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Here is the 2021 Arizona Real Estate Salesperson Exam Lesson 5: Real Estate Economics

2021 Arizona Real Estate Salesperson Exam Lesson 5: Real Estate Economics

Here is a free lesson for the 2021 Arizona Real Estate Salesperson Exam Lesson 5 . The full series of lessons is available at the Website

https://www.reexampodcast.com

Real Estate Economics

Supply = how much of a product or service is available
Demand = how much of a product people want

If supply increases, price decreases.
If demand increases, price increases.

Market equilibrium: when supply and demand are balanced.

Economic Characteristics of Real Estate
• It is governed by supply, demand.
• It has durability
• Heterogeneity
• High Transaction costs
• Long time delays
• Both an investment good and an consumption good.
• Immobility
• It has inherent value
• It has unique appeal
• It is illiquid
• It has a slow response to cycles
• The market is decentralized

• Depreciation vs. Appreciation
• Strait-Line (Cost – salvage value)/Useful life
• Double Declining Balance = Beginning book value x Rate of depreciation
• Units of Production (Not used in real estate)
• Sum of Years Digits (Remaining life/Sum of the year’s digits) x (Cost – Salvage Value)

• Demographics affect demand.

• Types of demographics
• Population size/growth
• Family size
• Age and Family makeup
• Death rates
• Marriage and Divorce rates

• Housing supply is produced using land, labor, and materials. The supply is determined by the cost of those materials, the price of existing houses, and the technology that produces them.

 

Podcast: Play in new window | Download (Duration: 26:21 — 12.2MB)

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Here is the 2021 Arizona Real Estate Salesperson Exam Lesson 4: Property Descriptions

2021 Arizona Real Estate Salesperson Exam Lesson 4: Property Descriptions

Here is a free lesson for the 2021 Arizona Real Estate Salesperson Exam Lesson 4: Property Descriptions. The full series of lessons is available at the Website

https://www.reexampodcast.com

Property Descriptions

Common Ways of Describing Property
• Addresses (123 Main Street)
• Names (Grand Central Station)

Legal descriptions are needed for legal documents. An address is not enough by itself. Addresses can be inexact and subject to change. Legal descriptions accurately identify and locate a parcel within the boundaries of a state.

Reasons for Legal Description
• Public recording
• Creating a deed for conveyance or lease
• Completing mortgage documents
• Executing and recording other legal documents

• Methods of Description
• Metes and Bounds method: Uses landmarks, directions and angles to define the boundaries of an area. Starts at the POB = the point of beginning. It has to return to the POB in order to be valid.
• Metes = distance and direction, Bounds = fixed reference points, natural monuments and landmarks. These can be natural or artificial, such as rocks, plants, rivers, lakes, or artificial survey stakes.
• It begins with identifying the city, county and state, and then it gives the POB and describes the distance and direction to the first monument and then the next and the next until you return to the POB.

• Rectangular Survey System: A traditional method that uses natural materials. Uses a grid system.
• Works best for square or rectangular parcels of land. Land can be described in fractions of sections (halves, thirds, eights, quarters)
• If land is in a different irregular shape, you have to couple this with another method of legal description.
• Meridians = north/south lines
• The principal meridian is the starting point.
• The north/south area between meridians is called a range. (6 miles wide)
• Parallels = east/west lines
• The base parallel is the starting point.
• The east-west area between two parallels is known as a tier or township strip. (6 miles wide)
• Township = 6 miles by 6 miles
• Section = 1 square mile in a township, equal to 640 acres

Lot and Block/Recorded Platt: Using a map with subdivisions where each plot is numbered.
• Can describe residential, commercial, and industrial subdivisions.
• Surveyors survey blocks and create a map. They designate the size and location of each lot and block. This is presented to local authorities, who must approve or reject it. It is then recorded by the county recorder and can be used for reference.

Datums are used to describe elevation in property.
• These are needed when talking about air and subsurface rights or property with multiple floors.
• The starting point is sea level at New York Harbor.
• To make things easier, some surveyors use local benchmarks instead.

 

Podcast: Play in new window | Download (Duration: 27:22 — 12.6MB)

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Here is the 2021 Arizona Real Estate Salesperson Exam Lesson 3: Types of Property and Land Use

2021 Arizona Real Estate Salesperson Exam Lesson 3: Types of Property and Land Use

Here is a free lesson for the 2021 Arizona Real Estate Salesperson Exam Lesson 3: Types of Property and Land Use. The full series of lessons is available at the Website

https://www.reexampodcast.com

Types of Property and Land Use

Land = the surface of the earth, everything below the earth and all natural things permanently attached to the earth and all things in the air above it.
Real Estate = land + all man-made structures that are permanently attached to the land, also known as improvements.
Real Property = Real estate + the bundle of rights that come with the property.
Personal Property = non-permanent possessions that are not real estate. Can be tangible or intangible.

Fixtures are personal property attached permanently to the land.
• Playground equipment
• Pools
• Fences

An RV is still personal property.

Rights:
• Ownership/Possession
• Use
• Encumbrance
• Exclusion
• Destruction
• Transfer (sell, rent, donate, assign, bequeath)
• Suface rights
• Subsurface rights
• Riparian water rights
• Littoral water rights
• Air rights

Emblements are growing plants that are on a property. They are considered personal property.

Physical Characteristics of Land:
• Immobility
• Indestructibility
• Non-homogeneity

Economic Characteristics of Land:
• Scarcity
• Improvements
• Permanence
• Situs
• Highest and best use

Master Plan = long term growth plan

Types of Zones
• Residential
• Commercial
• Industrial
• Agricultural
• Public
• Special use

Exceptions
• Nonconforming use
• Variances
• Special exceptions
• Amendments

 

Podcast: Play in new window | Download (Duration: 26:32 — 12.2MB)

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Here is the Arizona Real Estate Salesperson Exam Lesson 2: The Standard of Care

Arizona Real Estate Salesperson Exam Lesson 2: The Standard of Care

Here is a free lesson for the Arizona Real Estate Salesperson Exam Lesson 2: The Standard of Care. The full series of lessons is available at the Website

 

https://www.reexampodcast.com

Acting up to the professional standard of a licensed real estate professional.
Falling below this can cause you to be sued for negligence.
What is considered reasonable care will wary based on the circumstances.
If an issue is beyond your own expertise, you should refer a client to another professional.
• Broker’s Activities
• Marketing properties
• Locating properties for buyers
• Preparing purchase contracts
• Negotiating with other parties
• Answering questions and providing info
• Coordinating inspections
• Investigating your area of business and learning about it.
• Only receiving commissions/not passing on other expenses to the buyer or seller.
• Informing the client of his or her options when presented with multiple offers.

Real estate brokers and salesperson have a unique power in Arizona. They are allowed by a constitutional amendment to a limited practice of law in order to draft purchase contracts and other documents for the transfer of real property. This is not allowed in many other states.

Prohibited Activities

• Misrepresentation
• Making false promises
• Acting negligently
• Demonstrating a basic lack of skill
• Acted as a blind dual agent
• Substituting contracts for personal gain
• False advertising
• Violating fair housing laws
• Discrimination
• Incomplete records
• Co-mingling funds
• Lied on the application
• Employing an unlicensed person
• Unlicensed commissions
• Not notifying the ADRE of convictions within 10 days

Podcast: Play in new window | Download (Duration: 30:21 — 14.0MB)

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Here is the Arizona Real Estate Salesperson Exam Lesson 1 Introduction

Arizona Real Estate Salesperson Exam Lesson 1 Introduction

Here is a free lesson for the Arizona Real Estate Salesperson Exam Lesson 1. The full series of lessons is available at the Website

 

https://www.reexampodcast.com

Arizona Real Estate Professional Organizations

Arizona Association of Realtors
For real estate brokers and agents, and others in the real estate industry in AZ.
Involved in education, government, professional standards, and getting real estate to the public.
Creates contracts and forms to help with real estate transactions.
It is made up of an executive board with a bunch of volunteer committees.
Legislative and Political Affairs Committee (LPA) = protects private property rights, works with government, motivates members to civic actions.
Rick Management Committee (RMC)
Oversees form creation, the mediation program, legal hotline administration, arbitration.
Services and Technology Committee (BST)
Supports member communication, conducts surveys and research, support for computer application, such as eSign
Professional and Business Development Committee (PBD), prepares tools to help members perform at a high professional level.

The Arizona Department of Real Estate (ADRE) = oversees licensure and regulation in the state. All real estate professionals need to be licensed through the ADRE. No one can be paid for real estate activities without a license.

Paid Activities:
• Sell, exchange, purchase, rent, or lease real estate.
• Offer to sell, exchange, purchase, rent, or lease real estate or timeshares.
• Listing real estate
• Auction real estate
• Collecting rent
• Advertising real estate
• Negotiating real estate contracts

Obtaining a Salesperson’s License
• The person must have good character.
• Has not had a real estate license denied within the past year or revoked within the past two years.
• The person must be 18 years old.
• The person has completed 90 hours of pre-licensure education.
• The person has completed the real estate exam.
• The person has taken a six-hour continuing education course in contracts Law and Contract Writing.

Obtaining a Broker’s License
• The person must have three years of actual experience as a real estate professional within the last five years.
• The person must take another, more intensive exam.

Renewing a License
• The person must submit for renewal every two years.
• 24 hours of continuing education for salespeople
• 30 hours of continuing education for brokers

Unlicensed Assistants
• This person assists a licensed person to do certain activities under his or her supervision, such as:
• Running personal errands.
• Clerical/admin tasks
• Preparing marketing materials
• Data entry
• Delivering documents
• Making and confirming appointments