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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. Descent
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
The principal in a real estate transaction
The distribution of property to legally qualified heirs of one who has died intestate

2. FHA-insured loans
A mortgage loan in which payments are insured by the Federal Housing Administration
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.
One that does not impose a prepayment penalty.
Actually lending the $

3. Nonfreehold estate
Successive conveyances of title to a specific parcel of land.
A search of the public record to determne the quality of a title to real property
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.

4. National Association of Realtors
A husband's interest in the real property of his wife
The largest and most prominent trade organization of real estate licensees.
One who arranges a mortgage loan betwen a lender and a borrower for a fee.
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.

5. General agent
An accurate legal description of land
One with full authority over one property of the principal - such as a property manager
A husband's interest in the real property of his wife
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

6. Revenue stamps
A form of organization that makes and services mortgage loans.
A federal law protecting the rights of individuals with physical or mental impairments
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
Agent that has complete authority over any activity of principal; for example - power of attorney

7. REALTOR*
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
A gift of personal property by will.
The distribution of property to legally qualified heirs of one who has died intestate
The recipient of a gift of real property by will

8. Uniform Vendor and Purchaser's Risk Act

9. Reality of consent
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
Mutual agreement between the parties to a contract; meeting of the minds; to exist and be free of duress - fraud - undue influence - and misrepresentation.
A three-day right of rescission for certain loan transactions

10. Michigan State Housing Development Authority (MichDA)
Founded on natural duty and affection. Has no pecuniary value.
A life estate based on the life of another
Make good loans to qualified borrowers ( e. g. Rural Development loans)
A responsibility for revealing all information that affects the agency agreement

11. Vartial release clause
Allows certain parcels of property to be removed from the mortgage lien if the loan balance is reduced a specified amount
Make good loans to qualified borrowers ( e. g. Rural Development loans)
An east-west line in the rectangular method of property description
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).

12. Heterogeneity
A form of co-ownership limited to husband and wife - with the right of survivorship
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
No two parcels of land are identical

13. Delivery and acceptance
A law in effect in all states requiring certain contracts to be in writing to be valid.
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
An agreement that may be voided by the parties without legal consequences.
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.

14. Civil Rights Act of 1968
A federal prohibition on discrimination in the sle - rental - or financing of housing on the basis of race - color - religion - sex - or national origin
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.
A search of the public record to determne the quality of a title to real property
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.

15. Discharge of contracts

16. Complete performance
Execution of a contract by vrtue of all parties having fully performed all terms
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
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
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.

17. General warranty deed
A form of mortgage wherein there is a third party - who is called a trustee
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate
A deed denoting an unlimited guarantee of title
An east-west line in the rectangular method of property description

18. Quitclaim deed
The condition of death without leaving a valid will.
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.
One insuring a lessee against defects in the lessor's title.
One that is free from reasonable doubt and that a court would require a purchaser to accept

19. Misrepresentation
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract
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
No two parcels of land are identical
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent

20. Closing statement
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
A federal law protecting the rights of individuals with physical or mental impairments
An accounting of the funds received and disbursed in a real estate transaction.
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.

21. Adverse possession
The person transferring contractual rights to another
A test of soil to determine if it is sufficiently porous for installation of a septic tank.
E g. if someone has used property for 15 years - judge will award title if actual - visible - hostile - open - continuous use can be proven)
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

22. Conventional loan
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
The third party in a real estate transaction

23. Special agent
Successive conveyances of title to a specific parcel of land.
The statement in a deed containing words of conveyance
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
Evidence that a valid debt exists

24. Beneficiary
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.
A form of organization that makes and services mortgage loans.

25. Supply and demand
A physical or mental impairment that substantially limits one or more of the major life activities of a person
A type of land descripton utilizing townships and sections
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.
Devotion of certain settlement costs between buyer and seller.

26. Granting clause
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.
The statement in a deed containing words of conveyance

27. Savings Banks (S&L's)
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
Substitution of a new contract for a prior contract.
A major source of funds for financing residential real estate.
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.

28. Net listing

29. Shared appreciation mortgage (SAM)
The document setting forth the terms and conditions of the brokerage relationship with the purchaser. (expectation to act in the client's best interest - follow legitimate instructions - advocate their price and terms; keep all pertinent info confide
A new offer made by an offer or rejecting an offer.
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) An economic characteristic of real property. (b) In appraisal - supply of property in relation to effective demand

30. Federal Housing Administration (FHA)
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 U. S. agency that insures mortgage loans to protect lending institutions.
Necessary elements for the creation of a contract.
One that does not impose a prepayment penalty.

31. Michigan Due on Sale Clause Act
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
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
Failing to do preventative maintenance or corrective maintenance.
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

32. Leverage

33. Estate from year to year
One that is free from reasonable doubt and that a court would require a purchaser to accept
The attribute of an asset's being readily convertible to cash.
Another term for escrow account
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

34. Quiet title action
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
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
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 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.

35. Operation of law
Successive conveyances of title to a specific parcel of land.
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
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 transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.

36. Cooling-off period
Preventing a person from making a statement contrary to a previous statement
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.
A three-day right of rescission for certain loan transactions
No two parcels of land are identical

37. Executor /executrix
A form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate
A man/woman appointed in a will to see that the terms of the will are carried out
One who arranges a mortgage loan betwen a lender and a borrower for a fee.

38. Testimonium clause

39. Accidental agency

40. Budget mortgage
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
An organized method of sharing or pooling listings by member brokers. (electronic)
(a) One in which two or more lenders share in making the loan. (b) One in which a lender shares in the profit produced by an income property pledged to secure the loan payment in addition to receiving interest and principal payments.
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

41. Take-out loan
Permanent financing arranged to replace a shor-term construction loan.
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
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.)
Second mortgage

42. Agent
North-south line in the rectangular method of property description.
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency
An interest in real estate such that a court will take notice and protect the owner's rights.
A person authorized to act on behalf of another

43. Ginnie Mae (GNMA)
Preventing a person from making a statement contrary to a previous statement
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.

44. Familial status
The third party in a real estate transaction
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 test of soil to determine if it is sufficiently porous for installation of a septic tank.
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.

45. Graduated payment mortgage (GPM)
Title insurance that protects contract buyer against defects in contract seller's title.
E.g. very accurate desc or property)
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.
The U. S. agency that insures mortgage loans to protect lending institutions.

46. Verc test
A test of soil to determine if it is sufficiently porous for installation of a septic tank.
One in which the federal government does not insure or guarantee payment to the lender.
A law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status
One that imposes a prepayment penalty.

47. punitive damages
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.
Personal property growing in the soil - requiring planting and cultivation; annual crops.
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated

48. Fair Housing Amendments Act of 1988
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
A law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.
One in which two more parcels of real property are pledged to secure payment of the note

49. Right of first refusal
An estimate of value of a particular property - at a particular time for a specified purpose.
E.g. very accurate desc or property)
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.
A mental or physical disability that impairs any of a person's life functions.

50. Blockbusting
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.
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
Successive conveyances of title to a specific parcel of land.
E.g. Bankruptcy - foreclosure - eminent domain - condemnaton