Modern Real Estate Practice in North Carolina

by Galaty, Fillmore W.; Allaway, Wellington J.; Kyle, Robert C.; Taylor, Gary W.

• ISBN13: 9780793136346
• ISBN10: 0793136342
• Edition: 4th
• Format: Paperback
• Copyright: 2000-10-01
• Publisher: Dearborn Trade

Summary

The leader in North Carolina real estate education, this fundamentals text helps students prepare for their licensing exams and for their careers as real estate professionals. Highlights include a new appendix including the North Carolina license law, commission rules, trust account guidelines, and the license law and rule comments, new math solutions added to the answer key for all math problems, and Instructor Resources, including a testbank with more than 500 questions and PowerPoint presentations.

Table of Contents

Preface	vii
Acknowledgments	ix
Basic Real Estate Concepts	1	(16)
Learning Objectives	1	(1)
Introduction	1	(1)
General Characteristics of Real Estate	1	(4)
General Concepts of Land Use and Investment	5	(2)
The Scope of the Real Estate Business	7	(3)
The Real Estate Market	10	(3)
Summary	13	(2)
Questions	15	(2)
Property Ownership and Interests	17	(35)
Learning Objectives	17	(1)
The Concept of Property	18	(6)
Estates in Real Property	24	(5)
Ownership of Real Property	29	(6)
Encumbrances on Real Property	35	(7)
Property Taxation in North Carolina	42	(3)
Summary	45	(2)
Questions	47	(5)
Property Description	52	(9)
Learning Objectives	52	(1)
Describing Land	52	(1)
Methods of Describing Real Estate	53	(4)
Summary	57	(2)
Questions	59	(2)
Transfer of Title to Real Property	61	(22)
Learning Objectives	61	(1)
Methods of Transferring Title	61	(14)
Title Assurance	75	(4)
Summary	79	(2)
Questions	81	(2)
Land-Use Controls	83	(17)
Learning Objectives	83	(1)
Public Land-Use Controls	84	(10)
Privately Imposed Land-Use Controls	94	(1)
Government Ownership	95	(1)
Summary	95	(2)
Questions	97	(3)
Real Estate Brokerage and the Law of Agency	100	(33)
Learning Objectives	100	(1)
Introduction to Brokerage and Agency	101	(1)
The Law of Agency	101	(1)
General Agency Definitions	102	(1)
Brokerage Defined	103	(5)
Agency Relationships	108	(6)
Agency Disclosure	114	(1)
Duties and Liabilities of Agents	115	(9)
Duties and Liabilities of Principals	124	(1)
Nature of the Brokerage Business	125	(3)
Summary	128	(2)
Questions	130	(3)
Fair Housing and Ethical Practices	133	(20)
Learning Objectives	133	(1)
Equal Opportunity in Housing	133	(1)
Fair Housing Act	134	(7)
Equal Credit Opportunity Act	141	(1)
North Carolina Fair Housing Act of 1983	141	(1)
Sexual Harassment	142	(1)
Implications for Brokers and Selespeople	142	(2)
Americans With Disabilities Act	144	(1)
Fair Housing Practices	145	(3)
Professional Ethics	148	(1)
Summary	148	(2)
Questions	150	(3)
Basic Contract Law and Agency Contracts	153	(37)
Learning Objectives	153	(1)
Contracts	154	(1)
Contract Definitions and Classifications	154	(5)
Contract Law and Auction Sales	159	(1)
Performance of Contract	159	(3)
Broker's Authority to Prepare Contracts	162	(1)
Listing Contracts and Practices	162	(13)
The North Carolina Residential Property Disclosure Act	175	(1)
Types of Agency Agreements	176	(8)
Summary	184	(3)
Questions	187	(3)
Sales Contracts and Practices	190	(20)
Learning Objectives	190	(1)
The Sales Contract	190	(12)
Installment Land Contract	202	(1)
Option to Purchase Real Estate	203	(3)
Summary	206	(2)
Questions	208	(2)
Landlord and Tenant	210	(20)
Learning Objectives	210	(1)
Leasing Real Estate	210	(1)
Residential Rental Agreements Act	211	(2)
Act Prohibiting Retaliatory Eviction	213	(1)
Tenant Security Deposit Act	213	(1)
Constitutional Rights of Tenants in Public Housing	214	(1)
North Carolina Vacation Rental Act	214	(1)
Other Landlord/Tenant Rules	215	(1)
Leasehold (Nonfreehold) Estates	215	(2)
Types of Leases	217	(2)
Lease Provisions	219	(7)
Summary	226	(1)
Questions	227	(3)
Property Management	230	(14)
Learning Objectives	230	(1)
Property Management	230	(1)
Functions of the Property Manager	231	(4)
Property Management Fee	235	(1)
Managment Considerations	235	(5)
Summary	240	(2)
Questions	242	(2)
Real Estate Financing: Principles	244	(23)
Learning Objectives	244	(1)
Basic Mortgage Terms and Concepts	244	(1)
Security and Debt	245	(1)
The Promissory Note	246	(11)
The Mortgage (or Deed of Trust) Instrument	257	(6)
Summary	263	(1)
Questions	264	(3)
Real Estate Financing: Practices	267	(28)
Learning Objectives	267	(1)
Types of Mortgages (Mortgage Loans)	267	(12)
Sources of Real Estate Financing-The Primary Mortgage Market	279	(3)
Government Influence in Mortgage Lending	282	(2)
Residential Lending Practices and Procedures	284	(4)
Financing Legislation	288	(1)
Summary	289	(2)
Questions	291	(4)
Closing the Real Estate Transaction	295	(28)
Learning Objectives	295	(1)
Preclosing Procedures	295	(3)
Conducting the Closing	298	(2)
RESPA Requirements	300	(2)
Preparation of Closing Statement	302	(4)
Prorations	306	(5)
Sample Closing Statement	311	(4)
Summary	315	(2)
Questions	317	(6)
Basic Residential Construction	323	(12)
Learning Objectives	323	(1)
Architectural Types and Styles	324	(1)
Foundations	324	(3)
Framing	327	(1)
Elements of Construction	327	(5)
HVAC	332	(1)
BTU	333	(1)
Government Regulation	333	(1)
Questions	334	(1)
Real Property Valuation	335	(25)
Learning Objectives	335	(1)
Appraising	335	(1)
Value	336	(3)
The Appraisal Process	339	(6)
Approaches to Value (Appraisal Methods)	345	(9)
The Profession of Appraising	354	(1)
Summary	355	(1)
Questions	356	(4)
Property Insurance	360	(9)
Learning Objectives	360	(1)
Basic Insurance Concepts	360	(1)
Homeowner's Insurance	361	(3)
Risk Management for Property Managers	364	(2)
Summary	366	(1)
Questions	367	(2)
Federal Income Taxation of Real Property Ownership	369	(9)
Learning Objectives	369	(1)
Introduction	369	(1)
Tax Benefits for Homeowners	370	(1)
Tax Benefits of Selling a Principal Residence	370	(3)
Tax Benefits of Real Estate Investment	373	(2)
Summary	375	(1)
Questions	376	(2)
Environmental Issues and the Real Estate Transaction	378	(16)
Learning Objectives	378	(1)
Environmental Issues	378	(1)
Hazardous Substances	379	(8)
CERCLA and Environmental Protection	387	(2)
North Carolina Environmental Issues	389	(1)
Liability of Real Estate Professionals	390	(1)
Summary	391	(1)
Questions	392	(2)
Real Estate Mathematics	394	(21)
Learning Objectives	394	(1)
Introduction	394	(1)
Basics	395	(1)
Percentages	395	(3)
Using Percents	398	(1)
Measurements	399	(3)
Specific Math Applications	402	(8)
Summary	410	(1)
Questions	411	(4)
Appendix A: North Carolina License Law	415	(6)
Real Estate License Law, Commission Rules and Trust Account Guidlines	415	(2)
Questions	417	(4)
Appendix B: Residential Square Footage Guidelines	421	(25)
Sample North Carolina Real Estate Licensing Examination	446	(12)
Answer Key	458	(10)
Glossary	468