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1© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Lesson 3
Units: 17, 18, 21, & 22
Property Management, Fair Housing & Environmental Issues
2© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Copyright ©2021 by Real Estate Institute• All rights reserved. No part of this presentation may be recorded,
reproduced, stored in any retrieval system or transcribed in any form or by any means (electronic, mechanical, photocopy, recording or otherwise) without the prior written permission of the Real Estate Institute.
• A considerable amount of care has been taken to provide accurate and timely information. However, any ideas, suggestions, opinions, or general knowledge presented are those of the authors and other contributors, and are subject to local, state, and federal laws and regulations, court cases, and any revisions of the same. The viewer is encouraged to consult legal counsel concerning any points of law. This presentation should not be used as an alternative to competent legal counsel.
• This presentation is available exclusively for students enrolled in a course with Real Estate Institute.
Policy
3
Leases
Unit 17
Real Estate Institute © 2021
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Broker Pre-License Topics
• 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
• Distinguish – between the various types of leases
Learning Objectives
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Broker Pre-License Topics
Leases
A lease is a contract between an owner of real estate (lessor) and a tenant (lessee) to transfer the lessor’s rights to exclusive possession and use of the property to the tenant for a specified period of time.
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Broker Pre-License Topics
• A landlord retains a reversionary right to possession after the lease term expires.
• The lessor’s interest is called a leased fee estate plus reversionary right.
Leases
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Broker Pre-License Topics
• In Illinois, The Statute of Frauds requires leases of over one year to be in writing to be enforceable.
• Verbal leases for one year or less that can be performed within a year of their making are enforceable.
Leases
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Broker Pre-License Topics
Estate For Years
Estate From Period-to-Period
Estate At Will
Estate At Sufferance
Leasehold Estates
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Broker Pre-License Topics
In ILLINOIS . . . The notices required by statute are: • Tenancy from year to year: at least 60 days’
written notice within the four-month period prior to the last 60 days of the lease period
• Tenancy from month to month: 30 days’ written notice
• Tenancy from week to week: seven days’ written notice
• Farm tenancies from year to year: four months’ written notice, with termination only at the end of the period
Leasehold Estates
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Broker Pre-License Topics
Estate For Years -
A leasehold estate that continues for a definite period of time and automatically terminates at the end of that period is called an estate for years.
No notice is required to terminate the estate for years.
Leasehold Estates
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Broker Pre-License Topics
Estate From Period-to-Period
Automatically renew unless notice of termination is given by one of the parties.
Leasehold Estates
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Broker Pre-License Topics
Estate At Will –
A tenancy of indefinite duration, an estate at will continues until it is terminated by either party giving proper notice.
Leasehold Estates
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Broker Pre-License Topics
Estate At Sufferance –
A tenancy that arises when a tenant who lawfully possessed real property continues in possession of the premises without the landlord’s consent after the rights expire.
Leasehold Estates
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Broker Pre-License Topics
Requirements of a Valid Lease
• Capacity To Contract• Legal Objective• Offer and Acceptance• Consideration
Lease Agreement
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Broker Pre-License Topics
Possession - The covenant of quiet
enjoyment is a presumed promise by the lessor.
Use of Premises - A lessor may restrict a lessee’s use of the premises through
provisions included in the lease.
Improvements -Any alterations
become fixtures, which are the
landlord’s property.
Lease Agreements
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Term of Lease - The period for which the lease will run.
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Broker Pre-License Topics
In Illinois,
• Compensation for damages
• 5 or more units
• statement listing damages within 30 days
• return security deposit within 45 days
• Interest on deposits
• 25 or more units
• if deposits held at least 6 months
• pay interest every 12 months
Security Deposits
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Broker Pre-License Topics
Accessibility -
It is illegal to discriminate
against prospective
tenants on the basis of physical
disability.
Tenants with disabilities must be permitted to
make reasonable modifications to a property at their own expense.
Lease Agreements
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18© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
The Americans with Disabilities Act (ADA)
–
also applies to commercial,
nonresidential property in which public goods
or services are provided.
Lease Agreements
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Broker Pre-License Topics
Maintenance• In ILLINOIS . . . A landlord must deliver and
maintain any residential leasehold free from defects that would render the use of the dwelling unsafe or unsanitary and unfit for human occupancy (implied warranty of habitability).
Destruction of Premises• In leases involving agricultural land, when
improvements are damaged or destroyed, the tenant is obligated to pay rent to the end of the term.
Lease Agreements
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Broker Pre-License Topics
Assignment - When a tenant transfers all
leasehold interests to another person.
Subletting - When a tenant transfers less than all the leasehold interests by leasing them to a new tenant.
Lease Agreements
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Broker Pre-License Topics
Recording a Lease
• Possession of leased premises is constructive notice of the lessee’s interest. Anyone who inspects the property receives actual notice. Owners of commercial property often record leases.
Options
• A lease may contain an option that grants the lessee the privilege of renewing the lease.
Lease Agreements
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Broker Pre-License Topics
Gross Lease - Tenant pays a fixed rental, and
landlord pays all operating expenses.
Net Lease - Tenant pays all or some of the operating expenses in addition to the rent. A common variation is a
triple net lease.
Percentage Lease -Rent is based on a
base fixed rental fee plus a percentage of the gross income. Common type of retail business
lease.
Types of Leases
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Broker Pre-License Topics
Variable Leases
Graduated Lease -Provides for specified rent increases at set
dates.
Index Lease - Allows rent to be adjusted
periodically based on changes in the consumer
price index or some other indicator.
Types of Leases
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Broker Pre-License Topics
Ground Lease - Involves separate ownership of the
land and buildings. Historically, this type of lease was used in the gas station
business.
Oil and Gas Lease -When an oil company leases land to explore
for oil and gas.
Lease Purchase - Part of the rent is applied toward the purchase
price until the tenant can obtain financing or
purchase the property.
Sale-and-Leaseback -Owners of a property sell the property and
then lease it back again.
Types of Leases
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Broker Pre-License Topics
• A lease is terminated when the contract terminates; either when the parties have fully performed their obligations or agree to cancel the lease.
• The lease does not terminate if the parties die or if the property is sold.
• A tenancy may be terminated by operation of law: bankruptcy or condemnation.
Discharge of Leases
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Broker Pre-License Topics
• 5-day notice: If the tenant fails to pay the rent, the landlord may
terminate the lease automatically and sue for possession. If the tenant pays the past-due rent, the lease continues in full force.
• 10-day notice: If the tenant’s breach is other than nonpayment of
rent, the landlord may terminate the tenancy by serving the tenant with 10 days’ written notice.
Landlord’s Remedies in IllinoisActual Eviction (called forcible entry & detainer)
Breach of Leases
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Broker Pre-License Topics
Tenants’ Remedies -
• If a landlord breaches any clause of a lease agreement, the tenant has the right to sue for damages.
Constructive Eviction -
• If the premises become unusable for the purpose stated in the lease, the tenant may have the right to abandon them.
Breach of Leases
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Broker Pre-License Topics
• In Illinois, a landlord must file a Forcible Entry And Detainer Action
• The suit should be filed in the circuit court of the county in which the property is located.
• If the court rules in favor of the landlord, the tenant must then leave the premises.
Evictions
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Broker Pre-License Topics
• All persons must have access to housing of their choice without any differentiation in the terms and conditions because of their race, color, religion, familial status, disability, or gender.
• In rental, apply same tenant criteria to everyone.
• Illinois Human Rights Act
More in Unit 21 – Fair Housing
Civil Rights Laws
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Broker Pre-License Topics
Lead-Based Paint
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The Federal Lead-Based Paint Hazard Reduction Act requires that landlords disclose any possible lead-based paint or related hazards.
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Broker Pre-License Topics
ResidentialLeasing Agents
Referral Fees –The IL Real Estate License Act allows
landlords to pay a referral fee to tenants of no more
than $5,000- or two-month’s rent, whichever is
less, in any 12-month period.
Rental-Finding Services
Regulation of the Rental Industry
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Broker Pre-License Topics
Quick-Fire Review
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Broker Pre-License Topics
• Would you be able to describe the different Leasehold Estates to a Landlord or Tenant?
Quick-Fire Review
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Broker Pre-License Topics
• Would you be able to describe the different types of leases available to a Landlord or Tenant?
Quick-Fire Review
35© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Quick-Fire Review
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Broker Pre-License Topics
• Generally, an oral lease for five years is illegal.
Quick-Fire Review
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Broker Pre-License Topics
• Generally, an oral lease for five years is illegal.
• FALSE!
Quick-Fire Review
38© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• A lease would be terminated by the sale of the leased premises.
Quick-Fire Review
39© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• A lease would be terminated by the sale of the leased premises.
• FALSE!
Quick-Fire Review
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Broker Pre-License Topics
• Under a tenancy for years, the term of the lease must be for at least one year.
Quick-Fire Review
41© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Under a tenancy for years, the term of the lease must be for at least one year.
• FALSE!
Quick-Fire Review
42© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Actual eviction Assignment Cash Rent Constructive Eviction Estate At Sufferance Estate At Will Estate For Years Estate From Period To Period Gross Lease Ground Lease Holdover Tenancy Implied Warranty of Habitability
Key Terms Review
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Broker Pre-License Topics
Lease Leasehold Estate Lease Purchase Month-To-Month Tenancy Net Lease Nondisturbance Clause Percentage Lease Rental-Finding Service Reversionary Right Right of First Refusal Security Deposit Sharecropping Sublease
Key Terms Review (cont’d)
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44© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• 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
• Distinguish – between the various types of leases
Learning Objectives - Review
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45
Property Management
Unit 18
Real Estate Institute © 2021
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46© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Identify – the basic elements of a management agreement;
• Describe – a property manager’s functions; and
• Explain – risk management and the role of environmental regulations and the Americans with Disabilities Act in the property manager’s job.
Learning Objectives
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47© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Property Management
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Property management involves the leasing, managing, marketing, and maintenance of real estate.
48© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
In ILLINOIS…• Property management requires a real estate license, and
an individual real estate licensee must perform property management services under the supervision of his or her sponsoring broker.
• The Real Estate License Act of 2000 exempts resident managers from licensure requirements when their primary residence is on the premises being managed.
• Illinois permits individuals whose real estate practice is limited to leasing or renting residential property, collecting rent, negotiating leases, and similar activities to obtain a special Residential leasing agent license instead of the broader-scope broker license.
The Property Manager
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Broker Pre-License Topics
Principal Responsibilities 1. Achieve the objectives of the property owners.
2. Generate income for the owners.
3. Preserve and/or increase the value of the investment property.
The Property Manager
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50© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Community association management
• Housing for the elderly
• Manufactured homes
• Resort housing
• Concierge services
• Asset management
• Corporate property managers
• Residential leasing agents
New Opportunities
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Broker Pre-License Topics
Management AgreementCreates a general agency relationship between the owner and the property manager.
The Property Manager
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Broker Pre-License Topics
• Budgeting Expenses
• Capital expenditures
• Renting the Property
• Setting rental rates
• Selecting Tenants
• Collecting rents
• Maintaining Good Relations with Tenants
Property Management Responsibilities
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Broker Pre-License Topics
Maintaining the Property• Preventive maintenance
• Repair or corrective maintenance
• Routine maintenance
• Construction
Management Functions
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Broker Pre-License Topics
Handling Environmental Concerns• A variety of environmental issues, from waste
disposal to air quality, must be addressed by the property manager.
• Property manages should be aware of building related illness (BRI) and sick building syndrome (SBS).
Management Functions
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Broker Pre-License Topics
The Americans with Disabilities Act• Title I of the ADA provides for the employment
of qualified job applicants regardless of their disability.
• Title III of the ADA prohibits discrimination in commercial properties.
• The ADA recommends reasonably achievable accommodations to provide access to the facilities and services.
Management Functions
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Broker Pre-License Topics
Risk Management
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One of the most critical areas of responsibility for a property manager is risk management. The property manager must decide whether it is better to avoid, control, transfer, or retain a risk.
57© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Security of Tenants
• Types of Insurance
• Claims
• Depreciated or actual cash value
• Current replacement cost
Risk Management
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Broker Pre-License Topics
The Management Profession
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Most metropolitan areas have local associations of building and property owners and managers that are affiliates of regional and national associations.
59© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Quick-Fire Review
60© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• How would you evaluate a property manager?
Quick-Fire Review
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Broker Pre-License Topics
• How would you go about setting rental rates?
Quick-Fire Review
62© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Quick-Fire Review
63© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• A management agreement is to a property manager like a listing agreement is to a broker.
Quick-Fire Review
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Broker Pre-License Topics
• A management agreement is to a property manager like a listing agreement is to a broker.
• TRUE!
Quick-Fire Review
65© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• In determining rental amounts, a property manager considers the economic principle of supply and demand.
Quick-Fire Review
66© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• In determining rental amounts, a property manager considers the economic principle of supply and demand.
• TRUE!
Quick-Fire Review
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Broker Pre-License Topics
American With Disabilities Act (ADA)
Management Agreement
Management Plan
Multiperil Policy
Property Manger
Risk Management
Surety Bonds
Tenant Improvements
Workers’ Compensation Acts
Key Terms Review
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68© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Identify – the basic elements of a management agreement;
• Describe – a property manager’s functions; and
• Explain – risk management and the role of environmental regulations and the Americans with Disabilities Act in the property manager’s job.
Learning Objectives - Review
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69
Fair Housing
Unit 21
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Broker Pre-License Topics
• Identify – the classes of people who are protected against discrimination in housing by various 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
Learning Objectives
2121
71© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Fair Housing
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The purpose of civil rights laws is to create a marketplace in which all persons of similar financial means have a similar range of housing choices.
72© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
The Civil Rights Act of 1866 prohibited discrimination in housing based on:
• Race
• Color
Fair Housing
2121
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Broker Pre-License Topics
The Federal Fair Housing Act prohibits discrimination based on:
• Race
• Color
• Religion
• Sex
• National origin
• Disability
• Familial status
Fair Housing
2121
74© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
In Illinois, Protected Classes Are:
• Age
• Marital Status
• Unfavorable Military Discharge
• Military Status
• Ancestry
• Sexual Orientation
• Order of Protection
Illinois Human Rights Act
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75© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Housing discrimination in the private sale of a single-family home is not prohibited if ALL of the following conditions are met:
• The owner does not own more than three single-family homes.
• The owner or a relative was the last person to live in the home.
• The home is sold without the help of a real estate licensee.
• No discriminatory advertising is used.
Fair Housing Exemptions
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Broker Pre-License Topics
• Religious Organizations
• 55 or Better - 62 or Over –
Housing intended for persons age 62 or older or housing occupied by at least one person 55 years of age or older per unit (where 80 percent of the units are occupied by individuals 55 or older) is exempt from the familial status protection.
Fair Housing Exemptions
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Broker Pre-License Topics
The ADA requires reasonable accommodations in employment and access to goods, services, and public buildings.
American With Disabilities Act (ADA)
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Broker Pre-License Topics
• The Fair Housing Act is administered by the Office of Fair Housing and Equal Opportunity (FHEO) under the direction of HUD.
• A complaint may be filed with HUD within 1 year of alleged act.
• The parties may elect civil action in federal court at any time within 2 years of the discriminatory act.
Enforcement Of The Fair Housing Act
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Broker Pre-License Topics
Fair Housing Violations
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Blockbusting a.k.a. Panic Selling
Encouraging people to immediately list and sell their homes by claiming that the entry of a protected class of people into the neighborhood will have some sort
of negative impact on property values.
Steering a.k.a. Channeling
Guiding home seekers to or away from particular neighborhoods.
80© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Fair Housing - Advertising Rules
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HUD distributes anEqual Housing Opportunity poster to be prominently displayed in the sponsoring broker’s office. HUD requires that its fair housing posters be displayed in any place of business where real estate is offered for sale or rent.
81© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Fair Housing Violation
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Refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the economic qualifications of the applicants is known as redlining.
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Broker Pre-License Topics
Policies or practices resulting in unequal treatment of persons in the protected classes are considered discriminatory regardless of any innocent intent
Intent And Effect
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Broker Pre-License Topics
• Implication for Licensees
• Professional Ethics
• Code of Ethics
Fair Housing And Ethical Practices
2121
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Broker Pre-License Topics
Quick-Fire Review
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Broker Pre-License Topics
• In addition to Illinois and federal fair housing laws, does your community have additional fair housing laws?
Quick-Fire Review
86© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Quick-Fire Review
87© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• In order to file a complaint of discrimination, the complainant must be able to prove that discrimination occurred.
Quick-Fire Review
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Broker Pre-License Topics
• In order to file a complaint of discrimination, the complainant must be able to prove that discrimination occurred.
• FALSE!
Quick-Fire Review
89© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• A house for sale was advertised: “Fine executive home in an exclusive neighborhood, suitable for an older couple, near St. Mary’s Church.” This is descriptive of the property for sale and a good ad.
Quick-Fire Review
90© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• A house for sale was advertised: “Fine executive home in an exclusive neighborhood, suitable for an older couple, near St. Mary’s Church.” This is descriptive of the property for sale and a good ad.
• FALSE!
Quick-Fire Review
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Broker Pre-License Topics
American With Disabilities Act (ADA)
Blockbusting
Code of Ethics
Ethics
Fair Housing Act
Home Mortgage Disclosure Act
Redlining
Steering
Key Terms Review
2121
92© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Identify – the classes of people who are protected against discrimination in housing by various 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
Learning Objectives - Review
2121
93
Environmental Issues and the Real Estate Transaction
Unit 22
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Broker Pre-License Topics
• Identify – the basic environmental hazards a real estate agent should be aware of in order to protect the client’s interests
• Describe – the warning signs, characteristics, causes and solutions for 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
Learning Objectives
2222
95© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Environmental Issues
2222
The Illinois Environmental Protection Agency is charged with maintaining and enhancing the state’s air, land, and water quality through education, inspection, regulation, enforcement, and recycling and prevention activities.
96© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Environmental Issues
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Broker Pre-License Topics
Hazardous Substances• Asbestos• Lead-based paint and other lead hazards• Radon• Illinois Radon Awareness Act• Urea-formaldehyde• Carbon monoxide• Mold
Environmental Issues
2222
98© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Hazardous Substances• Asbestos• Lead-based paint and other lead hazards• Radon• Illinois Radon Awareness Act• Urea-formaldehyde• Carbon monoxide• Mold
Environmental Issues
2222
99© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Residential dwellings built before 1978• Landlords must disclose known
information• Sellers must disclose known
information• Buyers have up to ten days to conduct
a risk assessment • Licensees provide buyers and lessees
with HUD pamphlet
Lead-Based Paint
Hazard Reduction
Act
Environmental Issues
2222
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Broker Pre-License Topics
Hazardous Substances• Asbestos• Lead-based paint and other lead hazards• Radon• Illinois Radon Awareness Act• Urea-formaldehyde• Carbon monoxide• Mold
Environmental Issues
2222
101© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Hazardous Substances• Asbestos• Lead-based paint and other lead hazards• Radon• Illinois Radon Awareness Act• Urea-formaldehyde• Carbon monoxide• Mold
Environmental Issues
2222
102© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Hazardous Substances• Asbestos• Lead-based paint and other lead hazards• Radon• Illinois Radon Awareness Act• Urea-formaldehyde• Carbon monoxide• Mold
Environmental Issues
2222
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103© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Hazardous Substances• Asbestos• Lead-based paint and other lead hazards• Radon• Illinois Radon Awareness Act• Urea-formaldehyde• Carbon monoxide• Mold
Environmental Issues
2222
104© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Hazardous Substances• Asbestos• Lead-based paint and other lead hazards• Radon• Illinois Radon Awareness Act• Urea-formaldehyde• Carbon monoxide• Mold
Environmental Issues
2222
105© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Groundwater Protection
Underground Storage Tanks
MTBE
Illinois -The Leaking Underground Storage Tank
(LUST) program
Environmental Issues
2222
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106© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Landfills
• Capping
Waste Disposal Sites
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107© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Brownfields• Small Business Liability Relief
and Brownfields Revitalization Act
Environmental Issues
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108© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Comprehensive Environmental
Response, Compensation, and Liability Act
(CERCLA)
Superfund Amendments
and Reauthorization
Act (SARA)
Environmental Protection
2222
Real Estate Institute © 2021
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109© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Discovery of Environmental Hazards
Environmental Auditors
Liability Of Real Estate Professionals
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110© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Quick-Fire Review
111© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Why is it important for a licensee to be aware of environmental hazards? How might environmental hazards impact a transaction?
Quick-Fire Review
Real Estate Institute © 2021
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112© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Quick-Fire Review
113© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• The Illinois Radon Awareness act requires the seller to provide buyers with a Disclosure of Information on Radon Hazards Form and pamphlet on Radon Testing Guidelines.
Quick-Fire Review
114© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• The Illinois Radon Awareness act requires the seller to provide buyers with a Disclosure of Information on Radon Hazards Form and pamphlet on Radon Testing Guidelines.
• TRUE!
Quick-Fire Review
Real Estate Institute © 2021
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115© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Anyone who performs lead abatement or mitigation activities in Illinois without a license is guilty of a Class A misdemeanor.
Quick-Fire Review
116© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Anyone who performs lead abatement or mitigation activities in Illinois without a license is guilty of a Class A misdemeanor.
• TRUE!
Quick-Fire Review
117© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Asbestos
Brownfield
Capping
Carbon Monoxide
Comprehensive Environmental Response, Compensation, And Liability Act (CERCLA)
Encapsulation
Formaldehyde
Groundwater
Key Terms Review
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118© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
Innocent Landowner Immunity Landfill Lead Mold Radon Small Business Liability And
Brownfield Revitalization Act Superfund Amendments And
Reauthorization Act (SARA) Underground Storage Tank (UST) Water Table
Key Terms Review (cont’d)
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119© Real Estate Institute | InstituteOnline.com
Broker Pre-License Topics
• Identify – the basic environmental hazards a real estate agent should be aware of in order to protect the client’s interests
• Describe – the warning signs, characteristics, causes and solutions for 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
Learning Objectives - Review
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120
Broker Pre-License Topics
What did you learn in this class?
Real Estate Institute © 2021
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121
Broker Pre-License Topics
Read Units:
17, 18, 21, 22
Take Online: Lesson Exam 3
Homework
122© Real Estate Institute | InstituteOnline.com
Thank You For Attending Today’s Class!
InstituteOnline.com
Real Estate Institute © 2021
Lesson 3 - Page 41 (800) 995-1700 InstituteOnline.com