Real Estate study guide
Real Estate · Work through your exam, one topic at a time.
A real estate licensing exam is the state-administered test a candidate must pass before being issued a salesperson or broker license and before lawfully representing clients in a transaction. It is written for people entering the field - career changers, recent graduates, part-time agents building a practice - and for brokers adding a second credential. The Real Estate study guide has 10 sections and about 2,720 words.
01Real Property Characteristics, Legal Descriptions, and Property Ownership
Real property is land plus the improvements and the bundle of rights attached to it. Candidates must be able to separate physical characteristics (immobility, indestructibility, nonhomogeneity) from economic characteristics (scarcity, improvements, permanence of investment, area preference/situs).
316 words, about 2 min02Agency and Non-Agency Relationships
Agency is a fiduciary relationship created when one person (principal) authorizes another (agent) to act on the principal's behalf. Creation can be express (written or oral agreement), implied (from conduct), or by ratification (principal approves an unauthorized act) or estoppel (principal's conduct leads third parties to believe agency exists).
302 words, about 2 min03Contracts
A valid contract requires offer, acceptance, consideration, legal capacity, and lawful purpose , plus mutual assent. A listing agreement is an employment contract; a purchase agreement is a contract for sale; an option is a unilateral contract to keep an offer open.
284 words, about 1 min04Financing
A mortgage is a lien securing a debt; the mortgagee lends and the mortgagor borrows. Know the promissory note (the debt) vs.
266 words, about 1 min05Leases and Property Management
A lease transfers the right of possession for a term in exchange for rent. Distinguish estate for years (fixed term, no notice needed to end), periodic tenancy (month-to-month, notice required), tenancy at will , and tenancy at sufferance (holdover).
262 words, about 1 min06Real Estate Mathematics and Valuation
Sales comparison (most reliable for residential), cost approach (reproduction/replacement cost less depreciation plus land value; best for special-purpose or new property), and income approach (capitalization; best for income property). Know that appraised value is an opinion, not a guarantee.
261 words, about 1 min07Transfer of Property
A deed conveys title. Essential elements: competent grantor, identifiable grantee, words of conveyance, legal description, consideration (usually), and delivery and acceptance.
251 words, about 1 min08Land Use and Environmental Regulations
Zoning regulates use by district (residential, commercial, industrial) and controls bulk via setbacks, height, lot coverage, and density. Know nonconforming use (pre-existing use allowed to continue), variance (hardship relief), special/conditional use permit (permitted with conditions), and spot zoning (generally invalid if arbitrary).
257 words, about 1 min09Real Estate Practice and Licensing
States license brokers and salespersons. A salesperson works under a broker; a broker may operate independently.
265 words, about 1 min10Fair Housing and Consumer Protection
The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability. Know the prohibited acts: refusing to rent/sell, different terms, discriminatory advertising, blockbusting, steering, and redlining.
256 words, about 1 min