Washington Real Estate Practices 30 Clock Hour (Required Course For First Renewal)

by Dixie Randock

A+ Institute

Real Estate Academy

copyright 2000-2006

Agency Relationships

• Establishment of agency relationships are

• Creation of fiduciary relationship

• Definitions of  client and customer relationships between prospective purchasers and real estate licensees

• Relationship between real estate brokers and their affiliated licensees relating to agency relationships

• 5 services a licensee can provide to a prospective purchaser that establishes agency

• Disclosure requirements

• Compensation

• Multiple listing associations

• Vicarious liability” and  Imputed knowledge

• Disciplinary actions for violating agency laws

Listing Agreements

• Exclusive Right to Sell agreement

• Difference between an Exclusive Right to Sell and Exclusive Agency listing agreement

• Relationship of an affiliated licensee with the broker in a listing agreement

• Authority to sign, modify, or cancel a listing agreement

• 3 ways a listing agreement can be terminated

• Termination

• Environmental factors that may require disclosure

• Categories forming the basis for discrimination under the Fair Housing laws

• Fair housing discrimination in advertising

• Antitrust laws

• How real estate commissions are determined

• Payment of a commission under a listing agreement

Evaluating and Pricing Property

• Comparative market analysis (CMA)

• Value of a property

• Cost, value, and price

• Role of an appraiser

• Sources of information needed for preparing a market analysis

• Financing terms

• Zoning laws

Working with Buyers

• Methods of addressing pending divorce actions; partnerships or corporate sellers’/buyers’; builder or seller guarantees; pending foreclosure actions; pending bankruptcy; sales involving estates

• How to present offers, counter-offers, and multiple offers

• Appropriate conduct and behavior when showing property and presenting offers regarding Fair Housing Laws

• Communication with all parties

• Estimate of seller’s proceeds for a residential sale

• Estimate buyer’s cash requirements to close

Negotiation and Sales Techniques

• Structuring an offer

• Effective agency representation

• Representing a buyer

• Negotiation process

• Successful sales techniques and consumer protection

• Home inspectors

• Federal, state, and local fair housing laws

• Permitted and unlawful activities for unlicensed personal assistants

Purchase and Sales Agreements with Earnest Money Provisions

• Purchase and Sale Agreement and various addenda

• Types of contracts

• Contract modification, canceling a contract, attaching additional addenda to the contract, and common law issues

• How offers become contracts

• Legitimacy of facsimile and telegram copies versus original copies

• Notification and acceptance

• Statute of Frauds regarding real estate contracts

• Contingencies

• Acceptable forms of earnest money

• Proper handling procedures for earnest money

Residential Financing

• Qualifying the purchaser

• Guidelines for qualifying a purchaser

• Pitfalls to avoid when qualifying a purchaser

• Influence of the value of property when qualifying a borrower

• How to arrive at the maximum purchase price a borrower can afford to pay for a home

• Conventional, FHA, and VA financing and the different qualifying requirements for each

• Adjustable Rate Mortgage (ARM)

• Sources of special financing programs available for first time homebuyers

Closing Processes

• Events and processes affect the closing of a residential transaction

• Closing dates and different financing methods affect closing costs

• Regulation Z in residential finance