Real Estate PL - Handbook

Handbook for Guam Real Estate Exam

compiled by Lei Bao (National Institute of Continuing Education)

Topics for Uniform Section

1. Primary Mortgage Market and Secondary Mortgage Market
2. Requirements for a Valid Deed
3. Community Property
4. Government Power
5. Marketable Title and Market Title Act
6. Regression and Progression
7. Bundle of Rights
8. Easement
9. Types of Deeds
10. Tenancy in Common and Joint Tenancy
11. Supply and Demaind in the Real Estate Market
12. Fee Simple Estate
13. Puffing, Misrepresentation, and Latent Defect
14. Life Estate
15. Real Property and Personal Property
16. Economic and Physical Characteristics of Real Estate
17. Water Rights

CE 101 - Bookkeeping and Accounting (Lecture Handout)

CE 101 - Bookkeeping and Accounting

Slide 1: Basic Accounting Formula

• Assets = Liabilities + Equity

• Dividends + Expenses + Assets = Liabilities + Owner’s Equity + Revenue

• Retained earnings = Beginning period retained earnings + net income/loss - cash dividends - stock dividends (showing us whether the company is genuinely profitable and can invest in itself)

Slide 2: Accounts

• Assets
  • Cash
  • Accounts Receivable
  • Real Property
  • Equipment
• Liabilities
  • Accounts Payable
  • Debt

Slide 3: Debits and Credits

• Debit Account(s)
  • Assets
• Credit Account(s)
  • Liabilities
  • Equity
• Total Debits = Total Credits

Video: Debits and Credits Explained

Slide 4: Example
A Realtor’s Balance Sheet

• Assets
  • Cash: $5,000
  • Accounts receivable: $2,500
  • Office Supply: $500
  • Office Equipment: $5,500
  • Vehicle: $18,900
  • Total assets: ? (Debit or Credit)
• Liabilities
  • Accounts payable: $2,210
  • Long-term debt: $5,850
  • Total liabilities: ? (Debit or Credit)
• Equity
  • Total equity: ? (Debit or Credit)

Slide 5: Journal Entry

A Journal Entry is simply a summary of the debits and credits of the transaction entry to the Journal. Journal entries are important because they allow us to sort our transactions into manageable data.

Slide 6: Trial Balance

A trial balance is a list of all the general ledger accounts (both revenue and capital) contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance.

Slide 7: Transaction Analysis

1. You close a sale of a house. The commission you receive is $2,500.
2. You spends $500 to maintain your business vehicle.

Slide 8: Steps to Perform Accounting

1. Analyze the transaction
2. Prepare the journal entry
3. Post the entry
4. Draft financial statements

Slide 9: Case Analysis for a Realtor

1. May 1st, Realtor Peter receives his real estate agent’s license and opens a bank account. He put $5,000 into the account and is issued 5,000 common shares in return.
2. May 2nd, Peter purchases a used car for $12,000. Peter figures it should be good for 10 years with no residual value expected. He pays $3,000 down with the balance of $9,000 financed with a 12% interest only vehicle loan (paid annually).
3. May 4th, Peter closes a transaction. His commission is $6,000. The receives the check and deposits it into his business account.
4. May 7th, Peter purchases $500 office supplies with his company credit card. The credit card payment is not due until June 15th.
5. May 17th, Peter contacts PDN and posts a listing advertisement on it.
6. May 25th, Peter withdraws $1,500 from the business as a dividend.
7. May 26th, Peter receives an invoice from PDN for $200 owed for the listing advertisement.

CE 100 - Appraisal Basics (Exam)

Appraisal Basics (Test)

edited by Lei Bao

Question 1
What document specifies the procedures and ethical rules for appraisal practice?

Question 2
What entity developed the Uniform Standards of Professional Appraisal Practice (USPAP)?

Question 3
Which one is NOT the intended use of an appraisal?
A. to facilitate the transfer of ownership of real property
B. to assist the underwriter in establishing a value of security for a mortgage loan
C. to estimate the market value of a property in eminent domain proceedings
D. to estimate the original construction cost of real property

Question 4
Can the mortgage borrower initiate the appraisal and have the first contact with the appraiser? Why or why not?

Question 5
Is that possible that Bank A uses an appraisal prepared for Bank B?

Question 6
Collect three principles of value from the accordant paragraph.

Question 7
What are the four independent economic factors?

Question 8
What are the three approaches that appraisers use to value property?

Question 9
What is a critical step in the development of a market value opinion?

Question 10
What are the four criteria a highest and best use must have?

Question 11
What is the equation of cost approach?

Question 12
How can an appraiser determine the current cost to construct an improvement?

Question 13
How many types of depreciation? What are they?

Question 14
All of the following factors would be important in comparing properties under the sales comparison approach to value EXCEPT
A. differences in dates of sale.
B. differences in financing terms.
C. differences in appearance and condition.
D. differences in original cost.

Question 15
What are the three written formats for an appraisal report?