Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition
New Pearson VUE Exam Content Outlines
At Dearborn™ Real Estate Education, we are proud of our reputation for providing the most
complete, current, and accurate information in all our products. We are committed to ensuring
the kind of quality you rely on.
Pearson VUE released new salespersons and brokers real estate exam outlines on April
1, 2014. Guide to Passing the Pearson VUE Real Estate Exam Ninth Edition is currently under
development, and this new edition will be structured around the new Pearson VUE exam
content outlines.
The following is presented to allow our current eighth-edition users to use their
textbooks with the new exam content outlines. Each topic is mapped to page references in
Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition.
General Exam Content Outline for Salespersons
I.
II.
Real property characteristics, definitions, ownership, restrictions, and transfer
A.
Definitions, descriptions, and ways to hold title
1.
Elements of real and personal property (1–2)
2.
Property description and area calculations (3–7)
3.
Estates in real property (7–10)
4.
Forms of ownership, rights, interests, and obligations (10–19)
B.
Land use controls and restrictions
1.
Government controls (29–32)
2.
Private controls—non-monetary (32–33)
3.
Private controls—mortgage (deed of trust) and liens (35–37)
C.
Transfer/alienation of title to real properly
1.
Voluntary (43)
2.
Involuntary (43–45)
3.
Protections (will be covered in the new edition)
4.
Partition/severance (voluntary or involuntary) (1–2)
5.
Deeds and warranties: validity, types, and covenants (45–50)
6.
Title and title insurance (51–53)
Property valuation
A.
Principles, types, and estimates of properly value
1.
Valuation definition, purpose, and process (65–68)
2.
Characteristics (67–68)
3.
Valuation principles (66–67)
4.
Approaches to value (69–75)
5.
Depreciation/obsolescence (75–76)
6.
Appraisals and fair market value (65)
7.
Math calculations (69–74)
8.
Influences on property value (67–68)
9.
Competitive Market Analysis (CMA) (70)
B.
Investment analysis
©2014 Kaplan, Inc.
Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition
III.
IV.
1.
Application of principles (78–84)
2.
Math calculations (78–84)
Contracts and relationships with buyers and sellers
A.
Contract elements
1.
Validity (98–99)
2.
Void/voidable (100–101)
3.
Enforceable/unenforceable (Statute of Frauds) (99–100)
4.
Executory/executed (97–98)
B.
Listing contracts
1.
General purpose/definition of listing (111–112)
2.
Types (112–113)
3.
Required elements (113–114)
4.
Establishing listing price (113)
5.
Responsibilities (111–112)
6.
Compensation arrangement (113)
C.
Buyer Representation Agreements
1.
General purpose (113)
2.
Types (113)
3.
Required elements (113–114)
4.
Responsibilities (111–112)
5.
Compensation arrangement (113)
D.
Sales contracts
1.
Terminology (111–112)
2.
Procedures (113–114)
3.
Standard parts (113–114)
4.
Contingencies and misc. provisions (113–114)
5.
Contractual rights and obligations (111–112)
6.
Disputes and dispute resolution terms (103–104)
7.
Delivery and acceptance (101–102)
E.
Option contracts (102)
F.
Agency relationships and responsibilities
1.
Types of relationships—definitions (106–108)
2.
Relationship powers and obligations (109–110)
Property conditions and disclosures
A.
Federal environmental regulations
1.
Lead-based paint (116)
2.
CERCLA (116–117)
3.
Asbestos (116)
4.
Wetlands and flood plains (118)
B.
Environmental issues
1.
Mold (116)
2.
Radon (116)
3.
Protected species (will be covered in the new edition)
4.
Other (116–118)
C.
Material and other property disclosures (115)
©2014 Kaplan, Inc.
Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition
V.
VI.
VII.
Risk management
A.
Types of insurance
1.
General Liability (194)
2.
Errors and Omissions (195)
3.
Hazard and Flood (118, 195)
4.
Other insurance (194–196)
B.
Record keeping
1.
Contracts (198)
2.
Accounting (199)
3.
Other important documents (199)
C.
Privacy, security, and confidentiality
1.
Security measures and controls (will be covered in the new edition)
2.
Systems and programs (will be covered in the new edition)
3.
Electronic communication and social media (will be covered in the new
edition)
4.
Personal safety (will be covered in the new edition)
D.
Scope of expertise (201)
Federal laws governing real estate activities
A.
Anti-Discrimination/Fair Housing Acts
1.
Protected Classes (138)
2.
Advertising (132)
3.
Enforcement/penalties (132–140)
B.
Americans with Disabilities Act (ADA) (136)
C.
Restraint of Trade (Sherman Act, etc.) (131)
D.
Lending (Regulation Z, etc.) (138–139)
E.
Privacy (Privacy Act, etc.) (will be covered in the new edition)
F.
Marketing
1.
Real Estate Settlement Procedures Act (RESPA) (140–141)
2.
Do Not Call (132)
G.
Other regulations that apply (132–141)
Financing the transaction and settlement
A.
Financing components
1.
Financing instruments (153)
2.
Financing sources (primary and secondary mortgage markets, seller
financing) (153–154, 169–170)
3.
Types of loans (158–161)
4.
Financing clauses, terminology, and cost of money (calculation) (161–
164)
5.
Lending issues (170–171)
B.
Lender requirements and obligations
1.
Private mortgage insurance (PMI) (161–162)
2.
FHA requirements (166–167, 169)
3.
VA requirements (167–169)
4.
Escrow/impound account (164)
5.
Credit report (will be covered in the new edition)
©2014 Kaplan, Inc.
Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition
VIII.
IX.
X.
6.
Assumption requirements (162)
7.
Appraisal requirements (65)
8.
Hazard and flood insurance (118, 195)
9.
Federal financing and credit regulation (166)
C.
Settlement/Closing
1.
Procedures and forms (171–173)
2.
Closing costs and calculations (215–222)
3.
Documents, title, and recording (173–174)
Leases, rents, and property management
A.
Types and elements of leases
1.
Leasehold estates (186–187)
2.
Types of leases (187–188)
3.
Lease clauses and provisions (188–190)
B.
Lessor and lessee rights, responsibilities, liabilities, and recourse
1.
Owned and leased inclusions (115)
2.
Reversionary rights of owners (191–193)
3.
Unit-related disclosures (115–119)
4.
Effect of sale/transfer/foreclosure (191)
5.
Evictions (190)
6.
Tenant improvements (189)
7.
Termination of a lease (190–191, 193)
8.
Breach (190)
9.
Security deposit guidelines and procedures (191)
C.
Property management contracts and obligations of parties
1.
Contracts and contractual relationships (187–188)
2.
Manager's obligations, duties, and liabilities (185–186)
3.
Owner's obligations, duties, and liabilities (185)
4.
Management/owner math calculations (215–226)
Brokerage operations
A.
Trust Accounts
1.
Earnest money (196–198)
2.
Commingling (197)
3.
Conversion of funds (197)
B.
Advertising (201–202)
C.
Forms of business ownership
1.
Corporation (16)
2.
Partnership (general and limited) (13–15)
3.
Limited liability company (16)
4.
Sole proprietorship (will be covered in the new edition)
D.
Independent contractors vs. employee (200)
Ethical and legal business practices
A.
Misrepresentation issues (100–101, 110)
B.
Implied duty of good faith (97, 110, 196)
C.
Due diligence (78)
D.
Unauthorized practice of law (202–203)
©2014 Kaplan, Inc.
Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition
General Exam Content Outline for Brokers
I.
II.
III.
Real property characteristics, definitions, ownership, restrictions, and transfer
A.
Definitions, descriptions, and ways to hold title
1.
Elements of real and personal property (1–2)
2.
Property description and area calculations (3–7)
3.
Estates in real properly (7–10)
4.
Forms of ownership, rights, interests, and obligations (10–19)
B.
Land use controls and restrictions
1.
Government controls (29–32)
2.
Private controls—covenants and restrictions (32–33)
3.
Private controls—mortgage (deed of trust) and liens (35–37)
C.
Transfer/alienation of title to real properly
1.
Voluntary (43)
2.
Involuntary (43–45)
3.
Protections (will be covered in the new edition)
4.
Partition/severance (voluntary or involuntary) (1–2)
5.
Deeds and warranties: validity, types, and covenants (45–50)
6.
Title and title insurance (51–53)
Property valuation and appraisal
A.
Market Analysis/Broker Price Opinion
1.
Definition and Purpose (70)
2.
Process (70)
3.
Requirements (70)
B.
Appraisal
1.
Definition and Purpose (65)
2.
Process (76)
3.
Requirements (65)
4.
Three approaches to value (69–73)
C.
Investment analysis
1.
Application of principles (78–84)
2.
Math calculations (78–84)
3.
Commercial-Investment properly types (will be covered in the new
edition)
Contracts and relationships with buyers and sellers
A.
Contract elements
1.
Authority (97)
2.
Validity (98–99)
3.
Void/voidable (100–101)
4.
Enforceable/unenforceable (Statute of Frauds) (99–100)
5.
Unilateral/bilateral (97)
6.
Executory/executed (97–98)
B.
Contracts with buyers and sellers
1.
General purpose/definition of listing (111–112)
©2014 Kaplan, Inc.
Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition
IV.
V.
2.
Types (112–113)
3.
Required elements (113–114)
4.
Establishing listing price (113)
5.
Responsibilities (111–112)
C.
Commission agreements
1.
Negotiation of commission (113)
2.
Who may collect (113)
3.
Other compensation arrangements (113)
4.
Math: licensee compensation/commission (will be covered in the new
edition)
D.
Sales contracts
1.
Terminology (111–112)
2.
Procedures (113–114)
3.
Standard parts (113–114)
4.
Contingencies and misc. provisions (113–114)
5.
Contractual rights and obligations (111–112)
6.
Disputes and dispute resolution terms (103–104)
E.
Distressed properly sales (44)
F.
Licensee relationships and responsibilities
1.
Types of relationships—definitions (106–108)
2.
Relationship powers and obligations (109–110)
Property conditions and disclosures
A.
Federal environmental regulations
1.
Lead-based paint (116)
2.
CERCLA (116–117)
3.
Asbestos (116)
4.
Wetlands and flood plains (118)
B.
Environmental issues
1.
Mold (116)
2.
Radon (116)
3.
Protected species (will be covered in the new edition)
4.
Other (116–118)
C.
Material and other properly disclosures (115)
D.
Liability considerations (115–118)
Federal laws governing real estate activities
A.
Anti-Discrimination/Fair Housing Acts
1.
Protected Classes (138)
2.
Advertising (132)
3.
Enforcement/penalties (132–140)
B.
Americans with Disabilities Act (ADA) (136)
C.
Restraint of Trade (Sherman Act, etc.) (131)
D.
Lending (Regulation Z, etc.) (138–139)
E.
Privacy (Privacy Act, etc.) (will be covered in the new edition)
F.
Marketing
1.
Real Estate Settlement Procedures Act (RESPA) (140–141)
©2014 Kaplan, Inc.
Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition
VI.
VII.
2.
Do Not Call (132)
G.
Other regulations that apply (132–141)
Financing the transaction and settlement
A.
Financing components
1.
Financing instruments (153)
2.
Financing sources (primary and secondary mortgage markets, seller
financing) (153–154, 169–170)
3.
Types of loans (158–161)
4.
Financing clauses, terminology, and cost of money (calculation) (161–
164)
5.
Lending issues (170–171)
B.
Lender requirements and obligations
1.
Private mortgage insurance (PMI) (161–162)
2.
FHA requirements (166–167, 169)
3.
VA requirements (167–169)
4.
Escrow/impound account (164)
5.
Credit report (will be covered in the new edition)
6.
Assumption requirements (162)
7.
Appraisal requirements (65)
8.
Hazard and flood insurance (118, 195)
9.
Federal financing and credit regulation (166)
C.
Settlement/Closing
1.
Procedures and forms (171–173)
2.
Closing costs and calculations (215–222)
3.
Documents, title, and recording (173–174)
Leases, rents, and property management
A.
Types and elements of leases
1.
Leasehold estates (186–187)
2.
Types of leases (187–188)
3.
Lease clauses and provisions (188–190)
B.
Lessor and lessee rights, responsibilities, liabilities, and recourse
1.
Owned and leased inclusions (115)
2.
Reversionary rights of owners (191–193)
3.
Rental-related discriminatory laws (132–140)
4.
Unit-related disclosures (115–119)
5.
Effect of sale/transfer/foreclosure (191)
6.
Evictions (190)
7.
Tenant improvements (189)
8.
Termination of a lease (190–191, 193)
9.
Breach (190)
C.
Property management contracts and obligations of parties
1.
Contracts and contractual relationships (187–188)
2.
Manager's obligations, duties, and liabilities (185–186)
3.
Owner's obligations, duties, and liabilities (185)
4.
Management/owner math calculations (215–226)
©2014 Kaplan, Inc.
Guide to Passing the Pearson VUE Real Estate Exam Eighth Edition
VIII.
Brokerage operations
A.
Broker management of funds
1.
Earnest money (196–198)
2.
Commingling (197)
3.
Conversion of funds (197)
B.
Supervision and management
1.
Broker-salesperson relationship (200)
2.
Office operations (198–199)
3.
Training (201)
4.
Recordkeeping (198–199)
5.
Activities requiring a license (196)
C.
Advertising (201–202)
D.
Ethical and legal business practices
1.
Misrepresentation (101–101, 110)
2.
Implied duty of good faith (97, 110, 196)
3.
Due diligence (78)
4.
Unauthorized practice of law (202–203)
5.
Marketing practices (201–202)
E.
Forms of business ownership (13–16)
F.
Independent contractors vs. employee (200)
G.
Regulatory compliance (will be covered in the new edition)
©2014 Kaplan, Inc.