Summary of Changes

Modern Real Estate Practice, 19th Edition – Summary of Changes

The Modern Real Estate Practice text is no longer divided into two parts, the first featuring principles and the second featuring practice. Every unit now relates real estate law, regulations, and fundamental principles to the practice of real estate. In addition:

  • Units have been rearranged and reorganized to follow the stages of a real estate transaction, highlighting the responsibilities of real estate licensees.
  • Coverage of topics, including applicable forms, has been updated throughout to reflect changes in laws and practices.
  • Many more Internet sites are now included, and their uniform resource locators (URLs) are highlighted in both the text and easy-to-spot margin notes.
  • Dollar amounts and interest rates in examples and problems have been changed to reflect current market conditions.
  • More math problems have been placed throughout the text, and new In Practice examples have been added.
  • The discussion of the T-Bar in the Math FAQs has been clarified to make the graphics easier to understand.
  • An updated Directory of State Licensing Agencies and Statutes includes links to both state licensing offices and legislation.
  • Every unit now begins with an Overview of the unit contents to highlight the focus of the unit

 

Other unit changes are noted below.

Unit 1 – Introduction to the Real Estate Business
  • The text now refers to a licensed real estate salesperson as a sales associate or associate licensee.
  • The distinction between an appraisal and a broker’s price opinion is noted.
  • The text clarifies the role of the professional home inspector.
  • This unit now includes sections on professional ethics and home ownership that were formerly in other units.
Unit 2 – Real Property and the Law
  • Subsurface, air, and water rights have been moved to this unit and expanded to make coverage of property rights more comprehensive, including mention of hydraulic fracturing (fracking).
  • Acronym MARIA added to expanded discussion of legal tests of a fixture.
Unit 3 – Fair Housing (formerly Unit 20)
  • The topic of fair housing is now included early in the text and referenced throughout to emphasize its importance.
  • The process of conciliation is now discussed.
  • The Housing for Older Persons Act (HOPA) has been included.
  • Penalties for federal fair housing violations have been updated.
  • The website for recent cases involving violations of fair housing laws has been added.
  • Coverage of the Americans with Disabilities Act (ADA) has been expanded.
Unit 4 – Interests in Real Estate (formerly Unit 7)
  • The section on Water Rights has been moved to Unit 2.
  • Discussion of governmental powers has been moved to later in this unit, following a new discussion of lis pendens.
  • Coverage of estates in land has been clarified.
  • Explanation of covenants, conditions, and restrictions (CC&Rs) has been expanded.
Unit 5 – Forms of Real Estate Ownership (formerly Unit 8)
  • Explanation of tenancy in common has been updated.
  • The discussion of marital property rights now references spouses, rather than husband and wife.
  • The Uniform Partnership Act has been added.
Unit 6 – Land Description (formerly Unit 9)
  • Discussions have been clarified and expanded where necessary.
  • Additions to this unit include use of a geographic information system (GIS) and the Torrens system of land title registration.
Unit 7 – Transfer of Title (formerly Unit 12)
  • The table explaining use of “or” and “ee” terms has been revised.
  • The discussion of power of attorney now explains the difference between a special power of attorney and a general power of attorney.
  • The requirements to establish property ownership by adverse possession have been clarified.
  • Discussion of the probate process has been expanded.
Unit 8 – Title Records (formerly Unit 13)
  • In addition to general updates, the In Practice examples in this unit have been expanded.
Unit 9 – Real Estate Brokerage (formerly Unit 5)
  • The roles of broker, managing broker, and sales associate are explained, as reflected in recent changes in state licensing laws.
  • The IRS definition of a “qualified real estate agent” has been added.
  • Discussion of the role of the real estate assistant has been expanded.
  • The multiple listing service (MLS) is introduced.
  • The concept of fee-for-service business practices is discussed in greater detail.
  • The section on Technology in Real Estate Practice emphasizes current forms of communication, particularly the use of social media.
  • New federal laws are now included, including the Telephone Consumer Protection Act (TCPA), Junk Fax Prevention Act, the CAN-SPAM Act, and the Children’s Online Privacy Protection Act (COPPA).
Unit 10 – Agency (formerly Unit 4)
  • The concept of agency is defined as it relates the role of the sales associate to the role of the broker and the role of the broker to those of the client and customer.
  • Disclosures required in an agency relationship are now included.
Unit 11 – Client Representation Agreements (formerly Unit 6)
  • Discussion of the history of the development of brokerage agency relationships is expanded.
  • The distinction between single agency and dual agency is clarified.
  • Discussion of the role of the broker (and any sales associate employed by the broker) now emphasizes the forms of agency and non-agency relationship that are possible.
  • Discussion of the forms of buyer representation has been expanded and now includes the ways in which buyer representation may be terminated.
  • Coverage of the disclosures that must be made by real estate licensees now includes Megan’s Law.
Unit 12 – Real Estate Contracts (formerly Unit 11)
  • The section on express and implied contracts has been rewritten.
  • New In Practice examples have been added.
  • The section on earnest money deposits has been clarified.
  • The discussion of types of owner financing has been expanded.
Unit 13 – Real Estate Taxes and Other Liens (formerly Unit 10)
  • The property tax “freeze” available to low income seniors in some states has been added.
  • The foreclosure of a junior lien is now discussed.
  • This unit on liens on real estate now leads directly into coverage of real estate financing in Unit 14.
Unit 14 – Real Estate Financing
  • Discussion of real estate financing now begins with the topic of Housing Affordability, which was formerly covered in Unit 3.
  • Housing statistics have been updated, credit reports and credit scores are explained, and the concept of equity is explained.
  • Types of loans are now covered in this unit, instead of Unit 15.
  • Lower interest rates have been added to the mortgage factor chart.
  • Discussions on real estate owned by a lender (REO) and short sales have been added.
  • This unit now includes consumer protections created by the Dodd-Frank Act.
  • Homeowner’s and flood insurance programs are now covered in this unit, instead of Unit 3.
Unit 15 – Government Involvement in Real Estate Financing
  • Discussions of the Federal Reserve, types of lenders, and government-sponsored financing programs have been updated.
  • The section on Farmer Mac (Federal Agricultural Mortgage Corporation) has been moved up.
  • HUD home sales are discussed, and URLs for information on HUD property sale programs are provided.
  • VA loan fees have been updated.
  • The section on home equity loans has been expanded.
  • Discussion of the Dodd-Frank Act has been added.
  • New In Practice sections have been added throughout the unit.
Unit 16 – Real Estate Appraisal (formerly Unit 18)
  • The text has been updated to reflect current USPAP and appraiser licensing and certification requirements.
  • The Fannie Mae Appraiser Independence Requirements (AIR) and the Appraisal Practices Board (APB) of the Appraisal Foundation have been added.
  • Organizations for appraisers are listed, along with their URLs.
  • Discussion of the competitive market analysis (CMA) has been expanded.
  • The flow chart of the appraisal process has been updated.
  • The discussion of market value has been clarified.
  •  Building costs have been increased to more accurately reflect current market conditions.
Unit 17 – Closing the Real Estate Transaction (formerly Unit 22)
  • The unit has been reorganized to reflect the steps in the closing process.
  • Discussion of affiliated business arrangements (ABA) has been added.
  • The new Loan Estimate form and Closing Disclosure form are referenced and URLs for current examples are included.
Unit 18 – Leases (formerly Unit 16)
  • Statistics on home ownership rates have been added.
  • Discussion of the effect of a change of property ownership on tenants has been added.
  • The section on fair housing has been expanded.
Unit 19 – Property Management (formerly Unit 17)
  • Organizations listed now include URLs.
  • Section on environmental concerns has been moved up to be included in the responsibilities of the property manager.
Unit 20 – Land-Use Controls and Property Development (formerly Unit 19)
  • Statistics on public/private land ownership have been added.
  • Reference to the International Building Code has been added.
  • Discussion of subdivisions has been reorganized.
  • Effect of Dodd-Frank Act on the Interstate Land Sales Full Disclosure Act is mentioned, and a link to the revised law is included.
Unit 21 – Environmental Issues and the Real Estate Transaction
  • The Formaldehyde Standards for Composite Wood Products Act has been added.
  • The section on electromagnetic fields has been deleted.
  • The unit now mentions EPA concern over the effect of byproducts of hydraulic fracturing (fracking) on groundwater.
Unit 22 – Investing in Real Estate (formerly Unit 23)
  • This unit now includes expanded discussion of the advantages and disadvantages of real estate as an investment.
  • The discussion of like kind property has been expanded.