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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. Quarter-section
One-forth of a section - containing 160 acres
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
Actually lending the $
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

2. Junior mortgage
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.
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)
An inheritable estate in land providing the greatest interest of any form of title
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate

3. Liquidated damages
Money to be paid and received as compensaton for a breach of contract.
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.
One that appears to meet the requirements for validity but would not be enforceable in court.
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder

4. Listing contract
A contract whereby a property owner employs a real estate broker to market the property described in the contract. (contract to make a fee)
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.
When a subsequent contract covering the same subject matter is drafted (with changes)
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract

5. Property description
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
The attribute of an asset's being readily convertible to cash.
An accurate legal description of land
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.

6. Metes and bounds
E.g. very accurate desc or property)
A responsibility for revealing all information that affects the agency agreement
.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.
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.

7. Innocent misrepresentation

8. Commission
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.
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
Paid to Cooperating Brokers Usually 50%/50%
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated

9. Michigan Consumer Protection Act
Prohibits certain practices in trade or commece and provides for certain remedies.
Savings banks - mutual savings banks - commercial banks
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
An agreement that has been fully performed.

10. Bill of sale
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract
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.
An instrument transferring ownership of personal property.
A person (or persons) employed by a fair housing organization to pose as a buyer or seller or renter of real estate to determine if the licensee or landlord is acting in compliance with the law.

11. Devisee
A law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status
License law term that describes a type of relationship between a broker and his or her licensees
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.
The recipient of a gift of real property by will

12. Mortgage banks
E.g. Put on market - sell - done)
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.)
Actually lending the $
.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.

13. PITI ppayment
A responsibility for revealing all information that affects the agency agreement
A form of co-ownership limited to husband and wife - with the right of survivorship
The outlay of money expecting income or profit or the acquisition of property expecting income or profit
Acronym denoting that a mortgage payment includes principal - interest - taxes - and insurance.

14. Personal property
All property that is not land and is not permanently attached to land; everything that is movable; chattel.
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
A form of ownership of real property - recognized in all states - consisting of individual ownership of some aspects and co-ownership in other aspects of that property.
The transfer of mortgage obligations to purchaser of the mortgaged property.

15. Earnest money
One who conveys title to trustee
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.
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
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.

16. Leverage

17. Testimonium clause

18. Transfer tax
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.
A tax imposed on the conveyance of title to real property by deed
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.
One in which two more parcels of real property are pledged to secure payment of the note

19. Term mortgage
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.
An agreement that has been fully performed.
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

20. Americans with Disabilities Act (ADA)
Paid to Cooperating Brokers Usually 50%/50%
A life estate based on the life of another
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate
A federal law protecting the rights of individuals with physical or mental impairments

21. Michigan State Housing Development Authority (MichDA)
Individual - private ownership of land
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
A person authorized to act on behalf of another
Make good loans to qualified borrowers ( e. g. Rural Development loans)

22. Federal Housing Administration (FHA)
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 lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms
The U. S. agency that insures mortgage loans to protect lending institutions.

23. Realty
An implied agency without an agency agreement
A commission not based on a percentage of the selling price.
Land and everything permanently attached to land
The principal in a real estate transaction

24. Accidental agency

25. Time is of the essence
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 written instrument used to pledge a title to real property to secure payment of a promissory note.
License law term that describes a type of relationship between a broker and his or her licensees
A phrase inserted into a contract declaring that each deadline in a contract must be met as it occurs

26. Right of inheritance
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
An agreement that has not been fully performed.
Money to be paid and received as compensaton for a breach of contract.
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.

27. Acknowledgment
A written instrument transferring an interest in real property when delivered to the grantee.
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 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
A person authorized by a state to take oaths and acknowledgments

28. Declaration
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
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.
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.

29. Fee simple absolute
An inheritable estate in land providing the greatest interest of any form of title
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
To put in effect by public announcement; to put into operation

30. Conventional loan
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
To pass to another (as in title)
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
An error of material fact by both parties

31. Plat
A property map - recorded on the public record in plat books
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.
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.

32. Mutual mistake
A policy insuring an owner of real property against financial loss resulting from a title defect.
An error of material fact by both parties
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.
The substitution of the title insurance company in the place of the insured for filing a legal action.

33. Estoppel
A nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
Land cannot be relocated
An inheritable estate in land providing the greatest interest of any form of title
Preventing a person from making a statement contrary to a previous statement

34. Land contract
Purchaser
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 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 agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

35. Dual agency

36. Mortgage principal
The amount of money (usually the loan amount) on which interest is either paid or recieved.
The statement in a deed beginning with the words "to have and to hold" and describing the estate granted
Title to real property held by two or more persons at the same time; also called concurrent ownership
One who arranges a mortgage loan betwen a lender and a borrower for a fee.

37. Balloon mortgage
Subject to being defeated by the occurrence of a certain event
Neighborhoods that are made up of similar properties
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 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.

38. Competence
The principle stating that when the net profit a property generates is excessive - very strong competition will result
.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.
Individual - private ownership of land
A written instrument used to pledge a title to real property to secure payment of a promissory note.

39. Assignee
Subject to being defeated by the occurrence of a certain event
One to whom contractual rights are transferred
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
A commission not based on a percentage of the selling price.

40. Real estate
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
A promise in a deed that the title causes no encumbrances except those set forth in the deed.
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
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. Appraisal
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.
An estimate of value of a particular property - at a particular time for a specified purpose.
One that is free from reasonable doubt and that a court would require a purchaser to accept
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract

42. Employ
License law term that describes a type of relationship between a broker and his or her licensees
An interest in real estate such that a court will take notice and protect the owner's rights.
No two parcels of land are identical
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.

43. Unilateral contract
One that may be refinanced without rewriting the mortgage.
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)
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.
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.

44. Offer and acceptance
The violations and fines or penalties - which the department and the licensee have agreed upon.
Necessary elements for the creation of a contract.
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.

45. Deficiency judgment
A court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceeds were deficient in fully satisfying the mortgage debt.
A person appointedby an agent to assist in performing some or all of the tasks of the agency
Written registration of an owner's title in public records to protect against subsequent claimants.
The duty of agents not to disclose any information about their clients.

46. Title examination
Subject to being defeated by the occurrence of a certain event
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
A person authorized by a state to take oaths and acknowledgments
A search of the public record to determne the quality of a title to real property

47. Discriminatory advertising
Make good loans to qualified borrowers ( e. g. Rural Development loans)
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.
An interest in real estate such that a court will take notice and protect the owner's rights.
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

48. Negligent misrepresentation

49. Open-end mortgage
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.
.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 that may be refinanced without rewriting the mortgage.
A hidden structural defect that would not be discovered by an ordinary inspection

50. Vrepaid expenses
Nonfreehold estate; of limited duration - providing the right of possession and control but not title.
One who receives title to real property by deed
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.
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