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Appropriate knowledge of the English language, including reading, writing, and spelling; and of arithmetical computations common to real estate and business opportunity practices.

An understanding of the principles of real estate and business opportunity conveyancing; the general purposes and general legal effect of agency contracts, deposit receipts, deeds, deeds of trust, chattel mortgages, bills of sale, mortgages, land contracts of sale, and leases; and of the principles of business, land economics and appraisals.

A general and fair understanding of the obligations between principal and agent; the principles of real estate and business opportunity transactions, and the code of business ethics pertaining thereto; as well as of the provisions of the law relating to real estate as administered by the Real Estate Commissioner.



- Classes of Property

- Property Characteristics

- Encumbrances

- Types of Ownership

- Descriptions of Property

- Government Rights in Land

- Public Controls

- Environmental Hazards and Regulations

- Private Controls

- Water Rights

- Special Categories of Land



- Law, Definition and Nature of Agency Relationships, Types of Agencies, and Agents

- Creation of Agency and Agency Agreements

- Responsibilities of Agent to Seller/Buyer as Principal

- Disclosure of Agency

- Disclosure of Acting as Principal or Other Interest

- Termination of Agency

- Commission and Fees

- Responsibilities of Agent to Non-Client Third Parties



- Value

- Methods of Estimating Value

- Financial Analysis



- General Concepts

- Types of Loans

- Sources of Financing

- Government Programs

- Mortgages/Deeds of Trust/Notes

- Financing/Credit Laws

- Loan Brokerage

- Types of Loan Originators



- Title Insurance

- Deeds

- Escrow

- Tax Aspects

- Special Processes

- Transfer through Court Supervision

- Types of Vesting



- Trust Account Management

- Fair Housing Laws

- Truth in Advertising

- Record Keeping Requirements

- Agency Supervision

- Permitted Activities of Unlicensed Sales Assistants

- DRE Jurisdiction and Disciplinary Actions

- Licensing, and Continuing Education Requirements and Procedures

- California Real Estate Recovery Fund

- General Ethics

- Technology

- Property Management

- Commercial/Industrial/Income Properties

- Specialty Areas

- Transfer Disclosure Statement

- Natural Hazard Disclosure Statements

- Disclosure of Material Facts Affecting Property Value

- Need for Inspection and Obtaining/Verifying Information

- Reports

- Servicing Diverse Populations



- General

- Listing Agreements

- Buyer Broker Agreements

- Offers/Purchase Contracts

- Agreements

- Promissory Notes/Securities

- Purchase/Lease Options

- Advanced Fee

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