Michigan Real Estate Exam Quiz

What is the difference between real property and personal property?

• The highest form of ownership with the least restrictions.

• Real property includes land and anything permanently attached, while personal property is movable.

• A contract with all essential elements: offer, acceptance, consideration, legality, and capacity.

• Legal process by which a lender takes ownership of a property for nonpayment.

What type of ownership includes the right of survivorship?

• A relationship created by a written or oral agreement.

• At least 3 years.

• $20,000.

• Joint tenancy.

What is a fixture?

• Only guarantees the title during the seller's ownership.

• Personal property that has been permanently attached to real property.

• A lien on property used as collateral for a loan.

• A relationship created by a written or oral agreement.

What is the purpose of a legal description?

• An interest in real property giving the right to use for a limited time.

• A contract between a seller and a broker to market and sell property.

• Pre-qualification is informal; pre-approval is based on verified information.

• To uniquely identify and locate a property.

What are the three types of legal descriptions?

• Legal process by which a lender takes ownership of a property for nonpayment.

• Metes and bounds, lot and block, rectangular (government) survey.

• Estimates value based on the cost to replace or reproduce the property.

• A legal claim against a property for a debt.

What does 'fee simple' mean?

• The rate used to estimate value based on income.

• Prohibits discrimination in lending.

• A loan paid off in regular payments over time, including principal and interest.

• The highest form of ownership with the least restrictions.

What is an encumbrance?

• A claim or liability attached to property, such as liens or easements.

• Notify LARA and receive a new license.

• Using client funds for personal use.

• Loss in value due to wear and tear.

What is an easement?

• A contract between a seller and a broker to market and sell property.

• When a principal accepts the actions of someone who acted without authority.

• $40,000.

• A right to use someone else's land for a specific purpose.

What is eminent domain?

• Transferring contract rights to another party.

• A contract where only one party makes a promise.

• Provides the most protection to the buyer with full warranties.

• The government's right to take private property for public use with compensation.

What is a freehold estate?

• Department of Licensing and Regulatory Affairs (LARA).

• Ownership interest in land that is indefinite in duration.

• Pre-qualification is informal; pre-approval is based on verified information.

• Disclose their licensed status and brokerage name.