Property Characteristics
14%of exam
Title + Transfer
11%of exam
Value + Appraisal
14%of exam
Contracts + Agency
20%of exam
Real Estate Practice
13%of exam
Disclosures + Environment
11%of exam
Material FactsLead PaintCERCLAHazardsDisclosure Picker
Financing + Settlement
9%of exam
Loan TypesLender RulesTRIDClosingFinancing Picker
Real Estate Math
9%of exam
Quick Facts
- Portion
- National/general
- Scored
- 80 items
- Pretest
- 5 items
- Vendor
- PSI/Pearson
- Level
- Salesperson
- Math
- Memorize constants
- State
- Study separately
- Blueprint
- Apr 2025
Fixture Tests
MARIA decides fixture status.
MethodAdaptationRelationshipIntentAgreement
Real vs Personal
Real
- Land
- Fixtures
- Deed transfer
Personal
- Movable
- Chattel
- Bill of sale
Attached vs movable
Property Picker
- Attached permanently→Fixture(Real property)
- Tenant business item→Trade fixture(Remove timely)
- Annual tenant crop→Emblement(Personal property)
- Recorded subdivision→Lot/block(Plat map)
- POB plus bearings→Metes/bounds(Boundary path)
- Township/range clues→Rectangular(Government survey)
Fixtures
- Real property
- Land plus rights
- Personal property
- Movable item
- Fixture
- Attached personal item
- Trade fixture
- Tenant business item
- Emblements
- Tenant annual crops
- Attachment
- Personal becomes real
- Severance
- Real becomes personal
- Bill of sale
- Personal property transfer
Government Powers
PETE limits ownership.
Police powerEminent domainTaxationEscheat
Easement vs License
Easement
- Interest in land
- Often transferable
- May run land
License
- Permission only
- Revocable
- No estate
Right vs permission
Land Traits
- Immobility
- Location fixed
- Indestructibility
- Land remains
- Uniqueness
- No identical parcels
- Scarcity
- Limited supply
- Improvement
- Human-made change
- Fixity
- Long-term investment
- Situs
- Area preference
Descriptions + Controls
- Metes/bounds
- POB path
- Lot/block
- Recorded plat
- Rectangular
- Township-range system
- Survey
- Boundary measurement
- Police power
- Zoning authority
- Eminent domain
- Forced taking
- Taxation
- Revenue power
- Escheat
- No-heir transfer
- CC&Rs
- Private restrictions
- Easement
- Use right
- Encroachment
- Unauthorized intrusion
- License
- Revocable permission
Joint vs Common
Joint tenancy
- Equal interests
- Unity required
- Survivorship possible
Tenancy common
- Unequal shares
- No survivorship
- Heirs inherit
Survivorship is key
Title Picker
- Maximum promises→Warranty deed
- Grantor-period promises→Special warranty
- No warranties→Quitclaim deed
- Public notice needed→Record deed
- Hidden title defect→Title insurance
- Defect removal→Quiet title
Estates + Ownership
- Fee simple
- Maximum ownership
- Defeasible fee
- Condition-limited ownership
- Life estate
- Lifetime ownership
- Remainder
- Future interest
- Reversion
- Grantor return
- Estate years
- Fixed lease
- Periodic estate
- Auto-renewing lease
- At will
- Flexible tenancy
- Sufferance
- Holdover possession
- Severalty
- One owner
- Tenancy common
- Undivided shares
- Joint tenancy
- Survivorship possible
Deeds + Title
- Grantor
- Conveys title
- Grantee
- Receives title
- Delivery
- Transfer intent
- Acceptance
- Grantee receives
- Warranty deed
- Strongest promises
- Special warranty
- Grantor-period warranty
- Quitclaim
- No warranties
- Recording
- Public notice
- Actual notice
- Known fact
- Constructive notice
- Recorded notice
- Marketable title
- Reasonably defect-free
- Cloud title
- Possible defect
Value Elements
DUST creates value.
DemandUtilityScarcityTransferability
Market Value vs Price
Market value
- Probable price
- Normal conditions
- Appraisal target
Market price
- Actual amount
- Specific transaction
- May differ
Probable vs actual
Appraisal Picker
- Residential comps→Sales comparison
- New/special building→Cost approach
- Rental property→Income approach
- Agent listing price→CMA
- Broker opinion request→BPO
- Tax assessment clue→Assessed value
Value Principles
- Market value
- Probable price
- Market price
- Actual sale
- Demand
- Buyer desire
- Utility
- Usefulness
- Scarcity
- Limited availability
- Transferability
- Clear ownership
- Substitution
- Comparable ceiling
- Conformity
- Neighborhood fit
- Contribution
- Value added
- Progression
- Better neighbors help
- Regression
- Worse neighbors hurt
Valuation Methods
- Sales comparison
- Recent comps
- Cost approach
- Land plus improvements
- Income approach
- NOI capitalized
- GRM
- Price over rent
- CMA
- Agent pricing tool
- BPO
- Broker value opinion
- Appraisal
- Licensed valuation
- Assessed value
- Tax valuation
- Depreciation
- Value loss
Fiduciary Duties
OLD CAR serves clients.
ObedienceLoyaltyDisclosureConfidentialityAccountingReasonable care
Valid vs Voidable
Valid
- All elements
- Enforceable
- Binding
Voidable
- Defect exists
- One party option
- May rescind
Binding vs cancellable
Contract Picker
- Both promise→Bilateral
- Promise for act→Unilateral
- One can cancel→Voidable
- No legal effect→Void
- Court cannot enforce→Unenforceable
- All duties done→Executed
Contracts
- Express
- Stated agreement
- Implied
- Conduct agreement
- Bilateral
- Promise for promise
- Unilateral
- Promise for act
- Valid
- Legally enforceable
- Void
- No legal effect
- Voidable
- One party may rescind
- Unenforceable
- Court cannot enforce
- Executed
- Fully performed
- Executory
- Still pending
- Consideration
- Bargained exchange
- Contingency
- Condition to perform
Client vs Customer
Client
- Principal
- Fiduciary duties
- Representation
Customer
- Third party
- Honesty owed
- No advocacy
Represented vs assisted
Agency
- Principal
- Client
- Customer
- Non-client party
- Fiduciary
- Client-first duty
- Loyalty
- Principal interest first
- Obedience
- Lawful instructions
- Disclosure
- Material facts
- Confidentiality
- Protect client info
- Accounting
- Handle funds
- Reasonable care
- Competent work
- Dual agency
- Both sides
- Transaction broker
- Limited neutrality
- Agency termination
- Ends authority
Practice Picker
- Seller owes regardless→Exclusive right
- Owner may sell→Exclusive agency
- Multiple brokers→Open listing
- Above-net commission→Net listing(Conflict)
- Neighborhood steering→Fair housing
- Commission agreement→Antitrust issue
Practice + Compliance
- Exclusive right
- Broker paid anyway
- Exclusive agency
- Owner can sell
- Open listing
- Procuring broker paid
- Net listing
- Conflict risk
- Trust account
- Client funds
- Commingling
- Mixed funds
- Conversion
- Misused funds
- Antitrust
- Competition protection
- Price fixing
- Illegal agreement
- Steering
- Neighborhood channeling
- Blockbusting
- Fear-based selling
- Redlining
- Area credit denial
Disclosures + Environment
- Material fact
- Decision-changing fact
- Latent defect
- Hidden problem
- Patent defect
- Visible problem
- Lead paint
- Pre-1978 disclosure
- Radon
- Soil gas
- Asbestos
- Fiber hazard
- Mold
- Moisture hazard
- UST
- Buried tank
- Brownfield
- Contaminated reuse site
- CERCLA
- Superfund liability
- Phase I
- Records inspection
- Phase II
- Sampling tests
TILA vs RESPA
TILA
- Credit terms
- APR disclosure
- Reg Z
RESPA
- Settlement costs
- Referral kickbacks
- Escrow rules
Credit vs settlement
Financing + Settlement
- Mortgage
- Security instrument
- Note
- Debt promise
- Deed trust
- Three-party security
- Conventional
- Non-government loan
- FHA
- Insured loan
- VA
- Guaranteed loan
- USDA
- Rural loan
- ARM
- Adjustable rate
- PMI
- Lender protection
- MIP
- FHA insurance
- TILA
- Credit disclosure
- RESPA
- Settlement rules
- TRID
- LE plus CD
- ECOA
- Credit fairness
- LTV
- Loan over value
Monthly Payment
PITI builds payment.
PrincipalInterestTaxesInsurance
Debit vs Credit
Debit
- Increases owed
- Charge
- Cost side
Credit
- Reduces owed
- Benefit
- Received side
Charge vs benefit
Math Picker
- Find commission→Price x rate
- Find points→Loan x percent
- Find LTV→Loan/value
- Find equity→Value minus debt
- Find cap rate→NOI/value
- Find daily proration→Annual/day count
Math Formulas
- Acre
- 43,560 sq ft
- Mile
- 5,280 feet
- Section
- 640 acres
- Township
- 36 sections
- Commission
- Price times rate
- Interest
- Principal times rate
- Points
- Loan times percent
- LTV
- Loan divided value
- Equity
- Value minus debt
- NOI
- Income minus expenses
- Cap rate
- NOI divided value
- Proration
- Daily amount split
Common Traps
Fixture Confusion
Fixture transfers by deed ≠ Personal transfers by bill
Trade Fixture Timing
Remove before lease ends ≠ Repair removal damage
Agency Parties
Client gets loyalty ≠ Customer gets honesty
Contract Status
Void never existed ≠ Voidable can be rescinded
Listing Types
Exclusive right protects broker ≠ Exclusive agency lets owner sell
Proration Direction
Unpaid charges debit seller ≠ Prepaid charges credit seller
Appraisal Scope
Appraisal is licensed ≠ CMA is brokerage tool
Fair Housing
Intent not required ≠ Effect can violate
Last Minute
- 1.Fixtures: use MARIA
- 2.Land controls: remember PETE
- 3.Deed needs delivery
- 4.Recording gives constructive notice
- 5.Market value not price
- 6.Agency duties: OLD CAR
- 7.Client not customer
- 8.TILA credit; RESPA settlement
- 9.Acre = 43,560 sq ft
- 10.Section = 640 acres
- 11.LTV = loan/value
- 12.Cap rate = NOI/value
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