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MI Michigan Real Estate Test

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Closing statement
The power of government to regulate the use of real property for the benefit of the public
A licensee who is empowered to act for another broker in performing real estate brokerage tasks for a principal - and who owes the same duties to the principal as the agent of the principal.
An accounting of the funds received and disbursed in a real estate transaction.
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.

2. Devisee
The recipient of a gift of real property by will
Land was owned or controlled by the King
A condition in a contract imposed by a court. (e. g. court orders payback on agreed upon amount because of incomplete fulfillment of contract...38 acres instead of 40 sold)
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.

3. Assignor
A search of the public record to determne the quality of a title to real property
The person transferring contractual rights to another
An estimate of value of a particular property - at a particular time for a specified purpose.
Not a type of listing but a method of establishing the listing broker's commission as all money above a specified net amount to the seller. Illegal in MI

4. Land use controls
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
Personal property that has become real property by having been permanently attached to real property
Actually lending the $
Governmental restrictions on land use

5. Deed in lieu of foreclosure
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
The U. S. agency that insures mortgage loans to protect lending institutions.
A right of title to land
An agreement that has no legal force or effect.

6. Site condominium
A search of the public record to determne the quality of a title to real property
A person (or persons) employed by a fair housing organization to pose as a buyer or seller or renter of real estate to determine if the licensee or landlord is acting in compliance with the law.
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.
A Missouri slave sued for his freedom - claiming that his four year stay in the northern portion of the Louisiana Territory made free land by the Missouri Compromise had made him a free man. The U.S - Supreme Court decided he couldn't sue in federal

7. Michigan Uniform Securities Act
A type of land descripton utilizing townships and sections
A temporary mortgage used to borrow money to contruct an improvement on land
Successive conveyances of title to a specific parcel of land.
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security

8. Bill of sale
The principle statiing that the greater the supply of any commodity in comparison to demand - the lower the value; conversely - the smaller the supply and the greater the demand - the higher the value.
The condition of death without leaving a valid will.
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application
An instrument transferring ownership of personal property.

9. Transaction coordinator
An area of land defined by the rectangular survey system of land description (e. g. 6 square miles)
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller
An exaggeration of a property's benefits.
A policy insuring an owner of real property against financial loss resulting from a title defect.

10. Acknowledgment
A deed denoting an unlimited guarantee of title
The largest and most prominent trade organization of real estate licensees.
A form of organization that makes and services mortgage loans.
A formal statement before an authorized official (e. g. notary public) by a person who executed a deed - contract - or other document - that s was (is) his or her free act.

11. Trustee
A leasehold estate that may be terminated at the desire of either party
A deed denoting an unlimited guarantee of title
One that may be refinanced without rewriting the mortgage.
One who holds title to property for the benefit of another called a beneficiary

12. Principal meridians
North-south line in the rectangular method of property description.
The principal in a real estate transaction
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.
A deed of release that contains no warranty of title; used to remove a cloud on a title. A deed to relinquish or release a claim to real property.

13. underwriting

14. Grantee
One that may be refinanced without rewriting the mortgage.
Second mortgage
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.
One who receives title to real property by deed

15. Realty
Another term for escrow account
Land and everything permanently attached to land
A document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.
An agreement wherein there is a promise in return for a specific action - which together supply the consideration (A deal entered into by both parties after one party has fulfilled a promise. e. g. an option)

16. Fixture
Personal property that has become real property by having been permanently attached to real property
A form of co-ownership that includes the right of survivorship
The lender requires one-twelfth of the estimated cost of the annual property taxes and hazards insurance on the mortgaged property in addition to paying monthly priincipal and interest
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated

17. Foreclosure
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
A property map - recorded on the public record in plat books
A federal law that prohibits all discrimination on the basis of race.
A law in effect in all states requiring certain contracts to be in writing to be valid.

18. Waste
To pass to another (as in title)
A form of co-ownership limited to husband and wife - with the right of survivorship
Failing to do preventative maintenance or corrective maintenance.
The right of an owner to recieve the title to an co-owner's share upon death of the co-owner - as in the case of joint tenancy and tenancy by the entirety.

19. Testimonium clause

20. Good consideration
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
Coalition of private - nonprofit fair housing groups that has joined with federal and state government fair housing enforcement agencies to substantially improve fair housing enforcement activities.
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Founded on natural duty and affection. Has no pecuniary value.

21. Civil Rights Act of 1866
Money to be paid and received as compensaton for a breach of contract.
A document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.
A form of deed with or without covenants of title
A federal law that prohibits all discrimination on the basis of race.

22. Conditional sales contract
A form of ownership of real property - recognized in all states - consisting of individual ownership of some aspects and co-ownership in other aspects of that property.
An agreement that has no legal force or effect.
A contract of sale and a financing instrument wherein the seller agrees to convey title when the buyer completes the purchase price installment payments; also called nstallment land contract contract for deed - and conditional sales contract.
Any advertising that states or indicates a preference - limitation - or discrimination on the basis of race - color - religion - sex - national origin - handicap - or familial status in offering housing for sale or rent.

23. Open-end mortgage
One that may be refinanced without rewriting the mortgage.
Money to be paid and received as compensaton for a breach of contract.
An agreement that may be voided by the parties without legal consequences.
The amount of money actually lost - which will be awarded by a court in case of a breached contract

24. Nonjudicial foreclosure
Finds someone to lend the $
Land cannot be relocated
The transfer of mortgage obligations to purchaser of the mortgaged property.
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.

25. Commission
Paid to Cooperating Brokers Usually 50%/50%
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
A licensee who is empowered to act for another broker in performing real estate brokerage tasks for a principal - and who owes the same duties to the principal as the agent of the principal.

26. Tenants by the entirety
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
A gift of real property by will
A form of co-ownership limited to husband and wife - with the right of survivorship
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate

27. Covenant of warranty
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
To perfect the claim and obtain a title to the property - the claimant must satisfy the court that he or she has fulfilled the requirements of the adverse possession statute of Michigan
A person appointedby an agent to assist in performing some or all of the tasks of the agency

28. Consideration
Not a type of listing but a method of establishing the listing broker's commission as all money above a specified net amount to the seller. Illegal in MI
Agency that exists as a result of actions of the parties
A person authorized by a state to take oaths and acknowledgments
Anything of value - as recognized by law - offered as an inducement to contract.

29. National Association of Realtors
A person appointedby an agent to assist in performing some or all of the tasks of the agency
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
The largest and most prominent trade organization of real estate licensees.
Interest only loan (e. g. - construction loan--you are only paying interest - no principal)

30. Police power
MI law stating that if the property is being destroyed - is partially destroyed - or is being taken by eminent domain - the buyer may - at the buyer's option - declare the transaction null and void.
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
One who arranges a mortgage loan betwen a lender and a borrower for a fee.
The power of government to regulate the use of real property for the benefit of the public

31. Fair Housing Act of 1968
Evidence that a valid debt exists
A federal prohibition of discrimination in sale - rental - financing - or appraisal of housing on the basis of race - color - religion - sex - national origin - handicap - or familial status.
Individual - private ownership of land
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

32. Emblements
A wife's interest in her husband's real property
Property description that may refer to a map and lot number that has been recorded or ato a prevous deed conveying the saome property
Personal property growing in the soil - requiring planting and cultivation; annual crops.
A property map - recorded on the public record in plat books

33. Nonfreehold estate
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
The refusal of lending institutions to make loans for the purchase - construction - or repair of a dwelling because the area in which the dwelling is located is integrated or populated by minorities
A life estate based on the life of another

34. Defeasible
Subject to being defeated by the occurrence of a certain event
Must be in writing - must name a grantor - must name a grantee - property description - words of conveyance (aka granting clause or habendum clause - "...conveys and warrants...") - signed by grantor(s) - acknowledgment - stating to public officer th
A new agreement by contracting parties that is satisfied by full performance there by terminating the prior contract as well
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.

35. Arrears
Pledging property as security for the payment of a debt without giving up possession.
Written registration of an owner's title in public records to protect against subsequent claimants.
Delinquency in maeeting an obligation; or - paid at the end of a period (e. g. - at the end of the month) for the previous period; payments in arrears include interest for using the money during the previous period.
A promise in a deed that the grantor will execute further assurances that may be reasonable or necessary to perfect the title in the grantee

36. Michigan's Seller Disclosure Act
The duty of agents not to disclose any information about their clients.
One that does not impose a prepayment penalty.
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.
Mandates that the seller complete a disclosure form regarding the condition of the property

37. Graduated payment mortgage (GPM)
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.
Coalition of private - nonprofit fair housing groups that has joined with federal and state government fair housing enforcement agencies to substantially improve fair housing enforcement activities.
A concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.

38. Unenforceable contract
A three-day right of rescission for certain loan transactions
A deed denoting an unlimited guarantee of title
A federal law prohibiting discrimination in consumer loans
One that appears to meet the requirements for validity but would not be enforceable in court.

39. Innocent misrepresentation

40. Buyer Agency Agreement

41. Competence
The principle stating that when the net profit a property generates is excessive - very strong competition will result
Must be in writing - must name a grantor - must name a grantee - property description - words of conveyance (aka granting clause or habendum clause - "...conveys and warrants...") - signed by grantor(s) - acknowledgment - stating to public officer th
The outlay of money expecting income or profit or the acquisition of property expecting income or profit
A form of deed with or without covenants of title

42. Valuable consideration
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
The amount of money actually lost - which will be awarded by a court in case of a breached contract
A person authorized to act on behalf of another
Anything of value agreed upon by parties to a contract. Includes a promise.

43. Disability
The substitution of the title insurance company in the place of the insured for filing a legal action.
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
A physical or mental impairment that substantially limits one or more of the major life activities of a person
The market in which lenders sell mortgages

44. Bundle of rights
The document setting forth the terms and conditions of the brokerage relationship with the purchaser. (expectation to act in the client's best interest - follow legitimate instructions - advocate their price and terms; keep all pertinent info confide
The right of an owner to recieve the title to an co-owner's share upon death of the co-owner - as in the case of joint tenancy and tenancy by the entirety.
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.
A federal law protecting the rights of individuals with physical or mental impairments

45. Feudal system
Land was owned or controlled by the King
To perfect the claim and obtain a title to the property - the claimant must satisfy the court that he or she has fulfilled the requirements of the adverse possession statute of Michigan
Devotion of certain settlement costs between buyer and seller.
A statement in a mortgage or deed of trust entitling the lender to declare the entire principal balance of the debt iimmediatley due and payable if the borrower sells the property during the mortgage term. Also known as due on-sale-clause.

46. Community property
An insurance policy protecting the insured from a financial loss caused by a defect in a title to real property (Buyer buys for mortgage company for amount of mortgage; seller pays for buyer on full price of property).
Devotion of certain settlement costs between buyer and seller.
One in which the lender shares in the appreciation in property value in return for making the loan at a fixed rate lower than the rate in effect at the time the loan is made
A form of co-ownership lmited to husband and wife; does not include the right of survivorship

47. Leasehold estate
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
A tax imposed on the conveyance of title to real property by deed
A contract whereby a property owner employs a real estate broker to market the property described in the contract. (contract to make a fee)

48. Concurrent ownership
Simultaneous ownership of real property by two or more people
One in which the scheduled payment will not fully amortize the loan over the morgage term; therefore - to fully satisfy the debt - it requires a final payment called a balloon payment - larger than the uniform payments.
An accounting of the funds received and disbursed in a real estate transaction.
An agreement that is legally binding and enforceable.

49. Varticipation mortgage
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
The lender requires one-twelfth of the estimated cost of the annual property taxes and hazards insurance on the mortgaged property in addition to paying monthly priincipal and interest
(a) One in which two or more lenders share in making the loan. (b) One in which a lender shares in the profit produced by an income property pledged to secure the loan payment in addition to receiving interest and principal payments.
Savings banks - mutual savings banks - commercial banks

50. Constructive condition
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.
A condition in a contract imposed by a court. (e. g. court orders payback on agreed upon amount because of incomplete fulfillment of contract...38 acres instead of 40 sold)
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
Mandates that the seller complete a disclosure form regarding the condition of the property