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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. Vrivate mortgage insurance (PMI)
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.
The outlay of money expecting income or profit or the acquisition of property expecting income or profit
Agreement of the parties; full performance; iimpossibility of performance; operation of law (judge's ruling)
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.

2. Duress
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
A responsibility for revealing all information that affects the agency agreement
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.
The inability of a party to exercise his or her free will because of fear of another party.

3. Client
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 principal in a real estate transaction
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
Allows certain parcels of property to be removed from the mortgage lien if the loan balance is reduced a specified amount

4. Alienation
Pledging property as security for the payment of a debt without giving up possession.
Transfer of title to real property
A federal prohibition on discrimination in the sle - rental - or financing of housing on the basis of race - color - religion - sex - or national origin
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

5. underwriting

6. FHA-insured loans
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
A mortgage loan in which payments are insured by the Federal Housing Administration
Transfer of title to real property
Purchaser

7. Trustor
Failing to do preventative maintenance or corrective maintenance.
Agency that exists as a result of actions of the parties
The transfer of mortgage obligations to purchaser of the mortgaged property.
One who conveys title to trustee

8. Free market
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency
Doesn't happen anymore in this climate
The seller's broker makes a false statement to the buyer about the property - and the broker does not know whether the statement is true or false
Consummation of a real estate contract; also called closing.

9. Quiet title action
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
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
Evidence that a valid debt exists
A physical or mental impairment that substantially limits one or more of the major life activities of a person

10. Location
A claim against a title to real property.
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
A leasehold estate that may be terminated at the desire of either party
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)

11. Mortgage assumption
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
An agency relationship created by oral or written agreement between principal and agent
The transfer of mortgage obligations to purchaser of the mortgaged property.
A nickname for Federal Home Load Mortgage Corporation - (FHLMC) - a corporation wholly owned by the Federal Home Loan Bank System that purchases FHA - VA - and conventional mortgages.

12. Junior mortgage
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)
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
One who holds title to property for the benefit of another called a beneficiary
Subject to being defeated by the occurrence of a certain event

13. Agent's Responsibility to Third Persons

14. Breach of contract
Personal property
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
Land and everything permanently attached to land
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure

15. Delivery and acceptance
One in which the federal government does not insure or guarantee payment to the lender.
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
Continuing to occupy property after lawful authorizatio has expired; a form of leasehold estate

16. Estate for years
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.
One holding a life estate
A leasehold estate of definite duration
Simultaneous ownership of real property by two or more people

17. Reversion
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
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
Agent that has complete authority over any activity of principal; for example - power of attorney
Mutual agreement between the parties to a contract; meeting of the minds; to exist and be free of duress - fraud - undue influence - and misrepresentation.

18. Michigan Due on Sale Clause Act
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
The inability of a party to exercise his or her free will because of fear of another party.
Individual - private ownership of land
Subject to being defeated by the occurrence of a certain event

19. Principal
Details rights of condominium purchasers in Michigan
(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 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 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.)

20. Grant deed
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.
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.
The condition of death without leaving a valid will.

21. Americans with Disabilities Act (ADA)
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.
An accounting of the funds received and disbursed in a real estate transaction.
A federal law protecting the rights of individuals with physical or mental impairments
Cash sales - New financing

22. Vrepayment penalty
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.
One with full authority over one property of the principal - such as a property manager
(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.
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.

23. impound account
Any property acquuired by one spouse during marriage by gift or inheritance or purchased with the separate funds of a husband or wife.
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
Another term for escrow account
A person appointedby an agent to assist in performing some or all of the tasks of the agency

24. Revenue stamps
Purchaser
A form of co-ownership that includes the right of survivorship
One in which the federal government does not insure or guarantee payment to the lender.
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

25. Condition concurrent
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
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.
When the parties are to exchange performances at the same time.
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.

26. Mortgage assumption

27. Marketable (merchantable) title
Neighborhoods that are made up of similar properties
One that is free from reasonable doubt and that a court would require a purchaser to accept
A type of land descripton utilizing townships and sections
An exaggeration of a property's benefits.

28. Right of inheritance
An interest in real estate such that a court will take notice and protect the owner's rights.
One that imposes a prepayment penalty.
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.
A federal law protecting the rights of individuals with physical or mental impairments

29. Personal representative
The amount of the brokerage's commission that goes to the realtor
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 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.
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate

30. Shared appreciation mortgage (SAM)
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
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 right of title to land
An organized method of sharing or pooling listings by member brokers. (electronic)

31. Truth-in-Lending Simplification and Reform Act (TILSRA)
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
In a closing statement - money to be recieved or credit given for money or an obligation given.
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.
A mortgage loan in which payments are insured by the Federal Housing Administration

32. Conditional sales contract
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.
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
An east-west line in the rectangular method of property description

33. Listing contract
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.
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 mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.

34. Guaranteed Loan Program
Personal property growing in the soil - requiring planting and cultivation; annual crops.
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
An interest in real estate such that a court will take notice and protect the owner's rights.
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan

35. Bargain and sale deed
Agreement of the parties; full performance; iimpossibility of performance; operation of law (judge's ruling)
Ownership by only one person
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.
A form of deed with or without covenants of title

36. Convey
A fee paid to an agent in advance for representation instead of commission; usually if commission exceeds retainer - a refund would be issued.
To pass to another (as in title)
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
A mortgage given by a buyer to a seller to secure payment of all or part of the purchase price.

37. Elliott-Larsen Civil Rights Act
Replaced the 1968 Michigan Fair Housing Act in prohibiting discrimination in the sale - rental - or lease of housing accommodation.
A commission not based on a percentage of the selling price.
Land was owned or controlled by the King
A test of soil to determine if it is sufficiently porous for installation of a septic tank.

38. Construction mortgage
A deed containing a limited warranty of 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.
A temporary mortgage used to borrow money to contruct an improvement on land
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.

39. Poluntary alienation
E.g. Put on market - sell - done)
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
A concept allowing that oral explanations can support the wrtten words of contract but cannot contradict them.
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

40. Fannie Mae (FNMA)
Actually lending the $
Investigates alleged discrimination and secures the equal protection of civil rights.
The shortened name for the Federal National Mortgage Association (FNMA) - a privately owned corporation that purchases FHA - VA - and conventional mortgages
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.

41. Michigan Condominium Act
The condition of death without leaving a valid will.
Details rights of condominium purchasers in Michigan
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.)
An estimate of value of a particular property - at a particular time for a specified purpose.

42. Habendum clause
Condominium unit composed of only vacant land with surface improvements or with air space within which a building is to be constructed.
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 commission not based on a percentage of the selling price.
The statement in a deed beginning with the words "to have and to hold" and describing the estate granted

43. Condominium
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 actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.
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.

44. Tester
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.
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.
A licensee involved in a real estate transacton without having a relationship with the buyer or the seller
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

45. Steering
The practice of directing prospective purchasers toward or away from certain neighborhoods to avoid altering the racial/ethnic makeup of these areas.
Title insurance that protects contract buyer against defects in contract seller's title.
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.

46. Cooperative
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 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 form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.
Title to real property held by two or more persons at the same time; also called concurrent ownership

47. Growing equity mortgage (GEM)

48. Hypothecating
Pledging property as security for the payment of a debt without giving up possession.
The vendor cannot do anything to jeopardize the interest of the vendee.
One with full authority over one property of the principal - such as a property manager
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.

49. Mortgagee's policy
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.
Simultaneous ownership of real property by two or more people
A hidden structural defect that would not be discovered by an ordinary inspection
A policy that insures a mortgagee against defects in a title pledged by a morgagor to secure payment of a mortgage loan.

50. Agent
A fee paid to an agent in advance for representation instead of commission; usually if commission exceeds retainer - a refund would be issued.
Subject to being defeated by the occurrence of a certain event
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
A person authorized to act on behalf of another