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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. Rectangular survey system
A type of land descripton utilizing townships and sections
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
A threshold after which a realtor keeps all commissions and the broker keeps none
Land and everything permanently attached to land

2. Marketable (merchantable) title
One that is free from reasonable doubt and that a court would require a purchaser to accept
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 mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate

3. Poluntary alienation
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
E.g. Put on market - sell - done)
A property map - recorded on the public record in plat books
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic

4. Real property
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.
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
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.
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate

5. Free market
Actually lending the $
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) 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.
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

6. Valuable consideration
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.
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
Anything of value agreed upon by parties to a contract. Includes a promise.
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.

7. Testimonium clause

8. Margin
A report - based on a title examination - setting forth the examiner's opinion of the quality of a title to real property.
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
A fee paid by a realtor to a brokerage out of the area for a buyer listing
Measure of profit

9. Estate at will
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.
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.
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 leasehold estate that may be terminated at the desire of either party

10. Adjustable rate mortgage (ARM)
A form of co-ownership lmited to husband and wife; does not include the right of survivorship
An individual's being led to believe by a broker/salesperson's actions and representations that the broker/salesperson is representing (is an agent for) the individual
Personal property
One in which the interest rate changes according to changes in a predetermined index.

11. Client
One that may be refinanced without rewriting the mortgage.
An agency relationship created by oral or written agreement between principal and agent
The principal in a real estate transaction
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract

12. PITI ppayment
An agreement that may be voided by the parties without legal consequences.
Acronym denoting that a mortgage payment includes principal - interest - taxes - and insurance.
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 form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.

13. Duress
One that appears to meet the requirements for validity but would not be enforceable in court.
Contract where all terms are in writing and understood by both parties.
The inability of a party to exercise his or her free will because of fear of another party.
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.

14. Real Estate Settlement Procedures Act (RESPA)
Details rights of condominium purchasers in Michigan
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
(a) Money paid for the use of money. (b) An ownership or right.
A federal law regulating activities of lending institutions in making mortgage loans for housing.

15. General warranty deed
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
An agreement that has no legal force or effect.
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated
A deed denoting an unlimited guarantee of title

16. Subagent
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
A man/woman appointed in a will to see that the terms of the will are carried out
The introductory information on a deed
A person appointedby an agent to assist in performing some or all of the tasks of the agency

17. Annual percentage rate (APR)
The amount of money (usually the loan amount) on which interest is either paid or recieved.
Actually lending the $
The vendor cannot do anything to jeopardize the interest of the vendee.
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate

18. Cooling-off period
A three-day right of rescission for certain loan transactions
Investigates alleged discrimination and secures the equal protection of civil rights.
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
A husband's interest in the real property of his wife

19. Leasehold policy

20. Accord and satisfaction
A new agreement by contracting parties that is satisfied by full performance there by terminating the prior contract as well
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.
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
A form of co-ownership that includes the right of survivorship

21. Life tenant
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.
Personal property growing in the soil - requiring planting and cultivation; annual crops.
One holding a life estate

22. Statutory redempton
A law in effect in all states requiring certain contracts to be in writing to be valid.
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
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
Personal property

23. Good consideration
Founded on natural duty and affection. Has no pecuniary value.
A man/woman appointed in a will to see that the terms of the will are carried out
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land
A leasehold estate that may be terminated at the desire of either party

24. Condition concurrent
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
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.
When the parties are to exchange performances at the same time.

25. Latent defect
A hidden structural defect that would not be discovered by an ordinary inspection
An individual's being led to believe by a broker/salesperson's actions and representations that the broker/salesperson is representing (is an agent for) the individual
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.
Neighborhoods that are made up of similar properties

26. Deed in lieu of foreclosure
One who holds title to property for the benefit of another called a beneficiary
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
An agreement that has not been fully performed.
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure

27. Land use controls
The person transferring contractual rights to another
Governmental restrictions on land use
An accounting of the funds received and disbursed in a real estate transaction.
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines

28. Covenant of quiet enjoyment

29. Assignor
One holding a life estate
The person transferring contractual rights to another
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.
One-forth of a section - containing 160 acres

30. Reversion
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
One insuring a lessee against defects in the lessor's title.
A law in effect in all states requiring certain contracts to be in writing to be valid.
Cancellation of a contract when another party is in default

31. Personal representative
A deed denoting an unlimited guarantee of title
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate
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
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.

32. Retainer
A future interest in a life estate
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
A fee paid to an agent in advance for representation instead of commission; usually if commission exceeds retainer - a refund would be issued.
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination

33. vendor's affidavit
A claim against a title to real property.
A federal law prohibiting discrimination in consumer loans
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.
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee.

34. Quarter-section
Transfer of title to real property
One-forth of a section - containing 160 acres
Second mortgage
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.

35. Executed contract
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.
An agreement that has been fully performed.
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton
A form of organization that makes and services mortgage loans.

36. Carryover provision

37. Acceptance
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.
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.
Voluntary expression by the person receiving the offer to be bound by the exact terms of the offer; must be unequivocal and unconditional
Successive conveyances of title to a specific parcel of land.

38. Seller agency

39. Mortgagee
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.
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
Mandates that the seller complete a disclosure form regarding the condition of the 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

40. Disclosure of information
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
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.
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.

41. Term mortgage
Substitution of a new contract for a prior contract.
A responsibility for revealing all information that affects the agency agreement
A form of co-ownership that does not include the right of survivorship.
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.

42. Michigan Condominium Act
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.
In a closing statement - money to be recieved or credit given for money or an obligation given.
Details rights of condominium purchasers in Michigan
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.

43. Legality of object
A man/woman who has died and left a valid will
A form of co-ownership limited to husband and wife - with the right of survivorship
Legal purpose.
Contract where all terms are in writing and understood by both parties.

44. Condominium
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
The introductory information on a deed
When a subsequent contract covering the same subject matter is drafted (with changes)
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.

45. Stipulation
A new offer made by an offer or rejecting an offer.
The violations and fines or penalties - which the department and the licensee have agreed upon.
One in which the federal government does not insure or guarantee payment to the lender.
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.

46. Michigan Consumer Protection Act
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)
An agreement that has been fully performed.
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.
Prohibits certain practices in trade or commece and provides for certain remedies.

47. Equitable redemption

48. Fannie Mae (FNMA)
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
The shortened name for the Federal National Mortgage Association (FNMA) - a privately owned corporation that purchases FHA - VA - and conventional mortgages
The act of reviewing loan documentation and evaluating borrower's ability and willingness to repay the loan and sufficiency of collateral value of the property.
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

49. Promissory note
Purchaser
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
Evidence that a valid debt exists
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

50. Nonjudicial foreclosure
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
(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 beginning with the words "to have and to hold" and describing the estate granted