http://wiki.reidsherman.com/ 2026-04-12T21:21:32+00:00 http://wiki.reidsherman.com/ http://wiki.reidsherman.com/_media/wiki:dokuwiki.svg text/html 2026-01-23T18:54:00+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/government_agencies?rev=1769194440&do=diff Government & Quasi-Government Housing / Loan Agencies Fannie Mae (FNMA) Fannie Mae (Federal National Mortgage Association) is a government-sponsored enterprise (GSE) created to support the mortgage market by purchasing home loans from lenders. By buying these loans, Fannie Mae helps lenders free up money to issue more mortgages. Fannie Mae does not directly lend to consumers—instead, it operates in the secondary mortgage market and helps increase liquidity and stability in housing finance. text/html 2026-01-23T18:53:34+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/start?rev=1769194414&do=diff Property Ownership and Land Use Controls and Regulations (approximately 15% of exam) * 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 Laws of Agency and Fiduciary Duties (approximately 17% of exam) * Law, Definition and Nature of Agency Relationships, Types o… text/html 2026-01-23T18:51:34+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/important_formulas?rev=1769194294&do=diff Important Real Estate Formulas (CA Exam) Valuation & Appraisal * Market Value (Income Approach) * Value = NOI ÷ Cap Rate * Cap Rate = NOI ÷ Value * NOI: Net Operating Income * Gross Rent Multiplier (GRM) * GRM = Sales Price ÷ Gross Rent text/html 2025-12-23T18:18:44+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/responsibilities_of_agent_to_non-client_third_parties?rev=1766513924&do=diff Responsibilities of Agent to Non-Client Third Parties Real estate agents owe limited duties to parties who are not their principals. General Duties to Third Parties * Honesty and fair dealing * No misrepresentation or fraud * Disclosure of known material facts affecting value or safety text/html 2025-12-23T18:18:16+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/commission_and_fees?rev=1766513896&do=diff Commission and Fees Real estate commissions are compensation paid for brokerage services. Nature of Commissions * Negotiable between broker and principal * Not fixed by law * Earned based on contract terms * Usually paid at close of escrow text/html 2025-12-23T18:17:46+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/termination_of_agency?rev=1766513866&do=diff Termination of Agency Agency relationships end by agreement, performance, or operation of law. Termination by Act of the Parties * Completion of purpose * Expiration of the agency agreement * Mutual agreement of principal and agent * Unilateral termination by principal (may result in liability) text/html 2025-12-23T18:17:17+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/disclosure_of_acting_as_principal_or_other_interest?rev=1766513837&do=diff Disclosure of Acting as Principal or Other Interest Licensees must disclose when they have a personal interest in a transaction. Acting as Principal A licensee is acting as a principal when buying, selling, or leasing property for themselves. * text/html 2025-12-23T18:16:35+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/disclosure_of_agency?rev=1766513795&do=diff Disclosure of Agency California law requires real estate agents to disclose agency relationships in a timely manner. Purpose of Agency Disclosure * Inform parties whom the agent represents * Avoid confusion and conflicts of interest * Ensure informed consent text/html 2025-12-23T18:16:07+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/responsibilities_of_agent_to_seller_buyer_as_principal?rev=1766513767&do=diff Responsibilities of Agent to Seller / Buyer as Principal Agents owe fiduciary duties to their principal, whether seller or buyer. General Fiduciary Duties (OLD CAR) * Obedience * Follow lawful instructions of the principal * Loyalty * Act solely in the principal’s best interest text/html 2025-12-23T18:15:42+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/creation_of_agency_and_agency_agreements?rev=1766513742&do=diff Creation of Agency and Agency Agreements Creation of Agency Agency is created when a principal authorizes an agent to act on their behalf. * Express Agreement * Clearly stated, written or oral * Most real estate agencies are created in writing text/html 2025-12-23T18:14:58+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/law_definition_and_nature_of_agency_relationships_types_of_agencies_and_agents?rev=1766513698&do=diff Laws of Agency and Fiduciary Duties Law, Definition, and Nature of Agency Relationships Agency is a legal relationship in which one person (agent) represents another (principal) in dealings with third parties. * Created by agreement (written or oral) text/html 2025-12-23T18:06:29+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/special_categories_of_land?rev=1766513189&do=diff Special Categories of Land Certain land types are subject to special legal rules and limitations. 1. Public Land Land owned by government entities. * Federal, state, or local ownership * Includes parks, roads, schools, and government facilities text/html 2025-12-23T18:06:05+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/water_rights?rev=1766513165&do=diff Water Rights Water rights regulate the use and ownership of water associated with land. 1. Riparian Rights Rights of landowners whose property borders a natural watercourse. * Water may be used for domestic and agricultural purposes * Must be reasonable and beneficial use text/html 2025-12-23T18:05:51+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/private_controls?rev=1766513151&do=diff Private Controls Private controls are non-governmental restrictions that limit the use of real property. 1. Deed Restrictions Limitations placed in a deed by a grantor. * Restrict use, occupancy, or improvements * Bind future owners * Enforceable by injured parties or courts text/html 2025-12-23T18:05:07+00:00 reidjs (reidjs@undisclosed.example.com) http://wiki.reidsherman.com/environmental_hazards_and_regulations?rev=1766513107&do=diff Environmental Hazards and Regulations Environmental laws and natural conditions can restrict land use and affect value. 1. Common Environmental Hazards * Asbestos: insulation and fireproofing in older buildings * Lead-based paint: residential properties built before 1978