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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. Loan-to-value ratio

2. Bequest
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
A federal law protecting the rights of individuals with physical or mental impairments
A gift of personal property by will.
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.

3. Interest
An area of land defined by the rectangular survey system of land description (e. g. 6 square miles)
A form of deed with or without covenants of title
(a) Money paid for the use of money. (b) An ownership or right.
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)

4. Familial status
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
One who conveys title to real property by deed
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.
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).

5. Dower

6. Granting clause
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
A life estate based on the life of another
The statement in a deed containing words of conveyance
Written registration of an owner's title in public records to protect against subsequent claimants.

7. Condition concurrent
An organized method of sharing or pooling listings by member brokers. (electronic)
When the parties are to exchange performances at the same time.
Cash sales - New financing
Actually lending the $

8. Statute of Frauds
A law in effect in all states requiring certain contracts to be in writing to be valid.
Money to be paid and received as compensaton for a breach of contract.
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 insurance that protects contract buyer against defects in contract seller's title.

9. Trustor
When the parties are to exchange performances at the same time.
The violations and fines or penalties - which the department and the licensee have agreed upon.
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
One who conveys title to trustee

10. Complete performance
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete
Execution of a contract by vrtue of all parties having fully performed all terms
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.

11. Mortgagee's policy
A form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
Permanence of land--makes it an attractive long term investment

12. Waste
Failing to do preventative maintenance or corrective maintenance.
A written instrument transferring an interest in real property when delivered to the grantee.
(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.
The statement in a deed containing words of conveyance

13. Client
The principal in a real estate transaction
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.
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate
In a closing statement - an expense or money received against a credit

14. Earnest money
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 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.
In a closing statement - money to be recieved or credit given for money or an obligation given.
The statement in a deed containing words of conveyance

15. Real estate
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
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.

16. Land contract
A report - based on a title examination - setting forth the examiner's opinion of the quality of a title to real property.
The instrument that legally establishes a condominium; also called condominium declaration
One who holds title to property for the benefit of another called a beneficiary
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.

17. Owner's policy
A policy insuring an owner of real property against financial loss resulting from a title defect.
A concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
Finds someone to lend the $
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller

18. Immobility
Preventing a person from making a statement contrary to a previous statement
Simultaneous ownership of real property by two or more people
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
Land cannot be relocated

19. Net listing

20. Buyer's contract
Details rights of condominium purchasers in Michigan
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.
A physical or mental impairment that substantially limits one or more of the major life activities of a person
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

21. Estate at sufferance
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.
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
A right of title to land
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

22. Handicap

23. National Association of Realtors
A right of title to land
One insuring a lessee against defects in the lessor's title.
The largest and most prominent trade organization of real estate licensees.
A new agreement by contracting parties that is satisfied by full performance there by terminating the prior contract as well

24. Master deed
Execution of a contract by vrtue of all parties having fully performed all terms
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
Governmental restrictions on land use
The instrument that legally establishes a condominium; also called condominium declaration

25. Dred Scott Decision

26. Seller agency

27. Condition subsequent
A contract whereby a property owner employs a real estate broker to market the property described in the contract. (contract to make a fee)
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 new offer made by an offer or rejecting an offer.
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

28. Cloud on a title
When the parties are to exchange performances at the same time.
A claim against a title to real property.
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
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

29. Consideration
Anything of value - as recognized by law - offered as an inducement to contract.
Land was owned or controlled by the King
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.
Pledging property as security for the payment of a debt without giving up possession.

30. Parol evidence rule
A mortgage loan in which payments are insured by the Federal Housing Administration
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
A concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
A payment for insurance to protect the lender and/or insurer against loss if default occurs.

31. Cooling-off period
A three-day right of rescission for certain loan transactions
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.
Prohibits certain practices in trade or commece and provides for certain remedies.
A deed containing a limited warranty of title

32. Bona fide purchaser
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.
Another term for escrow account
A buyer of property who relies on the records and is unaware of an unrecorded prior document
(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.

33. Rescission
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
Devotion of certain settlement costs between buyer and seller.
A broker/salesperson's representing both buyer and seller in the same transaction (Mention at each of the first meetings with buyer and seller)
Cancellation of a contract when another party is in default

34. Cap
Purchaser
A form of co-ownership that does not include the right of survivorship.
Seller
A threshold after which a realtor keeps all commissions and the broker keeps none

35. Guaranteed Loan Program
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
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.
The attribute of an asset's being readily convertible to cash.

36. Estate from year to year
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
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 major source of funds for financing residential real estate.
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

37. Delivery and acceptance
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
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.
One-forth of a section - containing 160 acres
Permanence of land--makes it an attractive long term investment

38. Assignment
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
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
An accounting of the funds received and disbursed in a real estate transaction.
Transfer of legal rights and obligations by one party to another

39. Grantee
One who receives title to real property by deed
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.
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.
The principle stating that when the net profit a property generates is excessive - very strong competition will result

40. Devisee
The recipient of a gift of real property by will
An accurate legal description of land
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) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.

41. Legality of object
A history of title and the current status of a title based on a atitle examination
A person appointedby an agent to assist in performing some or all of the tasks of the agency
Legal purpose.
Doesn't happen anymore in this climate

42. Michigan Mortgage Brokers - Lenders - Servicers and Licensing Act
An agreement that may be voided by the parties without legal consequences.
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.
An east-west line in the rectangular method of property description
Founded on natural duty and affection. Has no pecuniary value.

43. Michigan Person's with Disabilities CiveI Rights Act

44. Express Contract
Contract where all terms are in writing and understood by both parties.
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
An agent working for an unnamed third party buyer (usually a celebrity)
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

45. Description by reference
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller
Property description that may refer to a map and lot number that has been recorded or ato a prevous deed conveying the saome property
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
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.

46. Recordation

47. Operation of law
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
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.
The outlay of money expecting income or profit or the acquisition of property expecting income or profit

48. Accrued expenses
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
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
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
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

49. Fee simple absolute
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
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.
An inheritable estate in land providing the greatest interest of any form of title
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.

50. Premises clause
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 form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
The introductory information on a deed
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