Posted by admin on June 13, 2010 under Real Estate License Basics | 
In this installment of our Real Estate Basics series we will be talking about understanding real estate contracts. To be successful with your real estate license you must know what a contract is and what it needs to be considered a legally binding document. Real estate courses that provide the real estate training to earn your real estate license will cover in detail the different kinds of contracts that there are in real estate.
A contract is, by definition, a legally binding agreement made between competent parties to perform a legal act. In real estate a contract can be an express agreement or an implied contract. An express agreement is one in which both parties agree and that agreement is put in writing in order to ensure a clear understanding of the terms of the agreement. An implied contract is just that, implied. There is not any verbal or written agreement between the parties involved; instead the contract is inferred by the actions of the parties. The terms of an implied contract are understood by both parties; however they are not written into a contract.
Real estate contracts can be bilateral or unilateral. A bilateral contract is one in which each of the parties involved promises to do something for one another. A contract for the sale of a home between a home buyer and a seller is an example of a bilateral contract. The buyer agrees to pay the contracted amount and the seller agrees to sign over the home. A unilateral contract is when one party agrees to do something if the other party acts. A listing contract is a good example of a unilateral contract. The seller agrees to pay the commission to the agent if the agent sells the home.
There are two basic states of a contract disposition. When a contract has been written it is considered an executory contract. This is a contract that still has to be completed. Once the real estate contract goes through escrow and closes, the title of the property transfers and it then becomes an executed contract.
In order for a real estate contract to be legal there are four things that must be present. First there must be at least two parties that are considered to be competent named on the contract. Second there must be an offer that has been accepted. There needs to be a meeting of the minds for the contract to be valid. The third requirement of a valid real estate contract is good or valuable consideration. In a traditional real estate contract, the purchase price is the valuable consideration. In cases where the contract transfers property without a purchase price, such as transferring property to a family member for their “love and affection” it is good consideration. The final requirement is the legality of the object. A contract for an illegal act is not valid or enforceable.
This is merely the tip of the iceberg when it comes to understanding the complexities of a real estate contract. Your success with your real estate license will depend largely on how well you learn the requirements of a valid real estate contract.
Posted by admin on June 17, 2010 under Real Estate Careers |
Earning a real estate license is a fantastic way to embark on a new career path with unlimited income potential. Attending real estate courses can be more convenient than any other college course or job certification program. Many real estate schools offer classes online, and now one can take advantage of app for the iPhone or Smartphone that will allow you to complete the training from anywhere. For people who are looking for a new start with a new career, real estate is an excellent option; but what about those who need a new start from a less than perfect past? For someone that has had a felony conviction or other questionable action in their background, the answer is that you can get a new start if you want to make the change.
No matter what state you want to start your new career in, one of the most important traits looked for in a potential real estate licensee will be good character. You will be asked to disclose any actions that may have been deemed unprofessional or illegal, with or without conviction. Disclosing this information does not necessarily disqualify you for licensure. On the other hand, a failure to disclose information about any such behavior, with or without any conviction, will most likely lead to a denial of license.
Integrity, honesty, and trustworthiness are all crucial in the real estate industry. Those individuals that earn a real estate license are certified by the state that they are licensed in to meet certain obligations and responsibilities to their clients and customers. Among these responsibilities are honesty and full disclosure. These are traits that one must exhibit before they will be permitted to take the licensing exam in any state.
How an individual applicant’s character is determined varies from state to state. All states will ask for the information to be disclosed on the application to sit for the real estate exam. Some states will require fingerprinting or other background check and the information will be compared to what you disclosed on your application. Regardless of how the state that you are in requests the information, you must completely and honestly disclose any conviction, felony or misdemeanor, to ever be considered for a real estate license.
A felony conviction is a very serious offense, but it is possible to have a new start. The first step is integrity. You must display the necessary characteristics of honesty and full disclosure that are required to be a real estate agent in order to be considered to take the real estate licensing exam. If a person exhibits these qualities, has paid their debt to society, and is completely honest about any felony convictions on their record, they could get the opportunity to start over with a prosperous new career in real estate.
Posted by admin on June 12, 2010 under Real Estate License Basics |
This time our Real Estate Basics series will focus of the control of land use. As your real estate courses will show as you continue the real estate training to earn your real estate license, land is one of our most valuable assets. To that end, land use is controlled in order to determine that it is being put to its highest and best use. There are three types of controls for land use. Private land-use controls, public land-use controls and public-owned land.
Private land-use controls are determined by the grantor. The grantor can decide how the grantee can make use of the property. These land-use limitations are conveyed to the grantee through deed restrictions or restrictive covenants. Deed restrictions limiting the use of the property are encumbrances. Limiting restrictions are for things that cannot ever be done on the property, like building fences. Affirmative restrictions are things you must abide by such as setbacks, minimum square footage requirements or house colors. When these restrictions are placed on the deed, they are binding to all future owners of the property. If neighbors have issues over these restrictions, they must seek relief through the court system. Should the deed restrictions differ from zoning ordinances the more restrictive of the two will take precedence.
Public land-use is controlled by the United States government under the 14th amendment to the Constitution. The process begins in the US Congress and then through the individual states and to local government. Enabling Acts are the rights to make laws to control local properties. There are four public land-use controls. The mnemonic for these controls is PETE; Police power, Eminent domain, Taxation, and Escheat.
Police power is a state or local government’s legal right to control land-use in the interest of the highest and best use for the public welfare, health and safety. This is accomplished through planning, zoning, regulating of building construction codes, subdivision regulations and environmental protection. Eminent domain is the government power that enables them to force the sale of a privately owned property for public use. Taxation is the real estate property taxes that are imposed by taxing entities or districts at county and local levels of government. There is no federal taxation on real property as specified in the US Constitution. Escheat is when a property reverts back to the state should the owner die without heirs or a will.
Public-owned property is land acquired for the public good. Some examples of this type of land use control would be land acquired through eminent domain, or any of the other public land-use controls, for highways, urban renewal projects, and national parks. Approximately a third of the total area of the United States is property that is owned by the US Federal Government.
To succeed in earning your real estate license there is much more detail to understanding the control of land use. Your real estate training will take you more in depth to prepare you for your real estate license exam.
Posted by admin on June 9, 2010 under Real Estate License Basics |
Once you have completed your real estate training and earned your real estate license, one concept you really want to understand is the real estate agent’s relationship with the buyer. Simply completing real estate courses and getting your real estate license will not be enough to build a career; reputation is everything to your success as a real estate agent. The best way to build a great reputation is to understand the importance of the agent’s responsibility to the buyer.
When a buyer is a customer, it is the agent’s responsibility to conduct business with the highest standards of honesty, accuracy, and full disclosure of any defects. Additionally, if the buyer is a client, the agent’s responsibility includes care, obedience, accounting, loyalty, and again, disclosure. Integrity is crucial to building a solid reputation as a real estate professional.
Real estate agent’s have a responsibility to know their market. The buyer will expect that their agent will have all of the information that they need about the home and the neighborhood that it is in. A real estate agent should always be aware of interest rates, vacancy rates, employment conditions, demographics and absorption levels in their locality. It is also a good idea to be knowledgeable about available financing in their area.
It is also the agent’s responsibility to know their buyer. It takes a great deal of skill as an agent to uncover exactly what a buyer wants, especially when the buyer does not always know themselves. Once the agent ascertains what the buyer wants, they have a further responsibility to assess these desires to find an appropriate match. Things like location, schools, square footage, features and price should all be considered to avoid showing properties unnecessarily. Knowing what the buyer wants can make all of the difference between using your real estate license to sell real estate or be a tour guide.
When it comes to offers and counteroffers during the negotiations, at the very least, the agent has a responsibility to assist their client or customer with the development and presentation of any offers or counteroffers, any negotiations leading to the offers acceptance, and any questions about the transaction or process. This assistance should continue until an agreement has been signed and all contingencies are satisfied.
A real estate broker has the responsibility of accuracy in recordkeeping. Brokers must develop and maintain records for every real estate transaction in their office. The length of time these records must be kept is determined by the state where the broker holds their real estate license. The records that a broker is required to keep are copies of all sales contracts, deeds, title work, surveys, inspections, home warranties, and all closing documentation.
When you earn your living with a real estate license your relationship with your clients and customers is crucial to prosperity in your career. Understanding the responsibilities that an agent has to their buyer is the first step to building a successful real estate career.
