Detailed Content Outline - AMP Pre-Licensing Examination
National Portion

Topics in italics appear on the Broker Examination only

I. Listing Property
    A. Listing
    1. Hidden defects
    2. Listing agreement signatures by all parties
    3. Tax assessment and tax rate
    4. Deed restrictions and covenants
    5. Legal description
    6. Lot size
    7. Physical dimensions of structure
    8. Appurtenances (for example, easements, water rights)
    9. Utilities
    10. Type of construction
    11. Encumbrances (for example, liens, restrictions)
    12. Compliance with health and safety building codes
    13. Ownership of record
    14. Homeowners’ association bylaws and fees
    15. Brokerage fee

    B. Assessment of Property Value

    1. Location
    2. Anticipated changes (for example, in zoning or use)
    3. Depreciation
    4. Deterioration
    5. Obsolescence
    6. Improvements
    7. Economic trends

    C. Property Valuation

    1. Sales comparison approach
    2. Income approach
    3. Replacement cost estimate
    4. Gross rent multiplier approach
    5. Appropriate listing price recommendations for the seller
    6. Need for independent appraisal

    D. Nature of Real Property

    1. Property subdivision and selling of parcels
    2. Real and personal property included in, or excluded from, the sale (for example, land, minerals, water, crops, fixtures)
    3. Differences between personal property and real property
    4. Forms of ownership interests in real estate, and issues related to conveyance of real property (for example, tenancy and partnership)
    5. Methods of land description (for example, government survey, recorded maps, recorded instruments, “metes and bounds,” and lot division)
    6. Interests in real property (for example, freehold and nonfreehold)
    7. Planning and zoning (variance and zoning changes), including special study zones (for example, flood, geological hazards)

    E. Services Provided in the Agency Relationship with the Seller

    1. Agency, responsibility of an agency, and services the agency will provide4)
    2. Net proceed estimation
    3. Listing agreements, documents provided to the seller
    4. Safeguarding property (for example, lockbox)
    5. Methods of improving marketability of property (for example, landscaping)4)
    6. Property marketing (advertise and show), keeping seller informed
    7. Property files (for example, surveys and maps)
    8. Civil rights and fair housing policy

II. Selling Property

    A. Contracts and Offers
    1. Sales contract forms and provisions (including options)
    2. Offers and counteroffers

    B. Characteristics of Real Property

    1. Rights of ownership
    2. Characteristics of residential property
    3. Characteristics of commercial property
    4. Characteristics of industrial property
    5. Right of property subdivision
    6. Planning and zoning (variance and zoning changes), including special study zones (for example, flood, geological hazards)

    C. Agency

    1. Agency relationship to buyers (for example, buyer brokerage)
    2. Material facts (for example, taxes, zoning, building codes, or other land use restrictions)
    3. Physical condition of property (for example, defects and environmental hazards)
    4. Psychological impact related to property (for example, disclosure of murder, suicide)

    D. Advising Buyers of Outside Services

    1. Income tax implications of home ownership
    2. Income tax implications for real estate investments
    3. Need for buyer to seek legal counsel
    4. Home protection plans (warranty)
    5. Insurance (for example, fire, hazard, liability)
    6. Inspection reports (for example, structural, pest, well, septic, soil)
    7. Surveys
    8. Appraisals

    E. Services Provided to the Buyer

    1. Information needed to assess prospective buyer’s price range and eligibility for financing
    2. Qualifying prospective buyers
    3. Preview and choose property to show buyer
    4. Current market conditions
    5. Show properties and note amenities
    6. Affirmative marketing to assure equal opportunity
    7. Civil rights and fair housing laws

III. Property Management
    A. Services to Landlords
    1. Advertising property
    2. Evaluating rental market
    3. Obtaining tenants
    4. Screening applicants according to appropriate laws and regulations
    5. Tenant complaints and conflicts among tenants
    6. Maintaining fiduciary responsibilities to owners
    7. Income, expenses and rate of return for property
    8. Federal reporting requirements
    9. Federal fair housing laws
    10. Maintenance
    11. Fees, security deposits and rent collection
    12. Negotiating property management agreements
    13. Operating budgets
    14. Trust accounts
    15. Owners’ financial statements
    16. Environmental hazards
    17. Eviction proceedings

    B. Services to Tenants

    1. Lease agreements used in property management
    2. Rental and lease agreements (including options)
    3. Material facts
    4. Showing property to prospective tenants
    5. Occupancy terms
    6. Proration of rents and leases

IV. Settlement/Transfer of Ownership
    A. Tax Issues
    1. Tax implications of interest expenses
    2. Real property taxes
    3. One-time lifetime exemption from capital gains tax for persons age 55 and older
    4. Refinancing
    5. Property taxation (for example, ad valorem and special assessments)
    6. Capital improvements (effect on basis)

    B. Titles

    1. Title search
    2. Title insurance (owner’s and mortgagee’s)
    3. Title problems
    4. Legal procedures (for example, quiet title, foreclosure, bankruptcy, declaratory judgment)
    5. Title abstracts
    6. Liens (for example, mortgages, trust deeds, construction/mechanics liens, judgments by court), and order of priority
    7. Legal proceedings against property (for example, attachments, notice of pending legal action)
    8. Methods of recording

    C. Settlement Procedures

    1. Purposes and procedures of settlement
    2. Federal statutory requirements
    3. Real Estate Settlement Procedures Act (RESPA)
    4. Closing statements (for example, calculate amount owed by buyer, net to seller)
    5. Rescission clauses
    6. Obligations of settlement agent
    7. Calculations regarding proration/prepayment
    8. Warranties associated with deeds (for example, grant, warranty, and quitclaim deeds)
    9. Settlement statement (HUD-1)
    10. Other settlement documents (for example, deed, bill of sale, note, deed of trust)
    11. Transfer tax

    D. Characteristics of Real Property

    1. Ways of holding and conveying title, and characteristics of the different approaches to tenancy (for example, joint tenancy, tenancy in common, tenancy by entirety, severalty)
    2. Rights of home ownership (for example, homestead)
    3. Rights of others related to property (for example, adverse possession, adjoining owners, encroachments)
    4. Nature and types of common interest ownership (for example, condominiums, planned unit development, cooperatives, townhouses, time-share)
    5. Eminent domain proceedings (for example, condemnation)

    E. Additional Services

    1. Negotiations between buyers and sellers leading to agreement
    2. Contract requirements and fulfillment of contingencies leading to closing
    3. Fair housing laws
    4. Securities laws, providing appropriate referrals
    5. Other situations where experts are required (for example, financial and legal)

V. Financing
    A. Sources of Financing
    1. Institutional (for example, savings and loans, banks, mortgage brokers)
    2. Seller financing (for example, land contract, purchase money mortgage)
    3. Assumption of existing financing
    4. Other sources of financing

    B. Types of Loans

    1. Security for loans (for example, trust deeds, land contracts, mortgages)
    2. Repayment methods (for example, adjustable rate mortgage, fully/partially/nonamortized, renegotiated rate)
    3. Forms of financing (for example, FHA,VA, FmHa, conventional loan)
    4. Secondary mortgage markets (for example, FNMA, FHLMC, GNMA)
    5. Other types of mortgage loans (for example, wraparound, blanket, and package)

    C. Terms and Conditions

    1. Loan application requirements
    2. Loan origination costs (for example, appraisal fee, credit reports, points)
    3. Lender requirements (for example, property insurance, escrow deposits, underwriting criteria)
    4. Conditional approval
    5. Provisions of federal regulations (for example, Truth-in-Lending Act, Equal Credit Opportunity Act)

    D. Common Clauses and Terms in Mortgage Instruments

    1. Prepayment
    2. Interest rates (for example, fixed and adjustable rates)
    3. Release
    4. Due-on-sale
    5. Subordination
    6. Escalation
    7. Acceleration
    8. Default
    9. Foreclosure and redemption rights
    10. Nonrecourse provision

VI. Professional Responsibilities/Fair Practice/Administration
    A. Professional Responsibilities and Fair Practice
    1. Legal responsibilities of a licensee under the law of agency (for example, single agency, consensual dual agency, limited agency)
    2. Laws, rules and regulations pertaining to real estate practice
    3. Market trends, availability of financing, rates, and conditions of obtaining credit
    4. Resolving misunderstandings among parties to real estate transactions
    5. Administration
    6. Terms of contract between licensee and broker (for example, employee or independent contractor)
    7. Complete and accurate records of all business transactions
    8. Required notifications and reports of the real estate regulatory agency
    9. Company policies, procedures and standards
    10. Determining commissions for brokerage agreements and closing statements4)
    11. Trust accounts
    12. Recruiting and training sales force
    13. Supervising sales force
    14. Personnel records
    15. Commission distribution
    16. Profit and loss statements
    17. Accounting procedures for the office
    18. General insurance for the office


Nevada State Exam – Detailed Content Outline
Drafted July 1998


I. Duties and Powers of the Real Estate Division

    A. General Powers

    B. Investigations, Hearings, and Appeals

    C. Sanctions; License Suspension and Revocation (NRS 645.680); Misdemeanor; Administrative Sanctions (NAC 645.695); Grounds for Discipline (NRS 645.630, 645.633, 645.635, 645.645)

    D. Inspection of Records

    E. Determining Misconduct (NAC 645.605)

II.Licensing Requirements

    A.Types of Licensing; Activities Requiring a License

    B. Cooperative Certificate (NAC 645.180, 645.183, 645.185)

    C. Property Management Permit

    D. License Renewal

    E. Change in License/Terminations (NRS 645.570)

    F. Reasons for Denial (NRS 645.420, 645.430, 645.440, 645.330)

III. Statutory Requirements Governing the Activities of Licensees

    A. Advertising (NRS 645.560; NAC 645.610, 645.615)

    B. Broker/Salesperson Relationship; Broker Supervision of licensees

    C. Commissions (NRS 645.280)

    D. Disclosures

    1. Nevada Duties Owed (NRS 645.252, 645.253, 645.254; NAC 645.637, 645.640)
    2. Seller Real Property Disclosure (NRS 113.130, 113.140, 113.150)
    3. Zoning
    4. Disclosure of common-interest communities (NRS 116)
    5. Material Facts (NRS 645.254.3(c))
    6. Interest in Property (NAC 645.535.4)

    E. Preparation and Handling of Documents

    1. Earnest money deposits (NRS 645.630.9)
    2. Contracts
    3. Presenting all offers (NRS 645.254.3(b))
    4. Proper tender of offers (NRS 645.630, 645.632)
    5. Project documents (such as documents of common-interest ownership, CCRs)

    F. Brokerage Agreements (NRS 645.005; exclusive listings NAC 645.535) and Advance Fees (NRS 645.002, 645.004, NAC 645.675, 645.678)

    G. Branch Office and License Display (Branch office, NAC 645.175, 645.177, 645.178; license display NRS 645.530; business license required, NRS 645.250)

    H. Record Keeping and Trust Account Reconciliation

    I. Other situations that could result in action against licensee

    1. Convicted of a felony (NRS 645.633.4)
    2. Failure to pay child support
    3. Non-compliance

    IV.Additional Topics

    A. Subdivisions and Time Shares (NRS/NAC 119,119A)

    B. Campgrounds (NRS/NAC 119B)

    C. Qualified Intermediaries (NRS 645.606, 645.6065)

    D. Real Estate Education, Research, and Recovery Fund (NRS 645.841-.848)

    E. Closing Statements

    F.vEnvironmental Issues (including Federal Lead-Based Paint Disclosure)

    G. Water Rights/Leased Land

    H.Duties to Client

    1. Area of expertise (NRS 645.254.3(d); NAC 645.605.3)
    2. Responsibility to represent client (NRS 645.254.3)
    3. Account for all monies (NRS 645.254.3(e))

School Information | Continuing Education | Pre-Licensing | Library

Copyright ©1996 - 2001 by Randall S. van Reken.  All rights reserved.