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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. Cooperative
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
The person transferring contractual rights to another
A threshold after which a realtor keeps all commissions and the broker keeps none
A form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.

2. Title examination
A search of the public record to determne the quality of a title to real property
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
One insuring a lessee against defects in the lessor's title.
Investigates alleged discrimination and secures the equal protection of civil rights.

3. Delivery and acceptance
Neighborhoods that are made up of similar properties
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.
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
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.

4. Bundle of rights
Personal property
Permanence of land--makes it an attractive long term investment
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.

5. Ginnie Mae (GNMA)
One in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
Anything of value - as recognized by law - offered as an inducement to contract.

6. Michigan usury laws
Subject to being defeated by the occurrence of a certain event
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
Neighborhoods that are made up of similar properties
The transfer of mortgage obligations to purchaser of the mortgaged property.

7. Listing contract
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.
Investigates alleged discrimination and secures the equal protection of civil rights.
An exaggeration of a property's benefits.
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract

8. Estate in real property
An agent working for an unnamed third party buyer (usually a celebrity)
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership
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.
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)

9. REALTOR*
An intentional false statement of a material fact.
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
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
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.

10. Secondary mortgage market
Substitution of a new contract for a prior contract.
One insuring a lessee against defects in the lessor's title.
The market in which lenders sell mortgages
A federal law prohibiting discrimination in consumer loans

11. Dred Scott Decision

12. Discharge of contracts

13. Fiduciary
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
A life estate based on the life of another
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 man/woman appointed in a will to see that the terms of the will are carried out

14. Guaranteed Loan Program
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
A history of title and the current status of a title based on a atitle examination
The borrower's right to redeem the title pledged or conveyed in a mortgage or deed of trust after default and prior to a foreclosure sale by paying the debt in full - accrued interest - and lender's costs.
Agency that exists as a result of actions of the parties

15. Testator/testatrix
The instrument that legally establishes a condominium; also called condominium declaration
A man/woman who has died and left a valid will
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
A husband's interest in the real property of his wife

16. Net listing

17. Mortgage principal
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
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
A responsibility for revealing all information that affects the agency agreement
The amount of money (usually the loan amount) on which interest is either paid or recieved.

18. Operation of law
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 instrument that legally establishes a condominium; also called condominium declaration
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 loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.

19. Vrepaid expenses
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
A future interest in a life estate
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
Document signed under oath by vendor stating that vendor has not encumbered title to real estate without full disclosure to vendee.

20. Due on sales clause
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.
Title to real property held by two or more persons at the same time; also called concurrent ownership
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 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.

21. Duty of disclosure
The amount of money (usually the loan amount) on which interest is either paid or recieved.
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.
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
A responsibility for revealing all information that affects the agency agreement

22. Stipulation
An accounting of the funds received and disbursed in a real estate transaction.
The violations and fines or penalties - which the department and the licensee have agreed upon.
Finds someone to lend the $
One to whom contractual rights are transferred

23. Disability
A physical or mental impairment that substantially limits one or more of the major life activities of a person
(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
In a closing statement - an expense or money received against a credit
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.

24. Granting clause
The statement in a deed containing words of conveyance
Personal 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
The seller's broker makes a false statement to the buyer about the property - and the broker does not know whether the statement is true or false

25. Mortgage assumption
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 transfer of mortgage obligations to purchaser of the mortgaged property.
A contract whereby a property owner (optioner) sells a right to purchase his or her property to a prospective buyer (optionee).
Latin meaning "let the buyer bewar"; applies to "sales talk" and not to statements of material facts.

26. Purchase Money Mortgage
Actually lending the $
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.
E.g. Put on market - sell - done)
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.

27. Transaction coordinator
Allows certain parcels of property to be removed from the mortgage lien if the loan balance is reduced a specified amount
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 licensee involved in a real estate transacton without having a relationship with the buyer or the seller
Preventing a person from making a statement contrary to a previous statement

28. Marketable (merchantable) title
One that is free from reasonable doubt and that a court would require a purchaser to accept
License law term that describes a type of relationship between a broker and his or her licensees
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
Cancellation of a contract when another party is in default

29. Duress
The inability of a party to exercise his or her free will because of fear of another party.
A leasehold estate that may be terminated at the desire of either party
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.
To pass to another (as in title)

30. Open-end mortgage
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
One holding a life estate
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
One that may be refinanced without rewriting the mortgage.

31. Intestate
The condition of death without leaving a valid will.
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
An organized method of sharing or pooling listings by member brokers. (electronic)
Ownership by only one person

32. Subagent
Evidence that a valid debt exists
Legal purpose.
A person appointedby an agent to assist in performing some or all of the tasks of the agency
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.

33. Cortesy

34. Loan-to-value ratio

35. Universal agent
Agent that has complete authority over any activity of principal; for example - power of attorney
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 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.)
A future interest in a life estate

36. Credit
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
The third party in a real estate transaction
E.g. Put on market - sell - done)
In a closing statement - money to be recieved or credit given for money or an obligation given.

37. Description by reference
Investigates alleged discrimination and secures the equal protection of civil rights.
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 law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status
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

38. Budget mortgage
Any property acquuired by one spouse during marriage by gift or inheritance or purchased with the separate funds of a husband or wife.
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)
An agreement that has not been fully performed.
The lender requires one-twelfth of the estimated cost of the annual property taxes and hazards insurance on the mortgaged property in addition to paying monthly priincipal and interest

39. Plat
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 property map - recorded on the public record in plat books
A deed denoting an unlimited guarantee of title
A form of co-ownership lmited to husband and wife; does not include the right of survivorship

40. Chain of title
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
Paid to Cooperating Brokers Usually 50%/50%
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
Successive conveyances of title to a specific parcel of land.

41. Debits
In a closing statement - an expense or money received against a credit
The third party in a real estate transaction
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.

42. Disclosure of information
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
Devotion of certain settlement costs between buyer and seller.
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.
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)

43. Immobility
A man/woman who has died and left a valid will
Land cannot be relocated
One who takes over management of a property until the foreclosure process is complete
Details rights of condominium purchasers in Michigan

44. Emblements
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
An agency relationship created by oral or written agreement between principal and agent
Personal property growing in the soil - requiring planting and cultivation; annual crops.
A percentage of the loan amount the lender requires for making a mortgage loan

45. Civil Rights Act of 1866
One that is free from reasonable doubt and that a court would require a purchaser to accept
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 federal law that prohibits all discrimination on the basis of race.
E.g. very accurate desc or property)

46. Graduated payment mortgage (GPM)
No: misrepresentation of fact; negligent misrepresentation; innocent misrepresentaton. MI law says seller's broker is not liable for statments made to buyer/customer regarding condition of property.
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.
A man/woman who has died and left a valid will

47. Contract for deed
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.
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.
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.

48. Acceleration clause
A mortgage loan in which payments are insured by the Federal Housing Administration
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 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
Investigates alleged discrimination and secures the equal protection of civil rights.

49. Open listing
An agreement based on mutual promises that provide the consideration. (A "done deal" both parties have fulfilled promises)
A tax imposed on the conveyance of title to real property by deed
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
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

50. punitive damages
One with full authority over one property of the principal - such as a property manager
The use of someone else's money to enhance your own
Land cannot be relocated
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated