A typical outline for questions covering “Settlement or Transfer of Ownership” on the Real Estate exam includes:

Ø       Real property taxation

Ø       Tax terminology

Ø       Tax pro-ration

Ø       Capital gains

Ø       Income tax implications for real estate investments

Ø       Homeowner’s interest tax deductions

Ø       Exchanges

Ø       Depreciation

Ø       Title search, title insurance, title problems, liens, legal procedures and proceedings

Ø       Settlement procedures, closing statements, obligations of settlement agent or attorney, calculations regarding pro-ration /prepayment, warranties associated with deeds, transfer tax, negotiations leading to sales agreement

Ø       Rights of ownership

Ø       Rights of others related to property (government powers, private powers, adverse possession)