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Detailed Content Outline - AMP Pre-Licensing Examination National Portion
Topics in italics appear on the Broker Examination only
I. Listing Property
A. Listing
- Hidden defects
- Listing agreement signatures by all parties
- Tax assessment and tax rate
- Deed restrictions and covenants
- Legal description
- Lot size
- Physical dimensions of structure
- Appurtenances (for example, easements, water rights)
- Utilities
- Type of construction
- Encumbrances (for example, liens, restrictions)
- Compliance with health and safety building codes
- Ownership of record
- Homeowners’ association bylaws and fees
- Brokerage fee
B. Assessment of Property Value
- Location
- Anticipated changes (for example, in zoning or use)
- Depreciation
- Deterioration
- Obsolescence
- Improvements
- Economic trends
C. Property Valuation
- Sales comparison approach
- Income approach
- Replacement cost estimate
- Gross rent multiplier approach
- Appropriate listing price recommendations for the seller
- Need for independent appraisal
D. Nature of Real Property
- Property subdivision and selling of parcels
- Real and personal property included in, or excluded from, the sale (for example, land, minerals, water, crops, fixtures)
- Differences between personal property and real property
- Forms of ownership interests in real estate, and issues related to conveyance of real property (for example, tenancy and partnership)
- Methods of land description (for example, government survey, recorded maps, recorded instruments, “metes and bounds,” and lot division)
- Interests in real property (for example, freehold and nonfreehold)
- 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
- Agency, responsibility of an agency, and services the agency will provide4)
- Net proceed estimation
- Listing agreements, documents provided to the seller
- Safeguarding property (for example, lockbox)
- Methods of improving marketability of property (for example, landscaping)4)
- Property marketing (advertise and show), keeping seller informed
- Property files (for example, surveys and maps)
- Civil rights and fair housing policy
II. Selling Property
A. Contracts and Offers
- Sales contract forms and provisions (including options)
- Offers and counteroffers
B. Characteristics of Real Property
- Rights of ownership
- Characteristics of residential property
- Characteristics of commercial property
- Characteristics of industrial property
- Right of property subdivision
- Planning and zoning (variance and zoning changes), including special study zones (for example, flood, geological hazards)
C. Agency
- Agency relationship to buyers (for example, buyer brokerage)
- Material facts (for example, taxes, zoning, building codes, or other land use restrictions)
- Physical condition of property (for example, defects and environmental hazards)
- Psychological impact related to property (for example, disclosure of murder, suicide)
D. Advising Buyers of Outside Services
- Income tax implications of home ownership
- Income tax implications for real estate investments
- Need for buyer to seek legal counsel
- Home protection plans (warranty)
- Insurance (for example, fire, hazard, liability)
- Inspection reports (for example, structural, pest, well, septic, soil)
- Surveys
- Appraisals
E. Services Provided to the Buyer
- Information needed to assess prospective buyer’s price range and eligibility for financing
- Qualifying prospective buyers
- Preview and choose property to show buyer
- Current market conditions
- Show properties and note amenities
- Affirmative marketing to assure equal opportunity
- Civil rights and fair housing laws
III. Property Management
A. Services to Landlords
- Advertising property
- Evaluating rental market
- Obtaining tenants
- Screening applicants according to appropriate laws and regulations
- Tenant complaints and conflicts among tenants
- Maintaining fiduciary responsibilities to owners
- Income, expenses and rate of return for property
- Federal reporting requirements
- Federal fair housing laws
- Maintenance
- Fees, security deposits and rent collection
- Negotiating property management agreements
- Operating budgets
- Trust accounts
- Owners’ financial statements
- Environmental hazards
- Eviction proceedings
B. Services to Tenants
- Lease agreements used in property management
- Rental and lease agreements (including options)
- Material facts
- Showing property to prospective tenants
- Occupancy terms
- Proration of rents and leases
IV. Settlement/Transfer of Ownership
A. Tax Issues
- Tax implications of interest expenses
- Real property taxes
- One-time lifetime exemption from capital gains tax for persons age 55 and older
- Refinancing
- Property taxation (for example, ad valorem and special assessments)
- Capital improvements (effect on basis)
B. Titles
- Title search
- Title insurance (owner’s and mortgagee’s)
- Title problems
- Legal procedures (for example, quiet title, foreclosure, bankruptcy, declaratory judgment)
- Title abstracts
- Liens (for example, mortgages, trust deeds, construction/mechanics liens, judgments by court), and order of priority
- Legal proceedings against property (for example, attachments, notice of pending legal action)
- Methods of recording
C. Settlement Procedures
- Purposes and procedures of settlement
- Federal statutory requirements
- Real Estate Settlement Procedures Act (RESPA)
- Closing statements (for example, calculate amount owed by buyer, net to seller)
- Rescission clauses
- Obligations of settlement agent
- Calculations regarding proration/prepayment
- Warranties associated with deeds (for example, grant, warranty, and quitclaim deeds)
- Settlement statement (HUD-1)
- Other settlement documents (for example, deed, bill of sale, note, deed of trust)
- Transfer tax
D. Characteristics of Real Property
- 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)
- Rights of home ownership (for example, homestead)
- Rights of others related to property (for example, adverse possession, adjoining owners, encroachments)
- Nature and types of common interest ownership (for example, condominiums, planned unit development, cooperatives, townhouses, time-share)
- Eminent domain proceedings (for example, condemnation)
E. Additional Services
- Negotiations between buyers and sellers leading to agreement
- Contract requirements and fulfillment of contingencies leading to closing
- Fair housing laws
- Securities laws, providing appropriate referrals
- Other situations where experts are required (for example, financial and legal)
V. Financing
A. Sources of Financing
- Institutional (for example, savings and loans, banks, mortgage brokers)
- Seller financing (for example, land contract, purchase money mortgage)
- Assumption of existing financing
- Other sources of financing
B. Types of Loans
- Security for loans (for example, trust deeds, land contracts, mortgages)
- Repayment methods (for example, adjustable rate mortgage, fully/partially/nonamortized, renegotiated rate)
- Forms of financing (for example, FHA,VA, FmHa, conventional loan)
- Secondary mortgage markets (for example, FNMA, FHLMC, GNMA)
- Other types of mortgage loans (for example, wraparound, blanket, and package)
C. Terms and Conditions
- Loan application requirements
- Loan origination costs (for example, appraisal fee, credit reports, points)
- Lender requirements (for example, property insurance, escrow deposits, underwriting criteria)
- Conditional approval
- Provisions of federal regulations (for example, Truth-in-Lending Act, Equal Credit Opportunity Act)
D. Common Clauses and Terms in Mortgage Instruments
- Prepayment
- Interest rates (for example, fixed and adjustable rates)
- Release
- Due-on-sale
- Subordination
- Escalation
- Acceleration
- Default
- Foreclosure and redemption rights
- Nonrecourse provision
VI. Professional Responsibilities/Fair Practice/Administration
A. Professional Responsibilities and Fair Practice
- Legal responsibilities of a licensee under the law of agency (for example, single agency, consensual dual agency, limited agency)
- Laws, rules and regulations pertaining to real estate practice
- Market trends, availability of financing, rates, and conditions of obtaining credit
- Resolving misunderstandings among parties to real estate transactions
- Administration
- Terms of contract between licensee and broker (for example, employee or independent contractor)
- Complete and accurate records of all business transactions
- Required notifications and reports of the real estate regulatory agency
- Company policies, procedures and standards
- Determining commissions for brokerage agreements and closing statements4)
- Trust accounts
- Recruiting and training sales force
- Supervising sales force
- Personnel records
- Commission distribution
- Profit and loss statements
- Accounting procedures for the office
- 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
- Nevada Duties Owed (NRS 645.252, 645.253, 645.254; NAC 645.637, 645.640)
- Seller Real Property Disclosure (NRS 113.130, 113.140, 113.150)
- Zoning
- Disclosure of common-interest communities (NRS 116)
- Material Facts (NRS 645.254.3(c))
- Interest in Property (NAC 645.535.4)
E. Preparation and Handling of Documents
- Earnest money deposits (NRS 645.630.9)
- Contracts
- Presenting all offers (NRS 645.254.3(b))
- Proper tender of offers (NRS 645.630, 645.632)
- 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
- Convicted of a felony (NRS 645.633.4)
- Failure to pay child support
- 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
- Area of expertise (NRS 645.254.3(d); NAC 645.605.3)
- Responsibility to represent client (NRS 645.254.3)
- Account for all monies (NRS 645.254.3(e))
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