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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. Cloud on a title
One that is free from reasonable doubt and that a court would require a purchaser to accept
Transfer of legal rights and obligations by one party to another
Describes a buyer who is ready to buy - willing to buy - and financially able to pay the asking price.
A claim against a title to real property.

2. Special (limited) warranty deed
The act of reviewing loan documentation and evaluating borrower's ability and willingness to repay the loan and sufficiency of collateral value of the property.
A contract whereby a property owner (optioner) sells a right to purchase his or her property to a prospective buyer (optionee).
A deed containing a limited warranty of title
A property map - recorded on the public record in plat books

3. Varticipation mortgage
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 seller's broker makes a false statement to the buyer about the property - and the broker does not know whether the statement is true or false
Ownership by only one person
(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.

4. Disability
A form of deed with or without covenants of title
Latin meaning "let the buyer bewar"; applies to "sales talk" and not to statements of material facts.
A physical or mental impairment that substantially limits one or more of the major life activities of a person
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.

5. Federal Housing Administration (FHA)
The U. S. agency that insures mortgage loans to protect lending institutions.
One who arranges a mortgage loan betwen a lender and a borrower for a fee.
A wife's interest in her husband's real property
A contract of sale and a financing insturment wherein the seller agrees to convey title when the buyer completes the purchase price installment payments; also called installment land contract - contract for deed - and conditional sales contract.

6. Balloon payment
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.
A leasehold estate of definite duration
Failing to do preventative maintenance or corrective maintenance.
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.

7. Metes and bounds
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.
A contract of sale and a financing insturment wherein the seller agrees to convey title when the buyer completes the purchase price installment payments; also called installment land contract - contract for deed - and conditional sales contract.
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
E.g. very accurate desc or property)

8. Vrivate mortgage insurance (PMI)
A written instrument transferring an interest in real property when delivered to the grantee.
A form of insurance coverage required in high loan-to-value ratio conventional loans to protect the lender in case the borrower defaults in loan payment.
A form of co-ownership limited to husband and wife - with the right of survivorship
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.

9. Grantee
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
Cancellation of a contract when another party is in default
One who receives title to real property by deed
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.

10. Leasehold policy

11. Promulgate
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete
To put in effect by public announcement; to put into operation
The amount of the brokerage's commission that goes to the realtor

12. Mortgagee
Land cannot be relocated
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
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. Accidental or Ostensible Agency
An implied agency without an agency agreement
A form of co-ownership that does not include the right of survivorship.
The amount of the brokerage's commission that goes to the realtor
An individual's being led to believe by a broker/salesperson's actions and representations that the broker/salesperson is representing (is an agent for) the individual

14. Fiduciary
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 - such as an agent - placed in a position of trusted in relation to the person for whose benefit the relationship is created; essentially the same as a trustee
Transfer of title to real property
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.

15. Trade fixtures
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
Land was owned or controlled by the King
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
A written instrument used to pledge a title to real property to secure payment of a promissory note.

16. Title examination
One in which personal property as well as real property s pledged to secure payment of the note.
A gift of real property by will
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.
A search of the public record to determne the quality of a title to real property

17. Debits
In a closing statement - an expense or money received against a credit
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.
The governing board for real estate licenses in MI
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.

18. Condition subsequent
Any fact - the existence or occurrence of which - by agreement of the parties - operates to discharge a duty of performance after it has become absolute. (making mortgage payments)
A history of title and the current status of a title based on a atitle examination
Paid to Cooperating Brokers Usually 50%/50%
A major source of funds for financing residential real estate.

19. Covenant of quiet enjoyment

20. Marketable (merchantable) title
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land
One that is free from reasonable doubt and that a court would require a purchaser to accept
No: misrepresentation of fact; negligent misrepresentation; innocent misrepresentaton. MI law says seller's broker is not liable for statments made to buyer/customer regarding condition of property.
A fee paid by a realtor to a brokerage out of the area for a buyer listing

21. Jones v. Mayer
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete
The duty of agents not to disclose any information about their clients.
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security

22. Blockbusting
For profit - to induce or attempt to induce any person to sell or rent any dwelling by representations regarding the entry or prospective entry into the neighborhood of a person or persons of a particular race - color - religion - sex or national ori
Agreement of the parties; full performance; iimpossibility of performance; operation of law (judge's ruling)
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.
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.

23. Term mortgage
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
One-forth of a section - containing 160 acres
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated
Describes a buyer who is ready to buy - willing to buy - and financially able to pay the asking price.

24. Plat
A hidden structural defect that would not be discovered by an ordinary inspection
One in which all affected parties are bound by the knowledge of a fact even though they have not been actually notified of such fact.
A property map - recorded on the public record in plat books
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

25. Principal meridians
One insuring a lessee against defects in the lessor's title.
A law in effect in all states requiring certain contracts to be in writing to be valid.
The amount of money (usually the loan amount) on which interest is either paid or recieved.
North-south line in the rectangular method of property description.

26. Handicap

27. Deed
An agreement that has no legal force or effect.
A written instrument transferring an interest in real property when delivered to the grantee.
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
A person authorized to act on behalf of another

28. Conforming loans
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.
Devotion of certain settlement costs between buyer and seller.
One that appears to meet the requirements for validity but would not be enforceable in court.
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines

29. Deed - what makes it valid
Assures the absence of hazardous materials or problems relating to regulations of the EPA.
A written instrument transferring an interest in real property when delivered to the grantee.
Ownership by only one person
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

30. Client
Allows certain parcels of property to be removed from the mortgage lien if the loan balance is reduced a specified amount
The principal in a real estate transaction
Measure of profit
Voluntary expression by the person receiving the offer to be bound by the exact terms of the offer; must be unequivocal and unconditional

31. Shelley v. Kraemer
The condition of death without leaving a valid will.
A new offer made by an offer or rejecting an offer.
No two parcels of land are identical
A white couple enters a racially restrictive covenant with a neighborhood. A black family - moved into this neighborhood. The white family brought it to court to enforce the contract and kept winning. Shelley appealed up to the Supreme Court. Raciall

32. Growing equity mortgage (GEM)

33. Open listing
An east-west line in the rectangular method of property description
Purchaser
A listing given to one or more brokers wherein the broker procuring a sale is entitled to the commission but imposes no commission obligation on the owner in the event the owner sells the property to someone who was not interested in the property by
A proceeding in which a court gives a mortgagor in default a specified time period in which to satisfy the debt and thereby prevent transfer to the lender of the title to the mortgaged property.

34. Estoppel
A man/woman appointed in a will to see that the terms of the will are carried out
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
Preventing a person from making a statement contrary to a previous statement
A white couple enters a racially restrictive covenant with a neighborhood. A black family - moved into this neighborhood. The white family brought it to court to enforce the contract and kept winning. Shelley appealed up to the Supreme Court. Raciall

35. Finance
An intentional false statement of a material fact.
Neighborhoods that are made up of similar properties
An inheritable estate in land providing the greatest interest of any form of title
Savings banks - mutual savings banks - commercial banks

36. Emblements
Contract where all terms are in writing and understood by both parties.
Personal property growing in the soil - requiring planting and cultivation; annual crops.
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
The amount of money actually lost - which will be awarded by a court in case of a breached contract

37. Implied contract
The amount of money actually lost - which will be awarded by a court in case of a breached contract
License law term that describes a type of relationship between a broker and his or her licensees
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.
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

38. Assignee
A written instrument used to pledge a title to real property to secure payment of a promissory note.
The statement in a deed containing words of conveyance
A policy insuring an owner of real property against financial loss resulting from a title defect.
One to whom contractual rights are transferred

39. Statute of Frauds
A form of co-ownership that includes the right of survivorship
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application
A law in effect in all states requiring certain contracts to be in writing to be valid.
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.

40. Board of Real Estate Brokers and Salespersons
The governing board for real estate licenses in MI
A statment in amortgage or deed of trust entitling the lender to declare the entire principal balance of the debt immediately due and payable if the borrower sells the property during the mortgage term. Also known as due on sale clause.
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.
Pledging property as security for the payment of a debt without giving up possession.

41. Receiver
The duty of agents not to disclose any information about their clients.
Simultaneous ownership of real property by two or more people
One who takes over management of a property until the foreclosure process is complete
Master deed containing legal description of the condoinium facility - a plat of the property - plans and specifications for the building and units - a description of the common areas - and the degree of ownership in the common areas available to each

42. Feudal system
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)
One in which uniform installment payments include payment of both principle and interest.
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate

43. Cortesy

44. Appraisal
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
An estimate of value of a particular property - at a particular time for a specified purpose.
Interest only loan (e. g. - construction loan--you are only paying interest - no principal)
The introductory information on a deed

45. Deed in lieu of foreclosure
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
Mandates that the seller complete a disclosure form regarding the condition of the property
E.g. Put on market - sell - done)
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

46. Condition concurrent
The client (buyer or seller) has an agency relationship with only those persons named in the listing contract or buyer agency contract. (Other agents within the same brokerage would not be dual agents in this instance.)
A concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
When the parties are to exchange performances at the same time.
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.

47. Merger
To put in effect by public announcement; to put into operation
A man/woman who has died and left a valid will
When a subsequent contract covering the same subject matter is drafted (with changes)
One in which personal property as well as real property s pledged to secure payment of the note.

48. Complete performance
Execution of a contract by vrtue of all parties having fully performed all terms
A form of co-ownership that includes the right of survivorship
(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.
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor

49. Fair Housing Act of 1968
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate
A deed containing a limited warranty of title
Any property acquuired by one spouse during marriage by gift or inheritance or purchased with the separate funds of a husband or wife.
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.

50. Michigan Uniform State Antitrust Act
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.
There are certain types of trade restraints that are so injurious to competition that there can be no justification for them (price fixing; boycotts or concerted refusals to deal; territorial or customer allocation; tying agreements)
Purchaser
A person authorized by a state to take oaths and acknowledgments