COURSE DESCRIPTIONS
The purpose of this course is to offer a broad understanding of the purpose and execution of the 1031 tax-deferred exchange. This class will empower you to provide your clients with an alternative to paying capital gains taxes, however the course is not intended to allow or suggest that the student is now empowered to give tax advice. Real estate professionals should always recommend that a client get accurate advice from a qualified tax specialist.
When engaging in real estate transactions it is always recommended that the client seek the advice of a qualified tax specialist as tax laws frequently change, and in many cases the real estate professional does not know the client’s total tax picture. There are circumstances in which the 1031 tax-deferred exchange is not the best avenue for a particular client at a particular time. On the other hand, it is important from the standpoint of professional liability that real estate experts at least explain the concept of the 1031 exchange to his investor client.
This module includes the following lessons:
•Introduction to 1031 Real Estate Exchange
•Mechanics of the 1031 Exchange
•Practice and Case Studies
Learning Objectives
After completing this module, the student will be able to:
◦Know why taxpayers use 1031 exchanges
◦Assist investors with the use of 1031 exchanges
◦Realize how 1031 exchanges benefit real estate professionals
◦Work through a 1031 exchange
◦See the 1031 process through the professional’s eyes
◦Know the role of and need for a qualified intermediary
◦Differentiate between like-kind and non-like-kind property
◦Know the different types of 1031 exchanges
◦Know how to properly document a 1031 exchange
In order to own and convey property in a market economy it is necessary for that property to be assigned a specific monetary value. This process, unlike, say, that of assigning value to durable goods—which have specific materials, production and marketing costs—can be somewhat more involved. With property, the fixed costs—building materials and labor costs—are always accompanied by more esoteric factors that go to make property more (or less) valuable. Becoming a member of the group that understands and applies these factors is a bit more complex than simply being able to understand a balance sheet.
This course covers the theories, rules, duties and activities that guide the real estate appraisal process. An appraiser must also conduct him or herself professionally, ethically and honestly. There are guidelines regarding professionally and ethically correct behavior of appraisers as well which are also covered by this course. The entire appraisal process should be carried out in the best possible way for consumers and licensees as well as the real estate market.
As well as touching upon general standards by which the value of property should be established, this module is broken down into separate lessons which cover:
•The Role of a Real Estate Appraiser
•Federal Legislation and National Agencies Governing the Industry
•An Overview of Basic Value Principles
•The Dynamics of the Real Estate Market
•Three Approaches to Appraisal
•The Appraisal Process
After finishing this course the student will be familiar with the basic rules of appraisal, the ways to carry out a real estate appraisal, the different types of licenses and certificates an appraiser can get, the different types of appraisals and the type of certificate or license which corresponds to types of appraisal. The course also looks at the effects of appraisal on housing needs and supply in the market as well as the overall economy. The last lesson of this course is a real world practice lesson in which the students can apply and test their acquired knowledge with examples and case studies.
Learning Objectives
◦Understand the basics of and common terms relating to real estate value estimation and appraisal.
◦List the traits that a qualified appraiser must possess.
◦Identify the value principles applied in the appraisal of property.
◦Employ the value theories in the appraisal process to calculate the price at which property should be traded.
◦Identify the characteristics that a real estate market should have to promote trade of property.
◦Discuss the three value approached in detail.
◦Pursue the eight steps of real estate appraisal to reach a purchase price for a property.
◦Understand an appraisal report.
◦Know the difference between an appraisal certificate and license.
This module is a 3-hour course designed to teach real estate professionals the type of mathematics skills that are used in their trade. This module includes two practice exams that will help the student prepare for the final exam. Understand that these are for practice only. The student must pass a comprehensive final that consists of 20 questions to receive credit for the module.
The module includes fractions, decimals and percentages: the mathematical language used to express many aspects of real estate practice. Area and volume will be discussed so that the licensee will be able to determine and express the amount of commodity in a particular parcel of realty. While not a real estate finance course, this module will review concepts of interest, amortization and loan rate and discount. These concepts must be understood fully so that the licensee may grasp the essential elements used in the purchase of and financing for real property. Additionally, the principle of prorating will depict the importance of time in the transfer of realty.
The conclusion of this module offers real world examples and applications of the information presented. Upon completion of this module the student will comprehend the language and principles of mathematics necessary to successfully function in the practice of real estate.
Learning Objectives
◦Name key terms used in real estate math problems.
◦Apply fractions, decimals and percentages.
◦Translate fractions into decimal and percentage forms.
◦Determine the area and volume of a given object or parcel.
◦Manipulate the principles involved in rate calculations.
◦Grasp the concept of amortization.
◦Comprehend the principles of prorating and how to apply them.
◦Understand and solve for appreciation and depreciation.
◦Identify and apply calculation formulas to determine value and profit.
◦Apply interest rates and loan discount rates.
◦Use equations to calculate interest.
This module explores the meaning of real property ownership and the differences between real estate and personal property. Although these terms are often used interchangeably in everyday conversation, there are different rights associated with these different commodities. It is important that licensees understand the differences between them and are able to explain the distinctions to their clients and customers. This module addresses the following topics:
•Personal and Real Property Ownership
•Land Description
•Controlling Development
•Real Estate Practice Lesson
Throughout this module, the student will learn how different commodities—land, real estate, and real property— transfer and relate to one another. In addition, the student will learn about land use theory and come to understand how our federal, state, municipal and private authorities govern and plan our communities. This module covers legal descriptions as well as informal descriptions, the development of these concepts and the role they play in the real estate industry.
This module’s final lesson presents real-world dilemmas and provides opportunities to apply the information covered in the rest of the course. As the student completes this module, he or she should try to develop a broad understanding of real property use and to place this understanding within the larger context of real estate practice as a whole. This final lesson aims to help the student achieve this goal using comprehensive content questions, practice examples and case studies.
Learning Objectives
•Describe the difference between land, real estate and real property.
•Recognize the difference between real property and personal property.
•State the definition of a fixture.
•Explain the general character of surface, subsurface and air rights, as well as littoral and riparian rights.
•Outline the basic features of the metes and bounds survey method and the rectangular survey method.
•Distinguish the vertical method of land description from other survey methods.
•Name the basic public and private methods employed to control the use and development of land.
•Outline the “highest and best use” theory of land use.
This module is designed as a 3-hour course to teach those in the real estate community about estimating gross living area. This module includes two practice exams that will help the student prepare for the module exam. Understand that these are for practice only. The student must pass a comprehensive final exam to receive credit for the module. Topics Covered This module includes the following lessons:
•American National Standard for Single-Family Residential Buildings
•Measurement and Calculation
•Appraisal Values
•The Appraisal Process
•Uniform Standards of Professional Appraisal Practice
•Valuation Analysis
•Summary and Other Guidelines
•Critical Thinking Questions and Case Studies
Learning Objectives:
•Define the American National Standard for Single-Family Residential Buildings (ANSI) and associated definitions
•Understand the scope and purpose of the ANSI
•Employ the calculation and measurement of square footage
•Comprehend the Statement of Finished Square Footage
•Calculate and measure estimated gross living area according to floor plans
•Identify the different values associated with real property, namely market value
•Determine the forces affecting market value
•Apply the appraisal process with regards to the Bundle of Rights and the appraisal process flow chart
•Define the Uniform Standards of Professional Appraisal Practice (USPAP) and various rules that accompany the USPAP
•Identify the components of valuation analysis
•Review a summary of the course and guidelines used for the estimation of the gross living area
This module discusses liens, taxes and foreclosures. There are many types of liens, as well as several kinds of taxes, that can attach to a parcel of real estate. When borrowers default on a debt, foreclosure is the process by which lienholders collect the unpaid portion of a debt. Because liens represent an interest in real property, it is crucial that real estate licensees develop an in-depth understanding of liens and lien-related issues. Such knowledge also helps licensees to better advise buyers and sellers.
The first lesson presents a general overview of liens. It explains the classification of liens and discusses the types of non-tax liens. Lesson two discusses taxes and tax issues, including ad valorem taxes, real estate tax computation, special assessments, real estate transfer taxes, federal income taxes, capital gains taxes and tax shelters for homeowners and investors. It also discusses the priority of liens. Lesson three addresses the methods of foreclosure, redemption, deficiency judgments, tips for homeowners facing foreclosure and fraudulent behaviors related to foreclosure.
The conclusion of this module presents real world dilemmas and applications of the information presented. As the student completes the module, he or she should try to paint a big picture of the issues surrounding liens, taxes and foreclosures, which the module addresses with comprehensive questions, activities and case studies.
Learning Objectives
•Define the terms lien and tax lien and understand their operation.
•Recognize the different types of liens and know how their priority is established.
•Identify and describe types of non-tax liens.
•Understand how ad valorem taxes and special assessments are levied.
•Know how homeowners and investors can save on federal income taxes and capital gains taxes through the use of tax shelters.
•Describe and list different types of foreclosures.
•Recognize alternatives to foreclosure and common scams related to foreclosure.
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