed Dual Agency v. Dual Agency Types 1. Single Licensee Dual Agency 2. Broker Dual Agency vi. New York Law f. Company Policy i. In-House Sales with Seller Agency ii. In-House Sales with Buyer Agency g. Designated Agents h. Check your Understanding and Answers i. Agency Relationships i. Single Agency ii. Seller/ Agency 1. In-House Sales 2. Handling Cooperative Sales iii. Buyer/Tenant Agency 1. Why Buyer Brokerage 2. Does Everyone Need an Agent? 3. Paying the Buyer Agent a. Retainer b. Seller-Paid Fee c. Buyer-Paid Fee 4. Buyer Client vs Buyer Customers a. Buyer Client b. Buyer Customer iv. Broker’s Agent v. Consensual Dual Agency j. Termination of Agency k. Check your Understanding and Answers l. Summary/Review m. Unit Quiz

6. Agency Disclosures and Agreements (3.5hrs) a. Objectives and Key Terms b. Disclosure Requirements

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c. Listing Agreements i. Exclusive Right to Sell Agreement ii. Exclusive Agency Agreement iii. Open Listing Agreement iv. Net Listing v. Multiple Listing d. Check your Understanding and Answers e. State Requirements for Listing Agreements i. Sample Listing Agreements 1. Exclusive Right to Sell Contract a. Paragraph 1 - Term of Listing b. Paragraph 2 - Board and Multiple Listing Service Not Agents c. Paragraph 3 - Compensation d. Paragraph 4 - Property Information e. Paragraph 5 - Non-Discrimination f. Paragraph 6-10 - Agency g. Paragraph 11 h. Paragraph 12 – One Commission i. Paragraph 13 – Use of Listing Content j. Paragraph 14 – Termination k. Paragraph 15 – After Acceptance of Written Offer l. Lockboxes, Photographs, For Sale Signs, Internet m. Acceptance 2. Exclusive Agency Agreement a. Paragraph 1 – Grant of Exclusive Agency b. Paragraph 2 – Local, State and Federal Fair Housing Laws c. Paragraph 3 - Subsequent Offers d. Paragraph 4 – CRMLS Not Agent e. Paragraph 5 – Purchaser’s Mortgage f. Paragraph 6 – Disclosure of Terms of Purchase g. Paragraph 7 – Presentation of Purchase Offer h. Paragraph 8 – Owner’s Authorizations and Obligations i. Paragraph 9 – Rental of Property j. Paragraph 10 – Brokerage Fee k. Paragraph 11 – Broker Rights l. Paragraph 12 – Application of Deposit m. Paragraph 13 – Inspection Contingencies n. Paragraph 14 – Home Equity Theft Prevention Act o. Paragraph 15 – Termination p. Paragraph 16 – Entire Agreement q. Paragraph 17 – The Undersigned Does Hereby Certify That the Following Explanations are Understood 3. Check your Understanding and Answers 4. Open Listing Agreement a. Listing Term b. Description of Property c. Commission d. Non-exclusive

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e. Forfeit of Deposit 5. Exclusive Right to Rent Agreement a. Paragraph 1 – Agreement Period b. Paragraph 2 – Broker’s Obligations c. Paragraph 3 - Client’s Obligations d. Paragraph 4 – Advice on Technical Matters e. Paragraph 5 – Fair Housing f. Paragraph 6 – In-House Sales g. Paragraph 7 – Other Potential Buyers h. Paragraph 8 – Purchase Offer Moneys i. Paragraph 9 – Additional Terms j. Paragraph 10 – Property 6. Check your Understanding and Answers f. Agency Disclosure Form i. New York State Disclosure Form for Buyer and Seller 1. Explaining the Agency Disclosure Form a. Paragraph 1 b. Paragraph 2 – Seller’s Agent c. Paragraph 3 – Buyer’s Agent d. Paragraph 4 – Broker’s Agent e. Paragraph 5 – Dual Agent f. Paragraph 6 – Dual Agent with Designated Sales Agents ii. New York State Disclosure Form for Landlord and Tenant 1. First Substantive Meeting 2. Making your role clear 3. Refusal to Sign 4. Declaration by RE Licensee (Form) 5. Changing Roles a. Example 1 – From Buyer Agent to Dual Agent b. Example 2 – From Seller Agent to Dual Agent with Designated Sales Agents iii. Agency Disclosure - Practice 1 1. Scenario 1 2. Scenario 2 3. Scenario 3 iv. Agency Disclosure – Answer to Practice 1 v. Agency Disclosure Practice – 2 1. Scenario 4 2. Scenario 5 3. Scenario 6 vi. Agency Disclosure- Answer to Practice 2 g. Check your Understanding and Answers h. Other Disclosures i. Electrical Service ii. Utility Surcharge iii. Uncapped Well Disclosure iv. Agricultural Districts v. Stigmatized Property Disclosure

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vi. Lead-Based Paint Disclosure vii. Property Condition Disclosure 1. Property Condition Disclosure Statement a. General Instructions b. Purpose of Statement c. Instructions to Seller d. Seller’s Statement e. General Information f. Environmental g. Structural h. Mechanical Systems and Services i. Seller’s Certification j. Buyer’s Acknowledgement viii. Check your Understanding and Answers i. Summary/Review j. Unit Quiz

7. Independent Contractor or Employee (1.5 hrs) a. Objectives and Key Terms b. Broker-Salesperson Relationships i. IRS Rules ii. Employee Status iii. Independent Contractor Status iv. Broker Supervision in New York v. IRS Code Section 3508 c. Check your Understanding and Answers d. New York State Independent Contractor Law i. Negotiating a Contract 1. Start-up Costs 2. Expenses 3. Salesperson requirements 4. Training and Support 5. Commission Schedule 6. Phone 7. Miscellaneous Benefits ii. Consequences of Non-Compliance iii. Other Considerations 1. Recommended Forms a. Substance Over Form b. Balance iv. Maintaining Records v. Future Implications e. Check your Understanding and Answers f. Summary/Review g. Unit Quiz

8. Estates and Interests (3 hrs) a. Objectives and Key Terms

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b. Real Estate c. Land i. Characteristics of Land d. Property i. Classifications 1. Real Property 2. Personal Property 3. Tangible vs Intangible e. Real Property Rights i. Right to Use ii. Right to Transfer iii. Right to Encumber iv. Right to Exclude v. Air Rights vi. Surface Rights vii. Subsurface Rights viii. Water Rights ix. Littoral Rights x. Riparian Rights f. Check your Understanding and Answers g. Real Versus Personal Property h. Fixtures i. Legal Tests of a ii. Method of Annexation iii. Adaptability iv. Intention v. Existence of an Agreement i. Other Items of Property i. Trade Fixtures ii. Emblements j. Types and Use of Real Property k. Characteristics of Real Property i. Physical Characteristics ii. Economic Characteristics 1. Improvements 2. Location 3. Supply and Demand 4. Scarcity 5. Permanence of Investment l. Interests i. Undivided Interest m. Check your Understanding and Answers n. Estates in Land i. Types of Freehold Estates ii. Types of Leasehold Estates iii. Estate 1. Qualified Fee Simple 2. Fee Simple on Condition

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iv. Life Estates 1. Characteristics a. b. 2. Types a. Conventional i. Ordinary Life Estate ii. Pur Autre Vie b. Legal Life Estate i. Homestead ii. Dower and Curtesy o. Life Tenant Responsibilities p. Forms of Ownership i. Estate (Ownership) in Severalty q. Forms of Co-Ownership i. Tenancy in Common ii. Joint Tenancy 1. Characteristics and Requirements 2. Creation of Joint Tenancy 3. Termination of Joint Tenancies a. Termination by Suit iii. Tenancy By the Entirety iv. Rights r. Check your Understanding and Answers s. Trusts i. Living Trust ii. Land Trust t. Ownership by Business Organizations i. Sole Proprietorship ii. Partnership 1. Limited Partnership 2. Joint Ventures iii. Corporations (Ownership in Severalty) iv. Limited Liability Company v. Syndicates u. Condominium Ownership i. Possession, Use and Exclusion ii. Transfer and v. Cooperative Ownership i. Corporate Association’s Interest ii. Shareholder’s Interest iii. Proprietary Lease iv. Expense Liability v. Transfers 1. Other Method of Title Transfer a. w. Check your Understanding and Answers x. Summary/Review

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y. Unit Quiz

9. Liens and Easements (2.5 hrs) a. Objectives and Key Terms b. i. Liens and Easements c. Lien i. Definition of Lien ii. Legal Features iii. Lien Types 1. Voluntary and Involuntary 2. General and Specific a. Judgment Lien b. Lis Pendens 3. Other Types of Liens a. Estate and Inheritance Tax Liens b. Deceased Person’s Debt c. Corporation Franchise Tax d. Internal Revenue Service Liens d. Check your Understanding and Answers e. Specific Liens i. Real Property Tax Lien ii. Mortgage Lien iii. Mechanic’s Liens f. Effects of Liens on the Title g. Superior and Inferior Liens h. Subordination Agreements i. Deed Restrictions j. Check your Understanding and Answers k. Easements i. Appurtenant 1. Transfer 2. Non-Exclusive Use ii. Easement by Necessity iii. Easement for Light and Air iv. Party Wall Easement v. Easement in Gross 1. Personal 2. Commercial vi. Easement Creation 1. Voluntary 2. Necessity 3. Easement by Prescription 4. Easement by Grant 5. Easement by Implication 6. Easement by Condemnation vii. Terminating Easements viii. Appurtenances

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ix. Encroachments l. Check your Understanding and Answers m. Summary/Review n. Unit Quiz

10. Deeds (2.5 hrs) a. Objectives and Key terms b. Transferring Title to Real Estate i. Voluntary Alienation ii. Involuntary Alienation c. Deeds i. Essential Elements of a Deed 1. Grantor 2. Grantee 3. Act of Conveyance – Granting Clause 4. Consideration 5. Legal Description 6. Habendum Clause 7. Designations of Limitations 8. Exemptions and Reservations Affecting the Title 9. Signature of the Grantor 10. Delivery and Acceptance 11. Acknowledgement 12. d. Check your Understanding and Answers e. Legal Descriptions i. Methods 1. Metes and Bounds 2. Rectangular Survey System 3. Lot and Block Method f. Check your Understanding and Answers g. Forms of Deeds i. Full and 1. Covenant of Seizen 2. Covenant against encumbrances 3. Covenant of quiet enjoyment 4. Covenant of further assurance 5. Covenant of warranty forever ii. with Covenants iii. Bargain and Sale Deed without Covenants iv. v. Dedication by Deed vi. Special Purpose Deeds h. Transfer Tax i. Check your Understanding and Answers j. Conveyance After Death i. Validity of a Will ii. Probate

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iii. Testate Proceeding iv. Intestate Proceeding 1. Intestate with Heirs 2. Intestate without Heirs k. i. Claim of Right ii. Notorious Possession and Hostile possession iii. Avoiding Adverse Possession l. Accession Rights i. Accretion ii. Avulsion iii. Reliction m. Check your Understanding and Answers n. Summary/Review o. Unit Quiz

11. Title Closing and Costs (2 hrs) a. Objectives and Key Terms b. Introduction to Title Closing i. Functions of Those Who Attend ii. Closing Process iii. Closing Documents 1. Deed 2. Survey 3. Other Documents iv. Recording Acts 1. Constructive Notice 2. Actual Notice 3. Torrens System v. Title Issues 1. 2. Abstract of Title c. Check your Understanding and Answers d. Title Insurance e. More about Closings i. Where Held ii. Broker’s Role f. Homeowner’s Insurance g. Real Estate Settlement and Procedures Act (RESPA) i. Computerized Loan Originations ii. Disclosures After Settlement h. Check your Understanding and Answers i. Closing Statement i. Seller Closing Costs 1. Seller’s Debits 2. Seller’s Credits 3. Real Estate Transfer Tax a. Real Estate Transfer Tax Return

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b. Real Estate Transfer Tax Report 4. FIRPTA Certificate 5. Other Seller Costs a. Broker’s Commission b. Attorney Fees c. Recording Documents to Clear Title d. Satisfy Existing Liens e. Co-op and Condo Fees ii. Buyer Closing Costs 1. Buyer’s Debits 2. Buyer’s Credits 3. Appraisal and Credit Report Fees 4. Inspections 5. Mortgage Recording Fees 6. Title Insurance 7. Attorney Fees 8. Lender Fees 9. Recording 10. Private Mortgage Insurance (PMI), if applicable 11. Co-op or Condo Fees j. Check your Understanding and Answers k. Proration i. Prepaid Expenses ii. Accrued Expenses iii. Proration Math l. Uniform Settlement Statement i. HUD-1 m. Check your Understanding and Answers n. Summary/Review o. Unit Quiz

12. Leases (1 hr) a. Objectives and Key Terms b. Leases i. Types of Leasehold Estates 1. Estate for Years 2. Estate from Period to Period 3. Estate at Will 4. Estate at Sufferance c. Tenant’s Rights and Obligations d. Landlord’s Rights and Obligations e. Conveyance of Leased Property f. Lease Provisions i. Capacity to Contract ii. Demising Clause iii. Descriptions of the Premises iv. Clear Statement of Term v. Rent Amount and Payment

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vi. In Writing vii. Signatures viii. Delivery g. Other Provisions i. Plain Language Requirement ii. Use of the Premises iii. Lease Renewals h. Rent Regulations i. Rent Control ii. Rent Stabilization iii. Decontrol of a Rent-Stabilized Unit 1. Luxury Decontrol 2. High Rent Vacancy Decontrol i. Check your Understanding and Answers j. Security Deposits k. More Lease Provisions i. Possession and Habitability ii. Improvements iii. Apartment Sharing l. and Subletting m. Lease Termination i. Causes for termination ii. Abandonment n. Death or Sale of Property i. Landlord ii. Tenant Issues o. Types of Leases i. Gross Lease ii. Net Lease iii. Graduated Lease iv. Ground Lease v. Percentage Lease vi. Proprietary Lease vii. Index Lease p. Check your Understanding and Answers q. Summary/Review r. Unit Quiz

13. Contracts (1 hr) a. Objectives and Key Terms b. Introduction and Definition of Contract c. Legal Status of Contracts i. Valid ii. Valid but Unenforceable iii. Void iv. Voidable d. Classifications of Contracts i. Oral vs Written

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ii. Express vs. Implied iii. Bilateral vs. Unilateral iv. Executed vs Executory e. Essential Elements of a Contract i. Competent Parties ii. Mutual Agreement iii. Lawful Objective iv. Consideration v. In Writing vi. Statute of Frauds f. Terminating Contracts i. Performance ii. Infeasibility iii. Mutual Agreement iv. Operation of Law v. Assignment of a Contract g. Legal Remedies i. Rescission ii. Forfeiture iii. Suit for Damages iv. Suit for specific performance h. Check your Understanding and Answers i. Purchase Offers j. Sales Contract Provisions k. Miscellaneous Issues i. Use of Binders ii. Forbearance iii. Uniform Commercial Code l. Installment Sales Contract i. When Deed is Delivered ii. Benefits to Buyer iii. Benefits to Seller m. Option to Buy i. Option ii. Lease with Option to Buy iii. Right of First Refusal n. Contracts Affecting Brokers i. Employment Contracts ii. Listing Agreements iii. Sales Contracts iv. Leases o. Check your Understanding and Answers p. Summary/Review q. Unit Quiz

14. Contract Preparation (1 hr) a. Objectives and Key terms b. Contract Preparation

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c. Which Form to Use? d. Data for Contract Preparation i. Prior Deed ii. Prior Title Insurance Policy iii. Survey iv. Certificate of Occupancy v. Personal Data vi. Tax Bills e. Verifying the Property Description f. Who Prepares the Contract? i. Upstate New York ii. Downstate New York g. The Mortgage Contingency h. Check your Understanding and Answers i. Down Payments i. Customary Down Payment ii. Who Holds the Down Payment j. Lawyers Fund for Client Protection k. Contract Procedures i. Who Signs First? ii. Accuracy Review iii. Riders iv. Lead-Based Paint Disclosures v. Agency Disclosure Form l. Contract Signing Practices i. Mail Delivery ii. Sit-Down Signing iii. Delivery of Down Payments iv. Giving Legal Advice m. Attorney Review Clause i. Should Brokers Prepare Riders? n. Check your Understanding and Answers o. Summary/Review p. Unit Quiz

15. Real Estate Finance (3 hrs) a. Objectives and Key terms b. Mortgage Definition c. Mortgage Clauses i. Identification of Participants ii. Granting Clause iii. Property Description iv. Covenant of Seisin v. Attachment of Note vi. Property Taxes vii. Insurance viii. Preservation and Maintenance of Property ix. Defeasance Clause

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x. Acceleration Clause xi. Signatures and acknowledgement xii. Pre-payment Penalty xiii. Due-on-Sale Clause d. PITI i. Principal ii. Interest iii. Taxes iv. Insurance e. i. Deed in Lieu of Foreclosure ii. Right of Redemption iii. Deficiency Judgment f. Mortgage Fees i. Loan Origination Fee ii. Points or Discount Points g. Duties of a Mortgagor h. Sale of Property i. Free and Clear Cash Sale ii. Sale “Subject To” a Mortgage iii. Sale With Buyer Assuming the Debt i. Recording a Mortgage j. Check your Understanding and Answers k. Loan Types i. Straight Loan ii. Amortized Loan iii. Balloon Payment iv. Adjustable Rate Loans (ARMs) 1. Index 2. Margin 3. Calculated Rate, or Note Rate 4. Initial Rate 5. Adjustment Period 6. Mortgage Payment Adjustment Period 7. Interest Rate Caps 8. Payment Cap 9. Negative Amortization Cap l. Types of Mortgages i. Conventional Loans 1. Advantages and Disadvantages over government backed loans 2. Conventional Loans a. Conventional Mortgage b. Fixed Rate Mortgages c. Private Mortgage Insurance d. Avoiding PMI e. Check your Understanding and Answers f. Loan Options i. Graduated Payment Mortgage

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ii. Pledged Account Mortgage iii. Buydown iv. Open-End Loans v. Blanket Loan vi. Wraparound Loan vii. Swing/Bridge Loan viii. Purchase Money Mortgage ix. Land Contract x. Construction Loan xi. xii. Package Mortgage xiii. Reverse Annuity Mortgage (RAM) xiv. Shared Equity Mortgage xv. Sales and Leaseback g. Check your Understanding and Answers ii. Government Backed Loans 1. Federal Housing Administration Loans (FHA) 2. Department of Veterans Affairs Loans (DVA) a. Veteran Eligibility b. Funding Fee c. Funding Fee Exemptions d. Certificate of Reasonable Value (CRV) 3. Rural Housing Service (RHS) a. Direct Loan Program b. Guaranteed Loan Program 4. SONYMA (State of New York Mortgage Association) 5. Check your Understanding and Answers m. Summary/Review n. Unit Quiz

16. Real Estate Finance 2 (2 hrs) a. Objectives and Key terms b. The Secondary Mortgage Market - Definition c. Shifting Mortgage Funds i. Lenders sell loans to one another ii. Participation iii. Mortgage Backed Securities (MBS) d. Secondary Market Players i. Ginnie Mae (Government National Mortgage Association (GNMA)) 1. Ginnie Mae I MBS (Mortgage Backed Securities) 2. Ginnie Mae II MBS (Mortgage Backed Securities) ii. Fannie Mae (Federal National Mortgage Association (FNMA)) 1. Some History 2. Fannie Mae MBS (Mortgage Backed Securities) 3. Fannie Mae Guidelines a. Loan limits b. Debt-to-income ration c. PMI

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d. Gifts e. Seller Down Payment 4. First Mortgages 5. Second Mortgages 6. Check your Understanding and Answers iii. Freddie Mac (Federal Home Loan Mortgage Corporation (FHLMC)) 1. Freddie Mac Guidelines a. Loan limits b. PMI c. Gifts d. Seller down Payment e. Truth In Lending i. Disclosure ii. Right to Rescind iii. Advertising iv. Penalties f. Lender’s Criteria for Granting a Loan i. The Economy ii. Investment Quality of the Property iii. Loan to Value Ratios iv. Type of Property g. Check your Understanding and Answers h. Borrower’s Ability to Repay i. Underwriting Process ii. Income Analysis 1. Stable Income/Acceptable Income a. Permanent Employment b. Self-Employment c. Other Income d. Sole Proprietorship, Partnership or Corporation 2. Income Verification 3. Verifying other Income iii. Income Ratios iv. Net Worth v. Credit History vi. Evaluating the Borrower’s Credit Report vii. Check your Understanding and Answers i. Predatory Lending i. Sub-prime Loans ii. Balloon Loans iii. Loan Flipping iv. Debt Consolidation and Home Equity Loans v. New York Anti-Predatory Lending Law 1. Prohibited Practices 2. Penalties for Violations vi. Check your Understanding and Answers j. Summary/Review k. Unit Quiz

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17. Land use Regulations (3 hrs) a. Objectives and Key Terms b. and “AS of Right Zoning” c. The Need for Future Planning d. Historical Development of Land Control e. Private Land Use Control i. Deed Restrictions ii. Restrictive Covenants 1. Typical Restrictions 2. Enforcement 3. Terminating Covenants f. State Environmental Quality Review g. Check your Understanding and Answers h. Public Land Use Controls i. Police Power i. Interstate Land Sales Full Disclosure Act j. New York State Article 9-A k. Other Government Controls i. Taxation ii. Escheat iii. Eminent Domain 1. Condemnation 2. Taking iv. Building Codes v. NYS Uniform Fire Prevention and Building Codes Regulations vi. Building Permits vii. Certificate of Occupancy l. Check your Understanding and Answers m. Local Authority i. The Zoning Ordinance 1. Zoning Classifications a. Residential Zones b. Other Zones i. Commercial ii. Industrial iii. Vacant Land iv. Agricultural v. Public Open Space vi. Parklands vii. Recreational viii. Institutional 2. Other Zoning Issues a. Incentive Zoning b. Cluster Zoning c. Sunshine Law d. Transfer of Development Rights (TDR) ii. Check your Understanding and Answers

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n. The Planning Board o. The Master Plan i. Capital Budgeting ii. Amount of Growth iii. Growth Patterns iv. Accommodating Demand v. Plan Development vi. Plan Management p. Subdivisions i. Development costs q. Check your Understanding r. Zoning Actions i. Moratorium ii. Spot Zoning s. Other Planning Related Actions i. FHA Requirements ii. Plat Approval iii. Planned Unit Development t. Site Plan and Review u. Zoning Appeals v. Nonconforming Use w. Other Zoning Mechanisms i. Special Use Permit ii. Amendment or Rezoning x. Variances i. Use Variance ii. Area Variance y. Local Enforcement z. Check your Understanding and Answers aa. Summary/Review bb. Unit Quiz

18. Construction Issues (2.5 hrs) a. Objectives and Key terms b. Land Use i. Plans and Specifications ii. Building Permits iii. Codes iv. Certificate of Occupancy c. Site Requirements – Wells i. New York On-Site Well Requirements ii. On-Site Sanitary Waste Systems iii. Septic Systems iv. New York State Energy Code d. Site Use i. Drainage ii. Landscaping iii. Appurtenances

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iv. Shading v. Walks vi. Zoning e. The Structure i. Footings ii. Foundation Walls iii. Slab-on-Grade Construction iv. Wood Framing v. Floor Framing vi. Roof Framing vii. Tying It All Together 1. Headers 2. Roof Finishing 3. Wall Finishing f. Types of Frame Construction g. Energy Efficiency i. R-factor ii. Types of Insulation iii. Loose-fill iv. Batt and Blanket v. Rigid Board vi. Spray Foam vii. Reflective h. Check your Understanding and Answers i. Major Mechanical Systems i. Ventilation ii. Heating Systems iii. Hot Water System iv. Heating System 1. Steam System 2. Forced Air 3. Electric Heat 4. Application of Heating Systems 5. Oil Storage Tanks v. Air Conditioning 1. Major Components 2. Integral Systems with Forced Air 3. Air-cooled and Water-cooled Systems 4. BTU Ratings 5. Life Expectancies vi. Heat Pumps 1. Advantages and Disadvantages vii. Plumbing Systems 1. Hot Water Heaters 2. Types of Pipes a. Cast iron b. Galvanized c. Copper

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d. PVC e. Brass 3. Pipe Size 4. Venting Requirements viii. Electrical Systems 1. Responsibilities 2. Voltage and Amperage a. Identifying Amperage b. Diagram of Electric Box 3. Wiring Materials a. Aluminum versus Copper b. BX Cable c. Romex Cable d. Conduit e. Greenfield Conductors f. National Electric Code j. Mandated Guarantees and Warranties i. Home Improvement Contracts ii. New Home Construction iii. Carbon Monoxide Detectors iv. Smoke Detectors v. Affidavit for Smoke Alarm and Carbon Monoxide Detector k. Check your Understanding and Answers l. Summary/Review m. Unit Quiz

19. Environmental Issues (2.5 hrs) a. Objectives and Key terms b. Introduction i. Longstanding Issues ii. Contemporary Issues c. Water Supply i. Safe Water Drinking Act (SWDA) ii. Health Related Issues 1. Bacteria 2. Mineral Content 3. Water Corrosiveness 4. Testing and Remediation iii. Private Sewage Disposal d. Wood Destroying Insects i. Testing and Remediation e. Wetlands f. Check your Understanding and Answers g. Contemporary Issues i. Asbestos 1. Health Effects 2. Testing and Remediation ii. Lead Based Paint

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1. Health Effects 2. Testing 3. Remediation 4. Lead in Water 5. Disclosures iii. Check your Understanding and Answers iv. Radon 1. Health Risks 2. Testing 3. Remediation 4. New Construction v. Indoor Air Quality 1. Sick Building Syndrome vi. Mold vii. Urea Formaldehyde Foam Insulation viii. Check your Understanding and Answers ix. Polychlorinated Biphenyls (PCB’s) 1. Testing and Remediation x. Environmental Assessments xi. The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) xii. Underground Storage Tanks (UST) 1. Why be concerned about UST’s? xiii. Electromagnetic Fields 1. Health Effects 2. Remediation xiv. Chlorofluorocarbons (CFC’s) 1. Depleting the Ozone Layer 2. Remediation h. Agent’s Role i. Check your Understanding and Answers j. Summary/Review k. Unit Quiz

20. Valuation and Pricing Properties (3 hrs) a. Objectives and Key terms b. Appraisals c. Is a CMA an Appraisal? d. Valuation i. Definition ii. Types of Value 1. Investment Value 2. Insured Value 3. Use Value 4. Mortgage Value 5. Exchange Value 6. Reproduction Value 7. Replacement Value

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8. Salvage Value 9. Assessed Value 10. Condemned Value 11. Depreciated Value 12. iii. Evaluation iv. Anticipation v. Assemblage vi. Change e. Principles of Value i. Conformity ii. Competition iii. Contribution iv. Diminishing Return v. vi. Progression and Regression vii. Substitution viii. Supply and Demand f. Market Value g. Value versus Price or Cost h. Types of Cost i. Direct Costs ii. Indirect Costs i. Check your Understanding and Answers j. Comparative Market Analysis (CMA) i. Residential Market Analysis 1. Neighborhood 2. Home Site 3. Property Improvements 4. Recently Sold Properties 5. Current Competing Properties a. Pending Sales b. Active Listings 6. Recently Expired Properties 7. Other considerations a. Buyer Appeal b. Market Position c. Assets d. Drawbacks e. Area Market Conditions f. Recommended Terms g. Market Value Range ii. Salesperson’s Role 1. Competence 2. Diligence 3. Documentation 4. Effective Communication iii. Highest and Best Use as Vacant and as Improved

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iv. Site Valuation v. Check your Understanding and Answers vi. Three Approaches to Value 1. Sales Comparison Approach a. Date of Sale b. Location c. Physical Characteristics d. Transaction Characteristics e. Sale Conditions f. Example 2. Cost Approach a. Reproduction Cost b. Replacement Cost c. Steps i. Estimate Land Value ii. Estimate Cost of Improvements iii. Estimate Depreciation d. Example 3. Income Approach a. Step 1: Estimate the Potential Gross Income b. Step 2: Estimate the c. Step 3: Estimate the Net Operating Income d. Step 4: Select a e. Step 5: Apply the Capitalization Rate f. Example 4. Check your Understanding and Answers vii. Preparing the CMA viii. Adjusting the Comparables 1. Example ix. Estimating a Reasonable Selling Price x. CMA Walkthrough 1. Collect and analyze information about the Seller’s property 2. Choose comparable properties in the area 3. Compare seller’s property to comparables and do some adjustments to the value of the comparables 4. Estimate a reasonable and realistic selling price for Seller’s property xi. Comparative Market Analysis Form xii. Check your Understanding and Answers k. Summary/Review l. Unit Quiz

21. Human Rights and Fair Housing (4 hrs) a. Objectives and Key Terms b. Introduction c. Broker’s Responsibility d. Salesperson’s Responsibility e. Fair Housing Law – Important Legislation f. Requirement for New Buildings

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g. 1988 Amendments for Familial Status h. Fair Housing Enforcement i. Check your Understanding and Answers j. Other Federal Laws i. Plessy v Ferguson 1896 ii. Buchanan v. Warle 1917 iii. Brown c. Board of Education 1954 iv. Americans with Disabilities Act 1. Violations 2. New Construction and Renovation k. New York State Law i. Exemptions ii. Discrimination Regarding Obtaining Credit iii. Enforcement and Penalties 1. Investigative Procedure 2. Public Hearing iv. Commission on Human Rights 1. Exemptions l. Check your Understanding and Answers m. Types of Discriminatory Behavior i. Discrimination in Mortgage Lending ii. Blockbusting iii. Steering iv. Redlining n. Advertising Awareness i. Race, Color or National Origin ii. Religion iii. Sex iv. Handicap v. Familial Status vi. Writing Advertising Copy vii. More on Advertising o. Check your Understanding and Answers p. Testers i. Dealing with Testers ii. What Testers Look for 1. Issue 1 2. Issue 2 3. Issue 3 4. Issue 4 5. Issue 5 q. Legal Responsibilities i. Responsibilities of the Office ii. Responsibilities of the Agent iii. Other Legal Ramifications r. Non-solicitation Orders s. Cease and Desist Lists t. Emotional Results of Housing Discrimination

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u. Check your Understanding and Answers v. Providing the Right Information w. More on Answering Questions i. Your Opinion x. Questions about Ethnic Makeup y. Listing Agreements z. Questions about Buyers aa. Fair Housing Situations i. Situation 1 1. Responses and Answers ii. Situation 2 1. Responses and Answers iii. Situation 3 1. Responses and Answers iv. Situation 4 1. Responses and Answers v. Situation 5 1. Responses and Answers vi. Situation 6 1. Responses and Answers vii. Situation 7 1. Responses and Answers viii. Situation 8 1. Responses and Answers ix. Situation 9 1. Responses and Answers x. Situation 10 1. Responses and Answers xi. Situation 11 1. Responses and Answers xii. Situation 12 1. Responses and Answers bb. Risk Reduction in Fair Housing cc. Summary/Review dd. Unit Quiz

22. Real Estate Math (1 hr) a. Objectives and Key Terms b. Percentages i. Commissions ii. Your Turn and Answers c. Interest i. Your Turn and Answers d. Appreciation e. Depreciation f. Points i. Origination Points ii. Discount Points

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iii. Your Turn and Answers g. Calculation Mortgage Payments i. Your Turn and Answers h. Area and Length i. Your Turn and Answers ii. Irregular Lots or Rooms iii. Other Area and Length Calculations 1. Price per Square Foot 2. Acre 3. Hectare i. Mortgage Qualifying i. Your Turn and Answers j. Tax Rates i. Real Property Transfer Tax ii. Your Turn and Answers iii. Mortgage Recording Tax iv. Real Property Tax Rate k. Unit Quiz

23. Municipal Agencies (2 hrs) a. Objectives and Key Terms b. Administrative Divisions in New York c. Municipal Agencies i. City Councils ii. New York City Council iii. Town and Village Boards 1. Town Board 2. Village Board of Trustees d. Functions of City Councils and Boards i. Real Estate Application e. Check your Understanding and Answers f. Planning Boards i. County, Town and Village Planning Boards ii. Real Estate Application iii. Zoning Board of Appeals iv. Architectural Review Board 1. Real Estate Application v. Conservation Advisory Council vi. Wetlands Commission 1. Real Estate Application vii. Historic Preservation/Landmark Commission viii. Check your Understanding and Answers g. Building Departments i. Real Estate Application h. Tax Assessor i. Real Estate Application i. Receiver of Taxes/Treasurer i. Real Estate Application

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j. City/Town/Village Engineer k. Local Health Departments i. New York City Department of Health and Mental Hygiene ii. Real Estate Application l. Check your Understanding m. Summary/Review n. Unit Quiz

24. Property Insurance (2 hrs) a. Objectives and Key Terms b. Purpose of Property Insurance c. Choices in Purchasing Property Insurance d. Types of Policies e. Standard Types of Coverage f. Basic Policies in New York i. Homeowners-1 (HO-1) ii. Homeowners-2 (HO-2) iii. Homeowners-3 (HO-3) iv. Homeowners-5 (HO-5) v. Homeowners-8 (HO-8) vi. Tenants or Cooperative Owners Policies (HO-4) and Condominium Unit Owners Policies (HO-6) g. Check your Understanding and Answers h. Amount of Insurance Needed i. Actual Cash Value vs. Replacement Cost i. Actual Cash Value ii. Replacement Cost j. Insuring the Structure k. Insuring the Contents l. Basic Coverage Amounts m. Increased Liability Limits i. Medical and Personal Limits ii. Home Computer Coverage iii. Worker’s Compensation Insurance iv. Home Day Care Coverage n. Check your Understanding and Answers o. Problems Getting Insurance i. New York Property Insurance Underwriting Association ii. National Flood Insurance Program (NFIP) iii. Coastal Resident Assistance iv. Hurricanes p. Cancellations and Non-Renewals q. Cost of Insurance r. Insurance Policy Deductibles s. Commercial Policies i. Business Owner Policy t. Umbrella Policies u. ’s Role

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v. Check your Understanding and Answers w. Summary/Review x. Unit Quiz

25. General Safety Concerns and Liability Issues (1 hour) a. General Safety Concerns i. Know your surroundings ii. Office Point of Entry/Exit, Security Cameras, Alarms and Lighting iii. Office Access/Keys and Security Codes b. Safety at the Office i. Working alone ii. Meeting Unknown Individuals iii. Prospect ID Form c. Safety on the Road i. Meeting Clients at Vacant homes or Foreclosed homes ii. Let Someone Know Your Itinerary iii. The Buddy System iv. Wear Appropriate Clothing v. Carry a Cell Phone vi. Smartphone Apps vii. Have A Distress Code viii. Conducting Safe Open Houses ix. Trust Your Gut d. Licensee Safety Issues i. Home Offfice Safety Concerns ii. Protecting Online, Personal and Electronic Information iii. Cybersecurity iv. Protecting Client Information v. Identify Theft Concerns e. Liability Issues Regarding Accidents, Incidents and Injuries i. Take Action ii. Article 35 f. Risk Reduction i. Components of a Risk Reduction Program ii. E & O Insurance iii. Risk Reduction for Buyers and Sellers g. Summary/Review h. Unit Quiz 26. Taxes and Assessments (3 hrs) a. Objectives and Key Terms b. Purpose of Taxation c. Taxation i. Exempt Properties d. Why Tax Land? e. Calculating Real Estate Taxes f. Homestead vs Non-homestead Properties g. Assessed Value h. Relationship to Full or Market Value

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i. Assessment Ratios j. Equity Issues i. Why Assessments Differ k. Reassessment i. Old vs. new Construction l. Undeclared Improvements m. Check your Understanding and Answers n. Community-Wide Reassessments o. Reassessment Upon Sale i. Legal vs Illegal Reassessment ii. Back Taxes p. Tax Rate i. Tax Rate Calculations ii. Property Tax Bill Calculations iii. Calculating Tax Bills – Your Turn and Answers q. Various Taxing Jurisdictions r. Equalization i. Equalization Rates s. Check your Understanding and Answers t. Special Assessment Districts u. Exemptions i. The STAR Program ii. Veterans’ Exemptions iii. Senior Citizens’ Exemptions iv. Disability Exemption v. Other Exemptions - Agriculture 1. Farm Buildings 2. Special Use Structures 3. Historic Barns 4. Temporary Greenhouses v. Check your Understanding w. Protesting Assessments i. Filing Complaints 1. Who can file? 2. What assessment may be reviewed? 3. Where must the complaint be filed? 4. When must the complaint be filed? ii. Formal Reviews 1. Grievance Board iii. Unequal Assessments 1. Overvaluation 2. Incorrect Partial Exemption 3. Excessive Transition Assessment iv. Unlawful Assessment v. Misclassification vi. Possible Outcomes vii. Check your Understanding and Answers x. Small Claims Assessment Review

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i. Filing ii. Hearing Procedure 1. Types of 2. Possible Decisions 3. Appeal y. Protesting Commercial Property Assessments z. Tax Liens aa. Administrative Tax Sale i. Tax Foreclosure and Sale bb. Agent’s Responsibilities cc. Check your Understanding and Answers dd. Summary/Review ee. Unit Quiz

27. Condominiums and Cooperatives (4 hrs) a. Objectives and Key Terms b. Condominium Definition c. Condominium Documents i. Declaration ii. Articles of Incorporation iii. Rules and Regulations d. Condo Issues i. Bylaws e. Role of the Sponsor f. New or Existing Development i. Read the Offering Plan 1. Special Risks 2. Real Estate Tax Validation 3. Floor Plans 4. Price Increases 5. Hidden Costs 6. Closing Date g. Check your Understanding and Answers h. Letter of Intent i. Price and Deposits ii. Completion date and closing date iii. Use of the unit iv. Non-exclusivity v. Legal Ramifications vi. How to Submit a Letter of Intent i. CPS1 Phase j. Price Changes i. Offering Plan Amendments – Converted Buildings ii. Offering Pan Amendments – New Buildings iii. Why and When Developers Raise Prices iv. Current Market Practices k. Certificate of Occupancy l. Flipping

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i. Developer’s Policy ii. Flipping issues m. Check your Understanding and Answers n. Title Issues o. Deed p. Closing Costs i. Buyers Fees ii. Seller or Sponsor Fees q. Buyer Concerns i. Common Concerns ii. Real Estate Tax iii. Tax Deductions iv. Right of First Refusal v. Mortgage Recording Tax vi. Mansion Tax r. Buyer Financial Ability to Purchase i. Income Analysis 1. Other Income 2. Secondary Income 3. Unacceptable Income ii. Other Financial Considerations 1. Earnings to Debt Ratios 2. Assets s. Criteria for Purchase i. Income Parameters ii. Asset Parameters t. Check your Understanding and Answers u. Cooperative Definition i. Shares of Stock v. Due Diligence Issues i. Understanding the Financial Statements 1. Accountant’s Opinion 2. Statement of Financial Position 3. Income Statement 4. Notes to the Financial Statement ii. Reviewing Board Minutes 1. Maintenance and Assessment History 2. Underlying Mortgage 3. Reserve Fund iii. Ownership 1. Flip Tax w. Check your Understanding and Answers x. Documents needed for Cooperative Sale/Purchase i. Stock Certificate ii. Proprietary Lease iii. Offering Plan iv. House Rules v. Alteration Agreements

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y. Board packages i. Who reads the Package? ii. What is the Board Looking For? z. Financing i. Co-op Lien Search ii. Lender/Co-op Recognition Agreements aa. Check your Understanding and Answers bb. Application and Interview Preparation i. Preparing for the Interview ii. Interview Issues 1. Timing 2. Familiarity with Complete Package 3. Total Disclosure cc. Primary Residency vs Subletting i. Subletting Issues ii. Sponsor Shares iii. Holder of Unsold Shares iv. Sold Shares dd. Condops i. What is a Condop? ii. Why Condops are created iii. The 80/20 Rule ee. Check your Understanding and Answers ff. Summary/Review gg. Unit Quiz

28. Types of Investment Properties (3.5 hrs) a. Objectives and Key Terms b. Real Estate Investment c. Characteristics of Real Property Investments i. Risk ii. Rate of Return d. Time Value of Money e. Other Types of Risk i. Liquidity ii. Leverage f. Check your Understanding and Answers g. Property Types i. Unimproved Land ii. Office Buildings iii. Residential Properties 1. Investing in a Single-Family Home 2. Property Purchased to Flip 3. Advantages to Investing in a Single Family Home 4. Disadvantages to Investing in a Single Family Home iv. Check your Understanding and Answers v. Vacation Home Investments vi. Condominium and Cooperative Investments

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vii. Fixer-Uppers as Investments viii. Investing in Two-to-Four Unit Properties 1. Advantages 2. Disadvantages ix. Investing in an Apartment Building or Complex 1. Advantages 2. Disadvantages x. Check your Understanding and Answers xi. Mixed Use Buildings xii. Retail Centers 1. Strip Centers 2. Neighborhood Centers 3. Malls 4. Regional Centers 5. Mega Malls 6. Outlet Centers xiii. Manufacturing Properties 1. Warehouse/Distribution 2. Manufacturing 3. Flex 4. Loft Buildings 5. Advantages of Commercial or Industrial Investment 6. Disadvantages of Commercial or Industrial Investment 7. Fee Simple versus Leasehold xiv. Check your Understanding and Answers h. Summary/Review i. Unit Quiz

29. Analyzing Investment Property (3 hrs) a. Objectives and Key Terms b. Deriving Net Operating Income (NOI) i. Market Rent ii. Vacancy iii. Expenses 1. Variable 2. Fixed iv. Arriving at NOI 1. Calculation NOI 2. Net Operating Income – Exercises and Answers c. Check your Understanding and Answers d. Before Tax Cash Flow i. Deriving the Before Tax Cash Flow (BTCF) 1. Exercises and Answers ii. Deriving After Tax Cash Flow (ATCF) 1. Exercises and Answers e. Tax Shelters i. Examples f. Check your Understanding and Answers

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g. Using an Operating Statement to Determine Cash Flow i. Operating Statement Example 1 ii. Operating Statement Example 2 iii. Operating Statement Exercise and Answer h. Cash-on-Cash Return i. Formula ii. Example iii. After-Tax Cash Flow Calculation i. Check your Understanding and Answers j. Estimating Current Operating Results k. Identify Comparable Properties l. Location Characteristics i. Compare Data to Published Sources m. Ration Analysis n. Pro Forma Statements o. Capitalization Rate p. Check your Understanding and Answers q. Summary/Review r. Unit Quiz

30. Commercial Leases (3.5 hrs) a. Objectives and Key Terms b. Generating Income i. Reasons To Lease c. Square Footage d. Loss and Add-On Factors e. Common Areas f. Leases g. Check your Understanding and Answers h. Calculating Rent and Determining Increases i. Flat Lease ii. Step-up iii. Indexed iv. Percentage Rent i. Defining Expense Responsibilities i. Gross Lease ii. Net Lease j. Loft Lease i. Lease Contents ii. Lease Options 1. Offering Lease Concessions 2. Proposing an Equity Participation 3. Lease Renewal Option 4. Rights of First Refusal 5. Tenant Relocation Option k. Check your Understanding and Answers l. Common Lease Clauses i. Use Clause

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ii. Subordination, Non-Disturbance and Attornment iii. Estoppel Certificate iv. Sublease/Assignment v. Electric Service 1. Direct Metering 2. Direct Metering and Submetering vi. Premises Clause vii. Term Clause viii. Security Deposits ix. Improvements and Alterations x. Maintenance, Utilities, and Code Compliance xi. Parking, Signs, Landlord’s Entry, and Security xii. Insurance Clauses m. Check your Understanding and Answers n. Lease Escalation Clauses i. Proportionate Shares of Occupancy ii. Base Year iii. Operating Stop/Tax Stop Clause iv. Real Property Tax Clause v. Direct Operating vi. Porter’s Wage Escalation Formula vii. Consumer Price Index (CPI) viii. Fixed Percentage Increases o. Lease Terms for Different Types of Properties p. Check your Understanding and Answers q. Summary/Review r. Unit Quiz

31. Income Tax Issues (3 hrs) a. Objectives and Key Terms b. Income Taxes i. Income Taxes in the US ii. Tax Relief Act of 1997 c. Purchasing a Primary/Principal Residence i. Using IRA Funds for Down Payment d. Deductions for Primary/Principal Residence i. Property Taxes ii. Mortgage Interest e. Capital Gain i. Types of Capital Gains ii. Capital Loss f. Computing Tax Liability i. Amount Realized (Net Proceeds from Sale) ii. Adjusted Basis g. Computing the Gain h. Check your Understanding and Answers i. Sale of a Primary Residence i. Second Home/Vacation Home

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j. Determining Profit or Loss on a Personal Residence k. Capital Gain on Investment Property l. Determining Profit or Loss on an Income-producing Property m. Classifications of Income i. Tax on Depreciation n. Formula for Calculating Net Income o. Check your Understanding and Answers p. Like-Kind Exchanges i. Eligible Property ii. Taxable gain on and exchange iii. Qualified Intermediary iv. 1031 Exchange Rules 1. The Identification Period 2. The Exchange Period v. Types of Exchanges vi. Check your Understanding q. Tax Rules Regarding Deductions i. Interest Deductions 1. Fully Deductible Mortgage interest ii. Home Acquisition Debt 1. Debt Limit iii. Refinancing Rules and Limitations 1. Refinanced Grandfathered Debt 2. Life-of–Credit Mortgage on Grandfathered Debt iv. Home Equity Financing v. Home Equity Debt Limit 1. Example 2. Construction Financing 3. Points a. Points Deduction in the Year Paid b. Home Improvement Loans c. Second home d. Refinancing vi. Check your Understanding and Answers r. Prepayment penalties s. Low Income Housing Incentives t. Depreciation i. Depreciation Conventions ii. Computing Depreciation iii. Calculating the Depreciable Basis iv. An Important Note about Depreciation u. Check your Understanding and Answers v. Summary/Review w. Unit Quiz

32. Mortgage Brokerage (1 hr) a. Objectives and Key Terms b. What is a Mortgage Broker?

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i. Registration Requirements ii. New Requirements for Mortgage Broker Registration iii. Dual Agency Disclosure iv. Pre-application Disclosure v. Penalties for Violations 1. Grounds for Disciplinary Action c. Check your Understanding and Answers d. Mortgage Banker Requirements e. Broker versus Banker f. Mortgage Broker’s Role in Real Estate Transaction i. Prequalification and Pre-approval ii. Financing g. Obtaining the Mortgage i. Mortgage Products ii. Mortgage Commitment and Underwriting h. Closing a Loan i. Compensation for Mortgage Brokers j. Check your Understanding and Answers k. Summary/Review l. Unit Quiz

33. Property Management (2 hrs) a. Objectives and Key Terms b. Introduction i. What is Property Management ii. Types of Property managed iii. License Requirements iv. Types of Property Managers 1. Individual Property Manager 2. Individual Building Manager 3. Resident Manager 4. Real Estate Asses Manager c. The Property Management Proposal i. Example d. Property Management Agreement i. Provisions 1. Identification of the Parties 2. Property Description 3. Duration of the Agreement 4. Definition of Manager Responsibilities 5. Definition of Owner Responsibilities 6. Extent of Authority 7. Accounting Responsibilities 8. Insurance and Risk Management 9. Reporting Requirements 10. Management Fee 11. Agreement Termination e. Check your Understanding and Answers

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f. Property Manager Skills i. Supervision ii. Accounting iii. Building System Knowledge iv. Landlord-Tenant Relations v. Lease Space vi. Advertising vii. Codes and Regulations viii. Union Negotiations ix. Purchasing x. Financial Matters xi. Building Construction xii. Ecology xiii. Dealing with Property Employees xiv. Dealing with Tenants g. Rental Schedules h. Property Vacancies i. Rent Roll 1. Example i. Differences between markets i. Office Building Management ii. Retail and Residential management 1. Retail management 2. Residential Management iii. Condominium, Cooperative and PUD Management iv. Management Office Operations j. Check your Understanding and Answers k. Obligations to the Owner i. Owner’s Goals l. Budgets i. Example m. Income and Expenses n. Maintenance Criteria o. Marketing Plan i. Example p. Future of the Project q. Reporting r. Becoming a Property Manager i. Education s. Check your Understanding t. Summary/Review u. Unit Quiz

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