About

This course has been designed to provide a comprehensive introduction to real estate investment options including multifamily, residential, commercial, construction, agricultural, and real estate securities.

Throughout this course, licensees will develop a working knowledge of the key drivers of real estate investing, such as market trends, risk profiles, property characteristics, and economic indicators. They will learn to evaluate the income generation opportunities of a variety of investment types, as well as the unique factors that influence them.

This course provides exposure to the most common techniques for determining property value and return on investment. Although math calculations will not be required, formulas and examples will ensure familiarity with the application of these calculations. Licensees will gain a deep understanding of the various methods used to determine a property’s return on investment, including net operating income (NOI), Cap rate, gross rent multiplier (GRM), price-per-square-foot returns, and cash-on-cash returns.

The course also delves into the legal considerations surrounding real estate investments properties from building codes to securities regulations, and even touching on short term rental properties. This course will equip students to work with investors and commercial lenders in future transactions by building a strong foundation in investment property lending including the unique challenges posed by complex properties and the differences between owner-use residential mortgages and investment financing.

For those who do not have a copy of the License Code and Rules book, we suggest you open and review the online version from the Commission’s website. This will make it easier to follow along within the course.
Throughout this material, it will make reference to the applicable statute or rule so that you can locate the rule and use it for future reference.

The name and good will of a sole proprietorship can be sold as well as business supplies, furniture, etc.; however, the listings, management agreements, or contract assets cannot be sold unless within the agreements/contracts there contains an assignment clause allowing the broker to assign interest in the agreements/contracts to another broker. The assignment option is not encouraged and the Commission would suggest that the broker consult legal advice prior to including such in an agreement.

In order to license an entity, it requires the issuance of two licenses, i.e., one for the entity and one for the sponsoring broker. Their license renewals may or may not be on the same license cycle so pay special attention to this because if one license expires, the sponsoring broker or entity, it will cause all licenses associated with the company to go on inactive status until such time as the license is reinstated - all licensed activity must cease until such time as the licenses are actively reinstated.

If a managing broker allows the broker’s license to expire, all associates associated with the brokerage will be placed on inactive status.

A trade name is an alternate name under which an entity may choose to operate.(An entity will have one corporate/LLC name but may have several trade names.)

However, the changing of a trade name would not apply to Rule 605:10-7-5. To use a trade name or to discontinue the use of such must be registered at the Commission.

Do not enroll in the provisional sales associate post-license course until your license has been issued by the Commission. This course must be taken within the first six months of license issuance. If you do not complete the course within the first six months, the license will be placed on inactive status.

The term “real estate broker” shall include any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting a fee, commission or other valuable consideration, lists, sells or offers to sell, buys or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or who advertises or holds himself out as engaged in such activities.

Topics Covered

Course Topics

Lesson 1: Introduction To Real Property Investing

Lesson 2: Real Estate Asset Types and Investment Strategies

Lesson 3: Investment Property Valuation and Market Analysis

Lesson 4: Investment Property Financing

Lesson 5: Compliance Considerations in Investment Property Transactions

Lesson 6: Capital Gains, Taxation, and Investment Analysis

Learning Objectives

By the end of this course, licensees will be able to:

• Identify and describe the primary goals, benefits, investment vehicles, and terminology related to real estate investing.
• Differentiate between various investment options on matters of tax implications, market volatility, risk, returns, and method of producing income for the investor.
• Gain familiarity with commercial properties, commercial mortgage lending, regulations that pertain to commercial real estate, and strategies for generating revenue through commercial properties.
• Recognize the different types of real estate securities, the different licensing and laws that regulate these investments, and the differences between real estate investment and real estate securities.

For those who do not have a copy of the License Code and Rules book, we suggest you open and review the online version from the Commission’s website. This will make it easier to follow along within the course.
Throughout this material, it will make reference to the applicable statute or rule so that you can locate the rule and use it for future reference.

The name and good will of a sole proprietorship can be sold as well as business supplies, furniture, etc.; however, the listings, management agreements, or contract assets cannot be sold unless within the agreements/contracts there contains an assignment clause allowing the broker to assign interest in the agreements/contracts to another broker. The assignment option is not encouraged and the Commission would suggest that the broker consult legal advice prior to including such in an agreement.

In order to license an entity, it requires the issuance of two licenses, i.e., one for the entity and one for the sponsoring broker. Their license renewals may or may not be on the same license cycle so pay special attention to this because if one license expires, the sponsoring broker or entity, it will cause all licenses associated with the company to go on inactive status until such time as the license is reinstated - all licensed activity must cease until such time as the licenses are actively reinstated.

If a managing broker allows the broker’s license to expire, all associates associated with the brokerage will be placed on inactive status.

A trade name is an alternate name under which an entity may choose to operate.(An entity will have one corporate/LLC name but may have several trade names.)

However, the changing of a trade name would not apply to Rule 605:10-7-5. To use a trade name or to discontinue the use of such must be registered at the Commission.

Do not enroll in the provisional sales associate post-license course until your license has been issued by the Commission. This course must be taken within the first six months of license issuance. If you do not complete the course within the first six months, the license will be placed on inactive status.

The term “real estate broker” shall include any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting a fee, commission or other valuable consideration, lists, sells or offers to sell, buys or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or who advertises or holds himself out as engaged in such activities.

About

Individual Retirement Accounts (IRAs) allow consumers to invest their savings in various financial assets including real estate. Managed IRA accounts with advisory services limit the investment options available, excluding "alternative assets" such as real estate. As a consequence, consumers who wish to diversify their investments by buying real estate assets are presented with unique challenges without the support of a financial advisor and are exposed to elevated risk.

To competently serve these consumers, real estate licensees must develop specialized knowledge in the factors influencing this distinct type of real estate transaction and the consumer's investment interests. Such factors include regulations, tax implications, economics, financing, asset options, and management considerations of IRA investment accounts, all of which play a role in the consumer's retirement planning and investment decisions.

Throughout this course, licensees will be introduced to the foundational knowledge needed to skillfully navigate the complexities of IRA real estate investments. This course does not aim to transform real estate licensees into financial advisors, but rather to equip licensees with the financial literacy needed to competently facilitate investment transactions in such a way as to safeguard the unique interests and concerns of this set of consumers.

While you obviously cannot run through a checklist of federal laws every time you participate in a transaction, it is important that you remember that there are rules and regulations that impact virtually everything you do in the process of listing, selling, and participating in the purchase of real estate as an agent.

The foregoing concepts should be familiar. They are yet another way of stating the rules of the law of agency in general and according to the Texas Real Estate Commission in particular, when considering the obligations of agent to principal.

Note that the licensee/license holder can have a license suspended or revoked for 33 separate listed actions or failures to act, including disregarding or violating a provision of Chapter 1101 or chapter 1102 of TRELA. One of those possible violations is acting “negligently or incompetently.” Another violation occurs if the licensee “solicits, sells, or offers for sale real property by means of a deceptive practice.” If a licensee commits a deceptive practice under the DTPA, it will undoubtedly constitute a deceptive practice under this section. You may recall that a violation of the DTPA does not require intent. So, a broker that violates the TPA without any intention to do so is also exposed to disciplinary action under TRELA. The financial and ethical exposure is obvious and serious.

The Fraud Act uses the phrase “actual awareness” to impose an additional level of potential damage award.

While not binding on licensees that are not REALTORS®, the Code nevertheless provides a wealth of guidance as to the appropriate conduct by a real estate agent. Though not specifically adopted by TREC, these guidelines echo many of the same principles and tenets as TREC and other authorities on the subject of agency. It can be safely said that observing these rules and standards of practice, whether you have become a Realtor® or not, will be of benefit to you in establishing an ethical professional reputation and, if necessary, a defense to legal or ethical complaints.

Professional Standards Hearing panels consider three main categories of factors which influence the panel’s decision. First, how did the respondent and complainant introduce the buyer to the property? Second, did the buyer make any decision or take any action that may have affected the transaction? Third, how did the brokers perform their duties and obligations?

You will see that the author makes a couple of references to Indian law. Don’t let that be a distraction. The principles stated apply to fraud and misrepresentation regardless, and the comparison chart in the article is a good shorthand way to differentiate these concepts.

Bear in mind that the laundry list and the specific sections emphasized are intended only to provide you with some warning signs about what may or may not be a violation of the DTPA. They are not intended to be a substitute for appropriate legal counsel.

Topics Covered

Lesson 1: Foundations of Investing in Real Estate Assets
Lesson 2: Understanding Trust Accounts and Fiduciaries
Lesson 3: The IRA Real Property Transaction
Lesson 4: Financing the Transaction
Lesson 5: Competent Practice

While you obviously cannot run through a checklist of federal laws every time you participate in a transaction, it is important that you remember that there are rules and regulations that impact virtually everything you do in the process of listing, selling, and participating in the purchase of real estate as an agent.

The foregoing concepts should be familiar. They are yet another way of stating the rules of the law of agency in general and according to the Texas Real Estate Commission in particular, when considering the obligations of agent to principal.

Note that the licensee/license holder can have a license suspended or revoked for 33 separate listed actions or failures to act, including disregarding or violating a provision of Chapter 1101 or chapter 1102 of TRELA. One of those possible violations is acting “negligently or incompetently.” Another violation occurs if the licensee “solicits, sells, or offers for sale real property by means of a deceptive practice.” If a licensee commits a deceptive practice under the DTPA, it will undoubtedly constitute a deceptive practice under this section. You may recall that a violation of the DTPA does not require intent. So, a broker that violates the TPA without any intention to do so is also exposed to disciplinary action under TRELA. The financial and ethical exposure is obvious and serious.

The Fraud Act uses the phrase “actual awareness” to impose an additional level of potential damage award.

While not binding on licensees that are not REALTORS®, the Code nevertheless provides a wealth of guidance as to the appropriate conduct by a real estate agent. Though not specifically adopted by TREC, these guidelines echo many of the same principles and tenets as TREC and other authorities on the subject of agency. It can be safely said that observing these rules and standards of practice, whether you have become a Realtor® or not, will be of benefit to you in establishing an ethical professional reputation and, if necessary, a defense to legal or ethical complaints.

Professional Standards Hearing panels consider three main categories of factors which influence the panel’s decision. First, how did the respondent and complainant introduce the buyer to the property? Second, did the buyer make any decision or take any action that may have affected the transaction? Third, how did the brokers perform their duties and obligations?

You will see that the author makes a couple of references to Indian law. Don’t let that be a distraction. The principles stated apply to fraud and misrepresentation regardless, and the comparison chart in the article is a good shorthand way to differentiate these concepts.

Bear in mind that the laundry list and the specific sections emphasized are intended only to provide you with some warning signs about what may or may not be a violation of the DTPA. They are not intended to be a substitute for appropriate legal counsel.

Learning Objectives

Upon completion of this course, you will be able to:

• Explain the relevant factors that impact consumer’s investment behavior, including the unique challenges and considerations of retirement savers as they allocate their investment portfolio to include real property.
• Describe the transaction parties, fiduciary relationships and duties, and ownership interests pertaining to the trust account.
• Successfully complete an IRA real estate transaction including proper completion of contract forms, mastery of the prohibited transaction rules, and comprehension of the roles and fiduciary relationships of the parties involved in an IRA transaction.
• Understand risks including consumer risks of fraud and investment loss and licensee risks of such as unauthorized practice.
• Demonstrate financial literacy to competently discuss real estate as an investment option and sources of funding with IRA consumers.

While you obviously cannot run through a checklist of federal laws every time you participate in a transaction, it is important that you remember that there are rules and regulations that impact virtually everything you do in the process of listing, selling, and participating in the purchase of real estate as an agent.

The foregoing concepts should be familiar. They are yet another way of stating the rules of the law of agency in general and according to the Texas Real Estate Commission in particular, when considering the obligations of agent to principal.

Note that the licensee/license holder can have a license suspended or revoked for 33 separate listed actions or failures to act, including disregarding or violating a provision of Chapter 1101 or chapter 1102 of TRELA. One of those possible violations is acting “negligently or incompetently.” Another violation occurs if the licensee “solicits, sells, or offers for sale real property by means of a deceptive practice.” If a licensee commits a deceptive practice under the DTPA, it will undoubtedly constitute a deceptive practice under this section. You may recall that a violation of the DTPA does not require intent. So, a broker that violates the TPA without any intention to do so is also exposed to disciplinary action under TRELA. The financial and ethical exposure is obvious and serious.

The Fraud Act uses the phrase “actual awareness” to impose an additional level of potential damage award.

While not binding on licensees that are not REALTORS®, the Code nevertheless provides a wealth of guidance as to the appropriate conduct by a real estate agent. Though not specifically adopted by TREC, these guidelines echo many of the same principles and tenets as TREC and other authorities on the subject of agency. It can be safely said that observing these rules and standards of practice, whether you have become a Realtor® or not, will be of benefit to you in establishing an ethical professional reputation and, if necessary, a defense to legal or ethical complaints.

Professional Standards Hearing panels consider three main categories of factors which influence the panel’s decision. First, how did the respondent and complainant introduce the buyer to the property? Second, did the buyer make any decision or take any action that may have affected the transaction? Third, how did the brokers perform their duties and obligations?

You will see that the author makes a couple of references to Indian law. Don’t let that be a distraction. The principles stated apply to fraud and misrepresentation regardless, and the comparison chart in the article is a good shorthand way to differentiate these concepts.

Bear in mind that the laundry list and the specific sections emphasized are intended only to provide you with some warning signs about what may or may not be a violation of the DTPA. They are not intended to be a substitute for appropriate legal counsel.

About

This course focuses on the different types of surveys used in real estate and provides background on subdivision platting and specific subdivision regulations. Upon completion of this course the student will have an understanding of why and how surveys are performed, and understand why subdivisions are created and how laws have evolved to protect land owners.

Topics Covered

Lesson 1: Land Surveying & How Boundaries Are Created

Lesson 2: Types of Land Surveys

Lesson 3: Improvement Location Certificates

Lesson 4: Other Types of Surveys & GIS

Lesson 5: How Surveys are Used

Lesson 6: The Subdivision Plat

Lesson 7: Subdivision as a Regulatory Tool

Lesson 8: Subdivision Exemptions

Lesson 9: Enforcement of Subdivision Regulations & Vested Rights

Lesson 10: Land Dedication, Exactions, and Similar Requirements

Lesson 11: Plat Amendment & Recordation

Lesson 12: Legal Challenges

Learning Objectives

Upon completion of this course, you will be able to:

• Explain what land surveying is
• Discuss the different types of boundaries and how they are created
• Discuss the types of boundary surveys used in Colorado including monumented land survey, improvement survey plat and land survey plat
• Define the American Land Tile Association/American Congress on Surveying and Mapping (ALTA/ACSM) survey
• Discuss what Improvement Location Certificates (ILC) are and why they are not used to establish property boundaries.
• Recognize the minimum requirements for an ILC
• Define how ILC’s are updated (recertified), and the potential problems created when ILC’s are represented as a “survey”
• Define other types of mapping such as topographic surveys, aerial mapping, environmental surveys such as wetland mapping, fire mitigation mapping, slope analysis, site plans and floodplain mapping
• Discuss the different types of easements, both public and private and how they are created
• Recognize the importance of locating apparent easements on surveys
• Identify Geographic Information Systems; how GIS is used in land use planning and what features are found in a typical GIS
• Discuss how and why surveys and maps are used in land use planning
• Define what type of surveys may be required during land development
• Discuss the general history of subdivision platting in the United States
• Define the general purposes of subdivision regulations, and address the form and legal basics of what a subdivision plat is
• Discuss Colorado municipal and county statutory and local ordinance limitations on the platting process
• Define the subdivision review process under state statutes and local ordinances and the substantive requirements for subdivision approval under those laws
• Recognize that the first step in determining any subdivision exemptions is to check the definition of a “subdivision” within the local regulations
• Discuss the need to review both the local regulatory definition and the statutory definition to determine whether an exemption exists and the scope of the exemption when it does exist
• Discuss the various mechanisms for the enforcement of subdivision plats and platting requirements
• Recognize that most jurisdictions place the most significant burden of a subdivider’s noncompliance with local regulations on the shoulders of the “innocent purchaser”
• Identify the two types of vested rights as well as the state and local laws that govern the vesting process
• Discuss the general land dedication and impact fee requirements in connection with the subdivision platting process
• Explain the law of “exactions” as part of the subdivision approval process and define the difference between a dedication requirement and a discretionary exaction
• Recognize federal constitutional law that has evolved in recent years to address these issues
• Discuss the right of local governments to impose impact fees on capital facilities.
• Discuss the process and technical requirements that arise when amending a subdivision plat
• Recognize the importance of and purposes of recording a plat
• Discuss the legal mechanisms and substantive standards involved in a land-owner’s (or neighbor’s) challenge to the approval or denial of a subdivision plat by a municipality or county

About

Our daily lives can involve a variety of agency relationships. When you ask your physician to communicate information to the pharmacy to fill in a prescription, you are authorizing the physician to act as an agent of sorts to fulfill a specific task for you. If you hire a professional real estate person to market your home, or find you a new home, or find you a new office space, or you retain an auto broker to locate a replacement car or truck, or contract with an art dealer to find works by a specific artist, or employ a private detective to track down a long-lost relative, or you deliver some inherited furniture to an antique dealer for sale on consignment at a specific minimum price, you are participating in an agency relationship. All of these examples involve a contract, either verbal or written. It is that contract that creates the agency relationship.

No matter what the rules, statutes or practices that may become involved, at its core, an agency relationship is a contract between two parties:

1. the person that is delegating authority (the Principal) and
2. the person that is being given the authority (the Agent).
   
   

The more substantial the proposed relationship and/or contemplated transactions become, the more complex the principal–agent relationship and the rules surrounding it can become. New laws, court cases, experiences in day-to-day business and new ways of doing business can complicate and add new layers of responsibilities and duties to the relationship. Nevertheless, at the core, an agency relationship is still that contract between the Principal and the Agent.

The purpose of this course is to better acquaint the leaner with the various types of agency relationships that can exist, and to build an understanding of the scope and the limits of agency in general and of the rules as they relate to the practice of the real estate profession.

This course contains numerous opportunities for interaction. You will be expected to complete each exercise, quiz, reading assignment, and exam in this course.

The exception to the foregoing rule regarding common law is the Napoleonic Code. The Code was the first organized and codified as the law in France, and grew out of ancient Roman law. In its updated form, it is still the basis of most law in France, and is the basis for much of the law in the state of Louisiana.

The following are specific categories or classifications of agency with specific legal consequences. These categories are not a type of agency such as a real estate agent, insurance agent, secret agent, etc.

Notice that the definition and the examples all emphasize that fiduciary is obligated to act in your best interests; she is obligated to put your interests above hers, to be candid, to act in good faith and to be loyal.

The foregoing concepts should be familiar. They are yet another way of stating the rules of the law of agency in general, and of the Texas Real Estate Commission in particular, when considering the obligations of agent to principal.

Topics Covered

This course focuses on the following topics:

• Lesson 1: Agency Concepts
• Lesson 2: Basic Agency Relationship, Disclosure and Duties to the Client
• Lesson 3: Duties and Disclosures to Third Parties
• Lesson 4: Seller Agency
• Lesson 5: Buyer Agency
• Lesson 6: Representing More than One Party in a Transaction: Intermediary Broker
• Lesson 7: Creation and Termination of Agency
• Lesson 8: Clarifying Agency Relationships
• Lesson 9: Employment Issues
• Lesson 10: Agency, Ethics, and the Law
• Lesson 11: Deceptive Trade Practices and Consumer Protection Act
• Lesson 12: Implementation and Presentation

Note:

In this course, restaurants will be included under the retail category.

This course is designed to teach the learner a simple system designed to do just that. It should be noted that even the more sophisticated companies with experienced real estate directors can misjudge a location. So, it is not surprising that the site selection process for a small franchisee or the independent business person is fraught with risk.

Note:
We generally do not add up the total scores from each of the components in the model; rather, we compare the scores from each individual component line for both the trade area and the site.

Note:

Note that in the “Residential Population” column, you will not put a target score in the cell, but the minimum population your client determines is necessary for the success of the business. This is also the case with the Daytime Employment, Average Age, Average Income, Traffic and Parking components.

Projecting the amount of sales the secondary trade area will produce is much harder to calculate without specialized research. If the client cannot make her draft P&L (profit & loss) work without projecting some sales from the secondary trade area, that’s up to her. However, whenever possible, this author recommends taking a conservative position and treat any potential sales that come from the secondary trade area as a plus or a bonus.

Note:
Please note that the Site Evaluation Worksheet includes a box for both the trade area drive time and radius. This is because not all brokers have access to drive time demographics and will need to use a radius for demographic purposes.

Using a radius will make the trade area statistics less accurate, but if a radius demographic report is all that is available, then use the radius, but try to adjust the data for natural and man-made barriers and for pockets of population that reside outside of the radius but shop inside it.

Same goes for Employment centers outside of the radius. If those employees shop within the trade area, then include them in your trade area employment base.

When you think about it, the concept of distance decay makes sense. There is the inconvenience of increased driving time plus, there is the likelihood that other competitors will be more convenient to the customer. Therefore, the customer will drive that business less frequently.

Learning Objectives

Upon completion of this course, you will be able to:

• Enumerate basic agency relationships, including disclosure and duties to clients.
• Identify the relevant section of the Texas property code as it relates to an agent's duties and disclosures to third parties.
• Describe the concept of seller agency and the benefits of such a relationship.
• Enumerate the details of buyer agency, how it is created and the benefits of such an arrangement.
• Comprehend the intricacies of representing more than one party in a transaction (including what is known as intermediary brokerage);
• Describe how an agency is created and terminated.
• Navigate disclosure policies and navigate a company's policies in this area.
• Discover various employment law issues involving agencies, including independent contract agreements and employment issues with brokers, principals and personal assistants and agents.
• Explain the interaction between agency, ethics, law and morals, including codes of ethics, minimum ethical standards and the rules of TREC and TRELA
• Recognize the various aspects of the Texas Deceptive Trade Practices Act as they impact the purchase and sale of real property.
• Discover some practical aspects of agency, including working with sellers and buyers.
• Relate a practical guide to everyday practice; and
• Comprehend risk management issues as well as other considerations that impact a daily practice.

Note:

In this course, restaurants will be included under the retail category.

This course is designed to teach the learner a simple system designed to do just that. It should be noted that even the more sophisticated companies with experienced real estate directors can misjudge a location. So, it is not surprising that the site selection process for a small franchisee or the independent business person is fraught with risk.

Note:
We generally do not add up the total scores from each of the components in the model; rather, we compare the scores from each individual component line for both the trade area and the site.

Note:

Note that in the “Residential Population” column, you will not put a target score in the cell, but the minimum population your client determines is necessary for the success of the business. This is also the case with the Daytime Employment, Average Age, Average Income, Traffic and Parking components.

Projecting the amount of sales the secondary trade area will produce is much harder to calculate without specialized research. If the client cannot make her draft P&L (profit & loss) work without projecting some sales from the secondary trade area, that’s up to her. However, whenever possible, this author recommends taking a conservative position and treat any potential sales that come from the secondary trade area as a plus or a bonus.

Note:
Please note that the Site Evaluation Worksheet includes a box for both the trade area drive time and radius. This is because not all brokers have access to drive time demographics and will need to use a radius for demographic purposes.

Using a radius will make the trade area statistics less accurate, but if a radius demographic report is all that is available, then use the radius, but try to adjust the data for natural and man-made barriers and for pockets of population that reside outside of the radius but shop inside it.

Same goes for Employment centers outside of the radius. If those employees shop within the trade area, then include them in your trade area employment base.

When you think about it, the concept of distance decay makes sense. There is the inconvenience of increased driving time plus, there is the likelihood that other competitors will be more convenient to the customer. Therefore, the customer will drive that business less frequently.

About

Our daily lives can involve a variety of agency relationships. When you ask your physician to communicate information to the pharmacy to fill a prescription, you are authorizing the physician to act as an agent of sorts to fulfill a specific task for you. If you hire a professional real estate person to market your home, or find you a new home, or find you a new office space, or you retain an auto broker to locate a replacement car or truck, or contract with an art dealer to find works by a specific artist, or employ a private detective to track down a long-lost relative, or you deliver some inherited furniture to an antique dealer for sale on consignment at a specific minimum price, you are participating in an agency relationship. All of these examples involve a contract, either verbal or written. It is that contract that creates the agency relationship.

No matter what the rules, statutes or practices that may become involved, at its core, an agency relationship is a contract between two parties:

1. the person that is delegating authority (the Principal) and
2. the person that is being given the authority (the Agent).
   
   

The more substantial the proposed relationship and/or contemplated transactions become, the more complex the principal–agent relationship and the rules surrounding it can become. New laws, court cases, experiences in day-to-day business and new ways of doing business can complicate and add new layers of responsibilities and duties to the relationship. Nevertheless, at the core, an agency relationship is still that contract between the Principal and the Agent.

The purpose of this course is to better acquaint the leaner with the various types of agency relationships that can exist, and to build an understanding of the scope and the limits of agency in general and of the rules as they relate to the practice of the real estate profession.

This course contains numerous opportunities for interaction. You will be expected to complete each exercise, quiz, reading assignment, and exam in this course.

Topics Covered

This course focuses on the following topics:

• Lesson 1: Agency Concepts
• Lesson 2: Basic Agency Relationship, Disclosure and Duties to the Client
• Lesson 3: Duties and Disclosures to Third Parties
• Lesson 4: Seller Agency
• Lesson 5: Buyer Agency
• Lesson 6: Representing More than One Party in a Transaction: Intermediary Broker
• Lesson 7: Creation and Termination of Agency
• Lesson 8: Clarifying Agency Relationships
• Lesson 9: Employment Issues
• Lesson 10: Agency, Ethics, and the Law
• Lesson 11: Deceptive Trade Practices and Consumer Protection Act
• Lesson 12: Implementation and Presentation

Note:

In this course, restaurants will be included under the retail category.

This course is designed to teach the learner a simple system designed to do just that. It should be noted that even the more sophisticated companies with experienced real estate directors can misjudge a location. So, it is not surprising that the site selection process for a small franchisee or the independent business person is fraught with risk.

Note:
We generally do not add up the total scores from each of the components in the model; rather, we compare the scores from each individual component line for both the trade area and the site.

Note:

Note that in the “Residential Population” column, you will not put a target score in the cell, but the minimum population your client determines is necessary for the success of the business. This is also the case with the Daytime Employment, Average Age, Average Income, Traffic and Parking components.

Projecting the amount of sales the secondary trade area will produce is much harder to calculate without specialized research. If the client cannot make her draft P&L (profit & loss) work without projecting some sales from the secondary trade area, that’s up to her. However, whenever possible, this author recommends taking a conservative position and treat any potential sales that come from the secondary trade area as a plus or a bonus.

Note:
Please note that the Site Evaluation Worksheet includes a box for both the trade area drive time and radius. This is because not all brokers have access to drive time demographics and will need to use a radius for demographic purposes.

Using a radius will make the trade area statistics less accurate, but if a radius demographic report is all that is available, then use the radius, but try to adjust the data for natural and man-made barriers and for pockets of population that reside outside of the radius but shop inside it.

Same goes for Employment centers outside of the radius. If those employees shop within the trade area, then include them in your trade area employment base.

When you think about it, the concept of distance decay makes sense. There is the inconvenience of increased driving time plus, there is the likelihood that other competitors will be more convenient to the customer. Therefore, the customer will drive that business less frequently.

Learning Objectives

Upon completion of this course, you will be able to:

• Enumerate basic agency relationships, including disclosure and duties to clients;
• Identify the relevant section of the Texas property code as it relates to an agent's duties and disclosures to third parties;
• Describe the concept of seller agency and the benefits of such a relationship;
• Enumerate the details of buyer agency, how it is created and the benefits of such an arrangement;
• Comprehend the intricacies of representing more than one party in a transaction (including what is known as intermediary brokerage);
• Describe how agency is created and terminated;
• Navigate disclosure policies and navigate a company's policies in this area;
• Discover various employment law issues involving agency, including independent contract agreements and employment issues with brokers, principals and personal assistants and agents;
• Explain the interaction among agency, ethics, law and morals, including codes of ethics, minimum ethical standards and the rules of TREC and TRELA
• Recognize the various aspects of the Texas Deceptive Trade Practices Act as they impact the purchase and sale of real property;
• Discover some practical aspects of agency, including working with sellers and buyers;
• Relate a practical guide to everyday practice; and
• Comprehend risk management issues as well as other considerations that impact a daily practice.

Note:

In this course, restaurants will be included under the retail category.

This course is designed to teach the learner a simple system designed to do just that. It should be noted that even the more sophisticated companies with experienced real estate directors can misjudge a location. So, it is not surprising that the site selection process for a small franchisee or the independent business person is fraught with risk.

Note:
We generally do not add up the total scores from each of the components in the model; rather, we compare the scores from each individual component line for both the trade area and the site.

Note:

Note that in the “Residential Population” column, you will not put a target score in the cell, but the minimum population your client determines is necessary for the success of the business. This is also the case with the Daytime Employment, Average Age, Average Income, Traffic and Parking components.

Projecting the amount of sales the secondary trade area will produce is much harder to calculate without specialized research. If the client cannot make her draft P&L (profit & loss) work without projecting some sales from the secondary trade area, that’s up to her. However, whenever possible, this author recommends taking a conservative position and treat any potential sales that come from the secondary trade area as a plus or a bonus.

Note:
Please note that the Site Evaluation Worksheet includes a box for both the trade area drive time and radius. This is because not all brokers have access to drive time demographics and will need to use a radius for demographic purposes.

Using a radius will make the trade area statistics less accurate, but if a radius demographic report is all that is available, then use the radius, but try to adjust the data for natural and man-made barriers and for pockets of population that reside outside of the radius but shop inside it.

Same goes for Employment centers outside of the radius. If those employees shop within the trade area, then include them in your trade area employment base.

When you think about it, the concept of distance decay makes sense. There is the inconvenience of increased driving time plus, there is the likelihood that other competitors will be more convenient to the customer. Therefore, the customer will drive that business less frequently.

About

The purpose of Legal Update I is to support Texas license holder competence through the review of recent legislative and TREC rule changes, including changes to TREC promulgated contract forms. The courses include topics relevant to the current practice of real estate in Texas.

Topics Covered

• Legislative Changes & TREC Rule Updates
• Promulgated Contract Forms & Addenda
• Fair Housing, Diversity, & Inclusion in Real Estate
• Landlord-Tenant Issues & Property Management

For those who do not have a copy of the License Code and Rules book, we suggest you open and review the online version from the Commission’s website. This will make it easier to follow along within the course.
Throughout this material, it will make reference to the applicable statute or rule so that you can locate the rule and use it for future reference.

The name and good will of a sole proprietorship can be sold as well as business supplies, furniture, etc.; however, the listings, management agreements, or contract assets cannot be sold unless within the agreements/contracts there contains an assignment clause allowing the broker to assign interest in the agreements/contracts to another broker. The assignment option is not encouraged and the Commission would suggest that the broker consult legal advice prior to including such in an agreement.

In order to license an entity, it requires the issuance of two licenses, i.e., one for the entity and one for the sponsoring broker. Their license renewals may or may not be on the same license cycle so pay special attention to this because if one license expires, the sponsoring broker or entity, it will cause all licenses associated with the company to go on inactive status until such time as the license is reinstated - all licensed activity must cease until such time as the licenses are actively reinstated.

If a managing broker allows the broker’s license to expire, all associates associated with the brokerage will be placed on inactive status.

A trade name is an alternate name under which an entity may choose to operate.(An entity will have one corporate/LLC name but may have several trade names.)

However, the changing of a trade name would not apply to Rule 605:10-7-5. To use a trade name or to discontinue the use of such must be registered at the Commission.

Do not enroll in the provisional sales associate post-license course until your license has been issued by the Commission. This course must be taken within the first six months of license issuance. If you do not complete the course within the first six months, the license will be placed on inactive status.

The term “real estate broker” shall include any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting a fee, commission or other valuable consideration, lists, sells or offers to sell, buys or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or who advertises or holds himself out as engaged in such activities.

Learning Objectives

By the end of this course, you will be able to:

• Describe TREC’s advisory committees that examine different areas of the real estate industry.
• Explain how an idea becomes a TREC rule.
• Describe why TREC’s quadrennial rule review is important to license holders and consumers.
• Identify recent TREC rule changes that affect license holders.
• Understand legislation passed by the 88th Texas Legislature relating to the practice of real estate.
• Summarize the purpose and practice of the Broker-Lawyer Committee (BLC).
• Explain why TREC contract forms change
• Identify recent changes to the One to Four Family Residential Contract (Resale) and other contract forms.
• Analyze possible consequences of loan assumptions and the importance of a license holder’s familiarity with the Loan Assumption Addendum form.
• Distinguish between mandatory and voluntary use of TREC contract forms.
• Understand the impact of discrimination in real estate given the history of civil rights laws, current investigations, and trends.
• Identify federal, state, and local fair housing laws.
• Distinguish between the protected classes found in the Fair Housing Act, Texas Real Estate Commission’s Canons of Professional Ethics and Conduct, TREC Rule Section 531.19, and the NAR Code of Ethics. 
• Recognize and define different forms of bias.
• Describe steering and strategies to avoid it.
• Explain appraisal bias, including federal and state initiatives to reduce it.
• Describe best practices for advertising and marketing related to fair housing.
• Recall resources for fair housing information and assistance.
• Understand the rights of tenants with disabilities under the Fair Housing Act.
• Understand the differences between reasonable accommodations and modifications.

For those who do not have a copy of the License Code and Rules book, we suggest you open and review the online version from the Commission’s website. This will make it easier to follow along within the course.
Throughout this material, it will make reference to the applicable statute or rule so that you can locate the rule and use it for future reference.

The name and good will of a sole proprietorship can be sold as well as business supplies, furniture, etc.; however, the listings, management agreements, or contract assets cannot be sold unless within the agreements/contracts there contains an assignment clause allowing the broker to assign interest in the agreements/contracts to another broker. The assignment option is not encouraged and the Commission would suggest that the broker consult legal advice prior to including such in an agreement.

In order to license an entity, it requires the issuance of two licenses, i.e., one for the entity and one for the sponsoring broker. Their license renewals may or may not be on the same license cycle so pay special attention to this because if one license expires, the sponsoring broker or entity, it will cause all licenses associated with the company to go on inactive status until such time as the license is reinstated - all licensed activity must cease until such time as the licenses are actively reinstated.

If a managing broker allows the broker’s license to expire, all associates associated with the brokerage will be placed on inactive status.

A trade name is an alternate name under which an entity may choose to operate.(An entity will have one corporate/LLC name but may have several trade names.)

However, the changing of a trade name would not apply to Rule 605:10-7-5. To use a trade name or to discontinue the use of such must be registered at the Commission.

Do not enroll in the provisional sales associate post-license course until your license has been issued by the Commission. This course must be taken within the first six months of license issuance. If you do not complete the course within the first six months, the license will be placed on inactive status.

The term “real estate broker” shall include any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting a fee, commission or other valuable consideration, lists, sells or offers to sell, buys or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or who advertises or holds himself out as engaged in such activities.

About

The purpose of Legal Update II is to support Texas license holder competence through the review of recent legislative and TREC rule changes, including changes to TREC promulgated contract forms. The courses include topics relevant to the current practice of real estate in Texas.

Topics Covered

• Agency – Fiduciary Duties & Ethical Behavior of License Holders
• Water & Mineral Rights
• Ad Valorem Taxes & Valuation

For those who do not have a copy of the License Code and Rules book, we suggest you open and review the online version from the Commission’s website. This will make it easier to follow along within the course.
Throughout this material, it will make reference to the applicable statute or rule so that you can locate the rule and use it for future reference.

The name and good will of a sole proprietorship can be sold as well as business supplies, furniture, etc.; however, the listings, management agreements, or contract assets cannot be sold unless within the agreements/contracts there contains an assignment clause allowing the broker to assign interest in the agreements/contracts to another broker. The assignment option is not encouraged and the Commission would suggest that the broker consult legal advice prior to including such in an agreement.

In order to license an entity, it requires the issuance of two licenses, i.e., one for the entity and one for the sponsoring broker. Their license renewals may or may not be on the same license cycle so pay special attention to this because if one license expires, the sponsoring broker or entity, it will cause all licenses associated with the company to go on inactive status until such time as the license is reinstated - all licensed activity must cease until such time as the licenses are actively reinstated.

If a managing broker allows the broker’s license to expire, all associates associated with the brokerage will be placed on inactive status.

A trade name is an alternate name under which an entity may choose to operate.(An entity will have one corporate/LLC name but may have several trade names.)

However, the changing of a trade name would not apply to Rule 605:10-7-5. To use a trade name or to discontinue the use of such must be registered at the Commission.

Do not enroll in the provisional sales associate post-license course until your license has been issued by the Commission. This course must be taken within the first six months of license issuance. If you do not complete the course within the first six months, the license will be placed on inactive status.

The term “real estate broker” shall include any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting a fee, commission or other valuable consideration, lists, sells or offers to sell, buys or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or who advertises or holds himself out as engaged in such activities.

Learning Objectives

Upon completion of this course, you will be able to:

• Define the three Canons of Professional Ethics and Canons under Chapter 531 of the TREC rules.
• Explain how types of agency relationships are created in Texas.
• Summarize how license holder-to license holder communications about commissions can be a violation of antitrust laws.
• Understand the specific information contained in each section of the of the IABS.
• Explain the mechanisms for acceptable delivery and posting of the Consumer Protection Notice.
• Given a criminal incident, assess if or when a license holder must disclose it as part of their criminal history.
• Recall the name of the program TREC uses during the license renewal process to check criminal related activity.
• Understand the requirements of the VA loan program.
• Describe the pros and cons of VA loans for borrowers and sellers.
• Examine common real estate myths about VA loans.
• Identify differences between the VA loan program and the Texas Veteran Land Board loan program.
• Paraphrase the TREC complaint process.
• Identify the top five TREC complaint categories.
• Recall best practices for brokers to prevent complaints against license holders.
• Describe TREC’s advertising compliance program.

Both the buyer and the seller have the right to retract their offer at any time up until the time the offer is completely agreed upon, and the acceptance of the offer has been communicated to the other party or their agent.

Broker accurately summarized the relevant provisions of Forms 22A and 22AD except that broker left out an important provision in the old and new Form 22ADC. Buyer may waive the protections of the Form 22A Financing contingency (old form) and may waive the protections of either the Form 22A financing contingency or the Form 22AA Appraisal Addendum (new form) to avoid the obligation of delivering the notice to seller that would then allow seller to terminate the PSA. If buyer waives the protection of either contingency, then buyer is obligated to close the transaction which would, of course, obligate buyer to make up the difference required for the additional down payment 

A Vietnamese family comes into Real Estate Licensee X’s office looking for a home. X knows of a good neighborhood with a substantial number of Vietnamese residents, one he thinks the family would enjoy. He shows them only properties in that neighborhood. This is considered steering because he is directing the family away from other, less racially segregated neighborhoods, and the licensee thereby works to perpetuate segregation. Notice that the licensee does not have any malicious intent here—he is not trying to deprive the family of anything, nor does he hold any negative beliefs about them. He may think he is helpful. It is still wrong for X to take this choice out of the family’s hands. They should be allowed to choose for themselves among the various properties he has available, regardless of location.

About

The purpose of Legal Update II is to support Texas license holder competence through the review of recent legislative and TREC rule changes, including changes to TREC promulgated contract forms. The courses include topics relevant to the current practice of real estate in Texas.

Topics Covered

• Agency – Fiduciary Duties & Ethical Behavior of License Holders
• Water & Mineral Rights
• Ad Valorem Taxes & Valuation

For those who do not have a copy of the License Code and Rules book, we suggest you open and review the online version from the Commission’s website. This will make it easier to follow along within the course.
Throughout this material, it will make reference to the applicable statute or rule so that you can locate the rule and use it for future reference.

The name and good will of a sole proprietorship can be sold as well as business supplies, furniture, etc.; however, the listings, management agreements, or contract assets cannot be sold unless within the agreements/contracts there contains an assignment clause allowing the broker to assign interest in the agreements/contracts to another broker. The assignment option is not encouraged and the Commission would suggest that the broker consult legal advice prior to including such in an agreement.

In order to license an entity, it requires the issuance of two licenses, i.e., one for the entity and one for the sponsoring broker. Their license renewals may or may not be on the same license cycle so pay special attention to this because if one license expires, the sponsoring broker or entity, it will cause all licenses associated with the company to go on inactive status until such time as the license is reinstated - all licensed activity must cease until such time as the licenses are actively reinstated.

If a managing broker allows the broker’s license to expire, all associates associated with the brokerage will be placed on inactive status.

A trade name is an alternate name under which an entity may choose to operate.(An entity will have one corporate/LLC name but may have several trade names.)

However, the changing of a trade name would not apply to Rule 605:10-7-5. To use a trade name or to discontinue the use of such must be registered at the Commission.

Do not enroll in the provisional sales associate post-license course until your license has been issued by the Commission. This course must be taken within the first six months of license issuance. If you do not complete the course within the first six months, the license will be placed on inactive status.

The term “real estate broker” shall include any person, partnership, association or corporation, foreign or domestic, who for a fee, commission or other valuable consideration, or who with the intention or expectation of receiving or collecting a fee, commission or other valuable consideration, lists, sells or offers to sell, buys or offers to buy, exchanges, rents or leases any real estate, or who negotiates or attempts to negotiate any such activity, or solicits listings of places for rent or lease, or solicits for prospective tenants, purchasers or sellers, or who advertises or holds himself out as engaged in such activities.

Learning Objectives

Upon completion of this course, you will be able to:

• Define the three Canons of Professional Ethics and Canons under Chapter 531 of the TREC rules.
• Explain how types of agency relationships are created in Texas.
• Summarize how license holder-to license holder communications about commissions can be a violation of antitrust laws.
• Understand the specific information contained in each section of the of the IABS.
• Explain the mechanisms for acceptable delivery and posting of the Consumer Protection Notice.
• Given a criminal incident, assess if or when a license holder must disclose it as part of their criminal history.
• Recall the name of the program TREC uses during the license renewal process to check criminal related activity.
• Understand the requirements of the VA loan program.
• Describe the pros and cons of VA loans for borrowers and sellers.
• Examine common real estate myths about VA loans.
• Identify differences between the VA loan program and the Texas Veteran Land Board loan program.
• Paraphrase the TREC complaint process.
• Identify the top five TREC complaint categories.
• Recall best practices for brokers to prevent complaints against license holders.
• Describe TREC’s advertising compliance program.

Both the buyer and the seller have the right to retract their offer at any time up until the time the offer is completely agreed upon, and the acceptance of the offer has been communicated to the other party or their agent.

Broker accurately summarized the relevant provisions of Forms 22A and 22AD except that broker left out an important provision in the old and new Form 22ADC. Buyer may waive the protections of the Form 22A Financing contingency (old form) and may waive the protections of either the Form 22A financing contingency or the Form 22AA Appraisal Addendum (new form) to avoid the obligation of delivering the notice to seller that would then allow seller to terminate the PSA. If buyer waives the protection of either contingency, then buyer is obligated to close the transaction which would, of course, obligate buyer to make up the difference required for the additional down payment 

A Vietnamese family comes into Real Estate Licensee X’s office looking for a home. X knows of a good neighborhood with a substantial number of Vietnamese residents, one he thinks the family would enjoy. He shows them only properties in that neighborhood. This is considered steering because he is directing the family away from other, less racially segregated neighborhoods, and the licensee thereby works to perpetuate segregation. Notice that the licensee does not have any malicious intent here—he is not trying to deprive the family of anything, nor does he hold any negative beliefs about them. He may think he is helpful. It is still wrong for X to take this choice out of the family’s hands. They should be allowed to choose for themselves among the various properties he has available, regardless of location.

About

This course will introduce how to find different sources of business to prospect, how to present yourself to those prospects and how to determine the value of the property.

Topics Covered

Lesson 1: The Practice of Commercial Real Estate

Lesson 2: Prospecting

Lesson 3: The Listing Presentation

Lesson 4: Providing Marketing Services

Lesson 5: Working with Buyers

Lesson 6: The Sale

Learning Objectives

Upon completion of this course, you will be able to:

• Understand the process of listing and selling commercial real estate
• Understand procedures of marketing for real estate
• Understand correlation between buyers, investors and tenants

What has worked more effectively for me is to find other agents in the area who have similar properties for sale or lease and target those specific agents with the listing. I create a brochure and then attach a handwritten note to the brochure. The handwritten note would explain that I knew they had a similar property for sale or lease, and if they find buyers or tenants who weren’t satisfied with the agent’s property, would he or she mind showing mine? This personal approach seems to net more showings for many of my listings

About

This course will introduce how to find different sources of business to prospect, how to present yourself to those prospects and how to determine the value of the property.

Topics Covered

Lesson 1: The Practice of Commercial Real Estate

Lesson 2: Prospecting

Lesson 3: The Listing Presentation

Lesson 4: Providing Marketing Services

Lesson 5: Working with Buyers

Lesson 6: The Sale

Learning Objectives

Upon completion of this course, you will be able to:

• Understand the process of listing and selling commercial real estate
• Understand procedures of marketing for real estate
• Understand correlation between buyers, investors and tenants

What has worked more effectively for me is to find other agents in the area who have similar properties for sale or lease and target those specific agents with the listing. I create a brochure and then attach a handwritten note to the brochure. The handwritten note would explain that I knew they had a similar property for sale or lease, and if they find buyers or tenants who weren’t satisfied with the agent’s property, would he or she mind showing mine? This personal approach seems to net more showings for many of my listings

About

This course will introduce how to find different sources of business to prospect, how to present yourself to those prospects and how to determine the value of the property.

Topics Covered

Lesson 1: The Practice of Commercial Real Estate

Lesson 2: Prospecting

Lesson 3: The Listing Presentation

Lesson 4: Providing Marketing Services

Lesson 5: Working with Buyers

Lesson 6: The Sale

Learning Objectives

Upon completion of this course, you will be able to:

• Understand the process of listing and selling commercial real estate
• Understand procedures of marketing for real estate
• Understand correlation between buyers, investors and tenants

What has worked more effectively for me is to find other agents in the area who have similar properties for sale or lease and target those specific agents with the listing. I create a brochure and then attach a handwritten note to the brochure. The handwritten note would explain that I knew they had a similar property for sale or lease, and if they find buyers or tenants who weren’t satisfied with the agent’s property, would he or she mind showing mine? This personal approach seems to net more showings for many of my listings

About

Welcome to the here and now!

This course is meant to give Colorado real estate licensees some deeper background into the nuts and bolts of legalized marijuana’s cultivation and sales in the state and how those affect the real estate industry.

Topics Covered

Lesson 1: Health Consequences

Lesson 2: Market Impact

Lesson 3: Property Management

Lesson 4: Summing It Up

Learning Objectives

Upon completion of this course, you will be able to:

• Summarize current marijuana law: who can grow and what does it take to do so?
• Identify why and how marijuana is impacting the real estate market
• Define marijuana and housing issues from a legal perspective
• List the biggest concerns for property managers and owners regarding renting space for marijuana cultivation
• Summarize concerns for brokers, owners, buyers and sellers regarding selling and purchasing properties affected by marijuana use
• Discuss proper disclosure for brokers and property managers