Real Estate: Theory & Law
MIS 267
University of Montana
School of Business Administration
Instructor:
Jack Morton, J.D.
Office: Gallagher 324
Office Hours - Tuesday and Thursday 8 a.m. – 12 p.m. MST
Phone: 406-243-6717 486-6422
Fax: 406-243-6191
Email: jack.morton@business.umt.edu
Mission Statement:
The University of Montana’s School of Business Administration is a collegial learning
community dedicated to the teaching, exploration, and application of the knowledge and
skills necessary to succeed in a competitive marketplace.
Course Description:
The Real Estate: Theory & Law course is designed will cover the basics of a residential
or commercial sales transaction as well as leasing. The course will follow a
“transactional” approach by examining a real estate sale from listing through closing.
Coverage will include agency agreement, real estate sales contracts, title insurance,
financing, appraisal, property descriptions, real estate law, taxation, and government
regulation.
Course Objectives:
The course objectives are to: (1) understand the structure and process of a real estate sale;
(2) examine the property management transaction; and (3) become familiar with the laws
that regulate real estate transactions.
Course Format and Method of Evaluation:
Lectures and discussions characterize the typical class. Students are graded on the basis
of the following:

A chapter quiz will be given after each of the 20 chapters. The chapter quiz
scores will be averaged and that score will count 25% of the course grade.

Discussion articles (usually from the various real estate journals) will be posted to
the discussion board for each chapter. Students are encouraged to post their own
current interest articles from newspapers. For each chapter, students are expected
to post an average of three substantive comments to the discussion board.
Students are encouraged to comment on postings made by other students. The
discussion board activity will count 25% of the course grade.

A comprehensive final course exam will be given after Chapter 20. The
comprehensive final course exam will count 50% of the course grade.
Academic Integrity:
Academic misconduct is subject to an academic penalty by the course instructor and/or a
disciplinary sanction by the University. Any students found engaged in academic
dishonesty will, at a minimum, receive an F for the course.
Text:
Real Estate: An Introduction by Harwood and Jacobus
Readings:
Current articles from various sources, such as the Wall Street Journal, Forbes, and
Business Week will be posted on the web site. Students will be responsible for
understanding those materials and the materials will be included in quizzes and exams.
Course Coverage and Text Assignments:
1)
2)
3)
4)
5)
6)
Introduction to Real Estate
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Brokerage
Property management
Nature and Description of Real Estate
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Land descriptions
Water rights
Mineral and hydrocarbon rights
Rights and Interests in Land
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Fee simple
Encumbrances
Life Estates
Leasehold Estates
Forms of Ownership
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Severalty
Joint tenancy
Tenancy in common
Tenancy by the entireties
Transferring Title
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Deeds
Dedication
Adverse possession
Accession
Recording and Title Insurance
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Abstracts
Title insurance
Torrens system
Quiet title actions
2
7)
8)
9)
10)
11)
12)
13)
14)
15)
Contract Law



Elements of a contract
Statute of Limitations issues
Dealing with a breach
Real Estate Contracts

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Buy-sell agreements
Binder
Letter of intent
Mortgage and Note

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Creating the lien
Priorities
Terminating the lien
Foreclosure
Trust Deeds
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Developmental history
Reconveyance
Social issues
Lending Practices
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Loan-to-value ratios
Amortized loans
VA and FHA
Sub-prime lending issues
Sources of Financing
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Seller financing
Primary market
Secondary market
Taxation of Real Estate
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Assessment process
Exemptions
Income tax issues
Real Estate Leases
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Landlord-tenant laws
Lease provisions
Options and rights of first refusal
Assignment and subletting
Appraisal
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Market comparison approach
Cost approach
Income approach
Reconciliation
Appraisals and ethical issues
3
16)
17)
18)
19)
20)
Licensing
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Brokers
Salespersons
Licensee regulation
Agency Law
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Fiduciary obligations
Disclosure of role to all parties
Environmental Issues
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CERCLA, etc.
Zoning and subdivision regulations
Conservation easements
Fair Housing
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State and local fair housing regulations
Federal Fair Housing Act
Condominiums and Cooperatives
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Condominiums
Cooperatives
Conversion
Planned Unit Developments
4