MICHIGAN REAL ESTATE 2026 EVALUATION TEST
QUESTIONS AND ANSWERS SURE A+
✔✔Conventional Loans - ✔✔A loan that requires no insurance or guarantee.
✔✔Cooperative - ✔✔A residential multiunit building whose title is held by a trust or
corporation that is owned by and operated for the benefit of people living within the
building who are the beneficial owners of the trust or shareholders of the corporation,
each possessing a proprietary lease.
✔✔Cooperative - ✔✔A residential multiunit building whose title is held by a trust or
corporation that is owned by and operated for the benefit of people living within the
build¬ing who are the beneficial owners of the trust or share¬holders of the corporation,
each possessing a proprietary lease.
✔✔Corporation - ✔✔An entity or organization, created by operation of law, whose rights
of doing business are essentially the same as those of an individual. The entity has
continuous existence until it is dissolved according to legal procedures.
✔✔Corrective Maintenance - ✔✔Corrects problems after they have occurred.
,✔✔Cost Approach - ✔✔The process of estimating the value of a property by adding to
the estimated land value the appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation.
✔✔Cost Recovery - ✔✔An Internal Revenue Service term for depreciation.
✔✔Counteroffer - ✔✔A new offer made in response to an offer received. It has the
effect of rejecting the original offer, which cannot be accepted thereafter unless revived
by the offeror.
✔✔Covenants - ✔✔Conditions, And Restrictions (Cc&rs),Private agreements that affect
the land use. They may be enforced by an owner of real estate and included in the
seller's deed to the buyer.
✔✔Credit - ✔✔On a closing statement, an amount entered in a person's favor—either
an amount the party has paid or an amount for which the party must be reimbursed.
✔✔Cumulative Or Noncumulative - ✔✔Zoning ordinances are either cumulative or
noncumulative. A cumulative ordinance will permit a certain use in a district, as well as
any other use that is more restrictive. A noncumulative ordinance restricts an area to a
particular, single use.
✔✔Customer - ✔✔The third party or nonrepresented consumer for whom some level of
service is provided.
✔✔Datum - ✔✔A horizontal plane from which heights and depths are measured.
✔✔Debit - ✔✔On a closing statement, an amount charged; that is, an amount that the
debited party must pay.
✔✔Deed - ✔✔A written instrument that, when executed and delivered, conveys title to
or an interest in real estate.
✔✔Deed In Lieu Of Foreclosure - ✔✔A deed given by the mortgagor to the mortgagee
when the mortgagor is in default under the terms of the mortgage. This is a way for the
mortgagor to avoid foreclosure.
✔✔Deed Of Trust - ✔✔An instrument that grants a trustee under a land trust full power
to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the
trustee's use of these powers under the provisions of the trust agreement.
✔✔Deed Of Trust - ✔✔An instrument used to create a mortgage lien by which the
borrower conveys title to a trustee, who holds it as security for the benefit of the note
holder (the lender); also called a deed of trust.
,✔✔Deed Restrictions - ✔✔Clauses in a deed limiting the future uses of the property.
Deed restrictions may impose a vast variety of limitations and conditions—for example,
they may limit the density of buildings, dictate the types of structures that can be
erected, or prevent buildings from being used for specific purposes or even from being
used at all.
✔✔Defeasance Clause - ✔✔A clause used in leases and mortgages that cancels a
specified right upon the occurrence of a certain condition, such as cancellation of a
mortgage upon repayment of the mortgage loan.
✔✔Deficiency Judgment - ✔✔A personal judgment levied against the borrower when a
foreclosure sale does not produce sufficient funds to pay the mortgage debt in full.
✔✔Demand Accounts - ✔✔A depository account which allows the immediate
withdrawal of the cleared funds without prior notice.
✔✔Density Zoning - ✔✔Zoning ordinances that restrict the maximum average number
of houses per acre that may be built within a particular area, generally a subdivision.
✔✔Department - ✔✔The Michigan Department of Commerce.
✔✔Department Of Housing And Urban Development (Hud) - ✔✔Governmental
department that has established rules and regulations that further interpret the practices
affected by the law. In addition, HUD distributes an equal housing opportunity poster.
✔✔Depreciation - ✔✔(1) In appraisal, a loss of value in property due to any cause,
including physical deterioration, functional obsolescence, and external obsolescence.
(2) In real estate investment, an expense deduction for tax purposes taken over the
period of ownership of income property.
✔✔Designated Agency - ✔✔A process that accommodates an in-house sale in which
two different agents are involved. The broker designates one agent to represent the
seller and one agent to represent the buyer.
✔✔Designated Agent - ✔✔A licensee authorized by a broker to act as the agent for a
specific principal in a particular transaction.
✔✔Developer - ✔✔One who attempts to put land to its most profitable use through the
construction of improvements.
✔✔Devise - ✔✔A gift of real property by will. The donor is the devisor, and the recipient
is the devisee.
, ✔✔Disciplinary Actions - ✔✔Punishment for a violation of the Occupational Code.
✔✔Disclaimers - ✔✔A statement indicating no legal responsibility for information; no
warranties or representations have been made.
✔✔Disclosure - ✔✔Relevant information or facts that are known or should have been
known.
✔✔Discount Points - ✔✔A unit of measurement used for various loan charges; one
point equals 1 percent of the amount of the loan.
✔✔Division - ✔✔Creation of smaller land parcels (less than 40 acres in size) from a
larger parcel. Divisions require municipal approval and the number of divisions is limited
by the size of the original parcel.
✔✔Dower - ✔✔The legal right or interest, recognized in some states, that a wife
acquires in the property her husband held or acquired during their marriage. During the
husband's lifetime, the right is only a possibility of an interest; upon his death, it can
become an interest in land.
✔✔Dual Agency - ✔✔Representing both parties to a transaction. This is unethical
unless both parties agree to it, and it is illegal in many states.
✔✔Earnest Money - ✔✔Money deposited by a buyer under the terms of a contract, to
be forfeited if the buyer defaults but to be applied to the purchase price if the sale is
closed.
✔✔Easement - ✔✔A right to use the land of another for a specific purpose, such as for
a right-of-way or utilities; an incorporeal interest in land.
✔✔Easement By Necessity - ✔✔An easement allowed by law as necessary for the full
enjoyment of a parcel of real estate (e.g., a right of ingress and egress over a grantor's
land).
✔✔Easement By Prescription - ✔✔An easement acquired by continuous, open, and
hostile use of the property for the period of time prescribed by state law.
✔✔Easement In Gross - ✔✔An easement that is not created for the benefit of any land
owned by the owner of the easement but that attaches personally to the easement
owner. For example, a right granted by Eleanor Franks to Joe Fish to use a portion of
her property for the rest of his life would be an easement in gross.
✔✔Easements - ✔✔A right to use the land of another for a specific purpose, such as for
a right-of-way or utilities; an incorporeal interest in land.
QUESTIONS AND ANSWERS SURE A+
✔✔Conventional Loans - ✔✔A loan that requires no insurance or guarantee.
✔✔Cooperative - ✔✔A residential multiunit building whose title is held by a trust or
corporation that is owned by and operated for the benefit of people living within the
building who are the beneficial owners of the trust or shareholders of the corporation,
each possessing a proprietary lease.
✔✔Cooperative - ✔✔A residential multiunit building whose title is held by a trust or
corporation that is owned by and operated for the benefit of people living within the
build¬ing who are the beneficial owners of the trust or share¬holders of the corporation,
each possessing a proprietary lease.
✔✔Corporation - ✔✔An entity or organization, created by operation of law, whose rights
of doing business are essentially the same as those of an individual. The entity has
continuous existence until it is dissolved according to legal procedures.
✔✔Corrective Maintenance - ✔✔Corrects problems after they have occurred.
,✔✔Cost Approach - ✔✔The process of estimating the value of a property by adding to
the estimated land value the appraiser's estimate of the reproduction or replacement
cost of the building, less depreciation.
✔✔Cost Recovery - ✔✔An Internal Revenue Service term for depreciation.
✔✔Counteroffer - ✔✔A new offer made in response to an offer received. It has the
effect of rejecting the original offer, which cannot be accepted thereafter unless revived
by the offeror.
✔✔Covenants - ✔✔Conditions, And Restrictions (Cc&rs),Private agreements that affect
the land use. They may be enforced by an owner of real estate and included in the
seller's deed to the buyer.
✔✔Credit - ✔✔On a closing statement, an amount entered in a person's favor—either
an amount the party has paid or an amount for which the party must be reimbursed.
✔✔Cumulative Or Noncumulative - ✔✔Zoning ordinances are either cumulative or
noncumulative. A cumulative ordinance will permit a certain use in a district, as well as
any other use that is more restrictive. A noncumulative ordinance restricts an area to a
particular, single use.
✔✔Customer - ✔✔The third party or nonrepresented consumer for whom some level of
service is provided.
✔✔Datum - ✔✔A horizontal plane from which heights and depths are measured.
✔✔Debit - ✔✔On a closing statement, an amount charged; that is, an amount that the
debited party must pay.
✔✔Deed - ✔✔A written instrument that, when executed and delivered, conveys title to
or an interest in real estate.
✔✔Deed In Lieu Of Foreclosure - ✔✔A deed given by the mortgagor to the mortgagee
when the mortgagor is in default under the terms of the mortgage. This is a way for the
mortgagor to avoid foreclosure.
✔✔Deed Of Trust - ✔✔An instrument that grants a trustee under a land trust full power
to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the
trustee's use of these powers under the provisions of the trust agreement.
✔✔Deed Of Trust - ✔✔An instrument used to create a mortgage lien by which the
borrower conveys title to a trustee, who holds it as security for the benefit of the note
holder (the lender); also called a deed of trust.
,✔✔Deed Restrictions - ✔✔Clauses in a deed limiting the future uses of the property.
Deed restrictions may impose a vast variety of limitations and conditions—for example,
they may limit the density of buildings, dictate the types of structures that can be
erected, or prevent buildings from being used for specific purposes or even from being
used at all.
✔✔Defeasance Clause - ✔✔A clause used in leases and mortgages that cancels a
specified right upon the occurrence of a certain condition, such as cancellation of a
mortgage upon repayment of the mortgage loan.
✔✔Deficiency Judgment - ✔✔A personal judgment levied against the borrower when a
foreclosure sale does not produce sufficient funds to pay the mortgage debt in full.
✔✔Demand Accounts - ✔✔A depository account which allows the immediate
withdrawal of the cleared funds without prior notice.
✔✔Density Zoning - ✔✔Zoning ordinances that restrict the maximum average number
of houses per acre that may be built within a particular area, generally a subdivision.
✔✔Department - ✔✔The Michigan Department of Commerce.
✔✔Department Of Housing And Urban Development (Hud) - ✔✔Governmental
department that has established rules and regulations that further interpret the practices
affected by the law. In addition, HUD distributes an equal housing opportunity poster.
✔✔Depreciation - ✔✔(1) In appraisal, a loss of value in property due to any cause,
including physical deterioration, functional obsolescence, and external obsolescence.
(2) In real estate investment, an expense deduction for tax purposes taken over the
period of ownership of income property.
✔✔Designated Agency - ✔✔A process that accommodates an in-house sale in which
two different agents are involved. The broker designates one agent to represent the
seller and one agent to represent the buyer.
✔✔Designated Agent - ✔✔A licensee authorized by a broker to act as the agent for a
specific principal in a particular transaction.
✔✔Developer - ✔✔One who attempts to put land to its most profitable use through the
construction of improvements.
✔✔Devise - ✔✔A gift of real property by will. The donor is the devisor, and the recipient
is the devisee.
, ✔✔Disciplinary Actions - ✔✔Punishment for a violation of the Occupational Code.
✔✔Disclaimers - ✔✔A statement indicating no legal responsibility for information; no
warranties or representations have been made.
✔✔Disclosure - ✔✔Relevant information or facts that are known or should have been
known.
✔✔Discount Points - ✔✔A unit of measurement used for various loan charges; one
point equals 1 percent of the amount of the loan.
✔✔Division - ✔✔Creation of smaller land parcels (less than 40 acres in size) from a
larger parcel. Divisions require municipal approval and the number of divisions is limited
by the size of the original parcel.
✔✔Dower - ✔✔The legal right or interest, recognized in some states, that a wife
acquires in the property her husband held or acquired during their marriage. During the
husband's lifetime, the right is only a possibility of an interest; upon his death, it can
become an interest in land.
✔✔Dual Agency - ✔✔Representing both parties to a transaction. This is unethical
unless both parties agree to it, and it is illegal in many states.
✔✔Earnest Money - ✔✔Money deposited by a buyer under the terms of a contract, to
be forfeited if the buyer defaults but to be applied to the purchase price if the sale is
closed.
✔✔Easement - ✔✔A right to use the land of another for a specific purpose, such as for
a right-of-way or utilities; an incorporeal interest in land.
✔✔Easement By Necessity - ✔✔An easement allowed by law as necessary for the full
enjoyment of a parcel of real estate (e.g., a right of ingress and egress over a grantor's
land).
✔✔Easement By Prescription - ✔✔An easement acquired by continuous, open, and
hostile use of the property for the period of time prescribed by state law.
✔✔Easement In Gross - ✔✔An easement that is not created for the benefit of any land
owned by the owner of the easement but that attaches personally to the easement
owner. For example, a right granted by Eleanor Franks to Joe Fish to use a portion of
her property for the rest of his life would be an easement in gross.
✔✔Easements - ✔✔A right to use the land of another for a specific purpose, such as for
a right-of-way or utilities; an incorporeal interest in land.
