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2 Weeks, 4 Weeks to go

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Nick J.

Real Estate Investor from Scottsdale, Arizona

Apr 14 '11, 04:04 PM


If anyone pays any attention to little 'ol me, you'll know that I've recently(as of 2 weeks ago) started attending licensing classes.

I'm not doing a day by day blog or else I would fill space Here in the BP Blogs but more so just random topics.

The class is about 15 or so adults/students steadily. I've seen 2 finish their classes and about 3 new students since I started 2 weeks ago.

Tonights class was pretty interesting. It was on the subject of Contracts. If you have any questions in regard to what AZ RE is teaching their new licensees, feel free to ask.

I wasn't able to take my 'investor' hat off while some of these types of contracts were being discussed. I was able to understand their perspective on them but just wasn't able to commit my brain to 'their side' ya know.

For instance. I understand an Option Contract as a Right but NOT an obligation to buy from the buyer to the seller(Optionor grants Optionee the Right).

They see it similarly but they're more concerned with is it a Unilateral or Bilateral (if you don't know, its Unilateral).

Another instance is where they 'briefly' talk about Lease/Purchases(Bilateral) but never mention Lease/Options(Unilateral). Its hard to explain the flow of the instructions of the course but imagine as if they're leaving out some pretty pertinent information as if setting you up to believe that your straight up standard 'transaction' is the only way to the pearly white gates. Does that make sense?

Now, they(Brokerages in general) might go into these things more for their salespersons later but in the context of educating and licensing, they show no concern for others things outside of their narrow spectrum.

So far, in all reality. Licensing is obviously(as if we all didn't know this already) is waaaaaaay to easy to get. They should most certainly separate Commercial and Residential Licenses and I would even venture out to say that an 'Internship' be required as well.



Bill G.

Real Estate Investor from Springfield, Missouri

Apr 15 '11, 12:08 AM
1 vote


No Nick, you're not being totally ignored.

Tips:

Forget everything you think you knowabout real estate. It will be easy come test time to mess up as questions willnot be well difined and thinking too much will get you in trouble.

Unilateral-one way, Bilateral- two ways. Your lease-option is not purely unilateral as the option is, the lease portion is bilateral. The bilateral covenants are taken into consideration first, the seller landlord must provide the property and quiet enjoyment, the tenant buyer must pay the rent.

A question for anyone, if you want to: A seller agrees to list a property for a flat fee of $2,000 and 3% to the buyer's agent. He wants to clear $120,000 and closing costs, not counting commissions will be $1,650.00. What must the property sell for to give the seller what he wants?

The concept is likely a test question.



Nick J.

Real Estate Investor from Scottsdale, Arizona

Apr 15 '11, 12:39 AM


Not worried about being ignored but thank you Bill :)

True, I should have clarified the Lease/Option = Unilateral/Bilateral.

Fortunately, only 15% of the test questions will be math questions on the test. With having to get a 75% or better to pass, you could miss all the math questions but it wouldn't leave you with very much room to miss anymore questions.



Bill G.

Real Estate Investor from Springfield, Missouri

Apr 15 '11, 01:14 AM


LOL, well, better check on that. In Mo. you must get 75%, but I think you have to get so many within each category too. Be kinda bad if a Realtor can't figureout what to list a property for to get his client what he wants (at least try).



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