Introduction 1 About This Book 1 Foolish Assumptions 3 Icons Used in This Book 3 Beyond This Book 4 Where to Go from Here 5 Part 1: Putting Real Estate License Exams into Perspective 7 Chapter 1: Sold! Taking a Glance at Real Estate License Exams 9 Checking Out Licensing and Exam Basics 9 Figuring out licensing procedures 10 Knowing the difference between salesperson and broker licensing and exams 10 Looking at the format and other exam details 12 Sign Me Up: Registering for the Exam 12 Knowing What to Take to the Exam and What to Leave at Home 13 Scoring High: Figuring Out How Scores Are Determined 14 Take Two: Retaking the Exam 15 Chapter 2: Using Successful Study and Test-Taking Techniques 17 One Word to Get You Through: PREPARE 17 Provide 18 Review 18 Evaluate 19 Practice 20 Arrive 20 Relax 21 Enjoy 21 Trying Terrific Test-Taking Strategies 21 It''s all in the timing 21 Reading everything carefully 22 Avoiding too much analyzing 23 Guessing 23 Second-guessing 24 Number crunching: Tackling math questions 24 Part 2: So You Want to Sell Real Estate: The Job and Basic Laws 25 Chapter 3: The Job: It Isn''t Just Driving People Around 27 Recognizing Those in the Real Estate Business and How They Got There 28 The buck stops here: Brokers 28 Movin'' on up: Salespeople 29 In between: Associate brokers 29 Making it legal: Looking at license law 29 Knowing What a Real Estate Broker/Salesperson Does 30 Perusing a list of common activities 30 Checking out a typical real estate transaction 30 Understanding How a Real Estate Broker/Salesperson Gets Paid 32 Working Hard: Career Opportunities 33 Considering independent brokerages and national franchises 33 Checking out corporations (in and out of the real estate world) 34 Building business with builders 34 Going into government 34 Appreciating appraising 35 Homing in on home inspections 35 Property Management: A Special Kind of Career Opportunity 35 Taking care of business: The duties of a property manager 35 Saying yes: The property management agreement 38 Managing a Real Estate Office: You''re the Boss, Ms or Mr Broker 39 Keeping an eye out: Supervision 39 Teach me! Training 40 Setting office policy: Rules are rules 40 Working As an Independent Contractor 40 Focusing on Job-Related Laws That You Need to Understand 41 The price isn''t right: Price fixing 41 Bad break: Market allocation 41 Feeling shunned: Group boycotts 42 What''s your condition? Tie-in arrangements 42 Review Questions and Answers 42 Chapter 4: Understanding Agency Law 45 Becoming Someone''s Real Estate Agent: You''re Hired 46 Picking sides: Representation in agency relationships 46 Establishing the agency relationship (and doing it in writing) 49 Keeping the Faith: The Relationship between an Agent and a Principal 52 Who has the money? Accounting 53 Better be careful: Care 53 Shhhhh! It''s a secret: Confidentiality 53 You''d better tell: Disclosure 53 A friend to the end: Loyalty 54 Yes ma''am: Obedience 54 Meeting Obligations: The Relationship Between an Agent and a Customer 55 Discovering defects 55 Looking at stigmatized properties 56 Respecting Megan''s Law 56 Finding out about fraud and negligent misrepresentation 56 Making Money (No, Not at the Copy Machine) 57 Pay up! Deciding who needs to pay an agent 57 Ready to go: Knowing when an agent should be paid 58 Parting Is Such Sweet Sorrow: Ending an Agency Relationship 59 Review Questions and Answers 60 Chapter 5: Knowing the Fair Housing Laws for Selling Real Estate 63 Practicing Fair Housing: The Basics 63 Understanding federal fair housing laws 64 Researching state and local laws 65 Displaying the fair housing poster 65 Don''t Do It: Avoiding Discriminatory Actions 65 No way: Refusing to sell or rent 66 On one condition. or a few: Changing terms for rental, sale, or services 66 You need not apply: Discriminatory advertising 66 All lies: Telling someone that property isn''t available (when it really is) 68 Scaring people into selling: Blockbusting 68 Telling people where to live: Steering 68 No money for you: Changing loan conditions 68 Put away that crayon: Redlining 69 You can''t join: Denying membership in real estate organizations 69 Feeling Safe: Identifying Who''s Protected 69 Knowing the federal protected classes 69 Recognizing state and local protected classes 70 Bending the Rules: Understanding Exceptions to the Law 70 Extra Coverage: Protecting the Disabled from Discrimination 72 Staying Strong: Enforcing the Law 72 Review Questions and Answers 73 Part 3: It''s All Mine: Owning and Transferring Real Estate 77 Chapter 6: Owning It: Estates and Interests 79 What Do You Own? Understanding Ownership Terms 79 Looking at land 80 Recognizing real estate 80 Defining real property 80 Checking out personal property 80 Estates (Even Without the Castles) 81 Pick and choose: The bundle of rights 82 Figuring out freehold estates 82 Understanding leasehold estates 84 Eyeing Different Ownership Rights 84 Going for a swim: Water rights 84 Don''t forget to look up and down: Other rights 85 Review Questions and Answers 86 Chapter 7: Understanding Forms of Real Estate Ownership 89 Real Estate Ownership: A Solo or Group Activity 89 One is the loneliest number: Owning real estate by yourself 90 Join the crowd: Owning real estate with other people 90 Getting hitched: Owning real estate when you''re married 91 Who do you trust? Ownership in trust 92 All business: Ownership by a business 92 Special Types of Ownership: Cooperatives, Condominiums, and More 94 Share and share alike: Cooperative ownership 94 More individuality: Condominium ownership 95 Mix it up: Planned unit developments 96 Check your watch: Time shares 96 Review Questions and Answers 96 Chapter 8: Knowing the Limitations on Real Estate Ownership 99 Carrying a Not-So-Heavy Encumbrance: Private Limitations on Property Use 99 Looking at liens 100 Easing into easements 102 It won''t let you drive, but it''s still a license 105 No, you can''t paint your house purple: Deed restrictions 105 I thought I owned it: Encroachments and adverse possession 107 Land-Use Regulation: A Major Public Limitation 107 To the drawing board: Making master plans 108 You''re in the zone: Understanding zoning ordinances 108 Many from one: Subdivisions 110 Building a house out of paper: Regulations for construction 112 Getting that house built 112 The Government Has Its Say: Other Public Limitations on Property Use 113 The city wants to build a library: Eminent domain 114 You didn''t know the government was part of your family: Escheat 115 Pay or lose: Taxation 115 Review Questions and Answers 115 Chapter 9: Transferring Ownership: Deeds and Title Closing 119 Doing the Deed: Delving into Deed Basics 120 Making it right: Requirements for a valid deed 120 The deeds of the many: Examining various kinds of deeds 122 Painting the right picture: Property descriptions in deeds 124 Getting Closure: Title Closing 131 Nearing the finish line: Before the closing 131 The big day: At the closing 133 A little paperwork: After the closing 137 Review Questions and Answers 139 Chapter 10: Giving Up or Losing Property 143 Fine by Me: Giving Up Property Voluntarily 143 All for the government: Dedication 143 From me to you: Gifts 144 A treat from Uncle Sam: Public grants 144 The usual way: Sales 144 By Force: Losing Property Involuntarily 144 It''s really mine: Adverse possession 145 You can''t fight nature: Avulsion and erosion 146 We need that, please: Eminent domain 146 Deep in debt: Foreclosures 146 Ignoring the rules: Forfeiture 146 Making the split: Partitioning 146 Losing Property Very Involuntarily: Passing Title After Passing Away 147 Where there''s a will, there are heirs and relatives 147 Where there''s no will, there still may be heirs and relatives: Laws of descent 147 The court has its say: Probate 148 Review Questions and Answers 148 Part 4: A House Is Made of Lots of Paper: Legal and Physical Issues 151 Chapter 11: Contracts 101 153 Agreeing to Do Something: The Basics of Making a Contract 153 Exploring how a contract is created 154 What makes a contract valid? 155 So Many Choices: Examining Types of Real Estate Contracts 156 Finding out about agency agreements 157 Examining sales contracts 158 Discovering options 160 Looking at land contracts 160 Checking out leases 161 The End of the Line: Discharging a Contract 161 Breaching a Real Estate Contract 162 When the buyer refu.