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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. Familial status
A form of co-ownership lmited to husband and wife; does not include the right of survivorship
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
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.
Anything of value - as recognized by law - offered as an inducement to contract.

2. Dred Scott Decision

3. Michigan Condominium Act
Details rights of condominium purchasers in Michigan
A gift of real property by will
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 tax imposed on the conveyance of title to real property by deed

4. Escheat
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.
An agreement that is legally binding and enforceable.
A federal law protecting the rights of individuals with physical or mental impairments
The reversion of property to the state or county - as provide by state law - in cases where a decedent dies intestate without heirs capable of inheriting - or when the property is abandoned

5. Mortgage principal
Preventing a person from making a statement contrary to a previous statement
An agreement that may be voided by the parties without legal consequences.
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
The amount of money (usually the loan amount) on which interest is either paid or recieved.

6. Michigan Uniform Securities Act
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
North-south line in the rectangular method of property description.
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.
The principal in a real estate transaction

7. Declaration
A deed denoting an unlimited guarantee of title
The statement in a deed beginning with the words "to have and to hold" and describing the estate granted
A right of title to land
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

8. Allodial system
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
An agency relationship created by oral or written agreement between principal and agent
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.
Individual - private ownership of land

9. Joint tenancy
A form of co-ownership that includes the right of survivorship
An exaggeration of a property's benefits.
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
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

10. Special agent
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
Person or a nonperson (partnership - association - corporation - common law trust - or combination) acting as agent for others in negotiating the purchase and sale of real property or other commodities for a fee
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 fee paid to an agent in advance for representation instead of commission; usually if commission exceeds retainer - a refund would be issued.

11. Land use controls
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
Governmental restrictions on land use
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.
One-forth of a section - containing 160 acres

12. Caveat emptor
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
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.
Latin meaning "let the buyer bewar"; applies to "sales talk" and not to statements of material facts.
A phrase inserted into a contract declaring that each deadline in a contract must be met as it occurs

13. Vrivate mortgage insurance (PMI)
A man/woman appointed in a will to see that the terms of the will are carried out
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 form of insurance coverage required in high loan-to-value ratio conventional loans to protect the lender in case the borrower defaults in loan payment.
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty

14. Secondary mortgage market
The market in which lenders sell mortgages
Title insurance that protects contract buyer against defects in contract seller's title.
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.
An organized method of sharing or pooling listings by member brokers. (electronic)

15. Bill of sale
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.
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.
An instrument transferring ownership of personal property.
Permanent financing arranged to replace a shor-term construction loan.

16. Nonfreehold estate
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.
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.)
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
The portion of a deed that contains the grantor's and witnesses' signatures and the acknowledgment (notary).

17. National Association of Realtors
The largest and most prominent trade organization of real estate licensees.
A deed denoting an unlimited guarantee of title
Mandates that the seller complete a disclosure form regarding the condition of the property
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.

18. Right of inheritance
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 right for property to descend to the heirs of the owner as set out by will or by intestate succession.
Permanence of land--makes it an attractive long term investment
An organized method of sharing or pooling listings by member brokers. (electronic)

19. Free market
An agreement that is legally binding and enforceable.
A mental or physical disability that impairs any of a person's life functions.
The statement in a deed containing words of conveyance
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

20. Separate property
Assures the absence of hazardous materials or problems relating to regulations of the EPA.
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
Any property acquuired by one spouse during marriage by gift or inheritance or purchased with the separate funds of a husband or wife.
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.

21. Abstract of title
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.
A history of title and the current status of a title based on a atitle examination
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
A major source of funds for financing residential real estate.

22. Estate at will
A leasehold estate that may be terminated at the desire of either party
Anything of value agreed upon by parties to a contract. Includes a promise.
.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.
In a closing statement - an expense or money received against a credit

23. Acknowledgment
A federal law regulating activities of lending institutions in making mortgage loans for housing.
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 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%

24. Vendee
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
An agreement that has been fully performed.
Purchaser
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.

25. Soil test
The use of someone else's money to enhance your own
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
A form of deed with or without covenants of title
Assures the absence of hazardous materials or problems relating to regulations of the EPA.

26. Finance
The substitution of the title insurance company in the place of the insured for filing a legal action.
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.
Savings banks - mutual savings banks - commercial banks
To put in effect by public announcement; to put into operation

27. Open-end mortgage
Person or a nonperson (partnership - association - corporation - common law trust - or combination) acting as agent for others in negotiating the purchase and sale of real property or other commodities for a fee
One that may be refinanced without rewriting the mortgage.
One in which personal property as well as real property s pledged to secure payment of the note.
One in which two more parcels of real property are pledged to secure payment of the note

28. Revenue stamps
A freehold estate created for the duration of the life or lives of certain named persons; a non-inheritable estate
Founded on natural duty and affection. Has no pecuniary value.
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
An accounting of the funds received and disbursed in a real estate transaction.

29. Michigan Consumer Protection Act
A deed issued to the buyer of property that was sold under court order to pay off a debt.
Prohibits certain practices in trade or commece and provides for certain remedies.
The amount of money actually lost - which will be awarded by a court in case of a breached contract
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.

30. Vendor
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
Necessary elements for the creation of a contract.
The violations and fines or penalties - which the department and the licensee have agreed upon.
Seller

31. Intestate
The condition of death without leaving a valid will.
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 that appears to meet the requirements for validity but would not be enforceable in court.
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

32. Condition concurrent
Finds someone to lend the $
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
When the parties are to exchange performances at the same time.

33. PITI ppayment
Acronym denoting that a mortgage payment includes principal - interest - taxes - and insurance.
The distribution of property to legally qualified heirs of one who has died intestate
Person or a nonperson (partnership - association - corporation - common law trust - or combination) acting as agent for others in negotiating the purchase and sale of real property or other commodities for a fee
Item that is installed by a comercial tenant and is removable upon termination of the tenancy

34. Jones v. Mayer
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
The transfer of mortgage obligations to purchaser of the mortgaged property.
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
Replaced the 1968 Michigan Fair Housing Act in prohibiting discrimination in the sale - rental - or lease of housing accommodation.

35. Mortgage
An accurate legal description of land
A written instrument used to pledge a title to real property to secure payment of a promissory note.
One that is free from reasonable doubt and that a court would require a purchaser to accept
A mental or physical disability that impairs any of a person's life functions.

36. Blockbusting
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
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
Cash sales - New financing

37. Supply and demand
A history of title and the current status of a title based on a atitle examination
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract
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 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.

38. Dower

39. Varticipation mortgage
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.
(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.
To put in effect by public announcement; to put into operation
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate

40. Conventional loan
The borrower is granted the right to pay the debt plus accrued interst and costs in full after the foreclosure sale - and thereby recover the property
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
When the parties are to exchange performances at the same time.

41. Accidental agency

42. Undue influence
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
A three-day right of rescission for certain loan transactions
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.

43. Earnest money
The U. S. agency that insures mortgage loans to protect lending institutions.
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.
Permission to assume the mortgage at an interest rate prevailing at the time of assumption
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.

44. Emblements
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.
An intentional false statement of a material fact.
Personal property growing in the soil - requiring planting and cultivation; annual crops.
A claim against a title to real property.

45. Principal
(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
An implied agency without an agency agreement
An individual's being led to believe by a broker/salesperson's actions and representations that the broker/salesperson is representing (is an agent for) the individual
Interest only loan (e. g. - construction loan--you are only paying interest - no principal)

46. Homogeneity
Neighborhoods that are made up of similar properties
A search of the public record to determne the quality of a title to real property
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.
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.

47. Graduated payment mortgage (GPM)
(a) Money paid for the use of money. (b) An ownership or right.
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 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

48. Defeasible
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.
One in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.
Mandates that the seller complete a disclosure form regarding the condition of the property
Subject to being defeated by the occurrence of a certain event

49. Life tenant
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 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 holding a life estate
Actually lending the $

50. Right of first refusal
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
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
.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.
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.