student learning objectives - missouri ffa and agriculture ... purchasing property/… · web...

AP9

Agriculture Management, Economics, & SalesPurchasing Property

Unit: Agribusiness Planning & Analysis

Lesson Title: Purchasing Property

Standards

ABS.02.01.02.b. Observe appropriate laws and regulations in planning and operating AFNR businesses.CS.03.01.01.a. Use basic technical and business writing skills.

CCSS.ELA-Literacy.L.11-12.1 Demonstrate command of the conventions of standard English grammar and usage when writing or speaking.CCSS.ELA-Literacy.L.11-12.2 Demonstrate command of the conventions of standard English capitalization, punctuation, and spelling when writing.CCSS.ELA-Literacy.SL.11-12.1 Initiate and participate effectively in a range of collaborative discussions (one-on-one, in groups, and teacher-led) with diverse partners on grades 11–12 topics, texts, and issues, building on others’ ideas and expressing their own clearly and persuasively.

Student Learning Objectives

Slide 2 in AP9 Purchasing Property Lesson ObjectiveAfter completing the lesson on purchasing property, students will demonstrate their ability to apply the concept in real-world situations by obtaining a minimum score of 80% on a Property Owner Interview Evaluation.

Enabling ObjectivesAs a result of this lesson, the student will…

1. Recall three considerations to make when considering a parcel of land, describe two ways to determine property value, and determine the legal land description of a parcel of land.

2. Explain the four steps in purchasing real estate, identify three things to include in a contract, and contrast the three types of deeds.

3. Describe four basic elements of a real estate transaction.

Time: Approximately 150 minutes

List of ResourcesBacon K., Boren N., Kirkwood V., Birkenholz R., Plain R., Rohrbach N.

(1988). Agriculture Management and Economics Instructor Guide. Columbia, MO: Instructional Materials Laboratory.

Bacon K., Boren N., Kirkwood V., Birkenholz R., Plain R., Rohrbach N. (1988). Agriculture Management and Economics Student Reference Guide. Columbia, MO: Instructional Materials Laboratory.

American Bar Association. (n.d.). Chapter Four: Buying and Selling a Home. Retrieved from http://www.americanbar.org/content/dam/aba/migrated/publiced/practical/books/family/chapter_4.authcheckdam.pdf.

List of Tools, Equipment, and SuppliesAP5 PowerPoint PresentationAP5 Activity Sheet and Evaluation PacketNote cards or small scraps of paper for review activity

Key TermsSlide 3 in AP9 Purchasing Property

The following terms are presented in this lesson (shown in bold italics):TownshipSectionAbstractDeedCollateral

Agribusiness Planning & Analysis AP9 Purchasing Property

Interest Approach: Use an interest approach that will prepare the students for the lesson. Teachers often develop approaches for their unique class and student situations. A possible approach is included here.

Slide 4 in AP9 Purchasing PropertyI’m a Property Owner! Divide students into pairs, giving each pair a property ownership from AP9.1. Instruct each pair to consider their purchases and record what thoughts and/or considerations they should be aware of in order to purchase this property or pursue purchasing this property. See what ideas students come up with, but feel free to share a few to get them going if needed. Some examples would include how to secure finances; contracts, deeds, trusts, etc; how much is a reasonable price to pay for the property; things to consider while looking at the property; the property value; what will need to be paid for taxes; etc. Once students have secured their questions, thoughts, and/or considerations, have each pair share their ideas and record these on the whiteboard to review throughout the lesson.


Summary of Content and Teaching Strategies

Objective 1: Recall three considerations to make when considering a parcel of land, describe two ways to determine property value, and determine the legal land description of a parcel of land.

Teaching Strategies Related Content1. Recall conclusions students made

during interest approach. Land consideration should have been one of the things identified. Facilitate a discussion about the specific things property buyers would be looking for in terms of the land in which their property sits.

2. Share information about land considerations.

Slide 5 in AP9 Purchasing Property

3. Facilitate a discussion on how students think they could determine the value of property.


4. Ask a student who lives in the country or a somewhat remote location how he/she would describe to another student how to get to his/her house. Facilitate a discussion on how we

Selecting Land Considerations Size of business, farm, or home –

Amount of land needed or desired Soil conditions – Adequacy for

potential enterprises or uses Improvements – Condition and

usefulness of buildings Possible hazards – Soil limitations,

erosion potential, etc. Neighbors, schools, churches,

community Location – Ease of access; Ease of

traffic movement; Distances from schools, town or city, customers

Determining Value of Property Capitalization Approach – annual profit

to be earned / rate of interest on loan = value of property; Add or subtract values for factors that may influence the property value

Comparative Advantage Approach – Find a fair selling price of comparable land in the area; Add or subtract values for factors that may influence property value


describe locations, give driving directions, etc. leading students to the point that many use natural landmarks.

5. This is called metes and bounds.


6. Have students identify in which situations this type of legal land description would not work (legal purposes, for those unfamiliar with the area, etc.)

Slide 8-11 in AP9 Purchasing Property

Legal Land Description – Metes and Bounds Natural landmarks such as trees, lakes,

rivers, or mountains; or artificial markers like government survey markers are used to form the boundary to a parcel of land

Problems – Natural landmarks may change over time; Rivers will change courses; Trees will die; Lakes may dry up or shift boundaries; Artificial markers can be destroyed by people or nature

Rectangular Survey Land divided by grid lines spanning

across the county Principal Meridian – Line running

north and south through meridian point Base Line – Line running east and west

through the meridian point Set by government surveys on basis of

established longitude lines for north and south and latitude lines for east and west

Most land in Missouri surveyed using Fifth Principal Meridian Point

Lines run north and south every 6 miles east or west of the principal meridian

Lines run east and west every 6 miles north or south of the base line

Lines intersect every 6 miles Townships - Squares of land created by

intersections Each row of townships running north

and south is given a range number according to how many rows away it is from the principal meridian

Each row of townships running east and west is given a tier number according to how many rows away it is from the base line

Townships contain 36 square miles of land


7. Let’s examine how we locate property using the rectangular survey.


8. Complete AP9.2 as a class, then as a small group, then with partners, and finish individually.


Each square mile, or 640 acres, is called a section

Township is composed of 36 sections, totaling 23,040 acres of land

Sections can be subdivided into fractions

Objective 2: Explain the four steps in purchasing real estate, identify three things to include in a contract, and contrast the three types of deeds.

Teaching Strategies Related Content1. Facilitate a discussion on how students

think they would go about purchasing real estate.


2. The contract is obviously a key point in any property purchase. What are some points to be sure to include?


Steps in Purchasing Real Estate Negotiation – Buyer and seller reach an

agreement on terms of the sale and on what is included with the purchase

Contract – When the terms of sale have been agreed on, include them in a contract; Have the contract examined by a lawyer to make sure there are no mistakes before signing

Conveyance – Actual transfer of ownership from seller to buyer; Usually done through a legal document called a deed

Recording – Places the title on legal record; Should reveal whether anyone else has a claim to the land or if there are boundary disputes; When land is recorded, file is open to public view, but owner’s legal rights to the land are protected

Points of a Contract Legal description of land Price to be paid Time and place of payment Collateral – Used to provide security

for unpaid balance Transfer of possession – Estimated time

to move in


3. A deed shows what property is owned, who owns it, and what type of ownership they have.


Taxes due on the property Assignment Abstract of title or title insurance – Abstract is a listing of all events or actions that affect the title

Deed – Quit-claim, warranty, or deed of trust

Offer and acceptance – Terms of sale Sufficient payment – Promise to fulfill

contract

Types of Deeds Warranty Deed – Seller gives legal

promise that he or she has a good and clear title to the land; Seller owns the property free and clear of legal claims such as liens and mortgages; Seller will defend the title if anyone should challenge it in court; Buyer will be able to move in quietly and peacefully

Quit-claim Deed – Used to convey only the seller’s rights to the property; Only promise seller is making is that he or she is the present owner; Seller does not promise that he or she has good, clear title to land

Deed of trust – Used for mortgage property; Trustee named to hold deed; If buyer fails to make all the payments, trustee has power to sell the land; Money from the sale is used to pay mortgage

Objective 3: Describe four basic elements of a real estate transaction. Teaching Strategies Related Content

1. What do you think it means when people make reference to a “buyer’s market” or a “seller’s market?”


2. Ask students, “What role does a real estate agent play in the real estate process?”

“Buyer’s Market” – When home sales are slow“Seller’s Market” – When homes are selling fast, there are few homes on the market, and the local economy is good

Real estate agent Listing agent and agent who shows

prospective buyers the property


in AP9 Purchasing Property

3. Ask students, “What role does an attorney play in the real estate process?”


4. Facilitate a discussion on what students think is the difference between an appraisal and a land survey and how these play a role in real estate.


5. If you plan to purchase property, do not forget the taxes you will be expected to pay. A couple common taxes are transfer and property.


6. For more detailed information on purchasing property: http://www.americanbar.org/content/dam/aba/migrated/publiced/practical/books/family/chapter_4.authcheckdam.pdf

Both agents work on behalf of the seller May not disclose negative information

to buyer Hire a buyer’s agent Required to disclose all relevant

information Assist with negotiations on buyer’s

behalf

Attorneys and real estate transactions Buyers involve attorney when ready to

make an offer and before any papers are signed

Sellers involve attorney before signing a listing agreement

Appraisal Fair market value of a home Should be close to selling price Lenders order an appraisal prior to

approving a loan

Survey Look at property lines, improvements,

changes, etc. Some lenders require registered survey Title insurance company may also

require survey

Taxes Transfer Tax – Tax paid for

transferring ownership of property Property Tax – Yearly tax based on

assessed value of property; Seller should reveal this amount; Find at local tax assessor’s office


http://www.americanbar.org/content/dam/aba/migrated/publiced/practical/books/family/chapter_4.authcheckdam.pdf



Review/SummarySlide 22 in AP9 Purchasing Property

Purchasing property will be the biggest investment most people will ever make. To protect this investment, it is a good idea to know how to select land, to know what it is worth, to be able to finance it, and to understand the legal concerns involved. A prospective buyer should understand legal descriptions as wells as parts of a contract and the different types of deeds. It would also be beneficial to have a lawyer examine the contract and the deed to protect the investment further.

Review: Legal Land Description Practice: Complete AP9.3, practicing legal land description problems from the Farm Management Career Development Event.

Slide 23 in AP9 Purchasing PropertyExit cards: Students will answer the following questions on a note card or small slip of paper and hand to teacher as they exit:

What did you learn today about purchasing property? What questions do you still have about purchasing property?

Application

Extended ActivitiesInvite a real estate agent to class to discuss the process of purchasing property. Have students prepare 5-8 questions each and give two bonus points for each question answered during the interview. Following the interview, students should create a two-paragraph summary of tips/points they will be able to use in the future.

Explore real estate websites, locating available property within the area. Examine the difference between an $80,000 property, a $120,000 property, a $150,000 property, etc. in terms of quality of property, improvements needed, interest rates, monthly payments, etc. Next explore the difference between a 5-year loan, 15-year, 30-year, etc.

Have each student gather a sample property purchase contract for a local real estate agent. As a class, examine the commonalities and differences between each. To add variety to the discussion, have students gather contracts for houses, land, business property, etc. to compare and contrast the contract’s contents.

EvaluationProperty Owner Interview Evaluation AP9.4

Alternate - Paper-pencil Quiz Evaluation AP9.5

Answers to Evaluation


Evaluation AP9.4Answers will vary. Use scoring guide on AP9.4 to assess student work.

Alternate Evaluation AP9.51. Answers should include 3 of the following:

Size of business, farm, or home – Amount of land needed or desired Soil conditions – Adequacy for potential enterprises or uses Improvements – Condition and usefulness of buildings Possible hazards – Soil limitations, erosion potential, etc. Neighbors, schools, churches, community Location – Ease of access; Ease of traffic movement; Distances from schools,

town or city, customers2. Annual profit to be earned / rate of interest on loan = value of property; Add or subtract

values for factors that may influence the property value3. Find a fair selling price of comparable land in the area; Add or subtract values for factors

that may influence property value4. C5. D6. A7. A8. D9. C10. When home sales are slow11. When homes are selling fast, there are few homes on the market12. Answers should include any four of the following:

Legal description of land Price to be paid Time and place of payment Collateral – Used to provide security for unpaid balance Transfer of possession – Estimated time to move in Taxes due on the property Assignment Abstract of title or title insurance – Abstract is a listing of all events or actions

that affect the title Deed – Quit-claim, warranty, or deed of trust Offer and acceptance – Terms of sale Sufficient payment – Promise to fulfill contract

13. 240 acres

14. 3.0 miles


student learning objectives - missouri ffa and agriculture ... purchasing property/… · web...

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