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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. Adverse possession
One insuring a lessee against defects in the lessor's title.
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
Mandates that the seller complete a disclosure form regarding the condition of the property
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)

2. Compensatory damages
The amount of money actually lost - which will be awarded by a court in case of a breached 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
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract
Acronym denoting that a mortgage payment includes principal - interest - taxes - and insurance.

3. Innocent misrepresentation

4. Right of assignment
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.
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

5. Owner's policy
Personal property
A policy insuring an owner of real property against financial loss resulting from a title defect.
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 protecting the rights of individuals with physical or mental impairments

6. Trustee
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
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)
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
One who holds title to property for the benefit of another called a beneficiary

7. Dred Scott Decision

8. Equitable redemption

9. Estate at sufferance
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
Actually lending the $
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate

10. Bequest
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
A gift of personal property by will.
(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 form of co-ownership limited to husband and wife - with the right of survivorship

11. Offer and acceptance
An inheritable estate in land providing the greatest interest of any form of title
Legal purpose.
Necessary elements for the creation of a contract.
Mutual agreement between the parties to a contract; meeting of the minds; to exist and be free of duress - fraud - undue influence - and misrepresentation.

12. Transaction coordinator
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms
Anything of value - as recognized by law - offered as an inducement to contract.
Transfer of legal rights and obligations by one party to another
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller

13. Right of survivorship

14. Land use controls
Individual - private ownership of land
(a) Money paid for the use of money. (b) An ownership or right.
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
Governmental restrictions on land use

15. Redlining
A written instrument used to pledge a title to real property to secure payment of a promissory note.
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
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee.
Pledging property as security for the payment of a debt without giving up possession.

16. Designated agency
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.)
The statement in a deed beginning with the words "to have and to hold" and describing the estate granted
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).

17. Net listing

18. Customer
The third party in a real estate transaction
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
A hidden structural defect that would not be discovered by an ordinary inspection

19. Vrepayment penalty
Personal property growing in the soil - requiring planting and cultivation; annual crops.
A written instrument used to pledge a title to real property to secure payment of a promissory note.
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
Latin meaning "let the buyer bewar"; applies to "sales talk" and not to statements of material facts.

20. Covenant against encumbrances
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
Pledging property as security for the payment of a debt without giving up possession.
A tax imposed on the conveyance of title to real property by deed
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.

21. Acknowledgment
License law term that describes a type of relationship between a broker and his or her licensees
Make good loans to qualified borrowers ( e. g. Rural Development loans)
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 that is free from reasonable doubt and that a court would require a purchaser to accept

22. Vrepaid expenses
Mandates that the seller complete a disclosure form regarding the condition of the property
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
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
A percentage of the loan amount the lender requires for making a mortgage loan

23. Void contract
An agreement that has no legal force or effect.
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
(a) An economic characteristic of real property. (b) In appraisal - supply of property in relation to effective demand
A deed denoting an unlimited guarantee of title

24. Puffing

25. Leverage

26. Balloon payment
The substitution of the title insurance company in the place of the insured for filing a legal action.
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
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.
Actually lending the $

27. Disclosure of information
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
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.
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 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

28. PITI ppayment
An agreement that is legally binding and enforceable.
Subject to being defeated by the occurrence of a certain event
Describes a buyer who is ready to buy - willing to buy - and financially able to pay the asking price.
Acronym denoting that a mortgage payment includes principal - interest - taxes - and insurance.

29. Deed
Pledging property as security for the payment of a debt without giving up possession.
A written instrument transferring an interest in real property when delivered to the grantee.
Describes a buyer who is ready to buy - willing to buy - and financially able to pay the asking price.
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

30. Equal Credit Opportunity Act (ECOA)
Subject to being defeated by the occurrence of a certain event
Devotion of certain settlement costs between buyer and seller.
A federal law prohibiting discrimination in consumer loans
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)

31. Notary public
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
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
A person authorized by a state to take oaths and acknowledgments
A temporary mortgage used to borrow money to contruct an improvement on land

32. Delivery and acceptance
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
A man/woman appointed in a will to see that the terms of the will are carried out
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee.
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.

33. Severalty
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 promise in ta deed assuring the grantee that the grantor has the title being conveyed.
Cancellation of a contract when another party is in default
Ownership by only one person

34. Contract remedies
Provides that if the lender amends the loan contract and blends the rate for the buyers assuming the loan - the seller still retains liability on the note and the mortgage. It applies to Michigan state-chartered lenders only
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
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.
1. Specific performance - 2. Rescission - 3. Compensatory Damages 4. Liquidated Damages

35. Executory contract
A deed containing a limited warranty of title
An agreement that has not been fully performed.
One that does not impose a prepayment penalty.
A mental or physical disability that impairs any of a person's life functions.

36. Leasehold estate
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee.
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.

37. Board of Real Estate Brokers and Salespersons
The violations and fines or penalties - which the department and the licensee have agreed upon.
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.
The governing board for real estate licenses in MI

38. Heterogeneity
No two parcels of land are identical
The inability of a party to exercise his or her free will because of fear of another party.
Land and everything permanently attached to land
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.

39. Vrivate mortgage insurance (PMI)
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 distribution of property to legally qualified heirs of one who has died intestate
A deed containing a limited warranty of title
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.

40. Vartial release clause
Assures the absence of hazardous materials or problems relating to regulations of the EPA.
Permission to assume the mortgage at an interest rate prevailing at the time of assumption
The power of government to regulate the use of real property for the benefit of the public
Allows certain parcels of property to be removed from the mortgage lien if the loan balance is reduced a specified amount

41. Verc test
A leasehold estate of definite duration
An east-west line in the rectangular method of property description
A test of soil to determine if it is sufficiently porous for installation of a septic tank.
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.

42. Michigan Person's with Disabilities CiveI Rights Act

43. Chattel
The inability of a party to exercise his or her free will because of fear of another party.
A threshold after which a realtor keeps all commissions and the broker keeps none
An agreement that is legally binding and enforceable.
Personal property

44. Trade fixtures
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
The right of an owner to recieve the title to an co-owner's share upon death of the co-owner - as in the case of joint tenancy and tenancy by the entirety.
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.
Item that is installed by a comercial tenant and is removable upon termination of the tenancy

45. Syndication
The statement in a deed containing words of conveyance
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
One that is free from reasonable doubt and that a court would require a purchaser to accept
In a closing statement - money to be recieved or credit given for money or an obligation given.

46. Unenforceable contract
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.
One that appears to meet the requirements for validity but would not be enforceable in court.
Consummation of a real estate contract; also called closing.

47. Co-ownership
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete
Title to real property held by two or more persons at the same time; also called concurrent ownership
The right of an owner to recieve the title to an co-owner's share upon death of the co-owner - as in the case of joint tenancy and tenancy by the entirety.

48. Police power
Title insurance that protects contract buyer against defects in contract seller's title.
The power of government to regulate the use of real property for the benefit of the public
An agreement that has not been fully performed.
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic

49. Vendee
Purchaser
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 federal law protecting the rights of individuals with physical or mental impairments
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.

50. Michigan Uniform Securities Act
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
Agent that has complete authority over any activity of principal; for example - power of attorney
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
The amount of money actually lost - which will be awarded by a court in case of a breached contract