Modern Real Estate Practice, 18th Edition
Errata (2012-06-11)
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. Please note the following changes, which will
be reflected in the next printing of Modern Real Estate Practice, 18th Edition.
Chapter 1
Page 3
Introduction to the Real Estate Business
Replace the second learning objective with “describe the six
categories of real property;”
Chapter 2
Page 27
Real Property and the Law
Insert the following alphabetically in the list, after Pennsylvania
and before South Carolina:
Rhode Island Department of Business Regulation: Real Estate:
www.dbr.state.ri.us/divisions/commlicensing/realestate.php
Replace question 2, answer “b” with “The shelves and tables are
trade fixtures and may properly be removed by the woman before
her lease expires, and the tenant would be responsible to the
landlord for any damage that their removal caused to the
premises.”
Page 28
Chapter 3
Page 34
Concepts of Home Ownership
Replace the second sentence under “Mortgage Terms” with
“Although many loan programs of the past are either not offered or
offered only to highly qualified borrowers, liberalized mortgages
are still available to those who qualify.”
Chapter 5
Page 77
Real Estate Brokerage
Add this to the end of the “Penalties” paragraph: “An individual
who has suffered a loss because of an antitrust activity may sue for
threefold the damages sustained. This is known as treble-damages.
In addition, the injured party may recover the cost of the suit which
includes reasonable attorney fees.”
Under the heading “A real estate assistant is”, replace the second
bullet with “if unlicensed, is limited in the activities that can be
undertaken.”
Replace the first sentence of question 8 with “Two salespeople
who work for the same company agree to divide their town into a
northern region and a southern region; one salesperson will handle
listings in the northern region, and the other will handle listings in
the southern region.”
Page 80
Page 84
Chapter 8
Forms of Real Estate Ownership
©2011 Kaplan, Inc.
Modern Real Estate Practice, 18th Edition
Page 133
Page 134
Page 141
Page 142
Chapter 9
Page 144
Page 154
Replace the last sentence of the second-to-last paragraph with
“Low-rises and detached structures can also be condominiums.”
In Table 8.2, replace the last sentence of the second row under
“Town House” with “Town houses are often organized as
associations.”
Replace question 4 with “A man owns one of 20 units in a building
in fee simple, along with a 5 percent ownership share in the
parking facilities, recreation center, and grounds. What kind of
property does he own?”
Replace the first sentence of question 10 with “An owner
purchased an interest in a house.”
Legal Descriptions
Replace the second sentence of the second paragraph with
“Addresses change as streets are renamed, or rural roads might
become public streets in growing communities.”
Replace the second heading (“Benchmarks”) with “Monuments”
Chapter 10
Page 165
Real Estate Taxes and Liens
Replace the fifth sentence of the eighth paragraph with “In some
states, taxes are paid one year in arrears, and you cannot pay any
portion of the ad valorem taxes during the current year (e.g., 2009
taxes could not be paid until the tax books open in 2010).”
Chapter 11
Page 181
Real Estate Contracts
Replace the last sentence of the second full paragraph with “The
seller tenders the deed and asks that the buyer be required to pay
the agreed price.”
Chapter 12
Page 195
Transfer of Title
In Table 12.1, replace the fifth row with:
Mortgage*
Mortgagor
Mortgagee
Page 200
Replace the entire paragraph under the “Reconveyance deed”
heading with “A reconveyance deed is used by a trustee to return
title to the trustor. For example, when a loan secured by a deed of
trust has been fully paid, the beneficiary notifies the trustee. The
trustee then reconveys the property to the trustor. As with any
document of title, a reconveyance deed should be recorded to
prevent title problems in the future.”
Chapter 14
Page 223
Real Estate Financing: Principles
Replace the second sentence of the second paragraph with “A
borrower and a lender can tailor financing instruments to suit the
type of transaction and the financial needs of both parties.”
©2011 Kaplan, Inc.
Modern Real Estate Practice, 18th Edition
Chapter 18
Page 314
Page 326
Page 333
Real Estate Appraisal
In the key terms list, replace “gross multiplier income (GIM)” with
“gross income multiplier (GIM)”
Replace the first sentence with “The most profitable single use of a
property that is legal and feasible, and will bring the most money
over time is known as the highest and best use.”
Replace the second sentence of the first full paragraph with “If the
buyer is interested in purchasing five or more units, a commercial
gross income multiplier (GIM) would be used for the appraisal
value.”
Chapter 19
Page 338
Land-Use Controls and Property Development
In the key terms, switch the order of “inverse condemnation” and
“Interstate Land Sales Full Disclosure Act”
Chapter 20
Page 355
Fair Housing and Ethical Practices
In Table 20.1, add a dot beneath “Color” across from “Civil Rights
Act of 1866”
In Table 20.1, delete the dot beneath “Disability” across from
“Housing and Community Development Act of 1974”
The fourth paragraph (beginning “Familial status is defined…”
should have the section header “Familial status” (like “Housing”
above it and “Disability” below it).
In the blue box, insert “receipt of public assistance,” after “sex,”
Page 355
Page 357
Page 360
Chapter 21
Page 377
Environmental Issues and the Real Estate Transaction
Replace the first sentence of the second paragraph under “LeadBased Paint and Other Lead Hazards” with “Children younger than
six are the most vulnerable to damage from excessive lead levels.”
Chapter 22
Page 398
Closing the Real Estate Transaction
Replace the last sentence of the first paragraph under “Preclosing
Procedures” with “Each party—buyer and seller—has specific
concerns that must be addressed.”
Chapter 23
Page 435
Real Estate Investment
In last sentence of second paragraph under “Depreciation (Cost
Recovery),” replace “29.5” with “27.5”
Math FAQs
Page 479
Page 481
Under “For Example,” replace the sentence immediately before the
T-bar equation with “100% sales price – 5% commission = 95%
after commission”
Under the first “For Example” section, replace the second-to-last
sentence with “$22,626 annual interest ÷12 months = $1,885.50
monthly interest”
©2011 Kaplan, Inc.
Modern Real Estate Practice, 18th Edition
Page 484
Under the second “For Example” section, replace the last sentence
with “$96,000 original investment is the answer.”
Real Estate Math Practice Problems
Page 499
Replace question 4, answer “d” with “$110,510”
Page 499
Replace question 5, answer “c” with “$101,250” and answer “d”
with “$122,625”
Page 500
Replace question 11 with “Two brokers split the 6 percent
commission on a $73,000 home. The selling salesperson was paid
70 percent of his broker’s share. The listing salesperson was paid
30 of her broker’s share. How much did the listing salesperson
receive?”
Page 502
Replace question 31, answer “d” with “$25,420”
Page 502
Replace the first sentence of question 33 with “A man earns
$20,000 per year and can qualify for a monthly PITI payment
equal to 25 percent of his monthly salary.”
Sample Exam 2
Page 532
Glossary
Page 542
Page 545
Answer Key
Page 563
Page 564
Page 564
Page 564
Page 567
Replace question 42 with “A farmer owns the W½ of the NW¼ of
the NW¼ of a section. The adjoining property can be purchased
for $300 per acre. Owning all of the NW¼ of the section would
cost the farmer”
Replace the page references for “computerized loan origination
(CLO)” with “258–59”
Replace the definition for “emblements” with “Growing crops,
such as corn, that are produced annually through labor and
industry; also called fructus industriales. 20”
Replace the contents of the blue box with “To access the Student
Test Builder—which allows students to mix and match the
hundreds of questions in the Modern Real Estate Practice text into
their own customized quizzes and exams—please go to
www.modernrealestatepractice.com/18e and enter your Student
Access Code: 80518”
Change the page reference for Chapter 5, question 7 to “(77)”
Change the answer for Chapter 7, question 20 to “a (118)”
Change the answer for Chapter 8, question 15 to “b (127)”
Change the answer for Sample Exam 2, question 77 to “c (6)”
©2011 Kaplan, Inc.