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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. Rural Housing Service (RHS) Direct Loan Program
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
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.
License law term that describes a type of relationship between a broker and his or her licensees
The recipient of a gift of real property by will

2. Condition subsequent
Any fact - the existence or occurrence of which - by agreement of the parties - operates to discharge a duty of performance after it has become absolute. (making mortgage payments)
Cash sales - New financing
A form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.
Permission to assume the mortgage at an interest rate prevailing at the time of assumption

3. Contract buyer's policy

4. Mortgagee
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.
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
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 lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).

5. Freddie Mac (FHLMC)
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.
Seller
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.
One who conveys title to trustee

6. Fannie Mae (FNMA)
Permission to assume the mortgage at an interest rate prevailing at the time of assumption
A claim against a title to real property.
A federal law that prohibits all discrimination on the basis of race.
The shortened name for the Federal National Mortgage Association (FNMA) - a privately owned corporation that purchases FHA - VA - and conventional mortgages

7. Grantor
One who conveys title to real property by deed
The recipient of a gift of real property by will
An area of land defined by the rectangular survey system of land description (e. g. 6 square miles)
An agreement wherein there is a promise in return for a specific action - which together supply the consideration (A deal entered into by both parties after one party has fulfilled a promise. e. g. an option)

8. Counter-offer
The principle stating that when the net profit a property generates is excessive - very strong competition will result
Cash sales - New financing
A new offer made by an offer or rejecting an offer.
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

9. Principal
The amount of money (usually the loan amount) on which interest is either paid or recieved.
(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
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
An agreement that may be voided by the parties without legal consequences.

10. Realty
Land and everything permanently attached to land
An exaggeration of a property's benefits.
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.
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.

11. Undue influence
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
A life estate based on the life of another
Details rights of condominium purchasers in Michigan
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.

12. Seller agency

13. Fixture
Personal property that has become real property by having been permanently attached to real property
A form of co-ownership lmited to husband and wife; does not include the right of survivorship
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.
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.

14. Conditional sales contract
Written registration of an owner's title in public records to protect against subsequent claimants.
One who holds title to property for the benefit of another called a beneficiary
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.
License law term that describes a type of relationship between a broker and his or her licensees

15. Amortizing loan
A gift of personal property by will.
One in which uniform installment payments include payment of both principle and interest.
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
A person - such as an agent - placed in a position of trusted in relation to the person for whose benefit the relationship is created; essentially the same as a trustee

16. Right of survivorship

17. Mortgagor
Successive conveyances of title to a specific parcel of land.
Occurs when a seller's broker conceals a defect in the property from the buyer or misrepresents the existence of a defect
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.
One in which two more parcels of real property are pledged to secure payment of the note

18. Receiver
One insuring a lessee against defects in the lessor's title.
Anything of value agreed upon by parties to a contract. Includes a promise.
One who takes over management of a property until the foreclosure process is complete
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton

19. Title examination
A husband's interest in the real property of his wife
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application
A search of the public record to determne the quality of a title to real property

20. Credit
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
In a closing statement - money to be recieved or credit given for money or an obligation given.
Governmental restrictions on land use
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.

21. Owner's policy
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)
Land cannot be relocated
License law term that describes a type of relationship between a broker and his or her licensees
A policy insuring an owner of real property against financial loss resulting from a title defect.

22. Premises clause
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
The introductory information on a deed
A report - based on a title examination - setting forth the examiner's opinion of the quality of a title to real property.
An agent working for an unnamed third party buyer (usually a celebrity)

23. Emblements
Personal property growing in the soil - requiring planting and cultivation; annual crops.
(a) An economic characteristic of real property. (b) In appraisal - supply of property in relation to effective demand
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
The duty of agents not to disclose any information about their clients.

24. Fiduciary
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 promise in a deed that the grantor will guarantee and defend the title against lawful claimants.
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)
A person - such as an agent - placed in a position of trusted in relation to the person for whose benefit the relationship is created; essentially the same as a trustee

25. Valuable consideration
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
Anything of value agreed upon by parties to a contract. Includes a promise.
Financinig charge required by the lender
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate

26. Subrogation of rights
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
Title to real property held by two or more persons at the same time; also called concurrent ownership
The substitution of the title insurance company in the place of the insured for filing a legal action.
A leasehold estate that may be terminated at the desire of either party

27. Loan-to-value ratio

28. Section
Preventing a person from making a statement contrary to a previous statement
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
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land

29. Estate for years
One in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.
A leasehold estate of definite duration
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
The recipient of a gift of real property by will

30. CConventional mortgage loan
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
One in which the federal government does not insure or guarantee payment to the lender.
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete
Actually lending the $

31. General agent
Individual - private ownership of land
A deed denoting an unlimited guarantee of title
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.
One with full authority over one property of the principal - such as a property manager

32. Michigan usury laws
A deed denoting an unlimited guarantee of title
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
Permission to assume the mortgage at an interest rate prevailing at the time of assumption

33. Scarcity
(a) An economic characteristic of real property. (b) In appraisal - supply of property in relation to effective demand
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency
Execution of a contract by vrtue of all parties having fully performed all terms
One in which two more parcels of real property are pledged to secure payment of the note

34. Michigan Condominium Act
Details rights of condominium purchasers in Michigan
A person appointedby an agent to assist in performing some or all of the tasks of the agency
Finds someone to lend the $
Agency that exists as a result of actions of the parties

35. Covenant of seisin and right to convey
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
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.
Failing to do preventative maintenance or corrective maintenance.
A deposit a buyer makes at the time of submitting an offer - to demonstrate the true inten to purchase; also called binder - good faith deposit - escrow deposit.

36. Allodial system
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 law regulating activities of lending institutions in making mortgage loans for housing.
A deed denoting an unlimited guarantee of title
Individual - private ownership of land

37. Express agency
The use of someone else's money to enhance your own
An agreement wherein there is a promise in return for a specific action - which together supply the consideration (A deal entered into by both parties after one party has fulfilled a promise. e. g. an option)
An agency relationship created by oral or written agreement between principal and agent
The recipient of a gift of real property by will

38. Accidental or Ostensible Agency
One in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.
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.
An implied agency without an agency agreement

39. 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.
One who receives title to real property by deed
One that does not impose a prepayment penalty.
The amount of money actually lost - which will be awarded by a court in case of a breached contract

40. Executory contract
In a closing statement - an expense or money received against a credit
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
An agreement that has not been fully performed.
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

41. Settlement
(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
Consummation of a real estate contract; also called closing.
The attribute of an asset's being readily convertible to cash.
A form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.

42. Discharge of contracts

43. Chain of title
Money to be paid and received as compensaton for a breach of contract.
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
The transfer of mortgage obligations to purchaser of the mortgaged property.
Successive conveyances of title to a specific parcel of land.

44. Assignee
One to whom contractual rights are transferred
Devotion of certain settlement costs between buyer and seller.
A person - such as an agent - placed in a position of trusted in relation to the person for whose benefit the relationship is created; essentially the same as a trustee
The introductory information on a deed

45. Real property
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
An agreement that is legally binding and enforceable.
Investigates alleged discrimination and secures the equal protection of civil rights.
A search of the public record to determne the quality of a title to real property

46. Mortgage
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
A written instrument used to pledge a title to real property to secure payment of a promissory note.
The principal in a real estate transaction

47. Arrears
One in which the interest rate changes according to changes in a predetermined index.
The condition of death without leaving a valid will.
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 policy insuring an owner of real property against financial loss resulting from a title defect.

48. General warranty deed
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.
One in which the interest rate changes according to changes in a predetermined index.
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.
A deed denoting an unlimited guarantee of title

49. Open listing
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
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 ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency
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

50. Accrued expenses
An agreement that is legally binding and enforceable.
A life estate based on the life of another
Allows the broker employed to market the seller's property for a given period of time.
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)