The Business of U.S. Real Estate

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The Business of U.S. Real Estate
Welcome
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Forward In This Chapter

• Earning the CIPS Designation
• Course Goals
• Learning Objectives
• Exam and Activities

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Earning the CIPS Designation

• Global Real Estate Local Markets
• Global Real Estate Transactions Tools
• Three of the following elective courses
• The Business of U.S. Real Estate
• Europe and International Real Estate
• Asia/Pacific and International Real Estate
• The Americas and International Real Estate
• Africa/Middle East and International Real Estate
• At Home with Diversity
• International real estate experience

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Course Goals

• Knowledge of the role of real estate in the U.S.
  economy and society
• Knowledge of the U.S. real estate marketplace
• Detailed description of the U.S. real estate
  transaction
• Information on the requirements, regulations, and
  laws associated with working as a real estate
  professional in the U.S.
• Skills for facilitating real estate transactions
  in the U.S. markets
• Recommendations for building key contacts in real
  estate organizations, commerce, and government

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Learning Objectives

• Identify the social, political, geographical, and
  cultural characteristics of the U.S., especially
  as they relate to the real estate market
• Develop knowledge of the business of U.S. real
  estate, including the MLS, licensing
  requirements, agency relationships, and the real
  estate transaction
• Adapt business and social behavior to conform to
  the business standards, customs, and cultural
  norms that enable U.S. real estate transactions

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Exam and Activities

• 30-question exam
• Open-book
• Multiple-choice
• Activities
• Group assignments
• Exercises
• Discussions

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Chapter 1 In This Chapter

• An Introduction to the U.S.
• Economy and Business
• Government
• Legal System

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Map
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An Introduction to the U.S.

• Third-largest country by size
• 50 states
• District of Columbia
• Territories
• American Samoa
• Guam
• Marianas
• Puerto Rico
• U.S. Virgin Islands
• Diverse terrain, climate, and population

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Economy and Business

• Largest economy in the world
• Skilled workforce
• Technological innovation
• Market-oriented
• Historical strength and stability
• Employment
• Currency
• Growth
• Long-term challenges
• Overreliance on personal consumption
• Outlays for social programs or entitlements
• Global economic competition

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Foreign Direct Investment (FDI)

• FDI vital to economy
• Jobs, services, capital formation and flow,
  interest rates
• FDI and real estate

U.S. FDI, Net Inflows ( in billions)
Source The World Bank Data Catalog
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What You Should Know About Government

• Federal constitutional republic
• Executive branch
• Led by President
• Legislative branch
• House of Representatives
• Senate
• Judicial branch
• Supreme Court
• State and local governments real estate laws
  and regulations

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Legal System

• Federal court system
• Based on English common law
• Court decisions create precedent
• Each of the 50 states has a unique legal system

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The Notary in the U.S.

• Far less authority
• Serves as impartial witness when documents are
  signed
• Administers oaths
• Much less important to real estate transactions
• Cannot prepare documents
• No executory force
• Does not pay taxes for transactions
• Some states have laws to guard
  against fraud

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