About This Chapter
Principles of Practicing Real Estate - Chapter Summary
There's more to working in real estate than sticking some nice-looking signs in yards and showing a few houses. In this chapter on real estate practices, you'll learn what it takes to become an agent, how to use the resources at hand, and how to start and develop your career. This chapter will cover topics such as:
- Trust accounts and earnest money
- Advertising and avoiding fraud, puffing and misrepresentation
- Using the MLS, exploring various organizations, and incorporating technology
- Protecting your clients
- Agency issues: supervision and the acceptable roles of unlicensed associates
- Commissions, referral fees, and risk management
- Pros and cons of specialization
- Licensing requirements
Engaging video lessons make short work of understanding the roles and responsibilities of a real estate professional in today's market. Our experts provide clear explanations and plenty of examples and are always there to answer any questions you might have as you study. Pause, take notes, back up and review; the choice is yours. Work at your own pace and on your own time. Use the self-assessment quizzes throughout the chapter to solidify your learning experience or as a quick review of the material you have previously covered. You can track your progress through the chapter or an entire course on your Dashboard.
1. Trust Accounts: Definition & Management
Real estate salespersons and brokers routinely receive large sums of money from clients for use in real estate transactions. In this lesson, you'll learn about trust accounts, including what they are, what they are used for, and how to manage them.
2. Fraud, Puffing & Misrepresentation in Real Estate
Real estate fraud is an unfortunate reality. In this lesson, you'll learn about the different types of fraud perpetrated by licensed salespersons and brokers in real estate sales transactions. We'll also distinguish puffing from fraud.
3. Advertising in Real Estate: Overview & Laws
Advertisers in real estate must comply with specific rules and regulations. This lesson describes how the Mortgage Acts and Practices Advertising Rule ensures honesty in advertising and helps to avoid deliberate deception among real estate actors.
4. Multiple Listing Service (MLS): Definition, Purpose & Importance
In this lesson, we'll discuss what a multiple listing service (MLS) is and how it works with buying, selling and marketing real estate in today's market.
5. Client Privacy, Confidentiality & Security in Real Estate
Professionals involved in real estate transactions are often in possession of personal and confidential information of the participants to the transaction. In this lesson, you'll learn about laws concerning client privacy and security.
6. How to Organize a Real Estate Business
When a real estate agent sets up a business, he or she can choose from a variety of business structures for tax purposes. These legal structures include sole proprietorships, corporations, partnerships, and limited liability companies.
7. Real Estate Agency Supervision Responsibilities
Licensed real estate salespersons and licensed and unlicensed people assisting them are not allowed to act without supervision. In this lesson, you'll learn about the supervisory responsibilities imposed upon brokers under state law.
8. Real Estate Agents: Employees vs. Independent Contractors
When starting a career in real estate, it can be confusing to figure out if you are considered an employee or an independent contractor. While both styles of employment are beneficial to you in different ways, the majority of agents are considered independent contractors.
9. Dos & Don'ts for Unlicensed Sales Assistants in Real Estate
Unlicensed sales assistants can help agents run real estate businesses. However, sales assistants must adhere to strict legal guidelines while working. Let's explore some of the duties assistants should and shouldn't perform by law.
10. Real Estate Technology: Importance & Benefits
As technology advances and new policies are enacted, the real estate industry adjusts to keep pace. In this lesson, learn how technology is used to benefit buyers, sellers, renters, and real estate professionals.
11. Real Estate Risk Management: Definition & Insurance
Real estate agents must use risk management strategies to protect their business from catastrophic losses. Insurance products and business structure help mitigate business risks for an agent in case of a lawsuit.
12. How to Calculate Real Estate Commission
In this lesson, we will define real estate commissions. We will then explain how the commission is divided among the real estate agents and their brokers at the conclusion of a real estate transaction.
13. Rules for Referral & Finder's Fees in Real Estate
Finder's fees are common in commercial real estate transactions. In this lesson, you'll learn what a finder's fee is and discover when a licensed salesperson or broker can pay someone a finder's fee and when the law prohibits it.
14. The Pros and Cons of Specializing in Real Estate Domains
Real estate agents may choose to specialize their practice according to certain types of clients, properties, or locations. Learn more about the different real estate domains and gain an understanding of the pros and cons of specialization.
15. Real Estate Licensing & Continuing Education Requirements
Do you want to explore a career in real estate? In this lesson, we cover the steps you need to take to become a licensed real estate salesperson or broker.
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Other chapters within the Real Estate Exam Prep course
- Forms of Property Ownership
- Encumbrances in Real Estate
- Land Use & Regulations
- Land Descriptions & Surveys
- Transfer of Real Property
- Fair Housing & Consumer Protection
- Contracts In Real Estate Transactions
- Role of Agencies in Real Estate
- Property Valuation & Appraisal
- Real Estate Investment & Analysis
- Disclosures of Property Conditions
- Real Estate Financing
- Real Estate Closing & Settlement Procedures
- Leases & Property Management
- Real Estate Ethics & Professional Responsibility
- Real Estate Exam Prep Flashcards