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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. Vackage mortgage
Individual - private ownership of land
An accounting of all financial aspects of a mortgage loan required of lenders to borrowers in residential mortgage loans by Regulation Z of the Federal Reserve Board.
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
One in which personal property as well as real property s pledged to secure payment of the note.

2. Construction mortgage
Finds someone to lend the $
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
Assures the absence of hazardous materials or problems relating to regulations of the EPA.
A temporary mortgage used to borrow money to contruct an improvement on land

3. Multiple listing service (MLS)
An organized method of sharing or pooling listings by member brokers. (electronic)
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
The power of government to regulate the use of real property for the benefit of the public
(a) In the law of agency - one who appoints an agent to represent him or her. (b) Amount of money on which interest is paid or received

4. Executor /executrix
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 man/woman appointed in a will to see that the terms of the will are carried out
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.
The introductory information on a deed

5. Express agency
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 form of co-ownership limited to husband and wife - with the right of survivorship
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.
An agency relationship created by oral or written agreement between principal and agent

6. Commission Paid to Sales Associates

7. Employ
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.
A new offer made by an offer or rejecting an offer.
License law term that describes a type of relationship between a broker and his or her licensees
The instrument that legally establishes a condominium; also called condominium declaration

8. Sherriff's deed
A deed issued to the buyer of property that was sold under court order to pay off a debt.
Failing to do preventative maintenance or corrective maintenance.
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
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

9. Chain of title
A federal law protecting the rights of individuals with physical or mental impairments
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
Successive conveyances of title to a specific parcel of land.
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.

10. Assignor
The person transferring contractual rights to another
An area of land defined by the rectangular survey system of land description (e. g. 6 square miles)
A form of co-ownership limited to husband and wife - with the right of survivorship
Preventing a person from making a statement contrary to a previous statement

11. Bill of sale
The violations and fines or penalties - which the department and the licensee have agreed upon.
A federal law that prohibits all discrimination on the basis of race.
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
An instrument transferring ownership of personal property.

12. Metes and bounds
E.g. very accurate desc or property)
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.

13. Declaration
(a) Money paid for the use of money. (b) An ownership or right.
The duty of agents not to disclose any information about their clients.
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 form of ownership in which the purchsaser owns the property for a certain specified time interval.

14. Accidental agency

15. Puffing

16. General agent
One with full authority over one property of the principal - such as a property manager
Preventing a person from making a statement contrary to a previous statement
A history of title and the current status of a title based on a atitle examination
A gift of real property by will

17. Description by reference
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.
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
Property description that may refer to a map and lot number that has been recorded or ato a prevous deed conveying the saome property
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

18. Legality of object
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
An intentional false statement of a material fact.
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
Legal purpose.

19. Mortgage insurance premium (MIP)
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
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.
Anything of value agreed upon by parties to a contract. Includes a promise.
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

20. Negligent misrepresentation

21. Equitable redemption

22. Severalty
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
License law term that describes a type of relationship between a broker and his or her licensees
Ownership by only one person
In a closing statement - money to be recieved or credit given for money or an obligation given.

23. Duress
One who conveys title to trustee
The inability of a party to exercise his or her free will because of fear of another party.
A mortgage loan in which payments are insured by the Federal Housing Administration
A person authorized by a state to take oaths and acknowledgments

24. Contract
Neighborhoods that are made up of similar properties
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.
A federal law prohibiting discrimination in consumer loans
Anything of value agreed upon by parties to a contract. Includes a promise.

25. Seller agency

26. Right of survivorship

27. Michigan Civil Rights Commission
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.
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
Investigates alleged discrimination and secures the equal protection of civil rights.
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.

28. Promulgate
To put in effect by public announcement; to put into operation
To pass to another (as in title)
Consummation of a real estate contract; also called closing.
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.

29. Dual agency

30. Disclosure of information
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 new offer made by an offer or rejecting an offer.
Personal property that has become real property by having been permanently attached to real property
An organized method of sharing or pooling listings by member brokers. (electronic)

31. 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.
The condition of death without leaving a valid will.
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
Measure of profit

32. Trustee
Subject to being defeated by the occurrence of a certain event
One who holds title to property for the benefit of another called a beneficiary
To perfect the claim and obtain a title to the property - the claimant must satisfy the court that he or she has fulfilled the requirements of the adverse possession statute of Michigan
A leasehold estate of definite duration

33. Real property
Purchaser
When the parties are to exchange performances at the same time.
A tax imposed on the conveyance of title to real property by deed
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate

34. Supply and demand
An agent working for an unnamed third party buyer (usually a celebrity)
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.
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
A future interest in a life estate

35. Habendum clause
The distribution of property to legally qualified heirs of one who has died intestate
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton
The statement in a deed beginning with the words "to have and to hold" and describing the estate granted
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).

36. Plat
A property map - recorded on the public record in plat books
Nonfreehold estate; of limited duration - providing the right of possession and control but not 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.)
Actually lending the $

37. Acceptance
Voluntary expression by the person receiving the offer to be bound by the exact terms of the offer; must be unequivocal and unconditional
Transfer of legal rights and obligations by one party to another
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton

38. Heterogeneity
No two parcels of land are identical
One in which uniform installment payments include payment of both principle and interest.
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
Title to real property held by two or more persons at the same time; also called concurrent ownership

39. Truth-in-Lending Simplification and Reform Act (TILSRA)
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
Requirements issued by the Federal Reserve Board iin implementing the Truth-in-Lending Law - which is a part of the Federal Consumer Credit Protection Act
The duty of agents not to disclose any information about their clients.
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.

40. Prepayment penalty
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.
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
A fee paid to an agent in advance for representation instead of commission; usually if commission exceeds retainer - a refund would be issued.
A written instrument used to pledge a title to real property to secure payment of a promissory note.

41. Allodial system
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.
No two parcels of land are identical
Individual - private ownership of land
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.

42. Covenant against encumbrances
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
A type of land descripton utilizing townships and sections
A person authorized by a state to take oaths and acknowledgments
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.

43. Free market
A fee paid to an agent in advance for representation instead of commission; usually if commission exceeds retainer - a refund would be issued.
A husband's interest in the real property of his wife
Savings banks - mutual savings banks - commercial banks
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

44. Designated agency
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.
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 shortened name for the Federal National Mortgage Association (FNMA) - a privately owned corporation that purchases FHA - VA - and conventional mortgages
One that is free from reasonable doubt and that a court would require a purchaser to accept

45. Operation of law
A document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.
Personal property growing in the soil - requiring planting and cultivation; annual crops.
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).

46. Leasehold mortgage
(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 imposes a prepayment penalty.
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
One in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.

47. Subrogation of rights
A relationship that meets the following criteria: (1) the broker and licensee must have a written agreement stating that the licensee is not an employee for federal and state or income tax purposes - and (2) not less than 75 percent of the licensse's
The substitution of the title insurance company in the place of the insured for filing a legal action.
A law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status
Agency that exists as a result of actions of the parties

48. Valid contract
Land and everything permanently attached to land
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.
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.
An agreement that is legally binding and enforceable.

49. Involuntary alienation
A property map - recorded on the public record in plat books
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton
(a) Money paid for the use of money. (b) An ownership or right.
The substitution of the title insurance company in the place of the insured for filing a legal action.

50. Location
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
Mandates that the seller complete a disclosure form regarding the condition of the property
Doesn't happen anymore in this climate
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic