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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
A gift of personal property by will.
Make good loans to qualified borrowers ( e. g. Rural Development loans)
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.

2. Cloud on a title
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
A claim against a title to real property.
A man/woman appointed in a will to see that the terms of the will are carried out
Simultaneous ownership of real property by two or more people

3. Association of Real Estate License Law Officials (ARELLO)
A federal law that prohibits all discrimination on the basis of race.
A law in effect in all states requiring certain contracts to be in writing to be valid.
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.
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.

4. Leasehold estate
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.
The amount of the brokerage's commission that goes to the realtor
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.

5. Section
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
Money to be paid and received as compensaton for a breach of contract.
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
An error of material fact by both parties

6. Investment
Financinig charge required by the lender
The outlay of money expecting income or profit or the acquisition of property expecting income or profit
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate
The recipient of a gift of real property by will

7. Stipulation
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
There are certain types of trade restraints that are so injurious to competition that there can be no justification for them (price fixing; boycotts or concerted refusals to deal; territorial or customer allocation; tying agreements)
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.
The violations and fines or penalties - which the department and the licensee have agreed upon.

8. Bona fide purchaser
A buyer of property who relies on the records and is unaware of an unrecorded prior document
Seller
An accounting of the funds received and disbursed in a real estate transaction.
The loss of funds available to lending institutions for making mortgage loans - caused by depositors' withdrawal of funds for making investments that provide greater yields.

9. National Fair Housing Alliance (NFHA)
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.
Financinig charge required by the lender
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.
Neighborhoods that are made up of similar properties

10. Marketable (merchantable) title
One that is free from reasonable doubt and that a court would require a purchaser to accept
A life estate based on the life of another
Execution of a contract by vrtue of all parties having fully performed all terms
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.

11. Deficiency judgment
A form of co-ownership that does not include the right of survivorship.
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
The condition of death without leaving a valid will.
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.

12. Fixture
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
Personal property that has become real property by having been permanently attached to real property
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.

13. Realty
A fee paid by a realtor to a brokerage out of the area for a buyer listing
A person authorized to act on behalf of another
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller
Land and everything permanently attached to land

14. Condition precedent
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
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to 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

15. Dower

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16. Americans with Disabilities Act (ADA)
Land and everything permanently attached to land
A federal law protecting the rights of individuals with physical or mental impairments
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)

17. 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
One that does not impose a prepayment penalty.
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.
To put in effect by public announcement; to put into operation

18. Verc test
An agent working for an unnamed third party buyer (usually a celebrity)
No two parcels of land are identical
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
A test of soil to determine if it is sufficiently porous for installation of a septic tank.

19. Accrued expenses
The violations and fines or penalties - which the department and the licensee have agreed upon.
One who conveys title to trustee
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate

20. Mortgage broker
A three-day right of rescission for certain loan transactions
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
Finds someone to lend the $

21. Accidental or Ostensible Agency
An implied agency without an agency agreement
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
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.
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate

22. Acknowledgment
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete
The third party in a real estate transaction
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 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.

23. Confidentiality
Neighborhoods that are made up of similar properties
The duty of agents not to disclose any information about their clients.
An agreement that has no legal force or effect.
When the parties are to exchange performances at the same time.

24. Chain of title
Successive conveyances of title to a specific parcel of land.
A form of co-ownership that includes the right of survivorship
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)
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.

25. Disclosure statement
A search of the public record to determne the quality of a title to real property
A leasehold estate that may be terminated at the desire of either party
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 nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.

26. Land use controls
Money to be paid and received as compensaton for a breach of contract.
Finds someone to lend the $
Governmental restrictions on land use
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.

27. Credit
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
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
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
In a closing statement - money to be recieved or credit given for money or an obligation given.

28. Life tenant
One-forth of a section - containing 160 acres
One holding a life estate
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 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

29. Principal meridians
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.
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 who takes over management of a property until the foreclosure process is complete
North-south line in the rectangular method of property description.

30. Listing contract
Permanence of land--makes it an attractive long term investment
One who arranges a mortgage loan betwen a lender and a borrower for a fee.
The violations and fines or penalties - which the department and the licensee have agreed upon.
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms

31. Deed - what makes it valid
Must be in writing - must name a grantor - must name a grantee - property description - words of conveyance (aka granting clause or habendum clause - "...conveys and warrants...") - signed by grantor(s) - acknowledgment - stating to public officer th
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.
A federal law prohibiting discrimination in consumer loans
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)

32. Devise
A gift of real property by will
A federal law protecting the rights of individuals with physical or mental impairments
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.
Land and everything permanently attached to land

33. Junior mortgage
A responsibility for revealing all information that affects the agency agreement
Latin meaning "let the buyer bewar"; applies to "sales talk" and not to statements of material facts.
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)
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

34. Federal Housing Administration (FHA)
Another term for escrow account
(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
The U. S. agency that insures mortgage loans to protect lending institutions.
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

35. Parol evidence rule
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms
A concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
Assures the absence of hazardous materials or problems relating to regulations of the EPA.

36. Notary public
An agreement that is legally binding and enforceable.
Mandates that the seller complete a disclosure form regarding the condition of the property
A person authorized by a state to take oaths and acknowledgments
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.

37. Receiver
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
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
One who takes over management of a property until the foreclosure process is complete
Land was owned or controlled by the King

38. Free market
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 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.
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

39. Waste
Make good loans to qualified borrowers ( e. g. Rural Development loans)
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
Failing to do preventative maintenance or corrective maintenance.
The attribute of an asset's being readily convertible to cash.

40. Uniform Vendor and Purchaser's Risk Act

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41. Dred Scott Decision

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42. Right of first refusal
One that may be refinanced without rewriting the 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 in which two more parcels of real property are pledged to secure payment of the note
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.

43. Unenforceable contract
The shortened name for the Federal National Mortgage Association (FNMA) - a privately owned corporation that purchases FHA - VA - and conventional mortgages
An accounting of the funds received and disbursed in a real estate transaction.
A tax imposed on the conveyance of title to real property by deed
One that appears to meet the requirements for validity but would not be enforceable in court.

44. Margin
A temporary mortgage used to borrow money to contruct an improvement on land
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
Measure of profit
A property map - recorded on the public record in plat books

45. Revenue stamps
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
Evidence that a valid debt exists
A test of soil to determine if it is sufficiently porous for installation of a septic tank.
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land

46. Specific performance
One holding a life estate
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.
Written registration of an owner's title in public records to protect against subsequent claimants.
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

47. Legality of object
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.
Latin meaning "let the buyer bewar"; applies to "sales talk" and not to statements of material facts.
Legal purpose.
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.

48. Immobility
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate
(a) Money paid for the use of money. (b) An ownership or right.
Land cannot be relocated
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract.

49. Purchase Money Mortgage
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
Replaced the 1968 Michigan Fair Housing Act in prohibiting discrimination in the sale - rental - or lease of housing accommodation.
The distribution of property to legally qualified heirs of one who has died intestate

50. Agent's Responsibility to Third Persons

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