Fast Facts On: Real Estate 101
Happy Friday everyone! I hope your week wasn’t too horrible and your weekend gets even better. While some may use this weekend to relax or hit the pavement in search of the latest fashion trends, I’m choosing to use my time as a Weekend Warrior. Thanks to our friends at Living Social, I hopped on an opportunity to take Real Estate classes offered at the Brooklyn School of Real Estate. After 75hrs (5 weekends) and a 75 question multiple choice test, I will be a licensed property salesperson in NY *please, hold your applause*.
To answer the questions that I’m sure came to mind: yes I have a job, no I don’t need my license, and yes everyone says this is a bad economy to buy or sell house; but you’re living somewhere right? Who sold you that place? Why not get a piece of that pie? I’d like to think who doesn’t need residual income to use on shopping, travel and food? Why not understand the laws of Real Estate land before jumping into purchasing your own home? Also, doesn’t it sound cool? I like to think of myself as a Jack of all trades and a Master of most and living by the Dynamo mantra of “ Being the best me” this was definitely something I needed to get on.
As a true Sweetheart, of Brooklyn of course, who would I be if I didn’t pass along my teachings to my fellow Dynamos? I mean, we’re in this together right? Therefore, over the next 4 weeks I will be passing my Real Estate knowledge to you. You can either use these facts to build yourself, or lookout for the next available class to get a license. ( I think there’s a living social deal out now, GRAB IT! )
1. Real Estate is the land and anything attached to the land or improvements on the land, whether man made or natural.
2. Article 12A of Real Estate Property Law recognizes 3 licenses:
b. Associate Broker
c. Salesperson ( Me in <75 hrs. )
3. In Real Estate, there are 3 important people:
a. Client/ Principal — They hire the broker
b. Broker – Can transact on behalf o the public
c. Customer – Individuals brought to the Client/Principal
4. As a broker/salesperson we have fiduciary (legal term for trust) responsibilities to your clients:
a. Be Obedient
b. Show Loyalty – put their interest above our own
c. Disclosure – Be transparent with documents, offers, etc
d. Confidentiality – No one needs to say why the clients’ selling
e. Accountability – Knowing where the money is
f. Reasonable Care – In the same scenario, any other salesperson would do the same
5. A deed is a piece of paper – but it consists of many different parts:
a. Grantor – Giver of the deed (seller of the house)
b. Grantee – Receiver of the property (buyer of the house)
c. Property Description – What is physically being transferred
d. Consideration – Value that is being transferred (How much money?!)
e. Words of Conveyance – What is being communicated
f. Deed restrictions – any restrictions that come with the property (Habendum Clause)
g. Execution – Full enforcement (signed)
h. Acknowledgement – Registered or notarized in municipality
i. Delivery & Acceptance – Keys to the house on the hill!
6. As a salesperson you are recognized as a statutory non-employee, which by law makes us an independent contractor – employer/clients cannot dictate details of job.
7. On average, it takes about 6 – 8 months to sell a house.
8. Some of the seller’s cost consist of:
a. Broker’s Fee (you get paid)
b. Attorney fee
c. Transfer tax
d. Property tax
e. Recording tax
f. Existing liens (We’ll get into liens a bit later)
9. Some of the buyer’s cost consist of:
a. Mortgage Tax
c. Credit Report
d. Lender Fee/ Title Insurance
e. Recording Fee
f. Attorney Fee
10. The coolest fact I’ve learned is that McDonald’s is the biggest Real Estate Company to date. While flipping burgers is what it’s known for, McDonald’s actually builds restaurants in locations, bringing the traffic to that area. Then they charge other companies to build around it. They’re what you call the Anchor Tenant – they attract other tenants.
I know that’s a lot of information, but hey nobody said it was going to be easy Real Estate Class is similar to a Real Estate Law Class, or so I’ve been told. If you’re a geek like me, this stuff is SUPER COOL. If you’re not, at least get your money up!
If you have anything you’d like to add to the Real Estate 101 series, PLEASE let me know. I want us to grow together; plus, I’m getting tested on this stuff
Here’s to week 1!
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