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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. Jones v. Mayer
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.
An instrument transferring ownership of personal property.
A statement in a lease or condominium articles of association that provides for a lessee or an association to have the first opportunity to purchase the property before it is offered to anyone else.
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination

2. Broker
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 promise in a deed that the grantor will execute further assurances that may be reasonable or necessary to perfect the title in the grantee
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 subordinate to a subsequent mortgage (e. g. - a second mortgage)

3. Premises clause
An agreement that has not been fully performed.
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
The introductory information on a deed
An agency relationship created by oral or written agreement between principal and agent

4. Mortgage assumption
The transfer of mortgage obligations to purchaser of the mortgaged property.
The U. S. agency that insures mortgage loans to protect lending institutions.
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
A deed containing a limited warranty of title

5. Installment land contract
.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.
A form of deed with or without covenants of title
Permanent financing arranged to replace a shor-term construction loan.
A leasehold estate of definite duration

6. Adjustable rate mortgage (ARM)
An agreement that has no legal force or effect.
One who receives title to real property by deed
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller
One in which the interest rate changes according to changes in a predetermined index.

7. Mortgage insurance premium (MIP)
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
Title insurance that protects contract buyer against defects in contract seller's title.
A future interest in a life estate
A law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status

8. Designated agency
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
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.
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.)
Purchaser

9. Construction mortgage
A temporary mortgage used to borrow money to contruct an improvement on land
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.
A federal law regulating activities of lending institutions in making mortgage loans for housing.
The amount of money actually lost - which will be awarded by a court in case of a breached contract

10. Quiet title action
A future interest in a life estate
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.
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
Agent that has complete authority over any activity of principal; for example - power of attorney

11. Seller's disclosure statement
Investigates alleged discrimination and secures the equal protection of civil rights.
The form the seller completes to reveal any defects in the property (delivered within 72 hours of presentation of purchase agreement or 120 hours over a weekend). Good idea to leave a copy in the house with seller agent business card.
Mortgage loan for which the monthly payments increase annually - with the increased amount applied directly to the loan's principal - thus shortening the term of the loan
Actually lending the $

12. Vrepaid expenses
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller
Costs the seller pays in advance that were not fully used up (such as utility payments or property taxes due) - shown as a credit to the seller and debit to the buyer
A buyer of property who relies on the records and is unaware of an unrecorded prior document

13. Void contract
A person authorized by a state to take oaths and acknowledgments
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.
An agreement that has no legal force or effect.
A policy insuring an owner of real property against financial loss resulting from a title defect.

14. Severalty
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
Execution of a contract by vrtue of all parties having fully performed all terms
Ownership by only one person
Governmental restrictions on land use

15. Duty of disclosure
An exaggeration of a property's benefits.
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency
A responsibility for revealing all information that affects the agency agreement
Property description that may refer to a map and lot number that has been recorded or ato a prevous deed conveying the saome property

16. Quitclaim deed
The amount of money actually lost - which will be awarded by a court in case of a breached contract
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.
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.
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract

17. Michigan Person's with Disabilities CiveI Rights Act

18. Freehold estate
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.
The outlay of money expecting income or profit or the acquisition of property expecting income or profit
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 right of title to land

19. Conditional sales contract
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
Financinig charge required by the lender
An agreement that has not been fully performed.
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.

20. Testator/testatrix
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)
A man/woman who has died and left a valid will
An error of material fact by both parties
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.

21. Plat
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee.
A property map - recorded on the public record in plat books

22. Mortgagee's policy
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.
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 agency relationship created by oral or written agreement between principal and agent
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)

23. Civil Rights Act of 1968
A history of title and the current status of a title based on a atitle examination
A form of organization that makes and services mortgage loans.
A federal prohibition on discrimination in the sle - rental - or financing of housing on the basis of race - color - religion - sex - or national origin
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)

24. Covenant against encumbrances
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 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 promise in a deed that the title causes no encumbrances except those set forth in the deed.
In a closing statement - money to be recieved or credit given for money or an obligation given.

25. Equitable title

26. Graduated payment mortgage (GPM)
Savings banks - mutual savings banks - commercial banks
A statement in a listing contract protecting the broker's commission entitlement for a specified period of time after the contract expires; also called extender clause.
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.
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.

27. Acknowledgment
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.
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.
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
Consummation of a real estate contract; also called closing.

28. Earnest money
A responsibility for revealing all information that affects the agency agreement
A phrase inserted into a contract declaring that each deadline in a contract must be met as it occurs
A deposit a buyer makes at the time of submitting an offer - to demonstrate the true inten to purchase; also called binder - good faith deposit - escrow deposit.
One that may be refinanced without rewriting the mortgage.

29. Ginnie Mae (GNMA)
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
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.
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.

30. Familial status
Failing to do preventative maintenance or corrective maintenance.
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.
Agent that has complete authority over any activity of principal; for example - power of attorney
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate

31. Leasehold estate
The violations and fines or penalties - which the department and the licensee have agreed upon.
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
Details rights of condominium purchasers in Michigan
A leasehold estate that automatically renews itself for consecutive periods until terminated by notice by either party; also called estate from period to period or periodic tenancy

32. Mortgage
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.
A federal law prohibiting discrimination in consumer loans
Assures the absence of hazardous materials or problems relating to regulations of the EPA.
A written instrument used to pledge a title to real property to secure payment of a promissory note.

33. Savings Banks (S&L's)
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
The duty of agents not to disclose any information about their clients.
Requires that an owner or any other person engaging in a real estate transaction - a real estate broker - or a real estate salesperson shall not - on the basis of a disability that is unrelated to the individua's ability to acquire - rent or maintain
A major source of funds for financing residential real estate.

34. Mortgage assumption

35. Estate for years
A deposit a buyer makes at the time of submitting an offer - to demonstrate the true inten to purchase; also called binder - good faith deposit - escrow deposit.
A leasehold estate of definite duration
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
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.

36. Personal representative
Financinig charge required by the lender
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
A form of mortgage wherein there is a third party - who is called a trustee
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate

37. Co-ownership
A federal law regulating activities of lending institutions in making mortgage loans for housing.
A test of soil to determine if it is sufficiently porous for installation of a septic tank.
A statement in a lease or condominium articles of association that provides for a lessee or an association to have the first opportunity to purchase the property before it is offered to anyone else.
Title to real property held by two or more persons at the same time; also called concurrent ownership

38. Acceleration clause
A provision iin a mortgage or deed of trust that permits the lender to declare the entire principal balance of the debt immediately due and payable if the burrower is in default
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate
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.
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)

39. Covenant of seisin and right to convey
Investigates alleged discrimination and secures the equal protection of civil rights.
Mortgage loan for which the monthly payments increase annually - with the increased amount applied directly to the loan's principal - thus shortening the term of the loan
A gift of personal property by will.
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.

40. Executed contract
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate
A combination of the graduated payment mortgage and the variable rate mortgage
A right of title to land
An agreement that has been fully performed.

41. Covenant for further assurances
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.
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
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.
The amount of money (usually the loan amount) on which interest is either paid or recieved.

42. Straw Dog
An agent working for an unnamed third party buyer (usually a celebrity)
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).
Anything of value agreed upon by parties to a contract. Includes a promise.
A person authorized by a state to take oaths and acknowledgments

43. Ranges
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.
A statement in a listing contract protecting the broker's commission entitlement for a specified period of time after the contract expires; also called extender clause.
An area of land defined by the rectangular survey system of land description (e. g. 6 square miles)
The inability of a party to exercise his or her free will because of fear of another party.

44. Transfer tax
A tax imposed on the conveyance of title to real property by deed
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.
An implied agency without an agency agreement
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.

45. Supply and demand
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.
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.
One with full authority over one property of the principal - such as a property manager
The principle stating that when the net profit a property generates is excessive - very strong competition will result

46. Buyer's contract
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 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
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
A phrase inserted into a contract declaring that each deadline in a contract must be met as it occurs

47. Reality of consent
Personal property growing in the soil - requiring planting and cultivation; annual crops.
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.
Mutual agreement between the parties to a contract; meeting of the minds; to exist and be free of duress - fraud - undue influence - and misrepresentation.
A form of co-ownership limited to husband and wife - with the right of survivorship

48. Take-out loan
A federal law protecting the rights of individuals with physical or mental impairments
A man/woman appointed in a will to see that the terms of the will are carried out
Governmental restrictions on land use
Permanent financing arranged to replace a shor-term construction loan.

49. Open-end mortgage
One that may be refinanced without rewriting the mortgage.
E.g. Put on market - sell - done)
An agreement that has not been fully performed.
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.

50. Defeasance clause
The inability of a party to exercise his or her free will because of fear of another party.
A gift of personal property by will.
A federal prohibition on discrimination in the sle - rental - or financing of housing on the basis of race - color - religion - sex - or national origin
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