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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. Cooling-off period
A three-day right of rescission for certain loan transactions
A form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.
The prompt and total communication to the principal by the agent of any information that is material to the transaction for which the agency is created.
North-south line in the rectangular method of property description.

2. Deed of trust
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
License law term that describes a type of relationship between a broker and his or her licensees
A form of mortgage wherein there is a third party - who is called a trustee
A law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status

3. Declaration
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.
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
The amount of money (usually the loan amount) on which interest is either paid or recieved.

4. Deed - what makes it valid
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
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 phrase inserted into a contract declaring that each deadline in a contract must be met as it occurs
Evidence that a valid debt exists

5. Covenant for further assurances
An agreement that has been fully performed.
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
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 power of government to regulate the use of real property for the benefit of the public

6. Real property
Money to be paid and received as compensaton for a breach of contract.
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
The statement in a deed beginning with the words "to have and to hold" and describing the estate granted
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

7. Location
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
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
To put in effect by public announcement; to put into operation

8. Sherriff's deed
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
An adult with children under 18 - a person who s pregnant - one who has legal custody of a child or who is in the process of obtaining such custody.
A deed issued to the buyer of property that was sold under court order to pay off a debt.
Mandates that the seller complete a disclosure form regarding the condition of the property

9. Ranges
An area of land defined by the rectangular survey system of land description (e. g. 6 square miles)
An inheritable estate in land providing the greatest interest of any form of title
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton
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)

10. Michigan Mortgage Brokers - Lenders - Servicers and Licensing Act
One with full authority over one property of the principal - such as a property manager
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.
(a) Money paid for the use of money. (b) An ownership or right.

11. Contract
Contract where all terms are in writing and understood by both parties.
In a closing statement - money to be recieved or credit given for money or an obligation given.
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)

12. Immobility
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
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
Land cannot be relocated
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.

13. Assignment
A person authorized to act on behalf of another
.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.
Transfer of legal rights and obligations by one party to another
One in which personal property as well as real property s pledged to secure payment of the note.

14. Defeasance clause
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
A statement in a mortgage or deed of trust giving the borrower the right to redeem the title and have the mortgage lien released at any time prior to default by paying the debt in full
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
The use of someone else's money to enhance your own

15. Concurrent ownership
Simultaneous ownership of real property by two or more people
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application
An estimate of value of a particular property - at a particular time for a specified purpose.
Pledging property as security for the payment of a debt without giving up possession.

16. Purchase money mortgage
One in which uniform installment payments include payment of both principle and interest.
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
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.

17. Unities of ownership
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
A buyer of property who relies on the records and is unaware of an unrecorded prior document
One who arranges a mortgage loan betwen a lender and a borrower for a fee.
Money to be paid and received as compensaton for a breach of contract.

18. Association of Real Estate License Law Officials (ARELLO)
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
A relationship that meets the following criteria: (1) the broker and licensee must have a written agreement stating that the licensee is not an employee for federal and state or income tax purposes - and (2) not less than 75 percent of the licensse's
A court instruction requiring a defaulting party to a contract to buy and sell real property to specifically perform his or her obligations under the contract

19. Section
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee.
1. Specific performance - 2. Rescission - 3. Compensatory Damages 4. Liquidated Damages
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor

20. Finance
Savings banks - mutual savings banks - commercial banks
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.
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
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.

21. Fiduciary
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
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.
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.
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

22. Separate property
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
An implied agency without an agency agreement
Any property acquuired by one spouse during marriage by gift or inheritance or purchased with the separate funds of a husband or wife.
In a closing statement - money to be recieved or credit given for money or an obligation given.

23. Agency disclosure

24. Poluntary alienation
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.
E.g. Put on market - sell - done)
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
A federal law protecting the rights of individuals with physical or mental impairments

25. Amortizing loan
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
E.g. very accurate desc or property)
One in which uniform installment payments include payment of both principle and interest.
The recipient of a gift of real property by will

26. Implied agency
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
A report - based on a title examination - setting forth the examiner's opinion of the quality of a title to real property.
Agency that exists as a result of actions of the parties
An intentional false statement of a material fact.

27. Unenforceable contract
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
An accurate legal description of land
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
One that appears to meet the requirements for validity but would not be enforceable in court.

28. Plat
A property map - recorded on the public record in plat books
Assures the absence of hazardous materials or problems relating to regulations of the EPA.
Second mortgage
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate

29. Quarter-section
The limited warranty deed limits the potential liability of the seller and does not hold him liable for any encumbrances against the property prior to his ownership.
One-forth of a section - containing 160 acres
A fee paid by a realtor to a brokerage out of the area for a buyer listing
Personal property

30. Special agent
One with full authority over one property of the principal - such as a property manager
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
Land and everything permanently attached to land
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.

31. National Association of Realtors
A federal law prohibiting discrimination in consumer loans
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
The largest and most prominent trade organization of real estate licensees.
An instrument transferring ownership of personal property.

32. Revenue stamps
A leasehold estate of definite duration
The amount of the brokerage's commission that goes to the realtor
Tax on the conveyance of title to real property ($8.60 per 1000; $4.30 per half thousand) The $8.60 is split: $1.10 to county - $7.50 to state
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.

33. Syndication
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.
Personal property
Allows the broker employed to market the seller's property for a given period of time.
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.

34. Counter-offer
Anything of value agreed upon by parties to a contract. Includes a promise.
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.
A new offer made by an offer or rejecting an offer.
A statement in a mortgage or deed of trust giving the borrower the right to redeem the title and have the mortgage lien released at any time prior to default by paying the debt in full

35. Universal agent
Agent that has complete authority over any activity of principal; for example - power of attorney
The statement in a deed beginning with the words "to have and to hold" and describing the estate granted
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
A temporary mortgage used to borrow money to contruct an improvement on land

36. Escheat
Assures the absence of hazardous materials or problems relating to regulations of the EPA.
A gift of real property by will
One in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.
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

37. Executory contract
An agreement that has not been fully performed.
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.

38. Disability
The instrument that legally establishes a condominium; also called condominium declaration
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.
A physical or mental impairment that substantially limits one or more of the major life activities of a person

39. Rectangular survey system
Financinig charge required by the lender
The power of government to regulate the use of real property for the benefit of the public
A form of co-ownership that includes the right of survivorship
A type of land descripton utilizing townships and sections

40. Offer and acceptance
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
Necessary elements for the creation of a contract.
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
An implied agency without an agency agreement

41. Seller agency

42. Bona fide purchaser
A buyer of property who relies on the records and is unaware of an unrecorded prior document
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.)
An east-west line in the rectangular method of property description
Seller

43. Involuntary alienation
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton

44. Mortgage insurance premium (MIP)
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.
The violations and fines or penalties - which the department and the licensee have agreed upon.
One that appears to meet the requirements for validity but would not be enforceable in court.
A payment for insurance to protect the lender and/or insurer against loss if default occurs.

45. Option
A contract whereby a property owner (optioner) sells a right to purchase his or her property to a prospective buyer (optionee).
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.

46. Valid contract
Person or a nonperson (partnership - association - corporation - common law trust - or combination) acting as agent for others in negotiating the purchase and sale of real property or other commodities for a fee
A contract in which a buyer hires a broker to obtain property that he or she may purchase; the broker is the agent of the buyer - who is his or her principal
An agreement that is legally binding and enforceable.
In a closing statement - an expense or money received against a credit

47. Doctrine of Equitable Conversion
The vendor cannot do anything to jeopardize the interest of the vendee.
Actually lending the $
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.

48. Bundle of rights
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.
A law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status
The limited warranty deed limits the potential liability of the seller and does not hold him liable for any encumbrances against the property prior to his ownership.
A property map - recorded on the public record in plat books

49. Accidental agency

50. Deficiency judgment
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.
Occurs when a seller's broker conceals a defect in the property from the buyer or misrepresents the existence of a defect
E.g. Put on market - sell - done)
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.