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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. Vroration
A form of mortgage wherein there is a third party - who is called a trustee
Any improper or wrongful influence by one party over another whereby the will of a person is overpowered so that he or she is induced to act or prevented from acting according to free will.
Make good loans to qualified borrowers ( e. g. Rural Development loans)
Devotion of certain settlement costs between buyer and seller.

2. Discount points
North-south line in the rectangular method of property description.
One who arranges a mortgage loan betwen a lender and a borrower for a fee.
A percentage of the loan amount the lender requires for making a mortgage loan
The instrument that legally establishes a condominium; also called condominium declaration

3. Hypothecating
Title to real property held by two or more persons at the same time; also called concurrent ownership
Land was owned or controlled by the King
Pledging property as security for the payment of a debt without giving up possession.
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.

4. Constructive notice
Seller
Permission to assume the mortgage at an interest rate prevailing at the time of assumption
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).
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.

5. Sub agent
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership
The inability of a party to exercise his or her free will because of fear of another party.
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.
The attribute of an asset's being readily convertible to cash.

6. Principal
A form of deed with or without covenants of title
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.
(a) In the law of agency - one who appoints an agent to represent him or her. (b) Amount of money on which interest is paid or received
Investigates alleged discrimination and secures the equal protection of civil rights.

7. Chattel
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 vendor cannot do anything to jeopardize the interest of the vendee.
Personal property
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)

8. Truth-in-Lending Simplification and Reform Act (TILSRA)
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.
The loss of funds available to lending institutions for making mortgage loans - caused by depositors' withdrawal of funds for making investments that provide greater yields.
The shortened name for the Federal National Mortgage Association (FNMA) - a privately owned corporation that purchases FHA - VA - and conventional mortgages
Requirements issued by the Federal Reserve Board iin implementing the Truth-in-Lending Law - which is a part of the Federal Consumer Credit Protection Act

9. Covenant of seisin and right to convey
Second mortgage
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
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
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).

10. Junior mortgage
A new agreement by contracting parties that is satisfied by full performance there by terminating the prior contract as well
Second mortgage
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership

11. Buyer Agency Agreement

12. Offer and acceptance
Necessary elements for the creation of a contract.
Describes a buyer who is ready to buy - willing to buy - and financially able to pay the asking price.
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller
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.

13. Agent's Responsibilty to principals
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.
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
Selling property without consent of the owner who incurred the debt - resulting in a lien - as ordered by a court or authorized by state law - and title conveyed to purchaser by judicial deed.
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence

14. Amortizing loan
One in which uniform installment payments include payment of both principle and interest.
The reversion of property to the state or county - as provide by state law - in cases where a decedent dies intestate without heirs capable of inheriting - or when the property is abandoned
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
A property map - recorded on the public record in plat books

15. Commission Paid to Sales Associates

16. Co-ownership
Title to real property held by two or more persons at the same time; also called concurrent ownership
A leasehold estate that may be terminated at the desire of either party
Agent that has complete authority over any activity of principal; for example - power of attorney
An accounting of the funds received and disbursed in a real estate transaction.

17. Granting clause
Simultaneous ownership of real property by two or more people
Mandates that the seller complete a disclosure form regarding the condition of the property
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.
The statement in a deed containing words of conveyance

18. Real property
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
A new agreement by contracting parties that is satisfied by full performance there by terminating the prior contract as well
Transfer of title to real property
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

19. Waste
One in which two more parcels of real property are pledged to secure payment of the note
Failing to do preventative maintenance or corrective maintenance.
The principle stating that when the net profit a property generates is excessive - very strong competition will result
When the parties are to exchange performances at the same time.

20. Michigan's Seller Disclosure Act
Anything of value agreed upon by parties to a contract. Includes a promise.
(a) In the law of agency - one who appoints an agent to represent him or her. (b) Amount of money on which interest is paid or received
Mandates that the seller complete a disclosure form regarding the condition of the property
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

21. Land contract
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
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 installment land contract - contract for deed - and conditional sales contract.
Another term for escrow account
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.

22. Operation of law
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.
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.
The relatonship between the amont of a mortgage loan and the lender's opinion of the value of the property pledged to secure payment of the loan.

23. Tenancy in common
A leasehold estate of definite duration
Land and everything permanently attached to land
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.
A form of co-ownership that does not include the right of survivorship.

24. Compensatory damages
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
Neighborhoods that are made up of similar properties
The amount of money actually lost - which will be awarded by a court in case of a breached contract

25. Innocent misrepresentation

26. Covenant of quiet enjoyment

27. Freehold estate
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.
An organized method of sharing or pooling listings by member brokers. (electronic)
A right of title to land
In a closing statement - an expense or money received against a credit

28. Appraisal
A new offer made by an offer or rejecting an offer.
A concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
A federal law prohibiting discrimination in consumer loans
An estimate of value of a particular property - at a particular time for a specified purpose.

29. Location
Transfer of legal rights and obligations by one party to another
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
An accounting of all financial aspects of a mortgage loan required of lenders to borrowers in residential mortgage loans by Regulation Z of the Federal Reserve Board.
The principal in a real estate transaction

30. Leverage

31. Breach of contract
A form of co-ownership limited to husband and wife - with the right of survivorship
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
A broker/salesperson's representing both buyer and seller in the same transaction (Mention at each of the first meetings with buyer and seller)
One in which uniform installment payments include payment of both principle and interest.

32. Testimonium clause

33. Implied contract
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
One in which two more parcels of real property are pledged to secure payment of the note
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.
A federal law regulating activities of lending institutions in making mortgage loans for housing.

34. Finance
The vendor cannot do anything to jeopardize the interest of the vendee.
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.
Savings banks - mutual savings banks - commercial banks
A payment for insurance to protect the lender and/or insurer against loss if default occurs.

35. Credit
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.
One that does not impose a prepayment penalty.
No two parcels of land are identical
In a closing statement - money to be recieved or credit given for money or an obligation given.

36. Chain of title
Actually lending the $
Successive conveyances of title to a specific parcel of land.
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.
Ownership by only one person

37. Beneficiary
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate
A report - based on a title examination - setting forth the examiner's opinion of the quality of a title to real property.
The transfer of mortgage obligations to purchaser of the mortgaged property.

38. Trade fixtures
Savings banks - mutual savings banks - commercial banks
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application
A policy insuring an owner of real property against financial loss resulting from a title defect.
Item that is installed by a comercial tenant and is removable upon termination of the tenancy

39. Alienation clause
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.
A gift of real property by will
Subject to being defeated by the occurrence of a certain event
Money to be paid and received as compensaton for a breach of contract.

40. Sherriff's deed
A deed issued to the buyer of property that was sold under court order to pay off a debt.
One holding a life estate
An agreement that has not been fully performed.
Occurs when a seller's broker conceals a defect in the property from the buyer or misrepresents the existence of a defect

41. Cooling-off period
1. Specific performance - 2. Rescission - 3. Compensatory Damages 4. Liquidated Damages
North-south line in the rectangular method of property description.
Actually lending the $
A three-day right of rescission for certain loan transactions

42. Listing contract
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract
The instrument that legally establishes a condominium; also called condominium declaration
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

43. Poluntary alienation
One in which the federal government does not insure or guarantee payment to the lender.
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
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.
E.g. Put on market - sell - done)

44. Feudal system
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
Make good loans to qualified borrowers ( e. g. Rural Development loans)
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.
Land was owned or controlled by the King

45. Principal meridians
North-south line in the rectangular method of property description.
A broker/salesperson's representing both buyer and seller in the same transaction (Mention at each of the first meetings with buyer and seller)
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor

46. Mortgage banks
A form of deed with or without covenants of title
The relatonship between the amont of a mortgage loan and the lender's opinion of the value of the property pledged to secure payment of the loan.
Actually lending the $
The principal in a real estate transaction

47. Mortgage assumption
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.
The transfer of mortgage obligations to purchaser of the mortgaged property.
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)
A new offer made by an offer or rejecting an offer.

48. Uniform Vendor and Purchaser's Risk Act

49. Agent's Responsibility to Third Persons

50. Mortgage assumption