Write a brief summary of the textbook Chapters 13 & 14, to include the following paragraphs with headings: an overview, 3 key concepts, and a summary. Each “key concept” must include the textbook page numbers. Each paragraph needs a minimum of 3 sentences.  Use the template format provided below.  Refer to the model assignment (sample) following the template
NOTE: Spelling and grammar are important, so please spell-check and read your work out loud to catch and correct any errors prior to submitting.
TEMPLATE:
Overview

Key Concept from Chapter 13

Key Concept from Chapter 14

Key Concept from Chapter 13 or 14

Summary

Victor Valley College
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A life is not important
except in the impact it
has on other lives.
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Property Management
Managing and Leasing Properties
“Educating Generations, Building Communities”
I.
Fair Housing Laws
II.
Property Management
III. Going “Green” Made Easy
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“Educating Generations, Building Communities”
? It is extremely important to have a full understanding of the
regulatory laws that govern less-than-freehold-estates, also
known as leasehold estates
? A “leasehold estate” is a tenant’s right to occupy real estate
during the specific term of a lease
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Part I.
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Fair Housing Laws
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“Educating Generations, Building Communities”
? California first passed the Unruh Civil Rights Act and then the
Fair Employment and Housing Act
? Both laws dealt with discrimination issues
? The Federal Civil Rights Act of 1968 (expanded in 1988)
reinforced both of the previous laws
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“Educating Generations, Building Communities”
? No discrimination in Business
? This act was the first civil rights act in California and prohibits “steering”
and “blockbusting” as a real estate business practice
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“Educating Generations, Building Communities”
? This act outlaws discrimination in housing
? FEHA clearly defines DISCRIMINATION as the refusal to sell, rent, or
lease housing accommodations, including misrepresentation as to
availability, offering inferior terms, and cancellations on the basis of
race, color, national origin, religion, sex, familial status, and handicap
? Not so many years ago, buyers of child-bearing age, applying for
financing on a purchase loan, were questioned about their use of
birth control
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“Educating Generations, Building Communities”
? This act prohibits financial institutions from engaging in discriminatory
loan practices called “redlining”
? REDLINING is the practice of financial institutions denying loans or
varying finance terms based on the location of a given property,
regardless of the credit worthiness of the borrower
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“Educating Generations, Building Communities”
? For all practical purposes, discrimination laws evolved from the U.S.
Supreme Court Case Jones v. Mayer, Title VIII of the Civil Rights Act of
1968, and the 13th Amendment to the U.S. Constitution
? In 1988, this Act was expanded to include protection against familial
status and the handicapped
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Part II.
Property Management
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“Educating Generations, Building Communities”
? Few people possess sufficient knowledge, skill, and time to
manage their own properties
? As a property manager, you are in a better position to
assess your clients’
?
?
?
?
insurance needs
handle financing
offer timely suggestions on exchanging or sale opportunities
recommend other investment properties
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“Educating Generations, Building Communities”
? The basic types of income-producing properties include:
? Residential
? Office building
? Retail property
? Industrial property
? Apartment buildings lead in the demand for property
managers
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“Educating Generations, Building Communities”
? The principal goal of any manager is to minimize expenses,
maximize rents, and increase the long-term appreciation of
the property
? Outside Manager
? Resident Manager
? Institutional Manager
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“Educating Generations, Building Communities”
? A list of some important duties and functions of the
manager follows:
? Establish a rent schedule
? Rent vacant units
? Keep all plumbing, heating, and electrical in good working order
? Maintain roof, windows, and doors
? Make sure floors, stairways, and railings are safe
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“Educating Generations, Building Communities”
? Keep premises clean and free of pests
? Qualify tenants
? Prepare and renew leases
? Collect rents
? Account for funds
? Submit monthly statements to owners
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“Educating Generations, Building Communities”
? The tenant has the following responsibilities:
?
Keep the dwelling clean and sanitary
?
Use all fixtures properly, keeping them clean
?
Cause no damage to the property
?
Use property at state in the lease agreement
?
Pay rent on time
?
Give a 30-day notice when vacating a month-to-month tenancy
?
Return door and mailbox keys when vacating
?
Leave unit in as clean a condition as taken at the start of the lease
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“Educating Generations, Building Communities”
? A 30-day termination notice must be given when the possession of a
rental unit is for less than one year
? A landlord must give 60-day notice to terminate the tenancy if the tenant
has lived in the dwelling for one year or more
? A tenant ONLY needs to give a 30-day notice to terminate a tenancy
? The 3-DAY NOTICE TO QUIT states that the tenant has three business days
to pay all past due rent or vacate the property or face an unlawful
detainer
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“Educating Generations, Building Communities”
? Property managers should possess skills and talent in handling
people, money, and a diversity of other responsibilities
? When hiring a property manager, you should sign a Management
Contract with them which outlines the duties and expectations of
the job
? Outside professional managers are usually paid a percentage of
the gross revenue
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? All rental applicants need to be screened carefully and the proper and
latest rental agreements need to be used
? The owner’s investment can be seriously impaired if proper tenant
selections are not done
? As a property manager in California, you may charge up to $30.00 per
applicant as a nonrefundable tenant screening fee
? Many forms for qualifying tenants are available
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“Educating Generations, Building Communities”
? Any rental agreement that ends over one year from the date
of signing must be in writing
? Types of leaseholds:
? Estate for Years
? Estate from Period-to-Period
? Estate at Sufferance
? Estate at Will
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“Educating Generations, Building Communities”
? “Contract rent” is the current amount being
paid, and “economic rent” is the amount the
unit could make if available on the market
today.
? A good property manager is constantly
working to bring the contract rent up to the
economic rent.
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“Educating Generations, Building Communities”
? Flat rental
? Net leases
? Gross rental
? Percentage lease
? Graduated lease
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“Educating Generations, Building Communities”
? There are a variety of computer programs available to aid in
maintaining accurate records
? A Cash Journal can be used to report cash received from
tenants
? An Activity Report summarizes all revenues and expenses
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“Educating Generations, Building Communities”
? A COMMON INTEREST DEVELOPMENT is a form of home ownership
whereby individual owners are allowed the use of common property
and facilities, the governing of which is controlled by a homeowner’s
association
? An homeowner’s association manager runs the day-to-day affairs of
the association, taking direction from the board of directors
? The obligations of the association are set forth in the CC&Rs
? The budget of the association is determined by the amount of money
required to operate and maintain the common areas
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“Educating Generations, Building Communities”
? In order to collect fees, a prepaid rental listing service, must
either be run by a broker or pay for a new license every 2 years
? Because of many abusive practices in the past, all PRLS must
register with the DRE
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“Educating Generations, Building Communities”
? Being a property manager is diverse job and it is critical to keep a
proper balance across all areas
? Determining when to spend or not spend money on maintenance is a
large part of the job
? Spending a little to maintain a property saves the owner a lot in the
long run
? As a property manager, you must be acutely aware of changing
conditions in the real estate market
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“Educating Generations, Building Communities”
? Rent control discourages the building of more apartments,
causing existing rents to go even higher, further damaging a
city’s housing affordability.
? Rent control, in California, can only apply to residential
properties.
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“Educating Generations, Building Communities”
? Section 8 is a county rent subsidy for qualified tenants who meet
the required criteria
? The property must be approved by county inspectors for
eligibility and is checked for its condition at least once a year
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“Educating Generations, Building Communities”
? The most notable professional association for property managers
is the Institute of Real Estate Management, a division of the
National Association of Realtors®.
? A Code of Ethics was adopted by the institute and must be
adhered to by any Realtor® applying for membership.
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Part III.
BRE – 101 Real Estate Practice
Going “Green”
Made Easy
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“Educating Generations, Building Communities”
I.
Fair Housing Laws
II.
Property Management
III. Going “Green” Made Easy
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“Educating Generations, Building Communities”
? Read Next Chapter
? Write Reflection Assignment
? Study for Quiz
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“Educating Generations, Building Communities”
? Schedule 1 hour of study every day
? Plan to be early!
? Always be ready
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Only what you put into it!
? Take Notes
? Stay Engaged
? Think of How to Apply
? Ask Questions
? Participate / Share
? Do Activities
? Be Grateful
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“Educating Generations, Building Communities”
? Educate yourself by attending class
? Assignments & Activities
? Read every day
? Never stop learning!
“The more you LEARN the more you EARN.”
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Student Learning Objectives met
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Victor Valley College
Victor Valley College
BRE – 101 Real Estate Practice
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Never mistake knowledge
for wisdom. One helps you
make a living; the other
helps you make a life.
BRE – 101 Real Estate Practice
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Licensing, Ethics, and
Associations
“Educating Generations, Building Communities”
I.
II.
California Department of Real Estate (DRE)
Real Estate License Requirements
III. Real Estate Law and Regulations
IV. Common Real Estate Law Violations
V. Real Estate General Fund
VI. Trade and Professional Associations
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Part I.
California Department of
Real Estate (DRE)
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“Educating Generations, Building Communities”
? Every state government regulates its own real estate brokerage activities by
staff members who are collectively referred to as REGULATORS
? In California, this office is CALIFORNIA DEPARTMENT OF REAL ESTATE (DRE)
? The DRE is managed by the Real Estate Commissioner who sets all of the rules
and regulations for the bureau.
? The Commissioner’s position arises out of POLICE POWER provisions of the
California Constitution, under which laws beneficial to the health, safety,
morals, and general welfare are enacted.
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Part II.
BRE – 101 Real Estate Practice
Real Estate License
Requirements
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“Educating Generations, Building Communities”
? A person is required to have a license if he or she:
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? Any person who is actively involved in a real estate
transaction at the service of another, in the expectation
of receiving a commission, must be licensed.
? No license required for:
? Property owners selling their own property.
? A person holding power of attorney for the owner.
? A trustee, selling under a deed of trust.
? A receiver or court appointee.
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? No license is required for the following:
? Employees of lending institutions
? Lenders making federally insured or guaranteed loans
? Certain agricultural associations
? Person property brokers
? Cemetery authorities
? Collectors of loans made on real property
? Certain clerical help
? For Sale By Owner (FSBO)
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“Educating Generations, Building Communities”
? AGE -you must be 18 years old
? RESIDENCE- be legally present in the U.S.
? HONESTY -be honest and truthful
? EDUCATION -you must complete a college-level Real Estate
Principles, Real Estate Practice, and another Real Estate
elective course before taking your state exam
? The salesperson’s exam (available electronically) takes 3
hours 15 minutes, has 150 questions and requires a 70%
correct score to pass
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? A candidate must be 18 years old old to
obtain a real estate license.
? The real estate salesperson licensing exam
takes 3 hours + 15 minutes.
? To pass the California state salesperson
examination, you must get 70% correct.
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? In order to be permitted to take the state real
estate exam, an examinee must:
? Present an acceptable picture ID.
? Present a printed test date notice.
? Pass the examination within 2 years of filing an
application.
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? If you take an electronic examination, your
results will be provided to you upon completion of
the exam.
? Qualified candidates who pass their electronic exam
can be issued a temporary license and begin
conducting licensed activities immediately.
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“Educating Generations, Building Communities”
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“Educating Generations, Building Communities”
? Every 4 years
? Must meet required Continuing Ed (CE) requirements
? 45 hours of continuing ed for second and subsequent
renewals
? 12 hours of: Ethics, Agency, Trust Fund Handling, and Fair
Housing
? 3 hours of Risk Management + 18 hour of consumer protection,
plus more hours in either consumer service or consumer
protection
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“Educating Generations, Building Communities”
? An individual may obtain, without examination, a two-year
license to conduct PRLS activities.
? Applicants must submit, and have approved by DRE, a contract
to be entered into between the licensee and client.
? Fingerprints and a $2,500 bond are required for each business
location.
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Part III.
BRE – 101 Real Estate Practice
Real Estate Law and
Regulations
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“Educating Generations, Building Communities”
? Appointed by the governor
? The commissioner also does the following:
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“Educating Generations, Building Communities”
? The Commissioner may, by his or her own
choice, investigate the actions of any person
engaged in the real estate business or acting in
the capacity of a licensee with this state.
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“Educating Generations, Building Communities”
? A hearing is held when there is a question as to
the rights of persons to obtain or keep their real
estate license
? If a licensee gets their license revoked, the
person affected may NOT apply for
reinstatement until one year has passed
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“Educating Generations, Building Communities”
? REVOKE means to take away the license.
? RESTRICT means to limit the use of the license.
? SUSPEND means to take away the license for a period of time.
? Note: active licensees who are delinquent on child support
payments have 150 days to pay up or have their license
suspended.
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Part IV.
Common Real Estate
Law Violations
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“Educating Generations, Building Communities”
?
Section 10176: Licensees violating who are
not acting within the scope of their licenses.
?
Section 10177: Licensee not necessarily
acting as a licensee.
?
Regulations of the Commissioner:
?
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Broker Supervision
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Part V.
Real Estate General
Fund
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“Educating Generations, Building Communities”
? All the money collected from license and
exam fees goes into the REAL ESTATE
GENERAL FUND.
? 80% of this money is used for operating
expenses of the Department of Real Estate.
? 20% is set aside as follows:
?
8% to the Real Estate Education and Research Fund
?
12% to the Recovery Fund
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“Educating Generations, Building Communities”
? The RECOVERY FUND was established for
the payment of damages and arbitration
awards to people who have suffered
financial loss due to the wrongful act of a
licensee in a real estate transaction.
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Part VI.
Trade and Professional
Associations
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“Educating Generations, Building Communities”
?
A LOCAL REAL ESTATE ASSOCIATION® is a
voluntary organization of real estate licensees
in a particular community.
?
The CALIFORNIA ASSOCIATION OF REALTORS®
is the state division of the National Association
of Realtors®.
?
All REALTORS® are members of the National
Association of Realtors®.
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“Educating Generations, Building Communities”
? Pay annual dues.
? Uphold the Code of Ethics.
? Must be a member if your broker is a
member.
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?
NAREB = National Association of Real Estate
Brokers. “Realtist” is the name for a member.
?
NAHREP = National Association of Hispanic Real
Estate Professionals
?
AREAA = Asian Real Estate Association of America
?
VAREP = Military & Veterans
?
WCR = Women’s Council of REALTORS®
?
YPN = Young Professional’s Network (< 30 years) BRE - 101 Real Estate Practice 4/20/2020 35 BRE - 101 Real Estate Practice 4/20/2020 36 “Educating Generations, Building Communities” I. California Department of Real Estate (DRE) II. Real Estate License Requirements III. Real Estate Law and Regulations IV. Common Real Estate Law Violations V. Real Estate General Fund VI. Trade and Professional Associations BRE - 101 Real Estate Practice 4/20/2020 37 “Educating Generations, Building Communities” ? Read Next Chapter ? Write Reflection Assignment ? Study for Quiz BRE - 101 Real Estate Practice 4/20/2020 38 “Educating Generations, Building Communities” ? Schedule 1 hour of study every day ? Plan to be early! ? Always be ready BRE - 101 Real Estate Practice 4/20/2020 39 Only what you put into it! ? Take Notes ? Stay Engaged ? Think of How to Apply ? Ask Questions ? Participate / Share ? Do Activities ? Be Grateful BRE - 101 Real Estate Practice 4/20/2020 40 “Educating Generations, Building Communities” ? Educate yourself by attending class ? Assignments & Activities ? Read every day ? Never stop learning! “The more you LEARN the more you EARN.” BRE - 101 Real Estate Practice 4/20/2020 41 Student Learning Objectives met BRE - 101 Real Estate Practice 4/20/2020 42 BRE - 101 Real Estate Practice 4/20/2020 43 Victor Valley College