Finance, Settlement & Math·Respa Section 8 Enforcement

National Real Estate Salesperson — Course Curriculum

Scope: National portion of the real estate salesperson licensing exam Total Questions: 80–100 (varies by state; combined exam typically 120–165 total) Passing Score: Typically 70–75% (varies by state) Testing Vendors: PSI (TN, many others) or Pearson VUE (TX, CA, and others)

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Course Structure

| Chapter | Title | Files | Focus | |---|---|---|---| | 0 | Introduction | 1 | How the national exam works; study priorities | | 1 | Real Property Characteristics | 2 | Fixtures, legal descriptions, land use, easements, liens | | 2 | Ownership and Title | 1 | Ownership forms, deeds, recording, title insurance | | 3 | Property Value and Appraisal | 1 | 3 approaches to value, DUST, depreciation, adjustments | | 4 | Contracts and Agency | 2 | CALCO, listing types, breach remedies; OLD CAR, dual agency | | 5 | Real Estate Practice | 1 | Antitrust, fair housing, MLS, property management | | 6 | Disclosures and Environment | 1 | Material facts, lead paint, environmental hazards | | 7 | Financing and Settlement | 1 | Deed of trust, loan types, RESPA, TILA, LTV | | 8 | Real Estate Math | 1 | Commission, proration, LTV, cap rate, GRM, depreciation |

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Chapter 0 — Introduction

0.1 - How to Use This Course

  • National exam covers 80–100 questions on universal concepts
  • Combined with state section to form one exam sitting
  • Top 3 topics = 43% of national exam: Contracts (17%) + Agency (13%) + Practice (13%)
  • Study priority: Contracts → Agency → Practice → Math → Financing → Ownership → Title

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    Chapter 1 — Real Property Characteristics

    Exam weight: Property Ownership (8%) + Land Use Controls (5%) = 13% | Medium-High priority

    1.1 - Real vs Personal Property

  • Real property: land + improvements + legal attachments (mineral rights, air rights, water rights)
  • Personal property (chattel): movable; not permanently affixed; transferred by bill of sale
  • Fixture test — MARIA: Method of attachment, Adaptability, Relationship of parties, Intention, Agreement (controls all others)
  • Trade fixtures: commercial tenant's business equipment; remains personal property; must be removed
  • Emblements: annual cultivated crops planted by tenant; personal property of tenant; harvest rights survive tenancy

    • 1.2 - Legal Descriptions, Land Use Controls, and Encumbrances

  • Legal descriptions: metes and bounds (POB; direction/distance; closes at POB), rectangular survey (section = 640 acres; quarter section = 160 acres), lot and block (platted subdivision)
  • Public land use: police power (zoning, codes), eminent domain (condemnation + just compensation), escheat (no heirs), taxation (super-priority)
  • Zoning: variance (hardship deviation), special use permit (conditional use), nonconforming use (pre-zoning; legal to continue), spot zoning (inconsistent; often challenged)
  • Private controls: deed restrictions, CC&Rs (run with land; enforceable by neighbors)
  • Easements: appurtenant (benefits parcel; dominant vs. servient tenement) vs. in gross (benefits person/company); created by: express grant, prescription, necessity, implication
  • License: revocable permission; NOT an easement
  • Liens: tax/assessment (super-priority) → mechanic's → mortgage → judgment
  • Specific vs. general liens; voluntary vs. involuntary liens

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    Chapter 2 — Ownership and Title

    Exam weight: Property Ownership (8%) + Transfer of Title (8%) = 16% | Medium-High priority

    2.1 - Ownership Forms and Title Transfer

  • Freehold estates: fee simple absolute (no conditions), fee simple defeasible (determinable = auto-reverts; subject to condition = grantor must act), life estate (no waste; no fee simple conveyance)
  • Joint tenancy: 4 unities (TTIP); right of survivorship; severance by sale converts to tenancy in common
  • Tenancy in common: default; unequal shares; no survivorship; partition available
  • Tenancy by the entirety: married couples only; right of survivorship; both must sign; creditor protection
  • Community property: 9 states; acquired during marriage; both spouses sign homestead conveyances
  • Leasehold estates: estate for years (fixed term; no notice needed), periodic tenancy (auto-renews; notice required), tenancy at will (no term; either party terminates), tenancy at sufferance (holdover)
  • Valid deed: competent grantor, identified grantee, words of conveyance, legal description, consideration, grantor's signature, delivery and acceptance (title passes HERE, not at signing or recording)
  • Deed types: general warranty (all defects), special warranty (grantor's period only), quitclaim (no warranties)
  • Recording: constructive notice; race-notice (most common), notice, or race statute
  • Title insurance: owner's policy (lasts as long as owner has interest; passes to heirs), lender's policy (expires at payoff)

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    Chapter 3 — Property Value and Appraisal

    Exam weight: 7% (~6–7 questions) + math overlap | Medium priority

    3.1 - Property Value and Appraisal

  • Market value requires DUST: Demand, Utility, Scarcity, Transferability
  • Key principles: substitution (foundation of all 3 approaches), contribution, highest and best use, conformity, regression, progression, anticipation
  • Sales comparison: 3–5 comps; CBS adjustment rule (Better→Subtract, Worse→Add); best for residential
  • Cost approach: Land + (Replacement Cost − All Depreciation); land never depreciated; best for special-purpose buildings
  • Income approach: Value = NOI ÷ Cap Rate; NOI = EGI − Operating Expenses (NO mortgage); best for investment property
  • EGI = PGI − Vacancy and Credit Losses
  • Depreciation: physical (wear — curable or incurable), functional (design flaw — sometimes curable), external/economic (outside forces — ALWAYS incurable)

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    Chapter 4 — Contracts and Agency

    Exam weight: Contracts (17%) + Agency (13%) = 30% | Highest priority

    4.1 - Contracts

  • Valid contract: CALCO — Competent parties, Agreement (offer + acceptance), Legality, Consi