Realty Institute

Call Us! (718) 275-0003

New York 22.5 Hour Package A Continuing Education

$59.00

Description

N. Y. 22.5 HOUR PACKAGE A

This package contains all the new continuing education requirements, and has been approved by the Department of State of New York. It contains the mandatory:

Fair Housing
Law of Agency
Ethical Business Practices
Recent Legal Matters

The balance of the course are elective topics

LEARNING OBJECTIVES

CHAPTER 1 BUYING AND MANAGING INVESTMENT PROPERTY

PART 1 BUYING INVESTMENT PROPERTY

Section 1: Introduction
Key terms
Getting started
Who will succeed?
Commission
Personality traits
Types of commercial real estate
Land and buildings
Types of ownership

Section 2: Risk vs. return
Categories of risk
Attitudes toward risk
Ethical practices
Due diligence
Calculating return on investment
Improper insurance risks
Risk management, doing the right thing
Economic
Liquidity
Environmental
Crime
Business management

Section 3: Financial
Key terms and examples
Operating expenses
Leverage
Determining net operating income
Break even point
Valuation
Types of investors
Highest and best use
Commercial mortgage financing

Section 4: Land use, zoning and design
Environmental issues
Zoning
Architecture and design
Building codes
Zoning restrictions

Section 5: The nature of real property value
Basic concepts
Immobility and tangibility
Differences between real estate and real property
Bundle of rights
Other considerations
Appraisal process
Definition of an appraiser
Requirements to become an appraiser
Definition of an appraisal
Economic forces that drive real estate
Other real estate concepts
Other considerations
Determining gross multiplier

Section 6: Leasing the property
Determining factors for leasing
Buy vs. lease
New tenant considerations
Location
Terms of lease
Determining the rent
Other tenant considerations
The true cost of rent
Commercial lease checklist

Section 7: Anatomy of an investment transaction
Negotiating the contract
Handling earnest money
Due diligence
Lease reviews
Tenant interviews
Service contracts and warranties
Title and survey
The new entity
Bank accounts
Pro rations and adjustments
Signing the documents and closing the transaction
Closing statement
Review

Section 8: Everything else
Flipping
Hard money lenders
Tax liens
Wholesaling
Short sale or pre-foreclosure
Like/kind exchanges
Basics
Qualified intermediary
A typical 1031 exchange
Important investment terms
Is investment property right for me?
Minimizing problems to avoid risk

PART 2 PROPERTY MANAGEMENT

Section 1: Introduction and key terms
Property management defined
Typical responsibilities

Section 2: The property management agreement
Typical provisions
Leasing and management of property
Financial reports
Security deposits
Fiduciary responsibilities
Laws and codes
Reserve fund
Management fee
Liability
Default
Daily management operations
Reporting
Insurance and risk management
Owner objectives
Liability
Analysis of the management plan
Property analysis
Result of the management plan

Section 3 Lease checklist
Key terms
Lease clauses

CHAPTER TWO

Section 1: Understanding RE financing
Introduction and Mortgage Basics
Mortgage banker vs mortgage broker
Dual agency
Definition of mortgage
Essentials of a valid mortgage
Secured loans
FHA
HUD
VA
Fixed rate loans
Adjustable rate loans
Home Equity loans
Reverse mortgage
Provisions of a commercial loan
Bridge loans
Amortized loans
Balloon mortgage
Blanket mortgage
Package loan
Subordinate mortgage
Construction mortgage
Hard money loans

Section 2: The Mortgage Process
Mortgage underwriting
FICO
Capacity to repay
Collateral
Cost
Price
Value
Subprime market
Secondary mortgage market
Fannie Mae
Freddie Mac
Mortgage-backed securities
Automated underwriting
Approve or decline
General loan procedures and requirements
Documentation
Borrower criteria
Types of transactions
Preliminary title report
Classifications of real estate
Real estate appraisal
Other types of value
Cost approach
Income approach
Market data approach
Highest and best use
Derogatory or adverse information
Consumer credit counseling
Bankruptcy

Section 3: The Mortgage Loan
Mortgage calculations
Loan to value
Debt payment
Disposable income
Amortization

Section 4: Closing the Loan
RESPA
Points
Index
Margin
Closing costs
Commission
Appraisal fee
Inspections
Warranties
Insurance
Pro ration
Title report and title insurance
Abstract
Chain of title
Suit to quiet title
Title insurance
Types of title policies

Section 5: Fraud, Scams and Red Flags
Mortgage fraud
Straw borrows schemes
Property flip schemes
Double escrows
Equity skimming
Foreclosure bailout
Builder bailout
Loan application red flags
Verification of deposit red flags
Tax return red flags
W 2 red flags
Appraisal red flags
Phony employment, credit or income
Verification of employment red flags
Title report red flags
Escrow/closing red flags
Credit report red flags
Pay stub red flags

CHAPTER 4 PREDATORY LENDING

Section 1: Understanding Predatory Lending
Key terms
Property flipping
Predatory lending practices
False representation about prepayment
Price gouging
Bill consolidation
Case study

Section 2: Predatory Lending and Discrimination Overview
Discrimination in sales and rentals
Prohibited steering practices
Case studies
Predatory vs. sub prime

CHAPTER 5 SHORT SALES

Section 1 Short Sales
Introduction
The process
Things to consider
Commission
Possible financial liability
Other problems
Financial hardship
Financial considerations
Listing considerations
Playing by the rules
Ethical actions
Other options
Are short sales for me?

CHAPTER 6 MANAGING RISK THROUGH ETHICS

Section 1: Introduction
Introduction
Principles and values

Section 2: NAR Code of Ethics including Standards and Practices
Code of Ethics Articles
Duties to Clients and Customers
Duties to the Public
Duties to Realtors
Standards and Practices
Implementation of the Code of Ethics to avoid unethical and/or illegal behavior
Code of Ethics summary

Section 3: State License Law
Rules and regulations
Who needs to be licensed?
Advertising
Business card guidelines
Telephone regulations
Auto dialers and faxes
Fair housing
Broker teams
Web based advertising
For sale signs
Office signs
Earnest money
Commingling
Copies of signed documents
Commission
Procuring cause
Disclosure of customer
Deposit money
Financing misrepresentation
Purchasing for your own account

Section 4: Law of Agency
What is meant by “agency”?
Fiduciary obligations
Ethical responsibilities
Legal Responsibilities
Types of agency
Key terms
Agency disclosure
Unintentional dual agency
Undisclosed dual agency
Reduce risk, remember these points
Responsibilities of the agent
Buyer brokerage
Duty to a client
Duty to a customer
Summing up Dual Agency
Broker’s agent

Section 5: Documents and Disclosure
Documents and disclosures in order to avoid legal and ethical risk
Purchase offer agreement
Property disclosure
Caveat emptor
As is condition
Home inspection
Property condition disclosure forms
Sellers disclosure, yes or no
Potential damages

Section 6: Liability
Necessity for ethical behavior
Liability
Fraud and misrepresentation
Vicarious liability
Intentional concealment
Negligent misrepresentation
Suppression
Stigmatized properties
Listing agreement
Sub agency
Legal advice and decisions

Section 7: Lead Paint Effects and Disclosure
Lead paint effects and disclosure
Lead paint regulations
Methods of testing
Evaluation of testing results
History of lead disclosure guidelines
Definition and effects of lead
Lead effects on humans
Federal penalties for non-compliance
Agent’s responsibilities
Property owner’s responsibilities
Check list for seller
Checklist for lessor
Check list for agent

Section 8: Disclosure, Misrepresentation and Anti-Trust
Misrepresentation and ethical violations
Anti-trust laws
History of anti-trust
Price fixing
Boycotts
Enforcement of anti-trust laws
Other anti-trust violations
Market allocation
Tie in arrangements
Duties of an agent
Summary of some anti-trust suits
Company policy and ethical requirements

Section 9: Everything Else
Contracts
Consideration
Multiple offers
Fair housing
Legacy of segregation
Role of government
Role of private industry
Working with sellers
Working with buyers
Possible discriminatory situations
Steering
Avoiding steering
Harassment
Summing it up

CHAPTER 7 HUMAN RIGHTS AND FAIR HOUSING

Section 1: In the Beginning
A look back at how discrimination began

Section 2: Federal Laws and their Exemptions
Laws and exemptions
Fair housing regulations
Religious organizations
Persons with disabilities
Familial status

Section 3: Other Discriminatory Practices and Enforcement of the Laws
Other prohibited practices
Denying access
Steering
Redlining
Code words
Fair housing act 1968
Fair housing amendments 1988
Blockbusting
Cease and desist
Refusing to sell or rent based on covered classes
Represent that a premise is not available based on covered classes
Renting in one’s own home
Religious organization exemption
Private club exemption
Changing credit criteria

Section 4: Lawful and Unlawful Questions and Statements
Megan’s law
Age
Disability
Marital status
National origin
Race
Religion
Age
Sex
Familial status

Section 5: Advertising Guidelines and Restrictions
Guidelines and restrictions
Responsibility of brokers and salespeople
Proper handling of buyers
Enforcing the law

Section 6: Reviewing Discrimination: It’s History and Practices
Legacy of segregation
Role of government
Role of private industry
Working with sellers
Working with buyers
Possible discriminatory situations
Steering
Avoiding illegal steering
Harassment

Section 7: Court Cases
Case studies 1-12

Section 8: Recent Legal Matters
Recent investigation and rulings of Housing bias
Overview, findings and rulings and Regulations
Steering
Testers
Unequal treatment by agents
Racial inequities
Instruction 177.9
Advertising 175.25
Explanation
What’s covered
Check list
Fair Housing Recording Regulation Section 175.28
Notification of Fair Housing Laws Section 175.29
All posters and disclosures and check lists relating to:
All regulations posted above with explanation
Website requirements
Video and Recording Record Preservation

*No partial credit can be given for this course.