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EXAM REVIEW COURSE MANUAL

I. LEGAL ASPECTS A. PROPERTY — 1. Real Property — 2. Fixtures — 3. Run with the Land — 4. Personal Property — B. ESTATES 1. Freehold

a. Fee Simple Estates (Fee Estate) —

b. Fee Simple Defeasible — c Life Estate, Property is Leased — 2. Less-Than-Freehold Estates (Leases) — a. Sublease —

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b. Quiet Enjoyment — c. Abandonment — d. Percentage Lease —

e. Security Deposit —

f. Estates for Years — g. License — C. TITLE VESTINGS — 1. Severalty — 2. Joint Tenancy — 3. Tenancy in Common — 4. Community Property — Agreement to Sell — D. TRANSFER OF TITLE 1. Cloud on Title — 2. Quiet Title Action — 3. Alienation — 4. Eminent Domain — 5. Police Power —

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6. Escheat — 7. Accretion — 8. Avulsion — 9. Probate Sale — Commission —

10. Intestate Succession — E. DEEDS — Purpose — 1. Grant Deed — 2. Quitclaim Deed — 3. Deed Essentials — F. RECORDING

1. Constructive Notice — 2. Acknowledgment — II. ENCUMBRANCES — A. EASEMENTS — 1. Prescriptive Easements — 2. Termination of Easements —

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3. Appurtenant Easements — 4. Confirmed by — B. RESTRICTIONS – “The More Restrictive Restricts” 1. Private Restrictions — a. Condition — 2. Public Restrictions — a. Changes can be Initiated by — b. Commercial to Residential — C. ENCROACHMENTS — D. LIENS — 1. Specific Lien — 2. General Lien — E. PROMISSORY NOTES — 1. Amortization — a. Level Payment — b. Negative Amortization — c. GPAM Loan — 2. Interest Rates Affected by —

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3. Variable Interest (Adjustable Rate Mortgage) — 4. Effective Interest Rate — Nominal Interest Rate — 5. Negotiable Instrument — 6. Straight Note (Interest Only) — 7. Balloon Loan (Partially Amortized) — 8. Holder in Due Course — 9. Discounting — 10. Default — 11. More than One Borrower — F. TRUST DEEDS AND MORTGAGES 1. General Information a. Trustor — b. Beneficiary — c. Right to Sell — d. Terminated — 2. Foreclosure a. Court Sale — b. Trustee's Sale — c. Deed in Lieu of Foreclosure — d. Request for Notice Protects —

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e. Lender's Basic Protection — 3. Priority — 4. Blanket Mortgages a. Release Clause — 5. Trust Deed and Mortgage Clause a. "Assume" — b. Subordination Clause — c. Open-End — d. Beneficiary Statement — e. Prepayment Penalty — G. OTHER LIENS 1. Mechanics Liens — a. Priority — b. Notices — 2. Lis Pendens —

a. Lis Pendens is Effective Until — 3. Injunction — 4. Execution —

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III. TITLE INSURANCE A. GENERAL INFORMATION 1. Chain of Title — Abstract of Title — Preliminary Report — 2. Standard Policy of Title Insurance (CLTA) — a. Protects Against: 3. Extended Policy — 4. ALTA Policy — 5. Exclusions — 6. Search — IV. REAL ESTATE LAW — A. ILLEGAL ACTS — 1. Misrepresentation — 2. Commission to Buyer — 3. Blind Ad — 4. Misleading Advertising — 5. Secret Profit by Non-Licensee —

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6. Referral Fees — 7. Gifts — 8. Commingling — 9. Not a Member — B. BROKER RELATIONSHIPS 1. Salesperson as Independent Contractor — 2. Unlicensed Assistant — C. MANAGE PROPERTY — D. DESK COST — E. COMPANY DOLLAR — F. TRUST FUND ACCOUNT — G. ETHICAL PRACTICES — H. RECOVERY ACCOUNT — I. SELLING TRUST DEEDS —

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J. MOBILE HOMES 1. Can Sell — 2. Must Remove Signs —

3. Notice of Transfer — K. REAL ESTATE LICENSE 1. Expired License —

2. Delinquent Child Support — L. ADVANCE FEE CONTRACT — M. FAIR HOUSING —

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V. FINANCING A. ECONOMIC THEORY — 1. Leverage — 2. Appreciation or Inflation — 3. Prices Decrease — 4. Seller's Market — 5. Impact Real Estate — 6. GDP and Employment Rise — B. LENDERS — 1. Insurance Companies — 2. Mortgage Companies — 3. Private Lenders — 4. Secondary Mortgage Market — a. Federal Home Loan Mortgage Corporation — 5. Federal Reserve System a. Increase Reserves — b. Tight Money — 6. Federal National Mortgage Association —

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C. LENDING PRACTICES 1. Loan-to-Value — 2. A Loan Commitment — 3. Debt-Income Ratio — 4. Mortgage Loan — 5. Lenders Minimize — 6. Late Payment — 7. 100% Loan — 8. Warehousing — 9. FICO Score — 10. Security Interest — 11. Discount Points — 12. Document Preparation Charges — D. TRUTH-IN-LENDING (Regulation Z) — 1. Purpose — 2. Annual Percentage Rate — 3. Right to Cancel —

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E. CONDITIONAL INSTALLMENT SALES CONTRACTS (Land Contract) — 1. Default, Quitclaim Deed — F. TYPES OF LOANS 1. Loan Insured by — a. FHA — 2. VA — 3. Cal-Vet — G. INSURANCE — 1. Fire Insurance — H. ESCROW — 1. Instructions Executed by — 2. Purpose — 3. Closing Statement — Buyer Debit — Credit Seller — 4. Impounds — 5. Two Termite Reports — 6. Escrow Can — 7. Report to IRS — 8. Move in Early — 9. Release Disputed Funds —

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I. REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) 1. 1-to-4-Family Residential Dwellings — 2. Uniform Settlement Statement — 3. Buyer Can Require — J. MANDATED DISCLOSURES 1. Real Property Transfer Disclosure Statement (TDS) a. Given by — b. Must Reveal — c. License Can Never — d. Amended Statement — e. Defective Statement — 2. Alquist-Priolo Act a. Requires Disclosure — b. Zone Extends — VI. CONTRACTS A. TYPES OF CONTRACTS 1. Executed — 2. Voidable —

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B. LEGAL ESSENTIALS OF A VALID CONTRACT — 1. Legal Capacity — 2. Mutual Consent —

3. Lawful Object — 4. Consideration —

C. STATUTE OF FRAUDS — D. BREACH OF CONTRACT 1. Specific Performance — E. LISTINGS — 1. Agency Creation — a. Oral Agreements — b. Lease on Duplex — c. Subagent of listing broker — 2. Fiduciary Obligations — a. Present All Written Offers — b. Seller Fires Broker —

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c. Broker Owes Buyer — d. Broker as Agent of Buyer (Offeror) —

e. Material Facts —

f. Puffing —

g. Broker Promises Seller to Find House —

h. Agent Promises to Advertise and Does Not —

i. Protect Confidential Information — 3. Deposits — a. Seller — 4. Commissions — a. Commission After Term of Listing — 5. Liability — a. Fraudulent Misrepresentation — 6. Types of Listings a. Exclusive Listing — b. Exclusive Agency —

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c. Exclusive Right to Sell — F. OFFERS 1. Terminated By — 2. Counteroffer — G. DEPOSIT RECEIPTS (Purchase Contract) 1. Buyer Defaults, Deposit Is — 2. Time is of the Essence — H. OPTIONS 1. Agreement — 2. Contract — 3. Optionee — 4. Option and Listing — VII. TAXATION A. FEDERAL INCOME TAXES 1. General Rules a. Marginal Tax Rate — b. Unadjusted Basis — c. Adjusted Basis — d. Tax Shelters —

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2. Personal Residence a. Deductions — b. Adjusted Basis — 3. Income Property a. Deductions — b. Depreciation — c. Operational Loss — d. Capital Expenditures — e. Loss Upon Sale — 4. Exchanges (1031) — a. "Boot" — Receiver — b. Basis of New Property — 5. Sale-Leaseback — B. PROPERTY TAXES — 1. Tax Bill — 2. "Ad Valorem" — 3. Property Reassessed — a. Over-Assessed — 4. Dates — 5. Delinquent Tax Sale —

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C. ASSESSMENT LIENS — 1. Mello-Roos — VIII. SUBDIVISIONS A. SUBDIVISION MAP ACT — 1. Master Plan — B. SUBDIVIDED LANDS ACT 1. Condominiums or Subdivisions — a. Sidewalks — b. Estate in Real Property — c. Seller Provides Buyer — 2. Real Estate Commissioner — 3. Public Report a. Given — b. Receipts — c. Excessive Price — C. GENERAL INFORMATION 1. Building Code — a. Purpose — 2. Building Permit —

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3. Developer — 4. Time Share Gifts —

IX. BUSINESS OPPORTUNITIES A. GENERAL INFORMATION 1. Franchise — 2. Advance Fee for Advertising — 3. Bill of Sale — X. APPRAISAL A. APPRAISAL THEORY 1. Appraiser —

a. Narrative Report — b. Type of Value — 2. Fee Appraiser — 3. Appraisal — 4. Maintenance of Value — 5. Market Value —

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6. Principle of Contribution — 7. Highest and Best Use — 8. Principle of Substitution — 9. Principle of Regression — 10. Unearned Increment — 11. Plottage — 12. Highest value — 13. Appreciation — B. MARKET DATA (COMPARISON) APPROACH 1. Difficulty of Market Data — 2. Least Reliable — 3. Warehouse —

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C. COST (REPLACEMENT) APPROACH — 1. Upper Limits of Value — a. Replacement — 2. New Property — 3. Cost of Construction — 4. 1910 House — D. CAPITALIZATION (INCOME) APPROACH — 1. Effective Gross Income — 2. Net Income — 3. Present Worth — 4. Capitalization Rate — 5. Capitalization (Income) Approach — E. GROSS RENT MULTIPLIER — F. DEPRECIATION — 1. Effective Age — 2. Economic Life — 3. Obsolescence — 4. Functional Obsolescence — a. Same Building Costs, Different Values —

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5. Economic Obsolescence — 6. Obsolescence — G. CONSTRUCTION TERMS 1. Bearing Wall — 2. Joist — 3. Ridge Board — 4. Footing — 5. Structural Pest Control Report — a. No Infestation or Damage — b. Best Time to get Report — 6. Deciduous — 7. Roof Sloping on Four Sides — 8. Higher EER — 9. Sheet Metal — 10. Insulation — a. R-Value —

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11. Turn Key Project — 12. Elevation Sheet — 13. Information Booth — 14. Backfill — 15. Cracked Foundation — 16. Plot Plan — 17. Foundation Plan — 18. Substandard Building —

19. Repairs to Building’s Broken Equipment —

20. Commercial Acre —

21. Orientation —

22. HVAC —