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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 Mortgage Brokers - Lenders - Servicers and Licensing Act
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
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.
One that imposes a prepayment penalty.

2. Certificate of title opinion

3. Sales Transactions
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
Cash sales - New financing
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.
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.

4. Universal agent
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
Agent that has complete authority over any activity of principal; for example - power of attorney
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.
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.

5. Caveat emptor
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.
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
Latin meaning "let the buyer bewar"; applies to "sales talk" and not to statements of material facts.
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence

6. Testator/testatrix
A man/woman who has died and left a valid will
Cash sales - New financing
In a closing statement - an expense or money received against a credit
A fee paid by a realtor to a brokerage out of the area for a buyer listing

7. Certificate of reasonable value (CRV)
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
A tax imposed on the conveyance of title to real property by deed
A responsibility for revealing all information that affects the agency agreement
A document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.

8. Reversion
A form of co-ownership that does not include the right of survivorship.
Mutual agreement between the parties to a contract; meeting of the minds; to exist and be free of duress - fraud - undue influence - and misrepresentation.
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
A type of land descripton utilizing townships and sections

9. Soil test
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)
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 search of the public record to determne the quality of a title to real property
Assures the absence of hazardous materials or problems relating to regulations of the EPA.

10. Estoppel
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
Preventing a person from making a statement contrary to a previous statement
When the parties are to exchange performances at the same time.
Permanent financing arranged to replace a shor-term construction loan.

11. Recordation

12. Closed mortgage
Mortgage loan for which the monthly payments increase annually - with the increased amount applied directly to the loan's principal - thus shortening the term of the loan
A tax imposed on the conveyance of title to real property by deed
One that imposes a prepayment penalty.
A Missouri slave sued for his freedom - claiming that his four year stay in the northern portion of the Louisiana Territory made free land by the Missouri Compromise had made him a free man. The U.S - Supreme Court decided he couldn't sue in federal

13. General agent
A commission not based on a percentage of the selling price.
One in which the interest rate changes according to changes in a predetermined index.
One with full authority over one property of the principal - such as a property manager
One that is free from reasonable doubt and that a court would require a purchaser to accept

14. Alienation clause
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.
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
Neighborhoods that are made up of similar properties

15. Scarcity
When a subsequent contract covering the same subject matter is drafted (with changes)
Doesn't happen anymore in this climate
(a) An economic characteristic of real property. (b) In appraisal - supply of property in relation to effective demand
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.

16. Land use controls
Occurs when a seller's broker conceals a defect in the property from the buyer or misrepresents the existence of a defect
An implied agency without an agency agreement
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
Governmental restrictions on land use

17. Covenant of quiet enjoyment

18. Mortgage bankers
Another term for escrow account
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
A form of organization that makes and services mortgage loans.
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres

19. Estate for years
One that is free from reasonable doubt and that a court would require a purchaser to accept
One in which personal property as well as real property s pledged to secure payment of the note.
A leasehold estate of definite duration
A percentage of the loan amount the lender requires for making a mortgage loan

20. Commission Paid to Sales Associates

21. Straw Dog
An agent working for an unnamed third party buyer (usually a celebrity)
License law term that describes a type of relationship between a broker and his or her licensees
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 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

22. Agency disclosure

23. Owner's policy
Acronym denoting that a mortgage payment includes principal - interest - taxes - and insurance.
A threshold after which a realtor keeps all commissions and the broker keeps none
A policy insuring an owner of real property against financial loss resulting from a title defect.
One who holds title to property for the benefit of another called a beneficiary

24. Discharge of contracts

25. Closing statement
The market in which lenders sell mortgages
An accounting of the funds received and disbursed in a real estate transaction.
One in which two more parcels of real property are pledged to secure payment of the note
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

26. Right of first refusal clause
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.
Paid to Cooperating Brokers Usually 50%/50%
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
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.

27. Agent's Responsibilty to principals
A husband's interest in the real property of his wife
A major source of funds for financing residential real estate.
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence

28. Flat Fee
A commission not based on a percentage of the selling price.
One that is free from reasonable doubt and that a court would require a purchaser to accept
A person authorized to act on behalf of another
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract

29. Cap
An exaggeration of a property's benefits.
An east-west line in the rectangular method of property description
A threshold after which a realtor keeps all commissions and the broker keeps none
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate

30. Merger
When a subsequent contract covering the same subject matter is drafted (with changes)
A form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
A new offer made by an offer or rejecting an offer.

31. Ginnie Mae (GNMA)
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
Investigates alleged discrimination and secures the equal protection of civil rights.
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land
A responsibility for revealing all information that affects the agency agreement

32. Dual agency

33. Receiver
One who takes over management of a property until the foreclosure process is complete
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract
A man/woman who has died and left a valid will
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete

34. Open mortgage
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
One that does not impose a prepayment penalty.
An exaggeration of a property's benefits.
A payment for insurance to protect the lender and/or insurer against loss if default occurs.

35. Pur autre vie
A man/woman appointed in a will to see that the terms of the will are carried out
A life estate based on the life of another
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
The inability of a party to exercise his or her free will because of fear of another party.

36. Bona fide purchaser
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 buyer of property who relies on the records and is unaware of an unrecorded prior document
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.
Paid to Cooperating Brokers Usually 50%/50%

37. Revenue stamps
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
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
A form of co-ownership that does not include the right of survivorship.

38. Real estate
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
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
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.

39. Lien foreclosure sale
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 concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
Land and everything permanently attached to land
Substitution of a new contract for a prior contract.

40. Liquidated damages
A document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.
An intentional false statement of a material fact.
Cancellation of a contract when another party is in default
Money to be paid and received as compensaton for a breach of contract.

41. Land contract
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 person transferring contractual rights to another
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.
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.

42. Interest
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.
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
(a) Money paid for the use of money. (b) An ownership or right.
One that appears to meet the requirements for validity but would not be enforceable in court.

43. Association of Real Estate License Law Officials (ARELLO)
An agency relationship created by oral or written agreement between principal and agent
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
An inheritable estate in land providing the greatest interest of any form of title
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated

44. Client
One in which two more parcels of real property are pledged to secure payment of the note
The principal in a real estate transaction
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.
Devotion of certain settlement costs between buyer and seller.

45. Disclosure statement
A federal law protecting the rights of individuals with physical or mental impairments
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 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.
To put in effect by public announcement; to put into operation

46. Handicap

47. Strict foreclosure
A phrase inserted into a contract declaring that each deadline in a contract must be met as it occurs
An instrument transferring ownership of personal property.
Consummation of a real estate contract; also called closing.
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.

48. Liquidity

49. Accord and satisfaction
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.
The duty of agents not to disclose any information about their clients.
Permanent financing arranged to replace a shor-term construction loan.
A new agreement by contracting parties that is satisfied by full performance there by terminating the prior contract as well

50. Homogeneity
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
Neighborhoods that are made up of similar properties
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)