Instructor Manual
Real Estate Law
12th Edition
Chapter 1: Introduction and Sources of Real Estate Law
Table of Contents
Chapter Objectives
Key Terms
What's New in This Chapter
Chapter Outline
Additional Activities and Assignments
Answers to Case Questions
Addititional Case Information
Answer to Consider (1.1)
Answer to Ethical Issue (1.1)
Justification for Studying Real Estate Law: Some Cautions and Conclusions
Answer to Consider (1.2)
Answers to Chapter Problems
In-Class Exercises
Resources
Chapter Objectives
The following learning outcomes are addressed in this chapter (see PowerPoint Slide 1-1):
01.01 List the sources of real estate law, the topics covered in each source, and where to
find the sources.
01.02 Discuss the concepts of legal reasoning, interpretation of statutes, and stare
decisis.
01.03 Describe the costly significance of knowing and understanding real estate law.
,[return to top]
Key Terms
American Recovery and Reinvestment Act of 2009 (ARRA): federal law that provided
funding for infrastructure and had the goal of economic recovery
case precedent: doctrine of stare decisis; examining prior decisions to reach decisions in
present cases
citation: legal shorthand referring to cases, statutes, regulations, and ordinances
cite: see citation
Code of Federal Regulations (CFR): compilation of regulations of federal agencies
common law: uncodified law found in cases or in the history of real property
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA):
The Superfund; a program for private payment by polluting industries for cleanup of toxic
waste
Consumer Financial Protection Bureau (CFPB): created under the Dodd-Frank Wall
Street Reform and Consumer Protection Act (DFCPA); it will now assume that enforcement
role
eminent domain: process of governmental entity’s taking title to private property for
public purposes
Equal Protection Clause: part of the Fifth and Fourteenth Amendments to the
Constitution; requires that laws apply equally to all
Fifth Amendment: provision in United States Constitution that provides guarantee of due
process
Fourteenth Amendment: application of due process rights to the states (including the
Equal Protection Clause), which requires uniform application of laws and
nondiscrimination; applied in cases in which land conveyances attempt to include racial
restrictions
Mortgage Reform and Anti-Predatory Lending Act: federal law that regulates subprime,
title, and other types of high-interest/high-default/high-repossession rate loans; provides
requirements for disclosures and processes for consumers who obtain these types of loans
Ordinance: laws passed on a local level of country, state, or city governments
private law: laws between individual parties; e.g., landlord’s rules and regulations or the
terms of a contract
,Real Estate Settlement Procedures Act (RESPA): federal statute regulating disclosure of
closing costs in advance and prohibiting kickbacks for referring customers to title
companies
United States Code (USC): compilation of all federal laws
United States Constitution: framework for federal government
[return to top]
What's New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• New introduction that gives the full history on the saying, “Possession is nine points
of the law.”
• New case in Section 1-1i that illustrates the use of precedent on an issue of nuisance
and hog-farming, In Re North Carolina Swine Farm Nuisance Litigation. This case is less
complicated than the two previous cases on consent for mechanic’s liens that were
a little more difficult for students to understand. The hog-farming case is easily
understood and interesting and remains an ongoing issue that deals with social
responsibility and ethics issues. Extra references are provided in the IM for
instructors to get updates on the 26 hog-farming cases.
• In Section 1-1i, new Ethical Issue 1.1 on the hog-farming dispute and the interests of
the parties.
• New Consider 1.1 in Section 1-1i that draws on the findings in the hog-farming case
on who can bring an action for nuisance.
• In Section 1-1, updated examples on constitutions, statutes, and new example on
use of judicial decisions that involves a ban on fraternity houses by the City of
Bowling Green trying to deal with Bowling Green students and rowdy behavior and
dropping property values in single-family neighborhoods, Yoder v. City of Bowling
Green.
• Updated chapter problem #6 on what defines “living space.”
[return to top]
Chapter Outline
In the outline below, each element includes references (in parentheses) to related content.
"CH.##” refers to the chapter objective; “PPT Slide #” refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource
Center); and, as applicable for each discipline, accreditation or certification standards (“BL
1.3.3”). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided
for this chapter. Review learning objectives for Chapter 4. (PPT Slides 1-3).
, 1-1 Sources of Real Estate Law—USE POWERPOINT SLIDES 1-2 TO 1-12
USE FIGURE 1.1 (THE PYRAMID) AND POWERPOINT SLIDE 1-3 TO HELP STUDENTS FOLLOW
ALONG IN YOUR DISCUSSION OF THE SOURCES OF REAL ESTATE LAW.
1-1a The United States Constitution
1. Found at the base of the pyramid because it is the basis of all other laws
2. Very general and provides the legal constraints within which the other laws
must fall
3. Examples of U.S. Constitutional provisions affecting real estate:
a. Fourth Amendment—covers unlawful searches and seizures and the
issuance of search warrants for the search of property
b. Fifth Amendment—due process protections
See, e.g., Fuentes v. Shevin, 407 U.S. 67 (1972); debtors are entitled to
notice before their property is taken.
Mortgage foreclosures and due process with robo-signing and other
ownership issues.
c. Fifth Amendment—eminent domain procedures and protections
See, e.g., U.S. v. Causby, 328 U.S. 256 (1946) (Chapter 3)—Farmer whose
chickens were being killed and having nervous breakdowns because of
noisy Air Force jets landing near the Causby farm was entitled to
compensation for a taking.
d. Fourteenth Amendment—same language as the Fifth Amendment but
applicable to states; also includes the Equal Protection Clause.
See, e.g., brokers and steering—Brokers’ and agents’ control of racial
composition of neighborhoods by steering potential buyers to prevent
desegregation is an example of an equal protection issue.
More recently, prohibitions on group homes for retarded citizens and
AIDS patients have been subject to equal protection challenges.
Real Estate Law
12th Edition
Chapter 1: Introduction and Sources of Real Estate Law
Table of Contents
Chapter Objectives
Key Terms
What's New in This Chapter
Chapter Outline
Additional Activities and Assignments
Answers to Case Questions
Addititional Case Information
Answer to Consider (1.1)
Answer to Ethical Issue (1.1)
Justification for Studying Real Estate Law: Some Cautions and Conclusions
Answer to Consider (1.2)
Answers to Chapter Problems
In-Class Exercises
Resources
Chapter Objectives
The following learning outcomes are addressed in this chapter (see PowerPoint Slide 1-1):
01.01 List the sources of real estate law, the topics covered in each source, and where to
find the sources.
01.02 Discuss the concepts of legal reasoning, interpretation of statutes, and stare
decisis.
01.03 Describe the costly significance of knowing and understanding real estate law.
,[return to top]
Key Terms
American Recovery and Reinvestment Act of 2009 (ARRA): federal law that provided
funding for infrastructure and had the goal of economic recovery
case precedent: doctrine of stare decisis; examining prior decisions to reach decisions in
present cases
citation: legal shorthand referring to cases, statutes, regulations, and ordinances
cite: see citation
Code of Federal Regulations (CFR): compilation of regulations of federal agencies
common law: uncodified law found in cases or in the history of real property
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA):
The Superfund; a program for private payment by polluting industries for cleanup of toxic
waste
Consumer Financial Protection Bureau (CFPB): created under the Dodd-Frank Wall
Street Reform and Consumer Protection Act (DFCPA); it will now assume that enforcement
role
eminent domain: process of governmental entity’s taking title to private property for
public purposes
Equal Protection Clause: part of the Fifth and Fourteenth Amendments to the
Constitution; requires that laws apply equally to all
Fifth Amendment: provision in United States Constitution that provides guarantee of due
process
Fourteenth Amendment: application of due process rights to the states (including the
Equal Protection Clause), which requires uniform application of laws and
nondiscrimination; applied in cases in which land conveyances attempt to include racial
restrictions
Mortgage Reform and Anti-Predatory Lending Act: federal law that regulates subprime,
title, and other types of high-interest/high-default/high-repossession rate loans; provides
requirements for disclosures and processes for consumers who obtain these types of loans
Ordinance: laws passed on a local level of country, state, or city governments
private law: laws between individual parties; e.g., landlord’s rules and regulations or the
terms of a contract
,Real Estate Settlement Procedures Act (RESPA): federal statute regulating disclosure of
closing costs in advance and prohibiting kickbacks for referring customers to title
companies
United States Code (USC): compilation of all federal laws
United States Constitution: framework for federal government
[return to top]
What's New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• New introduction that gives the full history on the saying, “Possession is nine points
of the law.”
• New case in Section 1-1i that illustrates the use of precedent on an issue of nuisance
and hog-farming, In Re North Carolina Swine Farm Nuisance Litigation. This case is less
complicated than the two previous cases on consent for mechanic’s liens that were
a little more difficult for students to understand. The hog-farming case is easily
understood and interesting and remains an ongoing issue that deals with social
responsibility and ethics issues. Extra references are provided in the IM for
instructors to get updates on the 26 hog-farming cases.
• In Section 1-1i, new Ethical Issue 1.1 on the hog-farming dispute and the interests of
the parties.
• New Consider 1.1 in Section 1-1i that draws on the findings in the hog-farming case
on who can bring an action for nuisance.
• In Section 1-1, updated examples on constitutions, statutes, and new example on
use of judicial decisions that involves a ban on fraternity houses by the City of
Bowling Green trying to deal with Bowling Green students and rowdy behavior and
dropping property values in single-family neighborhoods, Yoder v. City of Bowling
Green.
• Updated chapter problem #6 on what defines “living space.”
[return to top]
Chapter Outline
In the outline below, each element includes references (in parentheses) to related content.
"CH.##” refers to the chapter objective; “PPT Slide #” refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource
Center); and, as applicable for each discipline, accreditation or certification standards (“BL
1.3.3”). Introduce the chapter and use the Ice Breaker in the PPT if desired, and if one is provided
for this chapter. Review learning objectives for Chapter 4. (PPT Slides 1-3).
, 1-1 Sources of Real Estate Law—USE POWERPOINT SLIDES 1-2 TO 1-12
USE FIGURE 1.1 (THE PYRAMID) AND POWERPOINT SLIDE 1-3 TO HELP STUDENTS FOLLOW
ALONG IN YOUR DISCUSSION OF THE SOURCES OF REAL ESTATE LAW.
1-1a The United States Constitution
1. Found at the base of the pyramid because it is the basis of all other laws
2. Very general and provides the legal constraints within which the other laws
must fall
3. Examples of U.S. Constitutional provisions affecting real estate:
a. Fourth Amendment—covers unlawful searches and seizures and the
issuance of search warrants for the search of property
b. Fifth Amendment—due process protections
See, e.g., Fuentes v. Shevin, 407 U.S. 67 (1972); debtors are entitled to
notice before their property is taken.
Mortgage foreclosures and due process with robo-signing and other
ownership issues.
c. Fifth Amendment—eminent domain procedures and protections
See, e.g., U.S. v. Causby, 328 U.S. 256 (1946) (Chapter 3)—Farmer whose
chickens were being killed and having nervous breakdowns because of
noisy Air Force jets landing near the Causby farm was entitled to
compensation for a taking.
d. Fourteenth Amendment—same language as the Fifth Amendment but
applicable to states; also includes the Equal Protection Clause.
See, e.g., brokers and steering—Brokers’ and agents’ control of racial
composition of neighborhoods by steering potential buyers to prevent
desegregation is an example of an equal protection issue.
More recently, prohibitions on group homes for retarded citizens and
AIDS patients have been subject to equal protection challenges.
