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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. Estate at sufferance
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
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

2. Reality of consent
The third party in a real estate transaction
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 amount of the brokerage's commission that goes to the realtor
Mutual agreement between the parties to a contract; meeting of the minds; to exist and be free of duress - fraud - undue influence - and misrepresentation.

3. Separate property
The largest and most prominent trade organization of real estate licensees.
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.
Any property acquuired by one spouse during marriage by gift or inheritance or purchased with the separate funds of a husband or wife.
An accounting of the funds received and disbursed in a real estate transaction.

4. Devise
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
A gift of real property by will
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee.

5. Mortgagor
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.
A person authorized by a state to take oaths and acknowledgments
MI law stating that if the property is being destroyed - is partially destroyed - or is being taken by eminent domain - the buyer may - at the buyer's option - declare the transaction null and void.
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated

6. Promulgate
A document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.
To put in effect by public announcement; to put into operation
Title to real property held by two or more persons at the same time; also called concurrent ownership
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.

7. Junior mortgage
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
A buyer of property who relies on the records and is unaware of an unrecorded prior document
A person (or persons) employed by a fair housing organization to pose as a buyer or seller or renter of real estate to determine if the licensee or landlord is acting in compliance with the law.
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)

8. Chain of title
The fiduciary relationship between a principal and an agent (in the form of a piece of paper that says who's acting on behalf of whom. e. g. buyer's agent - seller's agent - dual agent - etc.)
Successive conveyances of title to a specific parcel of land.
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
Ownership by only one person

9. Straw Dog
An agent working for an unnamed third party buyer (usually a celebrity)
A concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
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.
Contract where all terms are in writing and understood by both parties.

10. Mortgage banks
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Actually lending the $
The vendor cannot do anything to jeopardize the interest of the vendee.

11. Sub agent
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.
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.
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
Doesn't happen anymore in this climate

12. Designated agency
The market in which lenders sell mortgages
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.)
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
A property map - recorded on the public record in plat books

13. Duty of disclosure
Details rights of condominium purchasers in Michigan
The instrument that legally establishes a condominium; also called condominium declaration
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.
A responsibility for revealing all information that affects the agency agreement

14. Mortgage
A man/woman who has died and left a valid will
The person transferring contractual rights to another
A written instrument used to pledge a title to real property to secure payment of a promissory note.
Execution of a contract by vrtue of all parties having fully performed all terms

15. Remainder
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.
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 future interest in a life estate
An organized method of sharing or pooling listings by member brokers. (electronic)

16. Covenant against encumbrances
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
A combination of the graduated payment mortgage and the variable rate mortgage
An agreement that has no legal force or effect.

17. Subagent
Personal property that has become real property by having been permanently attached to real property
A person appointedby an agent to assist in performing some or all of the tasks of the agency
A future interest in a life estate
One in which two more parcels of real property are pledged to secure payment of the note

18. Valid contract
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)
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 is legally binding and enforceable.
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.

19. Commission
Paid to Cooperating Brokers Usually 50%/50%
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
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

20. Fannie Mae (FNMA)
A policy insuring an owner of real property against financial loss resulting from a title defect.
The shortened name for the Federal National Mortgage Association (FNMA) - a privately owned corporation that purchases FHA - VA - and conventional mortgages
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
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

21. Equitable redemption

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22. Option
A contract whereby a property owner (optioner) sells a right to purchase his or her property to a prospective buyer (optionee).
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
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
Agreement of the parties; full performance; iimpossibility of performance; operation of law (judge's ruling)

23. Arrears
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.
One insuring a lessee against defects in the lessor's title.
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
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

24. Co-ownership
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.
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Title to real property held by two or more persons at the same time; also called concurrent ownership
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.

25. Concurrent ownership
Simultaneous ownership of real property by two or more people
E.g. Put on market - sell - done)
Financinig charge required by the lender
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

26. Vendor
Seller
One who conveys title to real property by deed
Substitution of a new contract for a prior contract.
A property map - recorded on the public record in plat books

27. Graduated payment adjustable mortgage
Individual - private ownership of land
The fiduciary relationship between a principal and an agent (in the form of a piece of paper that says who's acting on behalf of whom. e. g. buyer's agent - seller's agent - dual agent - etc.)
The inability of a party to exercise his or her free will because of fear of another party.
A combination of the graduated payment mortgage and the variable rate mortgage

28. Poluntary alienation
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.
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
E.g. Put on market - sell - done)
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.

29. Real property
A test of soil to determine if it is sufficiently porous for installation of a septic tank.
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
Personal property growing in the soil - requiring planting and cultivation; annual crops.
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate

30. Life estate
A tax imposed on the conveyance of title to real property by deed
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
North-south line in the rectangular method of property description.

31. Testator/testatrix
A document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.
A man/woman who has died and left a valid will
Transfer of legal rights and obligations by one party to another
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence

32. Confidentiality
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership
The duty of agents not to disclose any information about their clients.
An accounting of the funds received and disbursed in a real estate transaction.
Mandates that the seller complete a disclosure form regarding the condition of the property

33. Debits
In a closing statement - an expense or money received against a credit
One holding a life estate
A document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.

34. Accord and satisfaction
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.
Real Estate Investment Trusts (the what mutual funds are to stocks REITs are to mortgages - sort of)
One in which the federal government does not insure or guarantee payment to the lender.
A new agreement by contracting parties that is satisfied by full performance there by terminating the prior contract as well

35. PITI ppayment
The statement in a deed containing words of conveyance
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Acronym denoting that a mortgage payment includes principal - interest - taxes - and insurance.
Personal property that has become real property by having been permanently attached to real property

36. Foreclosure
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
The governing board for real estate licenses in MI

37. Mutual mistake
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
An error of material fact by both parties
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
Contract where all terms are in writing and understood by both parties.

38. Doctrine of Equitable Conversion
Cancellation of a contract when another party is in default
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 commission not based on a percentage of the selling price.
The vendor cannot do anything to jeopardize the interest of the vendee.

39. Grantee
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate
One who receives title to real property by deed
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

40. Condition
A policy insuring an owner of real property against financial loss resulting from a title defect.
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
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
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.

41. Timesharing
Financinig charge required by the lender
Title to real property held by two or more persons at the same time; also called concurrent ownership
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
A form of ownership in which the purchsaser owns the property for a certain specified time interval.

42. Defeasible
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
Subject to being defeated by the occurrence of a certain event
Paid to Cooperating Brokers Usually 50%/50%

43. Disability
Paid to Cooperating Brokers Usually 50%/50%
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
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
A physical or mental impairment that substantially limits one or more of the major life activities of a person

44. Liquidity

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45. Mortgage insurance premium (MIP)
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
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms
A payment for insurance to protect the lender and/or insurer against loss if default occurs.

46. Soil test
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.
A tax imposed on the conveyance of title to real property by deed
Assures the absence of hazardous materials or problems relating to regulations of the EPA.
An inheritable estate in land providing the greatest interest of any form of title

47. 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 mortgage loan in which payments are insured by the Federal Housing Administration
E.g. Put on market - sell - done)
Personal property that has become real property by having been permanently attached to real property

48. Land contract
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
A three-day right of rescission for certain loan transactions
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.
The borrower's right to redeem the title pledged or conveyed in a mortgage or deed of trust after default and prior to a foreclosure sale by paying the debt in full - accrued interest - and lender's costs.

49. Michigan Person's with Disabilities CiveI Rights Act

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50. Seller's disclosure statement
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.
(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.
One that imposes a prepayment penalty.
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.