General Exam Content Outline for Brokers

This guide spells out the Outline with where to access this information in the Text materials.

  1. Real property characteristics, definitions, ownership, restrictions, and transfer
  2. Definitions, descriptions, and ways to hold title
  3. Elements of real and personal property (1–2)

2.         Property description and area calculations (3–7)

3.         Estates in real properly (7–10)

4.         Forms of ownership, rights, interests, and obligations (10–19)

  1. Land use controls and restrictions
  2. Government controls (29–32)

2.         Private controls—covenants and restrictions (32–33)

3.         Private controls—mortgage (deed of trust) and liens (35–37)

  1. Transfer/alienation of title to real properly
  2. Voluntary (43)

2.         Involuntary (43–45)

3.         Protections (will be covered in the new edition)

4.         Partition/severance (voluntary or involuntary) (1–2)

5.         Deeds and warranties: validity, types, and covenants (45–50)

6.         Title and title insurance (51–53)

  1. Property valuation and appraisal
  2. Market Analysis/Broker Price Opinion
  3. Definition and Purpose (70)

2.         Process (70)

3.         Requirements (70)

  1. Appraisal

1.         Definition and Purpose (65)

2.         Process (76)

3.         Requirements (65)

4.         Three approaches to value (69–73)

  1. Investment analysis
  2. Application of principles (78–84)

2.         Math calculations (78–84)

3.         Commercial-Investment properly types (will be covered in the new edition)

  1. Contracts and relationships with buyers and sellers
  2. Contract elements

1.         Authority (97)

2.         Validity (98–99)

3.         Void/voidable (100–101)

4.         Enforceable/unenforceable (Statute of Frauds) (99–100)

5.         Unilateral/bilateral (97)

6.         Executory/executed (97–98)

  1. Contracts with buyers and sellers
  2. General purpose/definition of listing (111–112)
  3. Types (112–113)

3.         Required elements (113–114)

  1. Establishing listing price (113)

5.         Responsibilities (111–112)

  1. Commission agreements
  2. Negotiation of commission (113)
  3. Who may collect (113)

3.         Other compensation arrangements (113)

  1. Math: licensee compensation/commission (will be covered in the new edition)
  2. Sales contracts
  3. Terminology (111–112)
  4. Procedures (113–114)

3.         Standard parts (113–114)

  1. Contingencies and misc. provisions (113–114)
  2. Contractual rights and obligations (111–112)
  3. Disputes and dispute resolution terms (103–104)
  4. Distressed properly sales (44)
  5. Licensee relationships and responsibilities
  6. Types of relationships—definitions (106–108)
  7. Relationship powers and obligations (109–110)
  8. Property conditions and disclosures
  9. Federal environmental regulations
  10. Lead-based paint (116)

2.         CERCLA (116–117)

3.         Asbestos (116)

4.         Wetlands and flood plains (118)

  1. Environmental issues
  2. Mold (116)

2.         Radon (116)

  1. Protected species (will be covered in the new edition)

4.         Other (116–118)

  1. Material and other properly disclosures (115)
  2. Liability considerations (115–118)
  3. Federal laws governing real estate activities
  4. Anti-Discrimination/Fair Housing Acts
  5. Protected Classes (138)
  6. Advertising (132)

3.         Enforcement/penalties (132–140)

  1. Americans with Disabilities Act (ADA) (136)
  2. Restraint of Trade (Sherman Act, etc.) (131)
  3. Lending (Regulation Z, etc.) (138–139)
  4. Privacy (Privacy Act, etc.) (will be covered in the new edition)
  5. Marketing
  6. Real Estate Settlement Procedures Act (RESPA) (140–141)

2.         Do Not Call (132)

  1. Other regulations that apply (132–141)
  2. Financing the transaction and settlement
  3. Financing components
  4. Financing instruments (153)

2.         Financing sources (primary and secondary mortgage markets, seller financing) (153–154, 169–170)

3.         Types of loans (158–161)

4.         Financing clauses, terminology, and cost of money (calculation) (161–164)

5.         Lending issues (170–171)

  1. Lender requirements and obligations
  2. Private mortgage insurance (PMI) (161–162)
  3. FHA requirements (166–167, 169)

3.         VA requirements (167–169)

4.         Escrow/impound account (164)

  1. Credit report (will be covered in the new edition)
  2. Assumption requirements (162)

7.         Appraisal requirements (65)

  1. Hazard and flood insurance (118, 195)

9.         Federal financing and credit regulation (166)

  1. Settlement/Closing
  2. Procedures and forms (171–173)

2.         Closing costs and calculations (215–222)

  1. Documents, title, and recording (173–174)
  2. Leases, rents, and property management
  3. Types and elements of leases
  4. Leasehold estates (186–187)
  5. Types of leases (187–188)

3.         Lease clauses and provisions (188–190)

  1. Lessor and lessee rights, responsibilities, liabilities, and recourse
  2. Owned and leased inclusions (115)

2.         Reversionary rights of owners (191–193)

3.         Rental-related discriminatory laws (132–140)

4.         Unit-related disclosures (115–119)

  1. Effect of sale/transfer/foreclosure (191)

6.         Evictions (190)

7.         Tenant improvements (189)

8.         Termination of a lease (190–191, 193)

9.         Breach (190)

  1. Property management contracts and obligations of parties
  2. Contracts and contractual relationships (187–188)

2.         Manager’s obligations, duties, and liabilities (185–186)

3.         Owner’s obligations, duties, and liabilities (185)

4.         Management/owner math calculations (215–226)

  1. Brokerage operations
  2. Broker management of funds
  3. Earnest money (196–198)

2.         Commingling (197)

3.         Conversion of funds (197)

  1. Supervision and management
  2. Broker-salesperson relationship (200)

2.         Office operations (198–199)

3.         Training (201)

4.         Recordkeeping (198–199)

5.         Activities requiring a license (196)

  1. Advertising (201–202)
  2. Ethical and legal business practices
  3. Misrepresentation (101–101, 110)
  4. Implied duty of good faith (97, 110, 196)

3.         Due diligence (78)

4.         Unauthorized practice of law (202–203)

5.         Marketing practices (201–202)

  1. Forms of business ownership (13–16)
  2. Independent contractors vs. employee (200)
  3. Regulatory compliance (will be covered in the new edition)