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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. Right of assignment
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.
Consummation of a real estate contract; also called closing.
Allows lender to sell mortgage at any time and obtain money invested rather than wait for completion of loan term.
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.

2. Confidentiality
When a subsequent contract covering the same subject matter is drafted (with changes)
Agreement of the parties; full performance; iimpossibility of performance; operation of law (judge's ruling)
The duty of agents not to disclose any information about their clients.
One that has no participation by an agency of the federal government - Can be ether uninsured or insured

3. Ready willing and able
A commission not based on a percentage of the selling price.
The loss of funds available to lending institutions for making mortgage loans - caused by depositors' withdrawal of funds for making investments that provide greater yields.
(a) 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.
Describes a buyer who is ready to buy - willing to buy - and financially able to pay the asking price.

4. Listing contract
A contract whereby aproperty owner employs a real estate broker to market the property described in the contract
Prohibits certain practices in trade or commece and provides for certain remedies.
Provides financng for rural Americans with incomes below 80 percent of the median income level in the community where they live.
Substitution of a new contract for a prior contract.

5. Mortgagee
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)
Personal property growing in the soil - requiring planting and cultivation; annual crops.
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
A percentage of the loan amount the lender requires for making a mortgage loan

6. Syndication
A form of deed with or without covenants of title
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate
Multiple joint participation in a real estate investment. May be a real estate trust - corporation - or partnership.
In a closing statement - an expense or money received against a credit

7. Right of first refusal clause
Pledging property as security for the payment of a debt without giving up possession.
(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 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.
Evidence that a valid debt exists

8. Mortgage
Replaced the 1968 Michigan Fair Housing Act in prohibiting discrimination in the sale - rental - or lease of housing accommodation.
Acronym denoting that a mortgage payment includes principal - interest - taxes - and insurance.
A written instrument used to pledge a title to real property to secure payment of a promissory note.
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.

9. Michigan Person's with Disabilities CiveI Rights Act

10. Real Estate Settlement Procedures Act (RESPA)
Anything of value - as recognized by law - offered as an inducement to contract.
A new offer made by an offer or rejecting an offer.
A federal law regulating activities of lending institutions in making mortgage loans for housing.
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate

11. Conventional loan
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.
A broker/salesperson's representing both buyer and seller in the same transaction (Mention at each of the first meetings with buyer and seller)
One that has no participation by an agency of the federal government - Can be ether uninsured or insured
An agreement based on mutual promises that provide the consideration. (A "done deal" both parties have fulfilled promises)

12. Association of Real Estate License Law Officials (ARELLO)
An agreement that has not been fully performed.
A deed denoting an unlimited guarantee of title
Ownership by only one person
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.

13. Dower

14. Acknowledgment
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
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 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 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.

15. Disintermediation

16. Transfer tax
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.
A tax imposed on the conveyance of title to real property by deed
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
One in which personal property as well as real property s pledged to secure payment of the note.

17. Bill of sale
Subject to being defeated by the occurrence of a certain event
A person authorized to act on behalf of another
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.
An instrument transferring ownership of personal property.

18. Purchase Money Mortgage
Subject to being defeated by the occurrence of a certain event
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
A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing.
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete

19. Right of first refusal
The borrower in a mortgage loan who executes and delivers a mortgage to the lender.
A person appointedby an agent to assist in performing some or all of the tasks of the agency
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
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.

20. Handicap

21. Brokerage
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
A hidden structural defect that would not be discovered by an ordinary inspection
Measure of profit

22. Fraud
An intentional false statement of a material fact.
An agreement that has been fully performed.
Any act or event that - if it occurs or fails to occur - automatically creates or extinguishes a legal obligation.
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.

23. Growing equity mortgage (GEM)

24. Revenue stamps
Measure of profit
One that does not impose a prepayment penalty.
E.g. Put on market - sell - done)
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. Grant deed
Investigates alleged discrimination and secures the equal protection of civil rights.
The market in which lenders sell mortgages
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
A statutory form of deed in which the warranties are mplied from the statute rather than being spelled out in the deed.

26. Highest and best use
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.
One holding a life estate
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land
A deed issued to the buyer of property that was sold under court order to pay off a debt.

27. Devisee
A responsibility for revealing all information that affects the agency agreement
The recipient of a gift of real property by will
An agreement that has no legal force or effect.
The amount of money actually lost - which will be awarded by a court in case of a breached contract

28. Civil Rights Act of 1968
Master deed containing legal description of the condoinium facility - a plat of the property - plans and specifications for the building and units - a description of the common areas - and the degree of ownership in the common areas available to each
A federal prohibition on discrimination in the sle - rental - or financing of housing on the basis of race - color - religion - sex - or national origin
One with full authority over one property of the principal - such as a property manager
Personal property that has become real property by having been permanently attached to real property

29. Condominium
One that is free from reasonable doubt and that a court would require a purchaser to accept
Cancellation of a contract when another party is in default
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
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.

30. Estate in real property
The largest and most prominent trade organization of real estate licensees.
An interest sufficient to provide the right to use - possession - and control of land; establishes the degree and duration of ownership
Item that is installed by a comercial tenant and is removable upon termination of the tenancy
A commission not based on a percentage of the selling price.

31. Michigan's Seller Disclosure Act
An agreement that is legally binding and enforceable.
An error of material fact by both parties
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.
Mandates that the seller complete a disclosure form regarding the condition of the property

32. Innocent misrepresentation

33. Covenant of seisin and right to convey
A financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
A promise in ta deed assuring the grantee that the grantor has the title being conveyed.
A phrase inserted into a contract declaring that each deadline in a contract must be met as it occurs
.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.

34. Acceleration clause
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
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 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
Replaced the 1968 Michigan Fair Housing Act in prohibiting discrimination in the sale - rental - or lease of housing accommodation.

35. Executory contract
One that is free from reasonable doubt and that a court would require a purchaser to accept
An agreement that has not been fully performed.
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 temporary mortgage used to borrow money to contruct an improvement on land

36. Federal Housing Administration (FHA)
The transfer of mortgage obligations to purchaser of the mortgaged property.
The U. S. agency that insures mortgage loans to protect lending institutions.
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 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.)

37. Feudal system
The aggregate of rights - powers - and priveleges conveyed with ownership of real estate
The U. S. agency that insures mortgage loans to protect lending institutions.
Land was owned or controlled by the King
A leasehold estate that may be terminated at the desire of either party

38. Location
An instrument transferring ownership of personal property.
No two parcels of land are identical
A form of co-ownership limited to husband and wife - with the right of survivorship
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic

39. Freddie Mac (FHLMC)
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 history of title and the current status of a title based on a atitle examination
Measure of profit
Provides ample time for buyer and seller to effect a mutually beneficial purchase and sale without undue pressure or urgency

40. Assignment
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
Transfer of legal rights and obligations by one party to another
The third party in a real estate transaction
An agreement that has no legal force or effect.

41. Mortgage insurance premium (MIP)
A husband's interest in the real property of his wife
(a) An economic characteristic of real property. (b) In appraisal - supply of property in relation to effective demand
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)
A payment for insurance to protect the lender and/or insurer against loss if default occurs.

42. Community property
A deed denoting an unlimited guarantee of title
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 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
A form of co-ownership lmited to husband and wife; does not include the right of survivorship

43. Option
A contract whereby a property owner (optioner) sells a right to purchase his or her property to a prospective buyer (optionee).
The duty of agents not to disclose any information about their clients.
A new offer made by an offer or rejecting an offer.
A written instrument used to pledge a title to real property to secure payment of a promissory note.

44. Discharge of contracts

45. Land contract
A claim against a title to real property.
The relatonship between the amont of a mortgage loan and the lender's opinion of the value of the property pledged to secure payment of the loan.
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 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.

46. Covenant for further assurances
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate
A deed containing a limited warranty of title
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 temporary mortgage used to borrow money to contruct an improvement on land

47. Assignor
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 financial charge imposed on a borrower for paying a mortgage prior to experation of the full mortgage terms.
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.
The person transferring contractual rights to another

48. Nonjudicial foreclosure
The inability of a party to exercise his or her free will because of fear of another party.
A form of foreclosure that does not require court action to conduct a foreclosure sale; also called foreclosure under power of sale.
The condition of death without leaving a valid will.
In a closing statement - an expense or money received against a credit

49. Chain of title
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land
Successive conveyances of title to a specific parcel of land.
The largest and most prominent trade organization of real estate licensees.
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.

50. Executed contract
A federal law regulating activities of lending institutions in making mortgage loans for housing.
In a closing statement - an expense or money received against a credit
An agreement that has been fully performed.
The amount of money actually lost - which will be awarded by a court in case of a breached contract