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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. Section
(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 one-mile-square area of land described by the rectangular survey system - consisting of 640 acres
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 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.

2. Right of inheritance
One in which personal property as well as real property s pledged to secure payment of the note.
The right for property to descend to the heirs of the owner as set out by will or by intestate succession.
A form of co-ownership that does not include the right of survivorship.
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

3. Quarter-section
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 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
One-forth of a section - containing 160 acres

4. Agency disclosure

5. Strict foreclosure
Cancellation of a contract when another party is in default
An error of material fact by both parties
(a) Recipient of a gift of personal property by will. (b) Lender in a deed of trust.
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.

6. 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)
The statement in a deed containing words of conveyance
Neighborhoods that are made up of similar properties
An organized method of sharing or pooling listings by member brokers. (electronic)

7. Condition
Finds someone to lend the $
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.
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.
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.

8. Conforming loans
Permission to assume the mortgage at an interest rate prevailing at the time of assumption
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
In a closing statement - money to be recieved or credit given for money or an obligation given.
One who receives title to real property by deed

9. Nonjudicial foreclosure
Evidence that a valid debt exists
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership
Paid to Cooperating Brokers Usually 50%/50%

10. Reverse annuity mortgage (RAM)
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
An accurate legal description of land
A three-day right of rescission for certain loan transactions
The principle stating that when the net profit a property generates is excessive - very strong competition will result

11. Devise
A federal prohibition of discrimination in sale - rental - financing - or appraisal of housing on the basis of race - color - religion - sex - national origin - handicap - or familial status.
A form of mortgage wherein there is a third party - who is called a trustee
A written instrument used to pledge a title to real property to secure payment of a promissory note.
A gift of real property by will

12. Conventional loan
Anything of value - as recognized by law - offered as an inducement to contract.
A form of co-ownership that does not include the right of survivorship.
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
One that has no participation by an agency of the federal government - Can be ether uninsured or insured

13. punitive damages
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
An east-west line in the rectangular method of property description
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
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated

14. Executed contract
An agreement that has been fully performed.
Successive conveyances of title to a specific parcel of land.
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.)
An estimate of value of a particular property - at a particular time for a specified purpose.

15. Condition precedent
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
A mortgage loan in which payments are insured by the Federal Housing Administration
To pass to another (as in title)
Assures the absence of hazardous materials or problems relating to regulations of the EPA.

16. Verc test
A promise in a deed that the grantor will execute further assurances that may be reasonable or necessary to perfect the title in the grantee
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
Agreement of the parties; full performance; iimpossibility of performance; operation of law (judge's ruling)
A test of soil to determine if it is sufficiently porous for installation of a septic tank.

17. Margin
Permanent financing arranged to replace a shor-term construction loan.
Measure of profit
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.
An agreement that may be voided by the parties without legal consequences.

18. Poluntary alienation
An agreement that has been fully performed.
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
E.g. Put on market - sell - done)
To pass to another (as in title)

19. Graduated payment adjustable 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
A federal law that prohibits all discrimination on the basis of race.
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 combination of the graduated payment mortgage and the variable rate mortgage

20. Junior mortgage
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.)
A federal prohibition of discrimination in sale - rental - financing - or appraisal of housing on the basis of race - color - religion - sex - national origin - handicap - or familial status.
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)

21. Michigan Mortgage Brokers - Lenders - Servicers and Licensing Act
The violations and fines or penalties - which the department and the licensee have agreed upon.
When the parties are to exchange performances at the same time.
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.
Regulates the licensing and registration of persons who make - broker - or service one- to four-family residential first mortgage loans secured by Michigan property.

22. Breach of contract
Failure - wthout legal excuse - to perform any proise that forms the whole or part of a contract.
A man/woman appointed in a will to see that the terms of the will are carried out
Money to be paid and received as compensaton for a breach of 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

23. Installment land contract
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 transfer of mortgage obligations to purchaser of the mortgaged property.
A form of co-ownership limited to husband and wife - with the right of survivorship
.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.

24. Broker
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 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.
One that imposes a prepayment penalty.
In Michigan - a person appointed by a court to distrbute the property of a person dying intestate

25. Co-ownership
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.
Return of title to the holder of a future interest - such as the grantor in a life estate not in remainder
Title to real property held by two or more persons at the same time; also called concurrent ownership
Real Estate Investment Trusts (the what mutual funds are to stocks REITs are to mortgages - sort of)

26. Discriminatory advertising
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.
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
Personal property growing in the soil - requiring planting and cultivation; annual crops.
A gift of personal property by will.

27. Fiduciary
Pledging property as security for the payment of a debt without giving up possession.
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
One in which the payments are lower in the early years but increase on a scheduled bass until they reach an amortizing level.

28. Tester
An agent working for an unnamed third party buyer (usually a celebrity)
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.
An exaggeration of a property's benefits.
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.

29. Savings Banks (S&L's)
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
A husband's interest in the real property of his wife
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
A major source of funds for financing residential real estate.

30. Acceptance
One who conveys title to real property by deed
Voluntary expression by the person receiving the offer to be bound by the exact terms of the offer; must be unequivocal and unconditional
The amount of money actually lost - which will be awarded by a court in case of a breached contract
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract

31. Valuable consideration
The largest and most prominent trade organization of real estate licensees.
A form of co-ownership that does not include the right of survivorship.
Anything of value agreed upon by parties to a contract. Includes a promise.
An error of material fact by both parties

32. Joint tenancy
A leasehold estate that may be terminated at the desire of either party
A husband's interest in the real property of his wife
A form of co-ownership that includes the right of survivorship
Interest only loan (e. g. - construction loan--you are only paying interest - no principal)

33. Straw Dog
A deed containing a limited warranty of title
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
A combination of the graduated payment mortgage and the variable rate mortgage
An agent working for an unnamed third party buyer (usually a celebrity)

34. National Fair Housing Alliance (NFHA)
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
Make good loans to qualified borrowers ( e. g. Rural Development loans)
Measure of profit
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.

35. Amortizing loan
Founded on natural duty and affection. Has no pecuniary value.
A physical or mental impairment that substantially limits one or more of the major life activities of a person
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
One in which uniform installment payments include payment of both principle and interest.

36. National Association of Realtors
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
The largest and most prominent trade organization of real estate licensees.
When the loan payment amount is not sufficient to cover interest due - the shortfall added back into principal - causing principal to grow larger after payment is made
1. Specific performance - 2. Rescission - 3. Compensatory Damages 4. Liquidated Damages

37. Michigan Uniform State Antitrust Act
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
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
Financinig charge required by the lender
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)

38. 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
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
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
A right of title to land

39. Certificate of reasonable value (CRV)
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 document setting forth the value of a property as the basis for the loan guarantee by the Veterans Administration to the lender.
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate
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

40. Receiver
One who takes over management of a property until the foreclosure process is complete
A federal law regulating activities of lending institutions in making mortgage loans for housing.
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
Personal property

41. Operation of law
Title to real property held by two or more persons at the same time; also called concurrent ownership
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
The manner in which rights and liabilities of parties may be changed by application of law without the act or cooperation of the parties.
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)

42. Listing contract
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.
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 form of co-ownership that does not include the right of survivorship.
One who holds title to property for the benefit of another called a beneficiary

43. Descent
Details rights of condominium purchasers in Michigan
Court ordered awards for extremely bad behavior by a party; intended to punish and indicate that the behavior will not be tolerated
Money to be paid and received as compensaton for a breach of contract.
The distribution of property to legally qualified heirs of one who has died intestate

44. Deed in lieu of foreclosure
Conveyance of title to the mortgagor in default to avoid a record of foreclosure. Also called friendly foreclosure
Evidence that a valid debt exists
One insuring a lessee against defects in the lessor's title.
The vendor cannot do anything to jeopardize the interest of the vendee.

45. Varticipation mortgage
A mortgage loan in which the loan payment is guaranteed to the lender by the Department of Veterans Affairs.
(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.
one that is subordinate to a subsequent mortgage (e. g. - a second 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

46. Vackage mortgage
When the parties are to exchange performances at the same time.
One in which personal property as well as real property s pledged to secure payment of the note.
A promise in a deed that the grantor will execute further assurances that may be reasonable or necessary to perfect the title in the grantee
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership

47. Community property
A federal prohibition of discrimination in sale - rental - financing - or appraisal of housing on the basis of race - color - religion - sex - national origin - handicap - or familial status.
A form of co-ownership lmited to husband and wife; does not include the right of survivorship
Seller
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.

48. Tenancy in common
A form of co-ownership that does not include the right of survivorship.
Lender's estimate of borrower's settlement costs - required by RESPA to be furnished to borrower at time of loan application
Another term for escrow account
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

49. Agent
The right of an owner to recieve the title to an co-owner's share upon death of the co-owner - as in the case of joint tenancy and tenancy by the entirety.
An instrument transferring ownership of personal property.
A person authorized to act on behalf of another
Allows the broker employed to market the seller's property for a given period of time.

50. Michigan Uniform Securities Act
Prohibits a real estate licensee from engaging in a transaction that could be viewed as a security
E.g. Put on market - sell - done)
Ownership by only one person
One in which a leasehold (nonfreehold) estate is pledged to secure payment of the note.