Texas Real Estate Principles Part 2 is a 30-hour course required by the Texas Real Estate Commission (TREC) for anyone who wishes to become a licensed real estate agent in Texas. The course provides a comprehensive overview of real estate principles. TREC mandates that all real estate agents obtain a total of 60 hours of course work in the principles of real estate. For this reason, there is an additional 30-hour part of this course, Texas Real Estate Principles Part 1. While both courses work independently of the other, we suggest that for continuity and convenience, you take both parts together.

Texas Real Estate Principles Part 2 contains the following topics:

• Real Estate Math
• Real Estate Appraisal
• Real Estate Financing Principles
• Land Use Controls and Environmental Hazards
• Real Estate Specializations
• Real Estate Investments
• Leases
• Property Management
• Estates, Transfers and Titles
• Closing Procedures/Closing the Real Estate Transaction

Agency relationships are the foundation of most real estate transactions. The relationship between a licensee and his or her client is considered a fiduciary relationship, meaning that the client places trust in the licensee to fulfill certain duties towards the client. A broker or licensee can act as a seller’s agent, a buyer’s agent, a subagent or an intermediary, and each of these four types of agency relationships has its own set of guidelines, as well its own ethical issues. Licensees who understand both the basics of agency law as well as the specific laws of agency in the state of Texas will be able to serve their clients and customers to the best of their abilities and avoid litigation.

The beginning of this course covers the basics of agency law in general, including the brief history of real estate agency, the definition of agency, the parties involved in the relationship, the types and degrees of authority and the role of agency in real estate. Then, the course covers all relevant sections of the Texas Real Estate License Act and the Rules of the Texas Real Estate Commission. In addition, the student will learn about the creation and termination of agency relationships, the rules for agency disclosure, the duties required of agents, the agent’s liability, the Texas Deceptive Trade Practices Act, and the different types of agency agreements.

When representing buyers and sellers, one of the most important things a real estate licensee does is to prepare and review offers for them by filling in the blanks of promulgated forms.

In order to be knowledgeable, as required by the Cannons of Professional Ethics, it is necessary for licensees to not only know what goes in the blanks but what is in the pre-printed portion of the contact.

Licensees may not give legal advice and must advise the parties to seek help from their own attorney if a question arises regarding legal rights or remedies.

Licensees can, however, point out to the parties the verbiage in the contact form. To fulfill that roll, licensees must be completely familiar with the forms.

This course provides an introduction to real estate finance. From qualifying the borrower and qualifying the property in the underwriting process to various types of financing, closing the sale, the Community Reinvestment Act and more, we discuss the monetary systems that control the market, delve into supply and demand, cover housing agencies and discuss the government influence on real estate.

Most real estate is purchased with borrowed money. The methods of real estate finance are many and varied. Making real estate loans carries a certain amount of risk for lenders; for this reason, lenders must have a firm grasp of a borrower’s financial qualifications. Lenders consider a borrower’s income, credit, debt, source of funds and net worth. However, no analysis, no matter how thorough, of a borrower’s creditworthiness can be enough to ensure that a loan is completely free of risk.

You will learn the methods used by lenders to qualify loan applicants and how lenders qualify the property to be mortgaged. This involves a thorough and accurate property valuation, using the sales comparison or cost approach for residential property and a cap rate or discounted cash flow analysis for investment property. These methods of valuation will be discussed in depth so that you will feel confident and familiar with them when you meet them in the real world.

In another lesson, the focus turns to closing. You will learn the customary costs involved in a real estate transaction, how certain items are prorated between the buyer and the seller and the requirements set forth by the Real Estate Settlement and Procedures Act (RESPA).

This course also covers foreclosure. We consider what happens when a borrower is in default of the mortgage contract and how lenders may help borrowers prevent foreclosure through forbearance, moratoriums, and recasting. Also discussed is how, when these techniques fail, the property is foreclosed and sold at auction and how the creditors are repaid.

No real estate finance course would be complete without discussing the types of mortgages available. We have two lessons that will detail the elements of conventional loans, both conforming and nonconforming; adjustable rate; graduated payment; growth equity; and reverse annuity mortgages, to name a few. The advantages and disadvantages of each type of financing are emphasized so that you may better understand the decision-making process inherent in real estate finance.

Two specific types of financing, FHA-insured and VA-guaranteed loans, are reserved for a separate lesson. FHA loans are insured by the government and perceived as less risky by lenders. They are available to all natural and naturalized U.S. citizens, but they carry a monthly insurance premium that cannot be canceled. VA loans are guaranteed in part by the government, but are available only to veterans, active servicemen, and certain National Guard members and special reservists.

• Real Estate Math (3 Hours)

Texas Real Estate Principles Part 2 is a 30-hour course required by the Texas Real Estate Commission (TREC) for anyone who wishes to become a licensed real estate agent in Texas. The course provides a comprehensive overview of real estate principles. TREC mandates that all real estate agents obtain a total of 60 hours of course work in the principles of real estate. For this reason, there is an additional 30-hour part of this course, Texas Real Estate Principles Part 1. While both courses work independently of the other, we suggest that for continuity and convenience, you take both parts together.

Texas Real Estate Principles Part 2 contains the following topics:

• Real Estate Math
• Real Estate Appraisal
• Real Estate Financing Principles
• Land Use Controls and Environmental Hazards
• Real Estate Specializations
• Real Estate Investments
• Leases
• Property Management
• Estates, Transfers and Titles
• Closing Procedures/Closing the Real Estate Transaction

Agency relationships are the foundation of most real estate transactions. The relationship between a licensee and his or her client is considered a fiduciary relationship, meaning that the client places trust in the licensee to fulfill certain duties towards the client. A broker or licensee can act as a seller’s agent, a buyer’s agent, a subagent or an intermediary, and each of these four types of agency relationships has its own set of guidelines, as well its own ethical issues. Licensees who understand both the basics of agency law as well as the specific laws of agency in the state of Texas will be able to serve their clients and customers to the best of their abilities and avoid litigation.

The beginning of this course covers the basics of agency law in general, including the brief history of real estate agency, the definition of agency, the parties involved in the relationship, the types and degrees of authority and the role of agency in real estate. Then, the course covers all relevant sections of the Texas Real Estate License Act and the Rules of the Texas Real Estate Commission. In addition, the student will learn about the creation and termination of agency relationships, the rules for agency disclosure, the duties required of agents, the agent’s liability, the Texas Deceptive Trade Practices Act, and the different types of agency agreements.

When representing buyers and sellers, one of the most important things a real estate licensee does is to prepare and review offers for them by filling in the blanks of promulgated forms.

In order to be knowledgeable, as required by the Cannons of Professional Ethics, it is necessary for licensees to not only know what goes in the blanks but what is in the pre-printed portion of the contact.

Licensees may not give legal advice and must advise the parties to seek help from their own attorney if a question arises regarding legal rights or remedies.

Licensees can, however, point out to the parties the verbiage in the contact form. To fulfill that roll, licensees must be completely familiar with the forms.

This course provides an introduction to real estate finance. From qualifying the borrower and qualifying the property in the underwriting process to various types of financing, closing the sale, the Community Reinvestment Act and more, we discuss the monetary systems that control the market, delve into supply and demand, cover housing agencies and discuss the government influence on real estate.

Most real estate is purchased with borrowed money. The methods of real estate finance are many and varied. Making real estate loans carries a certain amount of risk for lenders; for this reason, lenders must have a firm grasp of a borrower’s financial qualifications. Lenders consider a borrower’s income, credit, debt, source of funds and net worth. However, no analysis, no matter how thorough, of a borrower’s creditworthiness can be enough to ensure that a loan is completely free of risk.

You will learn the methods used by lenders to qualify loan applicants and how lenders qualify the property to be mortgaged. This involves a thorough and accurate property valuation, using the sales comparison or cost approach for residential property and a cap rate or discounted cash flow analysis for investment property. These methods of valuation will be discussed in depth so that you will feel confident and familiar with them when you meet them in the real world.

In another lesson, the focus turns to closing. You will learn the customary costs involved in a real estate transaction, how certain items are prorated between the buyer and the seller and the requirements set forth by the Real Estate Settlement and Procedures Act (RESPA).

This course also covers foreclosure. We consider what happens when a borrower is in default of the mortgage contract and how lenders may help borrowers prevent foreclosure through forbearance, moratoriums, and recasting. Also discussed is how, when these techniques fail, the property is foreclosed and sold at auction and how the creditors are repaid.

No real estate finance course would be complete without discussing the types of mortgages available. We have two lessons that will detail the elements of conventional loans, both conforming and nonconforming; adjustable rate; graduated payment; growth equity; and reverse annuity mortgages, to name a few. The advantages and disadvantages of each type of financing are emphasized so that you may better understand the decision-making process inherent in real estate finance.

Two specific types of financing, FHA-insured and VA-guaranteed loans, are reserved for a separate lesson. FHA loans are insured by the government and perceived as less risky by lenders. They are available to all natural and naturalized U.S. citizens, but they carry a monthly insurance premium that cannot be canceled. VA loans are guaranteed in part by the government, but are available only to veterans, active servicemen, and certain National Guard members and special reservists.

• Texas Exam Prep

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