Write a brief summary of the textbook Chapters 5 & 6, 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. Please follow the template annTEMPLATE:OverviewKey Concept from Chapter 5Key Concept from Chapter 6Key Concept from Chapter 5 or 6SummarySAMPLE:BELOW IS A SAMPLE REFLECTION SUMMARY. DO NOT COPY THE CONTENTS. IT IS A SAMPLE ONLY.Course: BRE 100, Real Estate PrinciplesStudent Name: Ima SuccessToday’s Date: 02/20/2020Textbook Author: Perez, J.Chapter # 1OverviewThe topic of Chapter 1 is an introduction to real estate principles. This chapter covers four important concepts for the real estate student. First, the real estate licensing in California is discussed, along with the real estate market. Second, the historical influence of real property is examined. Third, the difference between real property and personal property is spelled out clearly. And last, the chapter concludes by analyzing various methods of land description. These concepts are important because they may be on the real estate exam for licensees.Key Concept from Chapter 5I learned that real estate can be a profitable professional (p. 4). One of the reasons it can be profitable is because the compensation to agents is based on the sales price of the house. In California, real estate values are typically high, which translates into a high commission. The commission is always paid to the broker, but the real estate salesperson receives a portion. Many real estate agents are using social media to promote their services.Key Concept from Chapter 6The second thing I learned is that property owners have a “bundle of rights” (p. 5). It means they have control of certain things because they own the real estate. Generally, people view it as a bundle of sticks, with each one of them being a “right” the owner has. Their types of rights vary based on their level of ownership. For example, homeowners have the right to possess (live in) their houses – unless they rent out the house to tenants. In that case, the tenant now has the right to possess the house.Key Concept from Chapter 5The third concept I learned is the definition of real property (p. 6). There are four things that define real property: land, affixed to the land, appurtenant to the land, or immovable. These items “tests” are what separates real property from personal property. For example, a refrigerator can be moved out of the house, so it is considered personal property. However, a fence is permanently dug into the ground so it becomes part of the real property, along with the land and the house.
Victor Valley College
BRE – 110 Real Estate Law
8/18/2021
2
The function of education is to
teach one to think intensively
and to think critically.
Intelligence plus character –
that is the goal of true
education.
BRE – 110 Real Estate Law
8/18/2021
3
Introduction to Agency Law
“Educating Generations, Building Communities”
I.
Agency
II.
How An Agency is Created
III. Real Estate Agency Relationships
IV. Terminating An Agency
V.
California Real Estate Law
VI. Commissions
BRE – 110 Real Estate Law
8/19/2021
5
Part I.
BRE – 110 Real Estate Law
Agency
8/19/2021
6
“Educating Generations, Building Communities”
? An AGENT is someone who is authorized to represent or act for
another person in dealings with third parties
? PRINCIPAL is the person who hires an agent
? THIRD PARTIES are others who are involved in a contract with the
principal and agent
BRE – 110 Real Estate Law
8/19/2021
7
“Educating Generations, Building Communities”
? Actual Authority
? Express Authority
? Implied Authority
? Ostensible Agency
BRE – 110 Real Estate Law
8/19/2021
8
“Educating Generations, Building Communities”
? General Agent
? Special Agent
?
BRE – 110 Real Estate Law
Real Estate agents are usually special agents
8/19/2021
9
Part II.
How An Agency is Created
BRE – 110 Real Estate Law
8/19/2021
10
“Educating Generations, Building Communities”
A. Express Agreement
?
Power of Attorney
?
Written listing agreement
B. Ratification
?
Ratified
? Estoppel (Ostensible) Agency
BRE – 110 Real Estate Law
8/19/2021
11
Part III.
BRE – 110 Real Estate Law
Real Estate Agency
Relationships
8/19/2021
12
“Educating Generations, Building Communities”
A. Salesperson: The Broker’s Agent
?
Liabilities to Third Parties
?
Employee or Independent Contractor
B. Cooperating Brokers
?
BRE – 110 Real Estate Law
Associate Licensee
8/19/2021
13
Part IV.
Terminating An Agency
BRE – 110 Real Estate Law
8/19/2021
14
“Educating Generations, Building Communities”
A. Accomplishment of Purpose
B. Expiration
C. Mutual Agreement
D. Renunciation (Agent)
E. Revocation (Principal)
F. Operation of Law
G. Agency Coupled with an Interest
BRE – 110 Real Estate Law
8/19/2021
15
Part V.
The California Real Estate
Law
BRE – 110 Real Estate Law
8/19/2021
16
“Educating Generations, Building Communities”
A. Licensing
1. Obtaining and Maintaining a License
B. Record Keeping
C. Trust Funds
?
BRE – 110 Real Estate Law
Commingling
8/19/2021
17
Part VI.
BRE – 110 Real Estate Law
Commissions
8/19/2021
18
“Educating Generations, Building Communities”
A. Commission Amount
B. Earning a Commission
BRE – 110 Real Estate Law
8/19/2021
19
“Educating Generations, Building Communities”
1. Types of Listing Agreements
?
Exclusive Right to Sell
?
Exclusive Agency
?
Open Listing
?
Extender Clause
C. Salesperson’s Commissions
1. Finder’s Fee
D. Statewide Buyer and Seller Advisory (SBSA)
?
BRE – 110 Real Estate Law
Advises the buyer to conduct thorough investigations of the property and
8/19/2021
the seller to disclose any know “material facts” that affect the value or
desirability of the property
20
BRE – 110 Real Estate Law
8/19/2021
21
“Educating Generations, Building Communities”
I. Agency
II. How An Agency is Created
III. Real Estate Agency Relationships
IV. Terminating An Agency
V. California Real Estate Law
VI. Commissions
BRE – 110 Real Estate Law
8/19/2021
22
“Educating Generations, Building Communities”
? Read Next Chapter
? Write Reflection Summary
? Study for Quiz
BRE – 110 Real Estate Law
8/19/2021
23
“Educating Generations, Building Communities”
? Schedule 1 hour of study every day
? Plan to be early!
? Always be ready
BRE – 110 Real Estate Law
8/19/2021
24
Only what you put into it!
? Take Notes
? Stay Engaged
? Think of How to Apply
? Ask Questions
? Participate / Share
? Do Activities
? Be Grateful
BRE – 110 Real Estate Law
8/19/2021
25
“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 – 110 Real Estate Law
8/19/2021
26
Student Learning Objectives met
BRE – 110 Real Estate Law
8/19/2021
27
BRE – 110 Real Estate Law
8/19/2021
28
Victor Valley College
Victor Valley College
BRE – 110 Real Estate Law
8/18/2021
2
Nothing will work unless
you do.
BRE – 110 Real Estate Law
8/18/2021
3
Agency Duties and Disclosures
(for Clients and Customers)
“Educating Generations, Building Communities”
I.
II.
III.
IV.
V.
Agency Disclosure
The Agent’s Duties to the Principal
The Agent’s Duties to Third Parties
Penalties for Breach
of Agent’s Duty
Disclosures Required of a
Seller and/or Broker/Agent
BRE – 110 Real Estate Law
8/19/2021
5
Part I.
BRE – 110 Real Estate Law
Agency Disclosure
8/19/2021
6
“Educating Generations, Building Communities”
? In 1988, the California Legislature enacted an agency disclosure
statute that applies to residential transactions involving 1- 4
dwelling units or mobilehomes
? Under the statute, a real estate agent owes a duty to both the
seller and the buyer to let them know which party the agent is
representing in the transaction
BRE – 110 Real Estate Law
8/19/2021
7
BRE – 110 Real Estate Law
8/19/2021
8
“Educating Generations, Building Communities”
? Delivery of the Agency Disclosure Form
? Agency Election
? Agency Confirmation
BRE – 110 Real Estate Law
8/19/2021
9
“Educating Generations, Building Communities”
? A broker who represents both the buyer and seller in a
transaction
? Legislation
? Inadvertent Dual Agency
BRE – 110 Real Estate Law
8/19/2021
10
BRE – 110 Real Estate Law
8/19/2021
11
Part II.
The Agent’s Duties to the
Principal
BRE – 110 Real Estate Law
8/19/2021
12
“Educating Generations, Building Communities”
A. Reasonable Care and Skill
1. Alleging Expertise
2. Unauthorized Practice of Law
B. Diligence, Good Faith, and Loyalty
1. Diligence
2. Loyalty
BRE – 110 Real Estate Law
8/19/2021
13
“Educating Generations, Building Communities”
C. Disclosure of Material Information
1. Property Value
2. Present All Offers
3. Buyer’s Financial Information
D. Secret Profit and Self Dealing
BRE – 110 Real Estate Law
8/19/2021
14
BRE – 110 Real Estate Law
8/19/2021
15
BRE – 110 Real Estate Law
8/19/2021
16
BRE – 110 Real Estate Law
8/19/2021
17
BRE – 110 Real Estate Law
8/19/2021
18
BRE – 110 Real Estate Law
8/19/2021
19
Part III.
BRE – 110 Real Estate Law
The Agent’s Duties
to Third Parties
8/19/2021
20
A. Disclosure to the Buyer
?
Caveat Emptor
BRE – 110 Real Estate Law
8/19/2021
21
1. Broker’s Duty to
Disclose Material Facts
a. Easton v.
Strassburger
b. Transfer Disclosure
Statement
BRE – 110 Real Estate Law
8/19/2021
22
BRE – 110 Real Estate Law
8/19/2021
23
“Educating Generations, Building Communities”
c. Agent’s Duty of Inspection
?
(Civil Code Sections 2079 – 2079.6)
1.Property Covered by the Visual Inspection
2.Property Not Covered by the Visual Inspection
3.Agent’s Standard of Care
BRE – 110 Real Estate Law
8/19/2021
24
“Educating Generations, Building Communities”
d. Transfer Disclosure Statement
(Civil Code Sections 1102 – 1102.17)
1. The Statutory Form
2. When Transfer Disclosure Statement is Not Required
3. The Procedure
4. Delivery and Confirmation
5. Protection from Liability
6. Other Required Disclosures Unrelated Directly to Structure or
Land
7. No Warranty to Buyer
BRE – 110 Real Estate Law
8/19/2021
25
BRE – 110 Real Estate Law
8/19/2021
26
The Agent’s
Duties
to Third
Parties
BRE – 110 Real Estate Law
8/19/2021
27
The Agent’s
Duties
to Third
Parties
BRE – 110 Real Estate Law
8/19/2021
28
The Agent’s
Duties
to Third
Parties
BRE – 110 Real Estate Law
8/19/2021
29
“Educating Generations, Building Communities”
B. Statute of Limitations – 2 years
C. Buyer’s Duty to Use Reasonable Care
“YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION
AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY. IF YOU DO
NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF
BROKERS.”
BRE – 110 Real Estate Law
8/19/2021
30
“Educating Generations, Building Communities”
E. Fraud
1. Actual Fraud
? Negligent
Misrepresentation
? Mutual Agreement
2.
BRE – 110 Real Estate Law
3. Opinion, Prediction, and
Puffing
4. “As is” Clause
Constructive Fraud
8/19/2021
31
Part IV.
BRE – 110 Real Estate Law
Penalties for Breach
of Agent’s Duty
8/19/2021
32
“Educating Generations, Building Communities”
C. Criminal Prosecution
D. Action By The Real Estate Commissioner
BRE – 110 Real Estate Law
8/19/2021
33
Part V.
Disclosures Required of a
Seller and/or Broker/Agent
BRE – 110 Real Estate Law
8/19/2021
34
“Educating Generations, Building Communities”
A. Earthquake Guides
B. Smoke Detection Statement of Compliance
C. Disclosure Regarding Lead-Based Paint Hazards
D. California’s Environmental Hazard’s Pamphlet
E. Delivery of Structural Pest Control Inspection
F. Energy Conservation Retrofit and Thermal Insulation
Disclosures
BRE – 110 Real Estate Law
8/19/2021
35
“Educating Generations, Building Communities”
H. Foreign Investment in Real Property
I. Notice and Disclosure to Buyer of State Tax Withholding on
Disposition of California Real Property
J. Furnishing Controlling Documents and a Financial Statement for
Common Interest Developments
K. Notice Regarding the Advisability of Title Insurance
L. Certification Regarding Water Heater’s Security Against
Earthquake
M. Database Regarding Location of Registered Sex Offenders
(Megan’s Law)
N. Gas Transmission Pipelines
BRE – 110 Real Estate Law
8/19/2021
36
BRE – 110 Real Estate Law
8/19/2021
37
BRE – 110 Real Estate Law
8/19/2021
38
“Educating Generations, Building Communities”
I.
Agency Disclosure
II.
The Agent’s Duties to the Principal
III. The Agent’s Duties to Third Parties
IV. Penalties for Breach
of Agent’s Duty
V.
BRE – 110 Real Estate Law
Disclosures Required of a
Seller and/or Broker/Agent
8/19/2021
39
“Educating Generations, Building Communities”
? Read Next Chapter
? Write Reflection Summary
? Study for Quiz
BRE – 110 Real Estate Law
8/19/2021
40
“Educating Generations, Building Communities”
? Schedule 1 hour of study every day
? Plan to be early!
? Always be ready
BRE – 110 Real Estate Law
8/19/2021
41
Only what you put into it!
? Take Notes
? Stay Engaged
? Think of How to Apply
? Ask Questions
? Participate / Share
? Do Activities
? Be Grateful
BRE – 110 Real Estate Law
8/19/2021
42
“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 – 110 Real Estate Law
8/19/2021
43
Student Learning Objectives met
BRE – 110 Real Estate Law
8/19/2021
44
BRE – 110 Real Estate Law
8/19/2021
45
Victor Valley College