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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. Void contract
Title to real property held by two or more persons at the same time; also called concurrent ownership
The statement in a deed containing words of conveyance
E.g. very accurate desc or property)
An agreement that has no legal force or effect.

2. Assignee
Written registration of an owner's title in public records to protect against subsequent claimants.
One to whom contractual rights are transferred
An intentional false statement of a material fact.
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.

3. Location
A life estate based on the life of another
A form of co-ownership that does not include the right of survivorship.
An economic characteristic of land having the greatest effect on value in comparison to any other characteristic
A form of mortgage wherein there is a third party - who is called a trustee

4. Condition precedent
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.
A payment for insurance to protect the lender and/or insurer against loss if default occurs.
Anything of value - as recognized by law - offered as an inducement to contract.
An act or event that must exist or occur before a duty of immediate performance of a promise arises. (relative to contracts)

5. Guaranteed Loan Program
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
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
The vendor cannot do anything to jeopardize the interest of the vendee.
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

6. Poluntary alienation
Mortgage allowing elderly homeowners to borrow against the equity in their homes to help meet living expenses.
E.g. Put on market - sell - done)
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.
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

7. Title insurance
An accurate legal description of land
An insurance policy protecting the insured from a financial loss caused by a defect in a title to real property (Buyer buys for mortgage company for amount of mortgage; seller pays for buyer on full price of property).
The amount of the brokerage's commission that goes to the realtor
Paid to Cooperating Brokers Usually 50%/50%

8. Estate at will
A leasehold estate that may be terminated at the desire of either party
Substitution of a new contract for a prior contract.
One crated by deduction from the conduct of the parties rather than from the direct words of the parties; opposite of an express contract.
The inability of a party to exercise his or her free will because of fear of another party.

9. Jones v. Mayer
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 transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
A form of co-ownership that includes the right of survivorship
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination

10. Covenant of warranty
Evidence that a valid debt exists
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.
One with full authority over one property of the principal - such as a property manager
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.

11. Straw Dog
An agent working for an unnamed third party buyer (usually a celebrity)
Real Estate Investment Trusts (the what mutual funds are to stocks REITs are to mortgages - sort of)
Preventing a person from making a statement contrary to a previous statement
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.

12. Michigan usury laws
Provides that in transactons between private parties or unregulated lenders the maximum allowable interst rate is 11 percent
Any property acquuired by one spouse during marriage by gift or inheritance or purchased with the separate funds of a husband or wife.
One in which personal property as well as real property s pledged to secure payment of the note.
The third party in a real estate transaction

13. Good consideration
Founded on natural duty and affection. Has no pecuniary value.
Title insurance that protects contract buyer against defects in contract seller's title.
One to whom contractual rights are transferred
Land cannot be relocated

14. Bundle of rights
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.
Agency that exists as a result of actions of the parties
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.
The rights of an owner of a freehold estate to possession - enjoyment - control - and disposition of real property.

15. Uniform Vendor and Purchaser's Risk Act

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16. Devise
A form of co-ownership that includes the right of survivorship
A gift of real property by will
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.
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.

17. Broker
An agreement between competent parties upon legal consideration (e. g. money - property - promise - etc. ) to do - or abstain from doing - some legal act.
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
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 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.

18. Cortesy

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19. Mutual mistake
A right of title to land
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.
A percentage of the loan amount the lender requires for making a mortgage loan
An error of material fact by both parties

20. Fair Housing Amendments Act of 1988
(a) Money paid for the use of money. (b) An ownership or right.
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate
Title insurance that protects contract buyer against defects in contract seller's title.
A law adding to the Fair Housing Act provisions to prevent discrimination based on mental or physical handicap or familial status

21. Valuable consideration
A leasehold estate that may be terminated at the desire of either party
A form of ownershp iin which stockholders in a corporation occupy property owned by the corporation under a lease.
Anything of value agreed upon by parties to a contract. Includes a promise.
A buyer of property who relies on the records and is unaware of an unrecorded prior document

22. FHA-insured loans
OLD CAR Obedience - Loyalty - Disclosure of info - Confidentiality - Accounting - Reasonable xxx? - care - and diligence
A mortgage loan in which payments are insured by the Federal Housing Administration
A claim against a title to real property.
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.

23. Tester
An estimate of value of a particular property - at a particular time for a specified purpose.
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.
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
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

24. Civil Rights Act of 1968
An accounting of the funds received and disbursed in a real estate transaction.
One who receives title to real property by deed
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 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.

25. Board of Real Estate Brokers and Salespersons
Written registration of an owner's title in public records to protect against subsequent claimants.
The governing board for real estate licenses in MI
A person appointedby an agent to assist in performing some or all of the tasks of the agency
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

26. Listing contract
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
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.

27. Conforming loans
Organization established in 1929 by license law officials on the state commissions to assist one another in creating - administering - and enforcing license laws.
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
Those processed on uniform loan forms and according to FNMA/FHLMC guidlines
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

28. Employ
License law term that describes a type of relationship between a broker and his or her licensees
Agency that exists as a result of actions of the parties
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.
The third party in a real estate transaction

29. Sherriff's deed
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.
A history of title and the current status of a title based on a atitle examination
A deed issued to the buyer of property that was sold under court order to pay off a debt.
One who arranges a mortgage loan betwen a lender and a borrower for a fee.

30. Seller agency

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31. Timesharing
Expenses seller owes on the day of closing but for which the buyer will take responsibility (such as property taxes)
A deed denoting an unlimited guarantee of title
An east-west line in the rectangular method of property description
A form of ownership in which the purchsaser owns the property for a certain specified time interval.

32. Legality of object
A condition in a contract imposed by a court. (e. g. court orders payback on agreed upon amount because of incomplete fulfillment of contract...38 acres instead of 40 sold)
The amount of money (usually the loan amount) on which interest is either paid or recieved.
Legal purpose.
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate

33. Mortgagee
Another term for escrow account
The lender in a mortgage loan - who receives a mortgage from the borrower (mortgagor).
Supreme Court decision upholding Civil Right Act of 1866; under no circumstances is anyone exempted from the law prohibiting racial discrimination
Use of land that will preserve the dand utility - provide the greatest income - and result in the greatest present value of the land

34. Americans with Disabilities Act (ADA)
1. offer - 2. acceptance - 3. consideration - 4. legal capacity of the parties - 5. reality of consent - 6. legality of object - 7. possibility to complete
A federal law protecting the rights of individuals with physical or mental impairments
Allows certain parcels of property to be removed from the mortgage lien if the loan balance is reduced a specified amount
Title to real property held by two or more persons at the same time; also called concurrent ownership

35. Executor /executrix
A man/woman appointed in a will to see that the terms of the will are carried out
The U. S. agency that insures mortgage loans to protect lending institutions.
A promise in a deed that the grantor will guarantee and defend the title against lawful claimants.
One that requires the mortgagor to pay interest only during the mortgage term - with the principal due at the end of the term.

36. Unities of ownership
Time - title - interest - and possession; concurrent ownerships require at least one unity between co-owners.
A property owner employs a real estate firm to market a property for a prescribed period of time at a prescribed price and terms
Simultaneous ownership of real property by two or more people
Leaseholds; estates with a length determined by agreement or statute; establishes possession of land as oppposed to ownership in fee.

37. Misrepresentation
Should an individual borrower default on a loan - the Rural Housing Service will pay the private financier for the loan
Cancellation of a contract when another party is in default
(a) A false statement or omission of a material fact. (b) In real estate - making an unintentionally false statement to induce someone to contract
Seller

38. Subagent
A person appointedby an agent to assist in performing some or all of the tasks of the agency
A registered trademark of the National Associaton of REALTORS*; its use is limited to members only.
A gift of real property by will
A condition in a contract imposed by a court. (e. g. court orders payback on agreed upon amount because of incomplete fulfillment of contract...38 acres instead of 40 sold)

39. Co-ownership
Title to real property held by two or more persons at the same time; also called concurrent ownership
A wife's interest in her husband's real property
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.
An agency relationship created by oral or written agreement between principal and agent

40. Delivery and acceptance
Permanence of land--makes it an attractive long term investment
Second mortgage
The transfer of a title by deed requires the grantor to deliver and the grantee to accept a given deed.
The duty of agents not to disclose any information about their clients.

41. Vendor
one that is subordinate to a subsequent mortgage (e. g. - a second mortgage)
Seller
A test of soil to determine if it is sufficiently porous for installation of a septic tank.
A financial charge imposed on a borrower for paying a mortgage prior to expiration of the full mortgage term.

42. Elliott-Larsen Civil Rights Act
Replaced the 1968 Michigan Fair Housing Act in prohibiting discrimination in the sale - rental - or lease of housing accommodation.
One who takes over management of a property until the foreclosure process is complete
License law term that describes a type of relationship between a broker and his or her licensees
The outlay of money expecting income or profit or the acquisition of property expecting income or profit

43. Separate property
Any property acquuired by one spouse during marriage by gift or inheritance or purchased with the separate funds of a husband or wife.
Another term for escrow account
The introductory information on a deed
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.

44. Annual percentage rate (APR)
The actual effective rate of interest charged on a loan expressed on a yearly basis; not the same as simple interest rate
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.
Personal property that has become real property by having been permanently attached to real property
An organized method of sharing or pooling listings by member brokers. (electronic)

45. Condition subsequent
A policy insuring an owner of real property against financial loss resulting from a title defect.
Execution of a contract by vrtue of all parties having fully performed all terms
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.
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)

46. Unilateral contract
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)
The recipient of a gift of real property by will
The amount of money (usually the loan amount) on which interest is either paid or recieved.
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.

47. Covenant for further assurances
A mental or physical disability that impairs any of a person's life functions.
Agent with limited authority to act on behalf of the principal - such as created by a listing (realtors acting for realtors???)
A person authorized to act on behalf of another
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

48. underwriting

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49. Foreclosure
To pass to another (as in title)
Preventing a person from making a statement contrary to a previous statement
The legal procedure of enforcing payment of a debt secured by a mortgage or any other lien.
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.

50. 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)
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.
A threshold after which a realtor keeps all commissions and the broker keeps none
Substitution of a new contract for a prior contract.