Real Estate License Exams for Dummies

In order to become a licensed real estate agent, you must pass your state's real estate licensing exam–and with this hands-on guide, you'll get everything you need to succeed. Inside, you'll find the latest and most up-to-date information on contracts, deeds, appraisals, leasing, and mortgage types, plus four full-length practice tests to help prepare you for test day. Before you know it, you'll have all the knowledge you need to pass the exam and join the ranks as a professional real estate agent.

Every year, thousands of Americans make the leap to an exciting, rewarding new career in real estate. If you want to get the best possible score, Real Estate License Exams For Dummies will help you pass with flying colors–and get your new career off to a great start!

• Includes four sample tests with detailed answer explanations and walk-throughs
• Covers real estate laws for all 50 states
• Provides proven test-taking strategies and study techniques
• Offers a glossary of real estate terms

If real estate is your dream career, this unbeatable, bestselling guide arms you with the skills to make it a reality.

John A. Yoegel, PhD, is a certified real estate instructor and a member of the Real Estate Educators Association. He is the author of several real estate books including Cliffs Test Prep California Real Estate Salesperson Exam and Cliffs Test Prep Florida Real Estate Sales Associate Exam.

Introduction 1

About This Book 1

Foolish Assumptions 3

Icons Used in This Book 3

Where to Go from Here 4

Part 1: Putting Real Estate License Exams into Perspective 7

Chapter 1: Sold! Taking a Glance at Real Estate License Exams 9

Checking Out Licensing and Exam Basics 9

Sign Me Up: Registering for the Exam 12

Knowing What to Take to the Exam and What to Leave at Home 13

Scoring High: Figuring Out How Scores Are Determined 14

Take Two: Retaking the Exam 15

Chapter 2: Using Successful Study and Test-Taking Techniques 17

One Word to Get You Through: PREPARE 17

Trying Terrific Test-Taking Strategies 21

Part 2: So You Want to Sell Real Estate: The Job and Basic Laws 25

Chapter 3: The Job: It Isn’t Just Driving People Around 27

Recognizing Those in the Real Estate Business and How They Got There 28

Knowing What a Real Estate Broker/Salesperson Does 30

Understanding How a Real Estate Broker/Salesperson Gets Paid 32

Working Hard: Career Opportunities 33

Property Management: A Special Kind of Career Opportunity 35

Managing a Real Estate Office: You’re the Boss, Ms or Mr Broker 39

Working as an Independent Contractor 40

Focusing on Job-Related Laws That You Need to Understand 41

Review Questions and Answers 43

Chapter 4: Understanding Agency Law 47

Becoming Someone’s Real Estate Agent: You’re Hired 48

Keeping the Faith: The Relationship between an Agent and a Principal 54

Meeting Obligations: The Relationship Between an Agent and a Customer 57

Making Money (No, Not at the Copy Machine) 59

Parting Is Such Sweet Sorrow: Ending an Agency Relationship 61

Review Questions and Answers 62

Chapter 5: Knowing the Fair Housing Laws for Selling Real Estate 67

Practicing Fair Housing: The Basics 67

Don’t Do It: Avoiding Discriminatory Actions 69

Feeling Safe: Identifying Who’s Protected 73

Bending the Rules: Understanding Exceptions to the Law 74

Extra Coverage: Protecting the Disabled from Discrimination 76

Staying Strong: Enforcing the Law 76

Review Questions and Answers 76

Part 3: It’s All Mine: Owning and Transferring Real Estate 81

Chapter 6: Owning It: Estates and Interests 83

What Do You Own? Understanding Ownership Terms 83

Estates (Even Without the Castles) 85

Eyeing Different Ownership Rights 88

Review Questions and Answers 90

Chapter 7: Understanding Forms of Real Estate Ownership 93

Real Estate Ownership: A Solo or Group Activity 93

Special Types of Ownership: Cooperatives, Condominiums, and More 98

Review Questions and Answers 100

Chapter 8: Knowing the Limitations on Real Estate Ownership 103

Carrying a Not-So-Heavy Encumbrance: Private Limitations on Property Use 103

Land-Use Regulation: A Major Public Limitation 111

The Government Has Its Say: Other Public Limitations on Property Use 117

Review Questions and Answers 119

Chapter 9: Transferring Ownership: Deeds and Title Closing 123

Doing the Deed: Delving into Deed Basics 123

Getting Closure: Title Closing 135

Review Questions and Answers 143

Chapter 10: Giving Up or Losing Property 147

Fine by Me: Giving Up Property Voluntarily 147

By Force: Losing Property Involuntarily 148

Losing Property Very Involuntarily: Passing Title After Passing Away 151

Review Questions and Answers 152

Part 4: A House Is Made of Lots of Paper: Legal and Physical Issues 157

Chapter 11: Contracts 101 159

Agreeing to Do Something: The Basics of Making a Contract 159

So Many Choices: Examining Types of Real Estate Contracts 162

The End of the Line: Discharging a Contract 167

Breaching a Real Estate Contract 168

Review Questions and Answers 169

Chapter 12: Leasing Property 173

Identifying Who’s Who and What’s What 173

The Usual Suspects: Preparing a Typical Lease 175

Distinguishing Among Various Types of Leases 177

Breaking a Lease: Types of Eviction 178

Getting What You Paid For 178

Review Questions and Answers 180

Chapter 13: Dealing with Environmental Government Regulations and Issues 183

Deciphering the Federal Government Alphabet Soup 184

Assessing the Environmental Effects of Building Developments 186

This Stuff Can Make You Sick: Examining Environmental Pollutants and Situations 187

Go with the Flow: Water and Waste Issues 191

Review Questions and Answers 192

Part 5: You Want How Much? Valuation and Financing of Real Estate 195

Chapter 14: Appraising Property 197

Figuring Out Appraisal Basics 197

Understanding the Importance of Location! 200

Arriving at Different Types of Value 201

Creating, Changing, and Affecting Values: Some Economic Factors 202

Finding Value by Analyzing Comparable Sales 205

Finding Value by Analyzing Replacement Cost and Depreciation 208

Finding Value by Analyzing a Property’s Income 213

Reconciling a Property’s Value 217

Review Questions and Answers 218

Chapter 15: Finding the Money: Mortgages 221

The Way Things Work: Mortgage Basics 221

Examining Sources of (and Insurance for) Funding 226

Considerations for Lenders Accepting Mortgages 231

Grasping the Different Types of Mortgages 233

Comprehending Mortgage Repayment Plans 235

Endings You Didn’t Anticipate: Foreclosures, Assumptions, and Assignments 240

Being Fair: Consumer Protection Laws 243

Review Questions and Answers 245

Chapter 16: It’s So Taxing: Real Estate Assessment and Taxes 249

Who Wants Your Money, and What Do They Want with It? Collecting Taxes 249

Recognizing What’s So Special about Assessments 250

Go Figure! Calculating Taxes Step by Step 250

Home Free (Sort of): Eyeing Property Tax Exemptions 256

That’s Not Right: Protesting Assessments 257

Pay or Lose: Tax Liens and Sales 258

Review Questions and Answers 259

Chapter 17: Investing in Real Estate 263

Focusing on Property Investment 263

Partnering Up: Real Estate Investment Organization Structures 267

Spending Spree: Acquiring and Building Investments 268

Making Money by Investing in Real Estate 270

Getting Uncle Sam’s Help: The Government’s Role in Investing 272

By the Numbers: Analyzing Investment Properties 276

Review Questions and Answers 278

Chapter 18: All in the Numbers: Real Estate Mathematics 283

Don’t Lose the Faith, but You May Have to Convert 284

Land and Buildings: Measuring Area and Volume 284

Percentages: Pinpointing What You Really Need to Know 288

Commissions: Tracking Your Moolah 289

Making Mortgage Calculations without a Fancy Calculator 293

Oh, the Pain: Calculating Taxes 295

Putting Proration into Perspective 297

Appreciating Appreciation and Depreciation 298

Estimating Appraised Value 301

Review Questions and Answers 303

Part 6: You’re Ready: Taking Practice Exams 307

Chapter 19: Practice Exam One 309

Chapter 20: Answers and Explanations to Practice Exam One 321

Chapter 21: Practice Exam Two 333

Chapter 22: Answers and Explanations to Practice Exam Two 345

Chapter 23: Practice Exam Three 357

Chapter 24: Answers and Explanations to Practice Exam Three 369

Chapter 25: Practice Exam Four 383

Chapter 26: Answers and Explanations to Practice Exam Four 395

Part 7: The Part of Tens 409

Chapter 27: Ten Things to Find Out From Your State’s Real Estate Law 411

Agency Law 412

Fair Housing 412

License Law 412

Limitations on Land Use 413

Money Stuff 413

Ownership Rights, Forms, and Theories 413

Property Disclosure 414

Tenants’ Rights and Rent Control 414

Transferring Ownership Involuntarily 415

Transferring Ownership Voluntarily 415

Chapter 28: Ten Tips to Help You Succeed on the Exam 417

Taking the Exam as Soon as You Can 417

Knowing the Rules (and Following Them) 418

Studying Your State License Law 419

Remembering Important Vocabulary 419

Focusing on Key Concepts 419

Eating Something 420

Staying Cool, Calm, and Collected 420

Paying Attention (without Overthinking) 420

Going with Your Initial Instinct 421

Finishing the Job 421

Index 423

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