CHAPTER 3

Objectives Be able to discuss reasons for home ownership. List types of housing available Identify tax benefits of home ownership Identify costs of home ownership including

mortgage payments: determine how much house someone could afford\

Distinguish the types of household insurance and the protection given

State the purpose of the Federal Flood Insurance Program

Home Ownership

Reasons Types of housing

Single family detached Apartments Condominiums Cooperatives Planned Unit Development Retirement Communities High-rise Developments Mobile Homes Modular Homes Time Share

Affordability

Mortgage types and terms Investment considerations

Growing Equity Tax Deductions Capital Gains

Homeowner’s Insurance

Federal Flood Insurance Program

Created by Congress in 1968 Managed by FEMA Purpose

Improve floodplain management Decrease taxpayers costs for disaster relief

Required coverage Property in Special Flood Hazard Area When obtaining federally regulated or federally

insured loans

CHAPTER 4

Objectives: Define types of agency relationships in general

and types of representation in real estate Understand how agency relationships are

created and terminated Distinguish between common law and statutory

law agency requirements Describe fiduciary duties in an agency

relationship Distinguish between the duties owed to a client

vs. a customer