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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. Michigan Uniform Securities Act
A form of organization that makes and services mortgage loans.
Personal property that has become real property by having been permanently attached to real property
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
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security

2. Mortgage bankers
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
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
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate
A form of organization that makes and services mortgage loans.

3. Quitclaim 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.
A temporary mortgage used to borrow money to contruct an improvement on land
A promise in a deed (or lese) that the grantee (or lessee) will not be distrubed in his or her use of the property because of a defect in the grantor's (or lessor's) title
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

4. Land contract
One who conveys title to trustee
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.
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
All property that is not land and is not permanently attached to land; everything that is movable; chattel.

5. Novation
Substitution of a new contract for a prior contract.
One-forth of a section - containing 160 acres
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.
A percentage of the loan amount the lender requires for making a mortgage loan

6. Trustee
One who holds title to property for the benefit of another called a beneficiary
Another term for escrow account
One who arranges a mortgage loan betwen a lender and a borrower for a fee.
One who conveys title to real property by deed

7. Vackage mortgage
One in which personal property as well as real property s pledged to secure payment of the note.
Investigates alleged discrimination and secures the equal protection of civil rights.
A leasehold estate of definite duration
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.

8. Subagent
A written instrument used to pledge a title to real property to secure payment of a promissory note.
A federal law protecting the rights of individuals with physical or mental impairments
A person appointedby an agent to assist in performing some or all of the tasks of the agency
License law term that describes a type of relationship between a broker and his or her licensees

9. Interest
(a) Money paid for the use of money. (b) An ownership or right.
When the parties are to exchange performances at the same time.
The largest and most prominent trade organization of real estate licensees.
A temporary mortgage used to borrow money to contruct an improvement on land

10. Receiver
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
One who takes over management of a property until the foreclosure process is complete
One in which the lender shares in the appreciation in property value in return for making the loan at a fixed rate lower than the rate in effect at the time the loan is made
A federal prohibition of discrimination in sale - rental - financing - or appraisal of housing on the basis of race - color - religion - sex - national origin - handicap - or familial status.

11. Mortgage assumption

12. Commission Paid to Sales Associates

13. Hypothecating
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.
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
Pledging property as security for the payment of a debt without giving up possession.
Savings banks - mutual savings banks - commercial banks

14. Due on sales clause
The use of someone else's money to enhance your own
An agent working for an unnamed third party buyer (usually a celebrity)
A statment in amortgage or deed of trust entitling the lender to declare the entire principal balance of the debt immediately 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

15. Buyer Agency Agreement

16. Notary public
A man/woman who has died and left a valid will
A person authorized by a state to take oaths and acknowledgments
No two parcels of land are identical
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)

17. General agent
A husband's interest in the real property of his wife
One with full authority over one property of the principal - such as a property manager
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.

18. Habendum clause
The U. S. agency that insures mortgage loans to protect lending institutions.
A mortgage loan in which payments are insured by the Federal Housing Administration
The statement in a deed beginning with the words "to have and to hold" and describing the estate granted
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application

19. Free market
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency
Founded on natural duty and affection. Has no pecuniary value.
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
Replaced the 1968 Michigan Fair Housing Act in prohibiting discrimination in the sale - rental - or lease of housing accommodation.

20. Mortgage assumption
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate
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 transfer of mortgage obligations to purchaser of the mortgaged property.

21. Homogeneity
The principle stating that when the net profit a property generates is excessive - very strong competition will result
Neighborhoods that are made up of similar properties
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) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract

22. Independent contractor

23. Immobility
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.
Seller
Land cannot be relocated
A form of organization that makes and services mortgage loans.

24. Seller agency

25. Brokerage
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
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.
A federal law protecting the rights of individuals with physical or mental impairments
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate

26. Severalty
Ownership by only one person
An agreement that may be voided by the parties without legal consequences.
The person transferring contractual rights to another
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

27. Testimonium clause

28. Listing contract
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
Founded on natural duty and affection. Has no pecuniary value.
The principal in a real estate transaction

29. Pur autre vie
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
A life estate based on the life of another
A federal prohibition of discrimination in sale - rental - financing - or appraisal of housing on the basis of race - color - religion - sex - national origin - handicap - or familial status.
A man/woman appointed in a will to see that the terms of the will are carried out

30. Guaranteed Loan Program
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
A physical or mental impairment that substantially limits one or more of the major life activities of a person
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.
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan

31. Voidable contract
An agreement that may be voided by the parties without legal consequences.
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.
Land was owned or controlled by the King

32. Highest and best use
When the parties are to exchange performances at the same time.
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land
Doesn't happen anymore in this climate

33. Duty of disclosure
A buyer of property who relies on the records and is unaware of an unrecorded prior document
Voluntary expression by the person receiving the offer to be bound by the exact terms of the offer; must be unequivocal and unconditional
Make good loans to qualified borrowers ( e. g. Rural Development loans)
A responsibility for revealing all information that affects the agency agreement

34. Mortgagee's policy
A property map - recorded on the public record in plat books
A federal law regulating activities of lending institutions in making mortgage loans for housing.
North-south line in the rectangular method of property description.
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.

35. Blanket mortgage
Finds someone to lend the $
A new offer made by an offer or rejecting an offer.
In a closing statement - money to be recieved or credit given for money or an obligation given.
One in which two more parcels of real property are pledged to secure payment of the note

36. Defeasible
Personal property
The power of government to regulate the use of real property for the benefit of the public
A report usually provided by a local municipality health department to determine the potability of water and to ascertain that the septic system is running free
Subject to being defeated by the occurrence of a certain event

37. Estate in real property
(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 temporary mortgage used to borrow money to contruct an improvement on land
The statement in a deed containing words of conveyance
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership

38. Savings Banks (S&L's)
A major source of funds for financing residential real estate.
Details rights of condominium purchasers in Michigan
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
The inability of a party to exercise his or her free will because of fear of another party.

39. Assignor
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
A leasehold estate that may be terminated at the desire of either party
The person transferring contractual rights to another

40. Margin
Measure of profit
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 form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
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.

41. Balloon payment
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.
The introductory information on a deed
Personal property
An implied agency without an agency agreement

42. Master deed
Financinig charge required by the lender
The instrument that legally establishes a condominium; also called condominium declaration
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)
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated

43. Description by reference
A leasehold estate that may be terminated at the desire of either party
Property description that may refer to a map and lot number that has been recorded or ato a prevous deed conveying the saome property
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
The amount of money actually lost - which will be awarded by a court in case of a breached contract

44. REITs
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).
One who holds title to property for the benefit of another called a beneficiary
Real Estate Investment Trusts (the what mutual funds are to stocks REITs are to mortgages - sort of)
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

45. Debits
In a closing statement - an expense or money received against a credit
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.
One to whom contractual rights are transferred
A commission not based on a percentage of the selling price.

46. 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.)
One holding a life estate
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
A statment in amortgage or deed of trust entitling the lender to declare the entire principal balance of the debt immediately due and payable if the borrower sells the property during the mortgage term. Also known as due on sale clause.

47. Right of first refusal clause
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 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.
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
Permanent financing arranged to replace a shor-term construction loan.

48. Plat
A history of title and the current status of a title based on a atitle examination
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.
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
A property map - recorded on the public record in plat books

49. Ready willing and able
Describes a buyer who is ready to buy - willing to buy - and financially able to pay the asking price.
Title to real property held by two or more persons at the same time; also called concurrent ownership
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 market in which lenders sell mortgages

50. Shared appreciation mortgage (SAM)
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
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).
One in which the lender shares in the appreciation in property value in return for making the loan at a fixed rate lower than the rate in effect at the time the loan is made
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