Arkansas Real Estate Principles
Time (Min) Unit Title Lesson Title   Learning Objectives
30 Introduction to the Real Estate Business Reading Assignment • Identify the various careers available in real estate and the professional organizations that support them
• Describe the five categories of real property
• Explain the operation of supply and demand in the real estate market
• Distinguish the economic, political, and social factors that influence supply and demand
• Define the following key terms: broker, market, salesperson, and supply and demand
Interactive Exercises
Reading Comprehension
    Unit Exam  
120 Real Property and the Law  Reading Assignment • Identify the rights that convey with ownership of real property and the characteristics of real estate
• Describe the difference between real and personal property, and the various types of personalty
• Explain the types of laws that affect real estate
• Distinguish among the concepts of land, real estate, and real property
• Define the following key terms: accession, air rights, annexation, area preference, appurtenance, bundle of legal rights, chattel, emblements, fixture, heterogeneity, improvement, land, nonhomogeneity, personal property, real estate, real property, severance, situs, subsurface rights, surface rights, trade fixture, and water rights
Interactive Exercises
Reading Comprehension
    Unit Exam  
30 Concepts of Home Ownership Reading Assignment • Identify the various types of housing choices available to home buyers
• Describe the issues involved in making a home ownership decision
• Explain the tax benefits of home ownership and the provisions of recent changes to the Tax Code
• Distinguish the various types of homeowner's insurance policy coverage
• Define the following key terms: coinsurance clause, equity, homeowner's insurance policy, liability coverage, replacement cost
Interactive Exercises
Reading Comprehension
    Unit Exam  
150 Agency Reading Assignment • Identify the various types of agency relationships common in the real estate profession and the characteristics of each
• Describe the fiduciary duties involved in an agency relationship
• Explain the process by which agency is created and terminated and the role of disclosure in agency relationships
• Distinguish the duties owed by an agent to his or her client from those owed to customers
• Define the following key terms: agency, agency coupled with an interest, agent, buyer's agent, client, customer, designated agent, dual agency, express agency, express agreement, fiduciary relationship, fraud, general agent, implied agency, implied agreement, latent defect, law of agency, listing agreement, negligent misrepresentation, principal, puffing, special agent, subagent, and universal agent
Interactive Exercises
Reading Comprehension
    Unit Exam  
150 Real Estate Brokerage Reading Assignment • Identify the role of technologies, personnel, and license laws in the operation of a real estate business
• Describe the various types of antitrust violations common in the real estate industry and the penalties involved with each
• Explain how a broker's compensation is usually determined
• Distinguish employees from independent contractors and explain why the distinction is important
• Define the following key terms: antitrust laws, brokerage, commission, employee, independent contractor, procuring cause, ready, willing, and able buyer, transactional broker
Interactive Exercises
Reading Comprehension
    Unit Exam  
90 Listing Agreements and Buyer Representation Reading Assignment • Identify the different types of listing and buyer representation agreements and their terms
• Describe the ways in which a listing may be terminated
• Explain the listing process and the parts of the listing agreement
• Distinguish among the characteristics of the various types of listing and buyer representation agreements
• Define the following key terms: competitive market analysis (CMA), exclusive-agency listing, exclusive-right-to-sell listing, market value, multiple-listing service (MLS), net listing, open listing, option listing
Interactive Exercises
Reading Comprehension
    Unit Exam  
180 Interests in Real Estate Reading Assignment • Identify the kinds of limitations on ownership rights that are imposed by government action and the form of conveyance of property
• Describe the various estates in land and the rights and limitations they convey
• Explain concepts related to encumbrances and water rights
• Distinguish the various types of police powers and how they are exercised
• Define the following key terms: accretion, appurtenant easement, avulsion, condemnation, deed restriction, easement, easement by condemnation, easement by necessity, easement by prescription, easement in gross, eminent domain, encroachment, encumbrance, erosion, escheat, estate in land, fee simple, fee simple absolute, fee simple defeasible, fee simple determinable, freehold estate, future interest, homestead, leasehold estate, license, lien, life estate, littoral rights, party wall, police power, prior appropriation, remainder interest, reversionary interest, riparian rights, and taxation
Interactive Exercises
Reading Comprehension
    Unit Exam  
180 Forms of Real Estate Ownership Reading Assignment • Identify the four basic forms of co-ownership
• Describe the ways in which various business organizations may own property
• Explain how a tenancy in common, joint tenancy, and tenancy by the entirety are created and how they may be terminated
• Distinguish cooperative ownership from condominium ownership
• Define the following key terms: common elements, community property, condominium, cooperative, co-ownership, corporation, general partnership, joint tenancy, joint venture, limited liability company (LLC), limited partnership, partition, partnership, right of survivorship, separate property, severalty, syndicate, tenancy by the entirety, tenancy in common, time-share, and trust
Interactive Exercises
Reading Comprehension
    Unit Exam  
60 Legal Descriptions Reading Assignment • Identify the three methods used to describe real estate
• Describe how a survey is prepared
• Explain how to read a rectangular survey description
• Distinguish the various units of land measurement
• Define the following key terms: air lot, base line, benchmark, correction lines, datum, fractional section, government check, government lot, legal description, lot-and-block (recorded plat) system, metes-and-bounds description, monument, plat map, point of beginning (POB), principal meridian, range, rectangular (government) survey system, section, township, township lines, and township tiers
Interactive Exercises
Reading Comprehension
    Unit Exam  
90 Real Estate Taxes and Other Liens Reading Assignment • Identify the various classifications of liens
• Describe how real estate taxes are applied through assessments, tax liens, and the use of equalization ratios
• Explain how nontax liens, such as mechanics' liens, mortgage liens, and judgment liens are applied and enforced
• Distinguish the characteristics of voluntary, involuntary, statutory, and equitable liens
• Define the following key terms: ad valorem tax, assessment, attachment, encumbrance, equalization factor, equitable lien, estate taxes, general lien, general real estate tax, inheritance taxes, involuntary lien, judgment, lien, lis pendens, mechanic's lien, mill, mortgage lien, redemption, special assessment, specific lien, statutory lien, subordination agreement, tax lien, tax sale, vendor's lien, and voluntary lien
Interactive Exercises
Reading Comprehension
    Unit Exam  
150 Real Estate Contracts Reading Assignment • Identify the requirements for a valid contract
• Describe the various types of contracts used in the real estate business
• Explain how contracts may be discharged
• Distinguish among bilateral and unilateral, executed and executory, and valid, void, and voidable contracts
• Define the following key terms: assignment, bilateral contract, breach of contract, consideration, contingency, contract, counteroffer, disclosure, earnest money, equitable title, escrow contract, executed contract, executory contract, express contract, implied contract, installment contract, land contract, lease, liquidated damages, novation, offer and acceptance, option, reality of consent, rescission, statute of frauds, suit for specific performance, time is of the essence, unenforceable contract, unilateral contract, valid contract, void contract, and voidable contract
Interactive Exercises
Reading Comprehension
    Unit Exam  
60 Transfer of Title Reading Assignment • Identify the basic requirements for a valid deed
• Describe the seven fundamental types of deeds
• Explain how property may be transferred through involuntary alienation
• Distinguish transfers of title by will from transfers by intestacy
• Define the following key terms: acknowledgment, adverse possession, bargain and sale deed, deed, deed of trust, devise, general warranty deed, grantee, granting clause, grantor, habendum clause, heir, intestate, involuntary alienation, probate, quitclaim deed, reconveyance deed, special warranty deed, testate, testator, title, transfer tax, trustee's deed, voluntary alienation, and will
Interactive Exercises
Reading Comprehension
    Unit Exam  
30 Title Records Reading Assignment • Identify the various proofs of ownership
• Describe recording, notice, and chain of title issues
• Explain the process and purpose of a title search
• Distinguish constructive and actual notice
• Define the following key terms: abstract of title, actual notice, attorney's opinion of title, certificate of title, chain of title, constructive notice, financing statement, inquiry notice, marketable title, priority, recording, security agreement, subrogation, suit to quiet title, title insurance, title search, Torrens system, and Uniform Commercial Code (UCC)
Interactive Exercises
Reading Comprehension
    Unit Exam  
180 Real Estate Financing Principles Reading Assignment • Identify the basic provisions of security and debt instruments: promissory notes, mortgage documents, deeds of trust, and land contracts
• Describe the effect of discount points on yield
• Explain the procedures involved in a foreclosure
• Distinguish between lien and title theories and among the three methods of foreclosure
• Define the following key terms: acceleration clause, alienation clause, assumption of mortgage, beneficiary, deed in lieu of foreclosure, deed of trust, defeasance clause, deficiency judgment, discount point, equitable right of redemption, foreclosure, hypothecate, interest, intermediate theory, lien theory, loan origination fee, mortgage, mortgagee, mortgagor, negotiable instrument, note, prepayment penalty, promissory note, release deed, satisfaction of mortgage, statutory right of redemption, title theory, trustor, and usury
Interactive Exercises
Reading Comprehension
    Unit Exam  
240 Real Estate Financing Practice Reading Assignment • Identify the types of institutions in the primary and secondary mortgage markets
• Describe the various types of financing techniques available to real estate purchasers and the role of government financing regulations
• Explain the requirements and qualifications for conventional, FHA, and VA loan programs
• Distinguish among the different types of "creative" financing techniques that address borrowers' different needs
• Define the following key terms: adjustable-rate mortgage (ARM), amortized loan, balloon payment, blanket loan, buydown, Community Reinvestment Act of 1977 (CRA), computerized loan origination (CLO), construction loan, conventional loan, Equal Credit Opportunity Act (ECOA), Fannie Mae, Farm Credit System (System), Farm Service Agency (FSA), Farmer Mac, Freddie Mac, Federal Deposit Insurance Corporation (FDIC), Federal Reserve System, FHA loan, Ginnie Mae, growing-equity mortgage (GEM), home equity loan, loan-to-value ratio, Office of Thrift Supervision (OTS), open-end loan, package loan, primary mortgage market, private mortgage insurance (PMI), purchase-money mortgage (PMM), Regulation Z, reverse-annuity mortgage (RAM), sale-and-leaseback, secondary mortgage market, straight loan, trigger terms, Truth-in-Lending Act, VA loan, and wraparound loan
Interactive Exercises
Reading Comprehension
    Unit Exam  
90 Leases Reading Assignment • Identify the four types of leasehold estates
• Describe the requirements and general conditions of a valid lease and how a lease may be discharged
• Explain the rights of landlords and tenants in an eviction proceeding and the effect of protenant legislation and civil rights laws on the landlord-tenant relationship
• Distinguish the various types of leases
• Define the following key terms: actual eviction, assignment, cash rent, constructive eviction, estate (tenancy) at sufferance, estate (tenancy) at will, estate (tenancy) for years, estate (tenancy) from period to period, gross lease, ground lease, holdover tenancy, lease, leasehold estate, lease purchase, lessee, lessor, month-to-month tenancy, net lease, percentage lease, reversionary right, security deposit, sharecropping, and sublease
Interactive Exercises
Reading Comprehension
    Unit Exam  
150 Property Management Reading Assignment • Identify the basic elements of a management agreement
• Describe a property manager's functions
• Explain the role of environmental regulations and the Americans with Disabilities Act in the property manager's job
• Distinguish the various types of insurance alternatives
• Define the following key terms: community association management, construction alterations, corrective maintenance, life cycle costing, management agreement, multiperil policies, preventive maintenance, property manager, repair, risk management, routine maintenance, surety bond, tenant improvements, and workers' compensation acts
Interactive Exercises
Reading Comprehension
    Unit Exam  
240 Real Estate Appraisal Reading Assignment • Identify the different types and basic principles of value
• Describe the three basic valuation approaches used by appraisers
• Explain the steps in the appraisal process
• Distinguish the four methods of determining reproduction or replacement cost
• Define the following key terms: anticipation, appraisal, appraiser, assemblage, capitalization rate, change, competition, conformity, contribution, cost approach, depreciation, diminishing returns, economic life, external obsolescence, functional obsolescence, gross income multiplier (GIM), gross rent multiplier (GRM), highest and best use, income approach, increasing returns, index method, market data approach, market value, physical deterioration, plottage, progression, quantity-survey method, reconciliation, regression, replacement cost, reproduction cost, sales comparison approach, square-foot method, straight-line method, substitution, supply and demand, unit-in-place method, and value
Interactive Exercises
Reading Comprehension
    Unit Exam  
180 Land-Use Controls and Property Development Reading Assignment • Identify the various types of public and private land-use controls
• Describe how a comprehensive plan influences local real estate development
• Explain the various issues involved in subdivision
• Distinguish the function and characteristics of building codes and zoning ordinances
• Define the following key terms: buffer zone, building code, certificate of occupancy, clustering, comprehensive plan, conditional-use permit, curvilinear, deed restriction, density zoning, developer, enabling acts, gridiron, Interstate Land Sales Full Disclosure Act, nonconforming use, plat, restrictive covenants, subdivider, subdivision, taking, variance, and zoning ordinances
Interactive Exercises
Reading Comprehension
    Unit Exam  
120 Fair Housing and Ethical Practices Reading Assignment • Identify the classes of people who are protected against discrimination in housing by various federal laws
• Describe how the Fair Housing Act is enforced
• Explain how fair housing laws address a variety of discriminatory practices and regulate real estate advertising
• Distinguish the protections offered by the Fair Housing Act, the Housing and Community Development Act, the Fair Housing Amendments Act, the Equal Credit Opportunity Act, and the Americans with Disabilities Act
• Define the following key terms: Americans with Disabilities Act (ADA), blockbusting, Civil Rights Act of 1866, code of ethics, Department of Housing and Urban Development (HUD), Equal Credit Opportunity Act (ECOA), ethics, Fair Housing Act, redlining, steering, and Title VIII of Civil Rights Act of 1968
Interactive Exercises
Reading Comprehension
    Unit Exam  
90 Environmental Issues and the Real Estate Transaction Reading Assignment • Identify the basic environmental hazards an agent should be aware of in order to protect his or her client's interests
• Describe the warning signs, characteristics, causes, and solutions for the various environmental hazards most commonly found in real estate transactions
• Explain the fundamental liability issues arising under environmental protection laws
• Distinguish lead-based paint issues from other environmental issues
• Define these following key terms: asbestos, brownfields, Brownfields Legislation, capping, carbon monoxide, Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), electromagnetic fields (EMFs), encapsulation, groundwater, joint and several liability, landfill, lead, mold, polychlorinated biphenyls (PCBs), radon, retroactive liability, strict liability, underground storage tanks (USTs), urea-formaldehyde foam insulation (UFFI), and water table
Interactive Exercises
Reading Comprehension
    Unit Exam  
150 Closing the Real Estate Transaction Reading Assignment • Identify the issues of particular interest to the buyer and the seller as a real estate transaction closes
• Describe the steps involved in preparing a closing statement
• Explain the general rules for prorating
• Distinguish the procedures involved in face-to-face closings from those in escrow closings
• Define the following key terms: accrued items, closing, controlled business arrangement (CBA), credit, debit, escrow, prepaid items, prorations, Real Estate Settlement Procedures Act (RESPA), survey, Uniform Settlement Statement
Interactive Exercises
Reading Comprehension
    Unit Exam  
120 Introduction to Real Estate Investment Reading Assignment • Define the following key terms: adjusted basis, appreciation, basis, boot, capital gain, cash flow, cost recovery, depreciation, equity buildup, exchange, income property, inflation, intrinsic value, leverage, liquidity, pyramiding, real estate investment trust (REIT), real estate mortgage investment conduit (REMIC), and syndicate
Interactive Exercises
Reading Comprehension
    Unit Exam  
120 Math FAQs Introduction to Calculators • Understand the general guidelines for using hand-held calculators during examinations
• Describe the real estate functions available on calculators and how to use them
Fractions, Decimals, and Percentages  • Distinguish between the parts of a fraction and the different kind of fractions
• Understand how to perform necessary calculations with fractions and decimals
Percentage Problems • Understand how to convert between percentages, decimals, and fractions
• Describe the formulas for multiplying percentages
• Explain the use of the T-Bar to solve percentage problems
Measurement Problems • Distinguish between linear, area, and volume problems
• Understand how to convert within different kind of linear, area, and volume measurements
• Explain the formulas commonly used in real estate practice
Proration Problems • Distinguish between the different calendars used for prorating
• Understand how to calculate prorations commonly used in real estate transactions
    End Unit  
150 Arkansas Licensing Overview Reading Assignment • Describe the makeup on the Arkansas Real Estate Commission and identify its duties
• Identify activities that require a real estate license and those that do not
• Describe the differences between a salepserson and a broker
• Recognize and explain the three separate classifications of broker's license: principal broker, executive broker and associate broker
• List reasons that the Commission may deny a license
• Summarize continuing education requirements, how to renew the license on active or inactive status
• Explain the circumstances under which licensees may list and sell their own properties and name the required disclosures
• Discuss the activities that an unlicensed person may perform as a personal assistant and those which are prohibited
Interactive Exercises
Reading Comprehension Quiz 
    Unit Exam  
90 Arkansas Real Estate Office Requirements Reading Assignment • List the licenses that are required to open a real estate office and a branch office
• Define a blind ad and explain why it is illegal in Arkansas
• Identify the circumstances under which a broker may place a For Sale sign on the property
• Define trust monies and list the requirements to open a trust account
• Explain why commingling of client funds is illegal in Arkansas
Interactive Exercises
Reading Comprehension Quiz 
    Unit Exam  
150 Arkansas Agency Overview Reading Assignment • Explain the differences between single agency and dual agency, the advantages and disadvantages of each to the consumer
• Summarize the duties that an agent has to his or her clients, including those in dual agency
• List and describe the duties that an agent owes a consumer who is not represented (customer)
• Describe when and how agency disclosures must be delivered
• Name three different types of broekrage agreements and list the partis to each
• Recognize that brokerage agreements are between the broker and the consumer, not the salesperson
• Define a net listing and explain why it is not normally recommended in Arkansas
• List the requirements for avalid listing agreement
• Explain why a broker is strongly encouraged to enter into a property management agreement before managing property
Interactive Exercises
Reading Comprehension Quiz 
    Unit Exam  
60 Arkansas Contracts and Closings Overview Reading Assignment • State the age of legal consent and discuss the requirements for "informed parties"
• Explain that although seller property disclosure is not required in Arkansas, it is still highly recommended
• Explain why the law requires that an offer be promptly rpesented to the seller
• Name the time frame that the broker must store copies of exectued documents
• List several envionmental protection laws and discuss their effects on development
• Summarize how a buyer can learn if title is "good and marketable"
• Calculate the transfer tax required for revenue stamps placed on the deed
Interactive Exercises
Reading Comprehension Quiz 
    Unit Exam  
60 Arkansas License Law Enforcement Overview Reading Assignment • Explain the circumstances under which the Arkansas Real Estate Commission can investigagte licensees real estate actions
• List and describe some of the activities that can trigger an investigation
• Identify the circumstances that would lead the Commission to hold or not hold a hearing
• Summarize the immediate effects of a suspended or revoked principal broker's license
• Describe the circumstances under which a principal broker would be liable for the actions of one of his or licensees
• Discuss the reasons for establishing the Recovery Fund, and who may file a claim
Interactive Exercises
Reading Comprehension Quiz 
    Unit Exam  
45 Arkansas Specialty Topics Reading Assignment • Name the three classes of appraisers for federally related transactions and the fourth class for non-federally related transactions known as State Registered Appraisers
• Name forms of ownership reccognized in Arkansas and those that are not
• Summarize key provisions regarding time-shares and state the time during which a buyer can rescind their purchase agreement from a time-share developer
• Explain that although Arkansas does not have a specific landlord tenant act, there are specific requirements before evicting a tenant
Interactive Exercises
Reading Comprehension Quiz 
    Unit Exam  
45 Arkansas Title Issues Reading Assignment • Relate the time in which a property sold at a tax sale may be redeemed
• Identify who may file a mechanics lien and in what time frame
• Name the time frames in which a claim for adverse possession may be filed
• Name those who must be licensed by the residential building contractors committee and those who are exempt
Interactive Exercises
Reading Comprehension Quiz 
    Unit Exam  
Summary Review National Real Estate Principles
3600 Min Total Time
60 Hours Total Time
Faucette School of Real Estate is licensed by the Arkansas State Board of Private Career Education 
Paul R. Bynum is an Executive Broker (License # EB00044289), with
Coldwell Banker Faucette Real Estate Company in Fayetteville
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