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Professional Real Estate Development. 400 Pages, 8.5 x 11. Formats: Hardcover, ebook: PDF, ebook: EPUB, Mobipocket. David Hamilton is a professor of real estate. Sales and marketing are crucial elements of a real estate career, and your resume is your first chance to show a hiring manager your skills in this area. Your whole document, and especially the professional summary, should serve as an effective sales pitch detailing how your qualifications meet the job description requirements.
4 Types of Listing Agreements for Real Estate Agents As you prepare for your real estate license exam, understand that listing agreements establish the relationship between the real estate agent and the property seller. Remember that similar agreements may be used between a buyer and an agent when buyer representation is desired.
• Exclusive right to sell listing: In this agreement, the agent gets paid no matter who sells the property, regardless of whether it’s the agent or the seller. • Exclusive agency listing: Agents get paid in this type of agreement only if they sell the property. No fee is earned if the owner alone sells the property. • Open listing: In this type of agreement, sellers have the right to use as many brokers as they want. However, the seller isn’t obligated to pay any of them if he or she sells the property without the broker’s help. • Net listing: This type of agreement may be illegal in your state.
The agent gets to keep everything he can get that’s more than the sale price the owner wants. Real Estate License Exam: 7 Confusing Word Pairs Before you take your real estate license exam, it’s important that you understand the difference between similar-sounding terms. The following real-estate terms are the most often confused; get these memorized and you’re well on your way to more correct answers. • Condominium/cooperative: A condominium owner actually owns real estate. This ownership is usually the air space and an interest as a tenant in common of the land. A cooperative owner owns shares in a corporation that owns a building.
The shareholder also gets a proprietary lease, which enables the shareholder to occupy a unit. • Foreclosure/forfeiture: Foreclosure is the loss of property to pay off a debt. Forfeiture is losing the property because of disobeying a condition in the deed. • Grantor/grantee: The grantor gives, sells, or transfers the property to the grantee. The grantee receives the property. • Leasehold/leased fee: The leasehold interest is the tenant’s interest in the property. The tenant holds the lease.
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The leased fee interest is the owner or landlord’s interest. • Mortgagor/mortgagee: The mortgagor is the borrower.
The mortgagee is the lender. The borrower gives a mortgage to the lender. The lender gives money to the borrower. • Replacement cost/reproduction cost: These terms are associated with the cost approach to valuing a property.
Replacement cost is the cost to produce a structure that is essentially the same as the existing structure but using modern materials and standards. Reproduction cost is an estimate of the cost to produce exactly the same structure with the same materials. • Tax credit/tax deduction: A tax credit is subtracted from taxes due. A tax deduction is subtracted from income. If all things are equal, a tax credit generally is more valuable than a tax deduction of the same amount.
4 Kinds of Real Estate Ownership Until you started your real estate career, you may have assumed there was just one kind of property ownership — you either owned the property or you didn’t. Well, there are several types of property ownership, and you need to know about them to pass the real estate license exam. Here are the four most common types of property ownership: • Tenancy in severalty: Although it may sound like more, this type of ownership is by one person or a corporation. • Tenancy in common: Equal or unequal undivided ownership between two or more people is what characterizes this type of ownership.
If an owner dies, the deceased person’s share is conveyed to his or her heirs, not the other owners. • Joint tenancy: The four unities that must exist for this type of ownership to exist are • Interest: Each owner has the same interest.
• Possession: All owners hold an undivided interest. • Time: All owners receive their interest at the same time. • Title: All owners acquire their interest with the same deed. If one owner of a joint tenancy dies, that owner’s interest reverts to the other owners. This right of survivorship may vary by state. • Tenancy by the entirety: Ownership that’s available only to married couples, tenancy by the entirety means that property may not be sold without the agreement of both parties. The right of survivorship exists to the extent that if one spouse dies, his/her interest reverts to the other spouse.