1. Whether representing sellers or buyers, the role of the real estate professional is one of building relationships. The property for sale is the “product” but the focus of the agent’s business is relationships with the parties. Chapter 6 Listing Agreements and Buyer Representation

2. 6 Listing Agreements and Buyer Representation Modern Real Estate Practice 17th Edition Learning Objectives ê Identify the different types of listing and buyer representation agreements and their terms ê Describe the ways in which a listing may be terminated ê Explain the listing process and the parts of the listing agreement ê Distinguish among the characteristics of the various types of listing and buyer representation agreements

3. 6 Listing Agreements and Buyer Representation Modern Real Estate Practice 17th Edition Listing Agreements é Exclusive-right-to-sell listing é Exclusive-agency listing é Open listing é Multiple-listing (MLS) é Net listing é Option listing

4. 6 Listing Agreements and Buyer Representation Modern Real Estate Practice 17th Edition Termination é purpose is fulfilled é expiration of listing period é property is destroyed or use is changed é title is transferred by law é mutual agreement of the parties é death or incapacity of either party é breach

5. 6 Listing Agreements and Buyer Representation Modern Real Estate Practice 17th Edition Listing Process é CMA é Basic information required é Disclosures

6. Modern Real Estate Practice 17th Edition 6 Listing Agreements and Buyer Representation

7. 6 Listing Agreements and Buyer Representation Modern Real Estate Practice 17th Edition Listing Agreement Issues é Type of listing agreement é Broker’s authority and responsibilities é Names of all parties é Brokerage firm é Listing price é Real and personal property é Leased equipment

8. 6 Listing Agreements and Buyer Representation Modern Real Estate Practice 17th Edition Listing Agreement Issues é Description of the premises é Proposed closing and possession dates é Closing details é Evidence of ownership é Encumbrances é Home warranty program é Commission

9. 6 Listing Agreements and Buyer Representation Modern Real Estate Practice 17th Edition Listing Agreement Issues é Termination é Broker protection clause é Owner warranties é Indemnification é Equal opportunity é Antitrust é Signatures and date

10. 6 Listing Agreements and Buyer Representation Modern Real Estate Practice 17th Edition Buyer Agency Agreements é Exclusive buyer agency agreement é Exclusive-agency buyer agency agreement é Open buyer agency agreement

11. Different types of property are affected by littoral and riparian rights. This view also suggests potential issues of estate types and taxation. Chapter 7 Interests in Real Estate

12. 7 Interests in Real Estate Modern Real Estate Practice 17th Edition Learning Objectives ê Identify the kinds of limitations on ownership rights that are imposed by government action and the form of conveyance of property ê Describe the various estates in land, and the rights and limitations they convey ê Explain concepts related to encumbrances and water rights ê Distinguish the various types of government powers, and how they are exercised

13. 7 Interests in Real Estate Modern Real Estate Practice 17th Edition Government Powers (“PETE”) é Police Power é Eminent Domain é Taxation é Escheat

14. 7 Interests in Real Estate Modern Real Estate Practice 17th Edition Leasehold Estates é Estate for years é Estate from period to period é Estates at will é Estates at sufferance

15. 7 Interests in Real Estate Modern Real Estate Practice 17th Edition Freehold Estates é Fee simple absolute é Fee simple defeasible é Fee simple determinable é Conventional life estate éPur autre vie éRemainder and reversion é Legal life estate éDower and curtesy éHomestead

16. Modern Real Estate Practice 17th Edition 7 Interests in Real Estate

17. Modern Real Estate Practice 17th Edition 7 Interests in Real Estate

18. Modern Real Estate Practice 17th Edition 7 Interests in Real Estate

19. Modern Real Estate Practice 17th Edition Encumbrances é Liens é Deed restrictions é Easements éAppurtenant éIn gross éParty wall éBy Necessity, Prescription or Condemnation é Licenses é Encroachments

20. Modern Real Estate Practice 17th Edition 7 Interests in Real Estate

21. Modern Real Estate Practice 17th Edition 7 Interests in Real Estate

22. Modern Real Estate Practice 17th Edition Water Rights é Riparian rights é Littoral rights é Accretion, Erosion and Avulsion é Doctrine of Prior Appropriation

23. Modern Real Estate Practice 17th Edition 7 Interests in Real Estate

24. Modern Real Estate Practice 17th Edition 7 Interests in Real Estate

25. Many people visualize single-family homes when they think of real estate ownership but the same issues apply to all types of property. Here is a multifamily residence—possibly a condominium, cooperative, or timeshare vacation home. Chapter 8 Forms of Real Estate Ownership

26. 8 Forms of Real Estate Ownership Modern Real Estate Practice 17th Edition Learning Objectives ê Identify the four basic forms of co-ownership ê Describe the ways in which various business organizations may own property ê Explain how a tenancy in common, joint tenancy and tenancy by the entirety are created, and how they may be terminated ê Distinguish cooperative ownership from condominium ownership

27. 8 Forms of Real Estate Ownership Modern Real Estate Practice 17th Edition

28. 8 Forms of Real Estate Ownership Modern Real Estate Practice 17th Edition Forms of Ownership ê Severalty ê Co-Ownership

29. 8 Forms of Real Estate Ownership Modern Real Estate Practice 17th Edition Forms of Co-ownership ê Tenancy in common ê Joint tenancy êFour unities: Possession, Interest, Time, Title êPartition ê Tenancy by the entirety êMarried couples êTermination: Judgment sale, Death, Agreement or Divorce ê Community property

30. Modern Real Estate Practice 17th Edition 8 Forms of Real Estate Ownership

31. Modern Real Estate Practice 17th Edition 8 Forms of Real Estate Ownership

32. Modern Real Estate Practice 17th Edition 8 Forms of Real Estate Ownership

33. Modern Real Estate Practice 17th Edition Trusts ê Parties êTrustor êTrustee êBeneficiary ê Living and Testamentary Trusts ê Land Trusts

34. 8 Forms of Real Estate Ownership Modern Real Estate Practice 17th Edition Ownership by Business Organizations ê Partnerships êGeneral êLimited ê Corporations êShareholders and Double-Taxation êS Corporation ê Syndicates and Joint Ventures ê Limited Liability Companies (LLCs)

35. 8 Forms of Real Estate Ownership Modern Real Estate Practice 17th Edition Condominiums ê Fee simple ownership ê Creation ê Common elements ê Operation and administration

36. Modern Real Estate Practice 17th Edition 8 Forms of Real Estate Ownership

37. Modern Real Estate Practice 17th Edition Cooperatives ê Proprietary lease ê Shareholder ownership ê Operation and administration ê Tax advantages

38. 8 Forms of Real Estate Ownership Modern Real Estate Practice 17th Edition Townhouses ê Common walls ê Fee simple ownership ê Common elements

39. 8 Forms of Real Estate Ownership Modern Real Estate Practice 17th Edition Time-Shares ê Time-share estate ê Time-share use ê Membership camping

40. This chapter is about how land is divided up for ownership and how to describe those divisions. This subdivision was developed based on a plat map, and clearly shows how the land has been sectioned off for each home. Chapter 9 Legal Descriptions

41. 9 Legal Descriptions Modern Real Estate Practice 17th Edition Learning Objectives ê Identify the three methods used to describe real estate ê Describe how a survey is prepared ê Explain how to read a rectangular survey description ê Distinguish the various units of land measurement

42. 9 Legal Descriptions Modern Real Estate Practice 17th Edition Methods of Describing Real Estate ê Metes-and-bounds êpoint of beginning (POB) êmonuments

43. Modern Real Estate Practice 17th Edition 9 Legal Descriptions

44. Modern Real Estate Practice 17th Edition Methods of Describing Real Estate ê Rectangular (Government) Survey êprincipal meridians êbase lines êtownship lines and township tiers êranges êtownship squares êsections êcorrection lines êgovernment check êfractional sections and government lots

45. 9 Legal Descriptions Modern Real Estate Practice 17th Edition Methods of Describing Real Estate ê Lot-and-Block êplat map êlot êblock

46. Modern Real Estate Practice 17th Edition 9 Legal Descriptions

47. Modern Real Estate Practice 17th Edition Measuring Elevations é Air lots é Datum é Benchmarks

48. One type of lien is the mechanic’s lien, commonly found in home construction, rehabilitation, and addition projects. Chapter 10 Real Estate Taxes and Other Liens

49. 10 Real Estate Taxes and Other Liens Modern Real Estate Practice 17th Edition Learning Objectives ê Identify the various classifications of liens ê Describe how real estate taxes are applied through assessments, tax liens, and the use of equalization ratios ê Explain how nontax liens, such as mechanics’ liens, mortgage liens, and judgment liens are applied and enforced ê Distinguish the characteristics of voluntary, involuntary, statutory, and equitable liens

50. 10 Real Estate Taxes and Other Liens Modern Real Estate Practice 17th Edition Creating Liens (VISE) ê Voluntary – created intentionally ê Involuntary – created by law êStatutory – created by statute êEquitable – created by common law

51. 10 Real Estate Taxes and Other Liens Modern Real Estate Practice 17th Edition Liens é General éaffect all property, both real and personal é Specific ésecured by specific property é Priority é Subordination

52. Modern Real Estate Practice 17th Edition 10 Real Estate Taxes and Other Liens

53. Modern Real Estate Practice 17th Edition Real Estate Tax Liens é General (ad valorem) éExemptions éAssessed value éEqualization éCalculation and billing éEnforcement étax sale éright of redemption – equitable or statutory é Special Assessments é Homeowner Tax Relief

54. 10 Real Estate Taxes and Other Liens Modern Real Estate Practice 17th Edition Other Liens on Real Property é Mortgage (Deed of Trust) Liens é Mechanic’s Liens é Judgment Liens éLis pendens éAttachment

55. 10 Real Estate Taxes and Other Liens Modern Real Estate Practice 17th Edition Other Liens on Real Property é Estate and Inheritance Tax Liens é Liens for Municipal Utilities é Bail Bond Lien é Corporation Franchise Lien é IRS Tax Lien