BEFORE YOU GET MARRIED.... YOU TAKE A PREMARITAL COURSE
BEFORE YOUR BABY IS BORN... YOU TAKE A BIRTHING CLASS
BEFORE YOU BUY A HOUSE... YOU ARE BLIND AND DON'T KNOW WHAT YOU ARE DOING!!!
I have been teaching real estate courses for over 25 years and have taught thousands of students in real estate courses. I am certified to teach pre-licensing courses for salespersons and brokers and continuing education classes for real estate licensees and CPAs. It never ceases to amaze me that people who are making the biggest investment in their lives have no idea what they are doing.
Before you buy or sell a house, I strongly recommend that you take a real estate course. The pre-licensing course is authorized by the state of Hawaii, Department of Consumer Affairs, Real Estate Commission. The course is 60 hours in length for salesperson candidates. You might ask yourself why you would want to take the course if you have no plans to get a real estate license. I recommend the course so that you can understand the real estate laws, procedures, financing, etc., and be a better prepared buyer and seller.
The 60 hour course covers the following topics: History of Hawaii real estate; what is real property; what is personal property; what is freehold estate, fee simple property, life estate; what is an encumbrance, easements appurtenant and easement in gross, what is a dominant and servient estate, what is an encroachment, what is the diminimus structure position discrepancy law;
How do you hold title to property, what are the characteristics of severalty, tenancy in common, joint tenancy, tenancy by the entirety and reciprocal beneficiary, what is involved in a general partnership, limited partnership, Real Estate Investment Trust; real estate licensing laws, the role of the real estate commission, what is inactive versus active license, what is the recovery fund, two parts of the state exam, various ways you can be disciplined for violating the real estate licensing law; fair housing law, civil rights act of 1866, fair housing law and the various amendments, American with disabilities act, what are the protected classes of people under the federal and Hawaii law, what is the role of Housing and Urban Development and the Hawaii Civil Rights Commission as it relates to fair housing, what kind of impact does the Americans with Disabilities Act (ADA) have on landlords, real estate agents, real estate clients;
Fiduciary agency relationships between the buyer or seller and their agents, single agency, dual agency, no agency, duties and obligations of the seller, the agent and the buyer, the dangers of a dual agency, dangers of being a customer; what is involved in a listing contract, what are the seller's and agent's responsibilities, what is a unilateral or a bilateral contract, how do you establish the list price, what is a net listing, open listing, exclusive agency listing, exclusive right to sell listing, when is the seller obligated to pay a commission, what is a protection period;
What is involved in a 12 page Purchase Contract (PC) for the buyer, understanding the important points in the PC, what are contingencies in a contract, when can the buyer and the seller cancel the contract, what is a counteroffer, what is a seller's mandatory disclosure statement, what kind of survey is needed, what does the Termite Inspection Report (TIR) disclose to the buyer, who pays for the treatment if recommended by the TIR, what is an "as is" contract, what happens if there is a tenant in the unit and does not move out on time, if I am buying a condominium what documents do I need to review and who pays for the documents, what is a lead paint addendum and when is it needed, what if there is an encroachment on the property, when does the contract become binding, how long does it take to close the property, what if I can't get financing for the property, what if my purchase price is higher than the appraised value;
What other addendums do I need to be familiar with in a transaction; what is escrow, what is title insurance, what is the regular system and land court system of recording documents, what is the bureau of conveyance, what happens if the title is not clear, how long will it take to close the transaction when escrow is opened; what is a deed, what is a general warranty deed, a special warranty deed, a quitclaim deed and when are the three types of deeds used, how much is the conveyance tax and who pays for it; why do documents have to be acknowledged and notarized, do you have to record all documents at the bureau of conveyance, what is constructive notice, what is the difference between good consideration versus valuable consideration; how to read a closing statement, who pays for what costs in a closing, review a closing statement for a buyer and seller, what is a debit and credit;
The process in a buyer obtaining a mortgage, the various lenders that loan money for mortgages, what is a secondary market and why is it important in the mortgage process, what has happened to Fannie Mae and Freddie Mac, what is Ginnie Mae, what is the Rural Development, what is a mortgage and a promissory note, what happens when you default on a loan, what is a deficiency judgment, what is Private Mortgage Insurance and why is it so important in the mortgage industry, what is an agreement of sale, what is a purchase money mortgage, what is a construction loan, what is Federal Housing Administration and what is their role in mortgages, what is Veterans Administration loans, what is Hula Mae and State Retirement Loans; what happens in a judicial and non-judicial foreclosure process, who is a commissioner and what is his/her role in the foreclosure process, what is a partition suit sale, what types of liens are there, what is a mechanic's and materialman's liens; what is Truth in Lending and how does it help the consumer, who needs to follow the law and make proper disclosures, what is Annual Percentage Rate (APR), how many days do you have to rescind the contract, what is Real Estate Settlement Procedures Act (RESPA), who must abide by the RESPA law;
Who can be a property manager, what is their responsibility to the landlord and to the tenant, what career opportunities are there in property management, what types of leases govern commercial and residential leases, what happens when the lease runs out on long term leasehold condominiums, what happened to the mandatory fee conversion law, what is the landlord tenant code and does it apply to all types of leases; what is a legal description of the land that you are buying, what is involved in the subdivision process, what government agencies give approvals for subdivisions, what is the plat and parcel system, what is metes and bounds, what is the tax map key (TMK), what agencies issue the TMK numbers; what is an appraisal, do appraisers need to be licensed, what is the difference between cost, fair market value and income approach to appraisals and when do you use each type of appraisal, what are the different ways to determine values in real estate, what is involved in the appraisal process, what is depreciation and what types of depreciation are there, what is capitalization method and the Gross Rent Multiplier method in determining values;
What agencies issue permits for buildings, subdivisions, zoning variances, how do you obtain a building permit, what happens when there is a violation to the zoning or building laws, what is the Land Use Ordinance (LUO), what is a zero lot line, planned development housing, duplex lots, cluster projects, etc.; what are the tax benefits of owning real property, why does the government give tax benefits to real estate investors, what is a tax deferred 1031 exchange, are there tax benefits when you sell your personal primary residence, what is the homeowner's exemption for real property tax, what is capital gains tax, what is imputed interest, what is FIRPTA and HARPTA;
What is the difference between condominiums and cooperatives, what is involved in the condominium development process, how is a condominium different from a subdivision; what is a timeshare unit, what laws govern the registration and sale of timeshare projects, what is right to own versus right to use in timeshare; what is the Uniform Land Sales Practice Act and who has to register their subdivision with the state, what are the disclosure requirements in the subdivision law, why is it a felony to violate the subdivision law.
As you can see there is a lot of information that is covered in the 60 hours of course work. Anyone who is serious about buying or selling real estate should take the course for their own education and become a better educated consumer. All licensees must go through the coursework and pass the school exam and the state exam and join a real estate company in order to receive commissions for their work. Some students take the course for their own knowledge. Scholarships are available for those that are serious about knowing more about real estate. Tuition for the course ranges from $425 to $600. Some schools have a guarantee that they will pass the school exam or they can get their money back.
Sixty hours may seem like a long time but buying a house or a condo for hundreds of thousands of dollars without the knowledge can make you vulnerable to possible mistakes that can be avoided by being educated. Your real estate agent will appreciate a client who is educated and is somewhat familiar with the whole process.
Please call me at 216-4999, email me at
abelee@hawaii.rr.com or visit
www.abeleeseminars.com if you have any questions regarding the real estate school.
