CeRER cheat sheet

Bundle of rights: possession, control, enjoyment, exclusion, disposition; ownership is a bundle that can be split (e.g., leasehold, easement).

Estates: fee simple absolute (perpetual, inheritable), fee simple defeasible (condition subsequent or determinable), life estate (measured by a life), leasehold (term, periodic, at-will).

Co-ownership: tenancy in common (unequal shares, no survivorship), joint tenancy (equal shares, right of survivorship, four unities: time, title, interest, possession), tenancy by the entirety (spouses only, survivorship).

Community property: property acquired during marriage is owned 50/50; separate property is pre-marital or acquired by gift/inheritance.

Fixtures: personal property attached to land so it becomes realty; tests are annexation, adaptation, and intention.

Deed elements: grantor/grantee, words of conveyance, legal description, consideration, signature of grantor, delivery and acceptance.

Title transfer by deed requires delivery and acceptance; recording gives constructive notice and priority under race-notice statutes.

Adverse possession typically requires actual, open and notorious, exclusive, hostile, continuous possession for a statutory period.

Sales comparison approach: adjust comparables to subject; adjust comp for differences (comp superior → subtract; comp inferior → add).

Cost approach: value = replacement/reproduction cost new − depreciation + land value; depreciation types: physical deterioration, functional obsolescence, external obsolescence.

Income approach: value = net operating income ÷ capitalization rate; cap rate = NOI ÷ value.

Gross rent multiplier (GRM) = sale price ÷ gross monthly rent; value = GRM × subject gross rent.

NOI = effective gross income − operating expenses (excludes debt service, depreciation, income taxes, capital improvements).

Highest and best use must be legally permissible, physically possible, financially feasible, and maximally productive.

Market analysis vs. marketability: market analysis studies supply/demand; CMA/BPO estimates price; appraisal is a licensed opinion of value.

Reconciliation: appraiser weighs approaches and selects a final value estimate, not an average.

Listing types: exclusive right to sell (broker paid regardless of who procures buyer), exclusive agency (seller retains right to sell without paying), open listing (non-exclusive), net listing (illegal in many states).

Buyer representation agreement: establishes agency, duties, compensation, term, and scope; can be exclusive or non-exclusive.

MLS cooperation: listing broker offers compensation to cooperating broker; offers of compensation are negotiable and not set by law.

Property marketing: fair housing rules apply to advertising, including words and images; avoid discriminatory preferences.

Disclosure of agency relationship must occur at first substantive contact or as required by state law.

Buyer qualification: pre-qualification is informal; pre-approval is lender-issued after documentation.

Showing logistics: confirm access, safety, and seller instructions; lockbox use requires authorization.

Contract elements: offer, acceptance, consideration, capacity, lawful purpose, and mutual assent; statute of frauds requires writing for real estate contracts.

Contingencies: financing, appraisal, inspection, title, sale of buyer's home; each must have a deadline and remedy.

Earnest money: deposit held in trust; disposition on default depends on contract terms and state law.

Disclosure duties: seller property condition disclosure, lead-based paint (pre-1978), agency relationship, material defects, and state-specific forms.

Closing: settlement statement, deed delivery, title insurance, prorations, and recording; debits/credits follow the settlement statement.

Contract remedies: specific performance, damages, rescission, liquidated damages; choose per contract.

Transaction timeline: track deadlines for inspection, appraisal, loan approval, and closing; document extensions in writing.

Loan-to-value (LTV) = loan amount ÷ property value; down payment = value − loan.

Qualifying ratios: front-end = housing expense ÷ gross monthly income; back-end = total debt ÷ gross monthly income; conventional guidelines often 28/36, FHA 31/43 (varies).

PITI = principal + interest + taxes + insurance; include HOA dues and mortgage insurance where applicable.

Amortization: fixed-rate fully amortizing loan payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where r = monthly rate, n = number of payments.

Loan types: conventional, FHA (government-insured), VA (guaranteed), USDA (rural), jumbo (above conforming limit).

Mortgage insurance: required when LTV > 80% for conventional (PMI), upfront/annual for FHA; VA has funding fee.

RESPA/TRID: Loan Estimate within 3 business days of application; Closing Disclosure at least 3 business days before closing.

Escrow/impound accounts hold taxes and insurance; annual escrow analysis adjusts payments.

Fiduciary duties: care, obedience, loyalty, disclosure, confidentiality, accounting, and reasonable skill (COLDAC).

Agency creation: express (written/verbal), implied, ostensible; disclosure and consent required.

Dual agency: representing both buyer and seller requires informed written consent and may be limited to facilitation in some states.

Fair housing protected classes (federal): race, color, religion, sex, national origin, familial status, disability; state/local may add.

Prohibited acts: refusal to sell/rent, discriminatory terms, steering, blockbusting, redlining, discriminatory advertising.

Reasonable accommodation/modification for disability; allow service/assistance animals; no extra fees for accommodation.

Ethics: NAR Code of Ethics applies to REALTORS®; duties to clients, customers, and the public; arbitration and mediation for disputes.

Confidentiality survives termination of agency; disclose material facts even if not asked.

Licensing: state real estate commission regulates licensing, education, exams, and discipline; licensees must renew and complete continuing education.

Antitrust: Sherman Act prohibits price fixing, group boycotts, and market allocation; commissions are negotiable.

RESPA Section 8 prohibits kickbacks and unearned fees for settlement services; Section 9 limits seller-required title insurance.

TILA/Regulation Z: disclosure of credit terms; TRID integrated disclosures; right of rescission for certain refinances (3 business days).

Fair housing laws: federal Fair Housing Act, state/local laws; HUD enforcement; penalties increase for repeat violations.

Environmental: lead-based paint disclosure (pre-1978), radon, mold, asbestos, wetlands, and endangered species restrictions.

Land use: zoning, variances, conditional use permits, subdivision regulations, and eminent domain.

Consumer protection: advertising rules, unlicensed activity, and record retention requirements.

Client vs. customer: client has agency representation; customer receives services without fiduciary duties.

Communication: document all material communications and confirm instructions in writing.

Risk management: use written agreements, disclose agency, avoid unauthorized practice of law, and maintain errors and omissions insurance.

Trust funds: earnest money and client funds must be held in a trust account and accounted for; commingling is prohibited.

Referrals: disclose referral fees where allowed; unlicensed persons may not be paid for brokerage services.

Client service: set expectations, provide regular updates, and coordinate with lenders, inspectors, and title companies.

Business development: comply with do-not-call, CAN-SPAM, and fair housing advertising rules.

Continuing education and mentorship support competence and license renewal.