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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. Baselines
An east-west line in the rectangular method of property description
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
Failing to do preventative maintenance or corrective maintenance.

2. Assignor
The person transferring contractual rights to another
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.
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.
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security

3. Redlining
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.
(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
A law in effect in all states requiring certain contracts to be in writing to be valid.
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

4. Mortgagor
A form of co-ownership that includes the right of survivorship
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)
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.

5. Concurrent ownership
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
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
Simultaneous ownership of real property by two or more people
Requires that an owner or any other person engaging in a real estate transaction - a real estate broker - or a real estate salesperson shall not - on the basis of a disability that is unrelated to the individua's ability to acquire - rent or maintain

6. Express agency
A contract whereby a property owner (optioner) sells a right to purchase his or her property to a prospective buyer (optionee).
Individual - private ownership of land
The violations and fines or penalties - which the department and the licensee have agreed upon.
An agency relationship created by oral or written agreement between principal and agent

7. Alienation clause
An organized method of sharing or pooling listings by member brokers. (electronic)
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.
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.

8. Foreclosure
A form of co-ownership lmited to husband and wife; does not include the right of survivorship
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) 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 legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.

9. Ginnie Mae (GNMA)
In a closing statement - an expense or money received against a credit
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 nickname for the Government National Mortgage Association (GNCMA) - a U. /S. government agency that purchaes FHA and VA mortgages.
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.

10. Commission
Paid to Cooperating Brokers Usually 50%/50%
A deed issued to the buyer of property that was sold under court order to pay off a debt.
A form of deed with or without covenants of title
When a subsequent contract covering the same subject matter is drafted (with changes)

11. Bundle of rights
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 inheritable estate in land providing the greatest interest of any form of 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
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.

12. Bilateral contract
Subject to being defeated by the occurrence of a certain event
License law term that describes a type of relationship between a broker and his or her licensees
An agreement based on mutual promises that provide the consideration. (A "done deal" both parties have fulfilled promises)
A one-mile-square area of land described by the rectangular survey system - consisting of 640 acres

13. Executor /executrix
A leasehold estate of definite duration
A man/woman appointed in a will to see that the terms of the will are carried out
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
Founded on natural duty and affection. Has no pecuniary value.

14. Prepayment penalty
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
Occurs when the first adverse possessor transfers possession to another person who continues as an adverse possessor
Personal property that has become real property by having been permanently attached to real property

15. Well and septic report
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 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
A form of organization that makes and services mortgage loans.
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.

16. Discharge of contracts

17. Michigan Uniform State Antitrust Act
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)
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
Land and everything permanently attached to land; sometimes used interchangeably with the terms real property and realty
Neighborhoods that are made up of similar properties

18. Liquidity

19. Deed in lieu of foreclosure
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.
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
A wife's interest in her husband's real property

20. Disability
Cancellation of a contract when another party is in default
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.
A physical or mental impairment that substantially limits one or more of the major life activities of a person

21. Bequest
A gift of personal property by will.
Title to real property held by two or more persons at the same time; also called concurrent ownership
Measure of profit
To pass to another (as in title)

22. Vendor
Seller
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
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.
A contract whereby a property owner employs a real estate broker to market the property described in the contract. (contract to make a fee)

23. Description by reference
One that imposes a prepayment penalty.
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.
Property description that may refer to a map and lot number that has been recorded or ato a prevous deed conveying the saome property
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)

24. Promulgate
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
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.
To put in effect by public announcement; to put into operation
A temporary mortgage used to borrow money to contruct an improvement on land

25. Convey
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 market in which lenders sell mortgages
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application
To pass to another (as in title)

26. Board of Real Estate Brokers and Salespersons
Preventing a person from making a statement contrary to a previous statement
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.
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
The governing board for real estate licenses in MI

27. Michigan Uniform Securities Act
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
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.
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

28. Purchase money mortgage
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
Agent that has complete authority over any activity of principal; for example - power of attorney
A policy insuring an owner of real property against financial loss resulting from a title defect.
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.

29. Estate for years
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
A leasehold estate of definite duration
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 certain parcels of property to be removed from the mortgage lien if the loan balance is reduced a specified amount

30. Investment
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.
An agreement that is legally binding and enforceable.
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.
The outlay of money expecting income or profit or the acquisition of property expecting income or profit

31. Syndication
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
A fee paid to an agent in advance for representation instead of commission; usually if commission exceeds retainer - a refund would be issued.
An agreement that has been fully performed.
The attribute of an asset's being readily convertible to cash.

32. Subrogation of rights
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
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
The substitution of the title insurance company in the place of the insured for filing a legal action.
A claim against a title to real property.

33. Revenue stamps
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 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.
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.
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

34. Freehold estate
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
A contract whereby a property owner (optioner) sells a right to purchase his or her property to a prospective buyer (optionee).
One in which personal property as well as real property s pledged to secure payment of the note.
A right of title to land

35. VA-guaranteed loan
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.
The power of government to regulate the use of real property for the benefit of the public

36. Personal property
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated
The transfer of mortgage obligations to purchaser of the mortgaged property.
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms
All property that is not land and is not permanently attached to land; everything that is movable; chattel.

37. Regulation Z
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
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
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.
Personal property growing in the soil - requiring planting and cultivation; annual crops.

38. Condition subsequent
A federal prohibition on discrimination in the sle - rental - or financing of housing on the basis of race - color - religion - sex - or national origin
Any fact - the existence or occurrence of which - by agreement of the parties - operates to discharge a duty of performance after it has become absolute. (making mortgage payments)
Pledging property as security for the payment of a debt without giving up possession.
One in which all affected parties are bound by the knowledge of a fact even though they have not been actually notified of such fact.

39. Joint tenancy
A form of co-ownership that includes the right of survivorship
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
A physical or mental impairment that substantially limits one or more of the major life activities of a person
The shortened name for the Federal National Mortgage Association (FNMA) - a privately owned corporation that purchases FHA - VA - and conventional mortgages

40. Rural Housing Service (RHS) Direct Loan Program
A statement in a mortgage or deed of trust giving the borrower the right to redeem the title and have the mortgage lien released at any time prior to default by paying the debt in full
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
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
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

41. Timesharing
A form of ownership in which the purchsaser owns the property for a certain specified time interval.
The U. S. agency that insures mortgage loans to protect lending institutions.
Actually lending the $
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

42. Misrepresentation
One who takes over management of a property until the foreclosure process is complete
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

43. Term mortgage
Legal purpose.
A temporary mortgage used to borrow money to contruct an improvement on land
Interest only loan (e. g. - construction loan--you are only paying interest - no principal)
Substitution of a new contract for a prior contract.

44. Counter-offer
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
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 form of co-ownership that includes the right of survivorship
A new offer made by an offer or rejecting an offer.

45. Premises clause
The introductory information on a deed
A form of co-ownership limited to husband and wife - with the right of survivorship
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.
A deed denoting an unlimited guarantee of title

46. Agency disclosure

47. Option
Title to real property held by two or more persons at the same time; also called concurrent ownership
A contract whereby a property owner (optioner) sells a right to purchase his or her property to a prospective buyer (optionee).
One in which personal property as well as real property s pledged to secure payment of the note.
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.

48. Valuable consideration
(a) An economic characteristic of real property. (b) In appraisal - supply of property in relation to effective demand
A policy insuring an owner of real property against financial loss resulting from a title defect.
One that appears to meet the requirements for validity but would not be enforceable in court.
Anything of value agreed upon by parties to a contract. Includes a promise.

49. Straw Dog
A form of co-ownership lmited to husband and wife; does not include the right of survivorship
An agent working for an unnamed third party buyer (usually a celebrity)
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
A leasehold estate of definite duration

50. Michigan Mortgage Brokers - Lenders - Servicers and Licensing Act
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.
Preventing a person from making a statement contrary to a previous statement
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.