Pennsylvania Real Estate Continuing Education (CE)

Package #2

APPROVED FOR: 14 HOURS

The package includes the following courses:

Tax Favorable Real Estate Transactions
Contracts, Purchase, & Sales Agreements
Code of Ethics

REGULATORY REQUIREMENT
Please see the state/regulatory requirement from the course catalog page.

SEAT TIME:
This course has been approved for 14 hours.

COURSE PRE-REQUISITE: N/A

TESTING:
Quizzes - All quizzes must be taken to proceed forward to the next lesson.
Final Exam - You will be required to take a final exam.

Tax-Favorable Real Estate Transactions

The objective of this course is to teach the real estate professional how he or she can help clients in buying and selling property on a tax-favorable basis.

In accordance with TREC rules Sections 535.71 and 535.72D, the first two lessons of the course seek to provide a method of real estate purchase using pretax dollars and of growing the estate within a qualified product. We will discuss the application of current tax advantages of using both qualified and non-qualified tax products such as IRA's, SEP IRA, 401k, Roth IRAs and charitable gift annuities. The use of these applications will provide the real estate professional with the opportunity to create a long standing and profitable relationship with his or her clients, as well as attracting a more sophisticated investor wishing to find an alternative to 1031 exchanges.

The final lessons of this module will explain the many important aspects of Internal Revenue Code Section 1031. The course will focus on the benefits of the 1031 exchange for the investor, licensed real estate agent/broker and other parties to the transaction. Upon completion of this course, the student will learn which properties qualify under Section 1031 and how to use the various types of 1031 exchanges to enhance the client's position in the investment real estate market.

Learning Objectives

Upon completion of this module the student will:

* Be able to identify motivated buying and selling clients.
* Know the attributes of qualified and non-qualified products and how they can be of benefit to the sales process.
* Be able to identify the restrictive rulings of the 1031 exchange program.
* Know how money can be accumulated using pre-tax dollars, accumulate interest on a tax-deferred basis, and create litigation protection.
* Know charitable strategies of creating income and tax relief for individuals or families owning highly-appreciated real estate.
* Know about Charitable Gift Annuities, and the annuity payments, income benefits and tax advantages associated with them.
* Know the parameters that the IRS uses to define a valid like kind exchange.
* Know the pros and cons of various exchanging alternatives.
* Know the mechanics of a successful tax-deferred exchange and the role of each party in those exchanges.
* Be familiar with exchange documentation and the role of a qualified intermediary.
* Understand what constitutes "boot" and how to deal with it.
* Know how to calculate whether a sale is to be preferred over an exchange.

Regulatory Requirement

Our staff works diligently to provide you with an analysis of current mandates and legislation that affects you the licensee. All information pertaining to the Mandatory Continuing Education requirements can be found on the State Requirements page. You can find the link to this page on the upper Navigation bar on the Course Catalog.

Course Completion

Affidavits can be found by clicking the Help link in the navigation bar on the Course Catalog. The affidavit will also be available to print upon course completion.

Testing

Quizzes - There is a quiz at the end of each lesson to test comprehension of the subject matter.
Final Exam - Passing Grade 70%. You can take the final three times.

About The Subject Matter Expert

Course designed, written and maintained by 360Training. Course material questions can be directed to our Instructor of Record at Instructor.RE@360Training.com. Instructional support questions are returned within 24 business hours with answers provided by a qualified professional in your field through our network of subject matter experts.

Support

If you have any requests for technical support please contact the 360Training Support Department located in the HELP section of your account profile. Technical support inquiries are handled immediately.

Real Estate Finance

This course provides an introduction to residential real estate finance, including information on how to underwrite FHA, VA, FNMA and FHLMC loans. Understanding this information will help the student assist his or her buyer- and seller-clients from the initial meeting, through the closing proceedings with basic financing and loan-qualification questions.

In accordance with TREC rules Sections 535.71 and 535.72D, in this course, you will learn the basics of the different types of loans available, loan applications, appraisals, escrow, titles and credit reports, including qualifying for loan amounts and verifying income and assets.

Upon completion of this module, the student will know how to calculate loan amounts, estimate monthly payments, property taxes, hazard and mortgage insurance (for conventional, FHA and VA) and qualifying ratios and income.

Learning Objectives

Upon Completion of this course, the student will:

Understand the basic concepts of real estate financing, and the key terms involved
Know how to qualify a buyer for the most common types of loans
Be familiar with the use and function of escrow accounts
Know what a Mortgage Insurance Premium is
Know the underwriting guidelines and process
Be familiar with the three most common types of loans: Conventional, FHA and VA
Know the advantages and disadvantages of conventional loans
Know how to use conventional qualifying ratios
Know the advantages and disadvantages of FHA loans
Know about the differing FHA qualification ratios
Know the advantages and disadvantages of VA loans
Be familiar with VA eligibility and qualification periods
Be able to calculate the amount of VA entitlement used
Be able to calculate VA loan amounts and required down payments
Know the process and qualifications for assuming VA and FHA loans
Be familiar with other types of loans available
Know how to underwrite and close loans

Regulatory Requirement

Our staff works diligently to provide you with an analysis of current mandates and legislation that affects you the licensee. All information pertaining to the Mandatory Continuing Education requirements can be found on the State Requirements page. You can find the link to this page on the upper Navbar on the Course Catalog.

Course Completion

Affidavits can be found by clicking the Help link in the navigation bar on the Course Catalog. The affidavit will also be available to print upon course completion.

Testing

Quizzes - There is a quiz at the end of each lesson to test comprehension of the subject matter.
Final Exam - Passing Grade 70%. You can take the final three times.

About The Subject Matter Expert

Course designed, written and maintained by 360Training. Course material questions can be directed to our Instructor of Record at Instructor.RE@360Training.com. Instructional support questions are returned within 24 business hours with answers provided by a qualified professional in your field through our network of subject matter experts.

Support

If you have any requests for technical support please contact the 360Training Support Department located in the HELP section of your account profile. Technical support inquiries are handled immediately.

Contracts, Purchase and Sales Agreements

Agreement is an essential component in the legal transference of ownership. In real estate, contracts are the instruments by which agreements are reached for the conveyance of property. Whether a salesperson is promising to sell a property within a specified period of time, a prospective buyer is placing an offer on a house or a seller is considering an offer on property, some type of contract is involved.

In this Contracts course, the student learns about the types of general contracts as well as the different kinds of real estate contracts. The module begins by providing the student with an overview of the various types of contracts: bilateral, unilateral, implied, express, executed, executory, valid, void, voidable and unenforceable. Once the student is introduced to the different types of contracts, he or she learns what makes a contract legally enforceable, this being the five components that make a contract valid: mutual assent, legally competent parties, consideration, lawful objective and adherence to a statute of frauds.

This course will introduce the student to two of the three factors that create a contract: offers and acceptances. When there is an offer and acceptance, the parties can either perform their respective parts of the contract or breach the contract by not fulfilling their obligations. Then we will discuss the third component of a legally binding and enforceable contract—performance. There are four basic types of contracts in real estate: sales contracts, option agreements, contract for deeds and leases; these types of contracts being those that deal in the governance of the real estate industry which, as a real estate professional, the student should be familiar with.

Upon completion of this module, the student will be able to:

Name and explain the various components of a valid contract.
Identify the differences between a unilateral and bilateral contract.
Describe the various types of contracts.
Recognize the difference between a forbearance and performance agreement.
Outline the features of a contract (and the contracting parties) that make a contract legally binding.
Recognize the general features of a completed contract. Identify when a contract can be discharged.
Recognize the different kinds of real estate contracts.

This course 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 course addresses the following topics:

• Personal and Real Property Ownership
• Land Description
• Controlling Development
• Real Estate Practice Lesson

Throughout this course, 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 course covers legal descriptions as well as informal descriptions, the development of these concepts and the role they play in the real estate industry.

This course'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 course, 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.

The objective of this course is to enlighten the participant in the many important aspects of Internal Revenue Code Section 1031. The course will focus on the benefits of the §1031 exchange for the investor, licensed real estate agent/broker and other parties to the transaction. Participants will learn exactly what qualifies under Section 1031 and, furthermore, how to utilize the various types of §1031 exchange formats to enhance their clients' position in the investment real estate market. Real-life examples will be used to illustrate the important procedural issues as well as the IRS Rules and Regulations.