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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. Property description
A right of title to land
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
An accurate legal description of land
An interest in real estate such that a court will take notice and protect the owner's rights.

2. Reversion
Legal purpose.
A nickname for Federal Home Load Mortgage Corporation - (FHLMC) - a corporation wholly owned by the Federal Home Loan Bank System that purchases FHA - VA - and conventional mortgages.
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
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

3. Guaranteed Loan Program
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
Finds someone to lend the $
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
One that imposes a prepayment penalty.

4. Balloon mortgage
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 inheritable estate in land providing the greatest interest of any form of title
Occurs when a seller's broker conceals a defect in the property from the buyer or misrepresents the existence of a defect
One-forth of a section - containing 160 acres

5. Deed of trust
A right of title to land
A form of mortgage wherein there is a third party - who is called a trustee
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
Interest only loan (e. g. - construction loan--you are only paying interest - no principal)

6. Mortgage banks
Actually lending the $
A test of soil to determine if it is sufficiently porous for installation of a septic tank.
Contract where all terms are in writing and understood by both parties.
To put in effect by public announcement; to put into operation

7. 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.
The third party in a real estate transaction
One that is free from reasonable doubt and that a court would require a purchaser to accept
An agency relationship created by oral or written agreement between principal and agent

8. Estoppel
Actually lending the $
Preventing a person from making a statement contrary to a previous statement
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
Second mortgage

9. Covenant of quiet enjoyment

10. Executed contract
Title to real property held by two or more persons at the same time; also called concurrent ownership
A new agreement by contracting parties that is satisfied by full performance there by terminating the prior contract as well
An agreement that has been fully performed.
Actually lending the $

11. Construction mortgage
A temporary mortgage used to borrow money to contruct an improvement on land
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
Substitution of a new contract for a prior contract.
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.

12. Statutory redempton
The borrower is granted the right to pay the debt plus accrued interst and costs in full after the foreclosure sale - and thereby recover the property
Personal property
Investigates alleged discrimination and secures the equal protection of civil rights.
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.

13. Feudal system
Land was owned or controlled by the King
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.
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
One who receives title to real property by deed

14. Time is of the essence
One in which two more parcels of real property are pledged to secure payment of the note
E.g. very accurate desc or property)
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 phrase inserted into a contract declaring that each deadline in a contract must be met as it occurs

15. Emblements
An agreement that has been fully performed.
A life estate based on the life of another
An accounting of the funds received and disbursed in a real estate transaction.
Personal property growing in the soil - requiring planting and cultivation; annual crops.

16. Grantee
Another term for escrow account
One who receives title to real property by deed
Title to real property held by two or more persons at the same time; also called concurrent ownership
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.

17. Assignor
A leasehold estate of definite duration
The person transferring contractual rights to another
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms
The introductory information on a deed

18. FHA-insured loans
A mortgage loan in which payments are insured by the Federal Housing Administration
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 law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status
The amount of money actually lost - which will be awarded by a court in case of a breached contract

19. Breach of contract
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
The introductory information on a deed
A broker/salesperson's representing both buyer and seller in the same transaction (Mention at each of the first meetings with buyer and seller)

20. Vackage mortgage
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.
Successive conveyances of title to a specific parcel of land.
An accurate legal description of land
One in which personal property as well as real property s pledged to secure payment of the note.

21. Specific performance
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.
An error of material fact by both parties
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

22. Location
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
A federal law that prohibits all discrimination on the basis of race.
A man/woman appointed in a will to see that the terms of the will are carried out

23. Mortgage broker
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract
The distribution of property to legally qualified heirs of one who has died intestate
One who arranges a mortgage loan betwen a lender and a borrower for a fee.
Purchaser

24. Vrepayment penalty
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
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 major source of funds for financing residential real estate.
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.

25. Bequest
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 policy insuring an owner of real property against financial loss resulting from a title defect.
A gift of personal property by will.
Execution of a contract by vrtue of all parties having fully performed all terms

26. Compensatory damages
Anything of value - as recognized by law - offered as an inducement to contract.
A leasehold estate of definite duration
Execution of a contract by vrtue of all parties having fully performed all terms
The amount of money actually lost - which will be awarded by a court in case of a breached contract

27. Formal assumption
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
Permission to assume the mortgage at an interest rate prevailing at the time of assumption
A percentage of the loan amount the lender requires for making a mortgage loan
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.

28. underwriting

29. National Association of Realtors
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 amount of money (usually the loan amount) on which interest is either paid or recieved.
The largest and most prominent trade organization of real estate licensees.
A man/woman who has died and left a valid will

30. Michigan usury laws
A deed denoting an unlimited guarantee of title
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
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
A written instrument transferring an interest in real property when delivered to the grantee.

31. Acceptance
Voluntary expression by the person receiving the offer to be bound by the exact terms of the offer; must be unequivocal and unconditional
Mutual agreement between the parties to a contract; meeting of the minds; to exist and be free of duress - fraud - undue influence - and misrepresentation.
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
When the loan payment amount is not sufficient to cover interest due - the shortfall added back into principal - causing principal to grow larger after payment is made

32. Disintermediation

33. Purchase Money Mortgage
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
The market in which lenders sell mortgages
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.
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

34. Contract for deed
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 insurance coverage required in high loan-to-value ratio conventional loans to protect the lender in case the borrower defaults in loan payment.
A husband's interest in the real property of his wife
A man/woman appointed in a will to see that the terms of the will are carried out

35. Unenforceable contract
One that appears to meet the requirements for validity but would not be enforceable in court.
When a subsequent contract covering the same subject matter is drafted (with changes)
An estimate of value of a particular property - at a particular time for a specified purpose.
The vendor cannot do anything to jeopardize the interest of the vendee.

36. Involuntary alienation
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.
The principal in a real estate transaction
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton
One who conveys title to trustee

37. Executor /executrix
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.
A man/woman appointed in a will to see that the terms of the will are carried out
A claim against a title to real property.
Interest only loan (e. g. - construction loan--you are only paying interest - no principal)

38. Leasehold estate
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
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
Neighborhoods that are made up of similar properties

39. Land use controls
Governmental restrictions on land use
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)
Execution of a contract by vrtue of all parties having fully performed all terms
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

40. Uniform Vendor and Purchaser's Risk Act

41. Estate from year to year
The substitution of the title insurance company in the place of the insured for filing a legal action.
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
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
Describes a buyer who is ready to buy - willing to buy - and financially able to pay the asking price.

42. Acceleration clause
A future interest in a life estate
A federal prohibition on discrimination in the sle - rental - or financing of housing on the basis of race - color - religion - sex - or national origin
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.
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

43. Good faith estimates

44. Jones v. Mayer
Voluntary expression by the person receiving the offer to be bound by the exact terms of the offer; must be unequivocal and unconditional
Pledging property as security for the payment of a debt without giving up possession.
One who conveys title to trustee
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination

45. Constructive notice
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
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.
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
An accounting of the funds received and disbursed in a real estate transaction.

46. Liquidity

47. Competence
A leasehold estate that may be terminated at the desire of either party
The principle stating that when the net profit a property generates is excessive - very strong competition will result
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.
A history of title and the current status of a title based on a atitle examination

48. 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.
The borrower is granted the right to pay the debt plus accrued interst and costs in full after the foreclosure sale - and thereby recover the property
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.
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.

49. Leasehold mortgage
One in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.
The amount of money actually lost - which will be awarded by a court in case of a breached contract
An agreement that is legally binding and enforceable.
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).

50. Seller agency