MICHIGAN REAL ESTATE CORE MAIN
EXAMINATION QUESTIONS AND ANSWERS SURE A+
- ✔✔The total amount of an item that is for sale or lease, at various prices, at any given
point in time.
✔✔Recording - ✔✔The act of filing written documents affecting the title to real property
with the county recorder
✔✔Present Interest - ✔✔An interest in real property that can be exercised today.
✔✔Section - ✔✔An area of land, used in the U.S. Public Land Survey method of land
description; a land area of one square mile, or 640 acres; 1/36 of a township
✔✔Equity of Redemption - ✔✔The right of the debtor, before a foreclosure sale, to
reclaim property that had been given up due to mortgage default; also known as right of
redemption
✔✔Leverage - ✔✔The use of borrowed money to purchase property
✔✔Judgment - ✔✔The final legal decision of a judge in a court of law regarding the
legal rights of parties to a dispute
,✔✔Undivided Interest - ✔✔That interest a co-owner has in property, which carries with
it the right to possession and use of the whole property, along with the co-owners
✔✔Estate - ✔✔A legal interest in land that defines the nature, degree, extent, and
duration of a person's ownership in land
✔✔Customer - ✔✔A prospective buyer of real estate
✔✔Manufactured Home - ✔✔A home built in a factory after June 15, 1976 and must
conform to the federal Manufactured Home Construction and Safety Standards
✔✔Negotiable Instrument - ✔✔A written promise or order to pay a specific sum of
money that may be transferred by endorsement or delivery. The transferee then has the
original payee's right to payment.
✔✔Vacancy Factor - ✔✔Lost income because of a vacant unit
✔✔Servicemembers Civil Relief Act - ✔✔A federal law designed to protect persons in
military service from loss of property when their ability to make the payment has been
affected by their entering military service
✔✔Patents - ✔✔Deeds used by the U.S. government when confirming or transferring
ownership to private parties
✔✔Estate in Fee - ✔✔A freehold estate that is the most complete form of ownership of
real property; also known as a fee, fee simple, or fee simple absolute. It is an estate of
inheritance.
✔✔Public Grant - ✔✔The transfer of title by the government to a private individual
✔✔Fraud - ✔✔An act meant to deceive in order to get someone to part with something
of value
✔✔Title Insurance - ✔✔An insurance policy that protects the insured against loss or
damage due to defects in the property's title
✔✔Statute of Frauds - ✔✔A state law which requires that certain contracts must be in
writing and contain certain essential elements in order to be enforceable
✔✔Bill of Sale - ✔✔A written agreement used to transfer ownership in personal property
✔✔Principle of Anticipation - ✔✔The market anticipates the future benefits that are to
be derived from the property.
, ✔✔Equity - ✔✔Value remaining in a property after payment of all liens; the difference
between the amount that is owed and the fair market value
✔✔Erosion - ✔✔The gradual wearing away of land by natural process
✔✔Appurtenance - ✔✔Those rights, privileges, and improvements that belong to and
pass with the transfer of real property, but are not necessarily a part of the actual
property
✔✔Alluvium - ✔✔Soil that builds up as a result of accretion
✔✔Reproduction Cost - ✔✔The current cost of building a replica of the subject structure
using similar quality materials; refers to exact duplication of the buildings; usually costs
more than replacement costs
✔✔Grace Period - ✔✔An agreement upon time after the payment of a debt is past due
during which a party can perform without being considered in default; usually 10 to 15
days
✔✔Earnest Money - ✔✔Down payment made by a purchaser of real estate as evidence
of good faith; or a deposit or partial payment
✔✔Cul-de-Sac Lot - ✔✔A lot on a dead-end street
✔✔Beneficiary - ✔✔The lender under a deed of trust
✔✔Partially Amortizing Note - ✔✔A promissory with repayment that is not sufficient to
amortize the loan over its term; usually contains a balloon payment at the end
✔✔Valid - ✔✔Legally binding
✔✔Bilateral Contract - ✔✔A contract in which each party to the contract promises to
perform some act or duty in exchange for the promise of the other party
✔✔Gross Rent - ✔✔Income (figured annually) received from rental units before any
expenses are deducted
✔✔Vendor - ✔✔The seller under a contract of sale (land contract)
✔✔Gross income multiplier (GIM - ✔✔A figure which, when multiplied by the annual
gross income from all sources, not just annual rent, equals the property's market value.
EXAMINATION QUESTIONS AND ANSWERS SURE A+
- ✔✔The total amount of an item that is for sale or lease, at various prices, at any given
point in time.
✔✔Recording - ✔✔The act of filing written documents affecting the title to real property
with the county recorder
✔✔Present Interest - ✔✔An interest in real property that can be exercised today.
✔✔Section - ✔✔An area of land, used in the U.S. Public Land Survey method of land
description; a land area of one square mile, or 640 acres; 1/36 of a township
✔✔Equity of Redemption - ✔✔The right of the debtor, before a foreclosure sale, to
reclaim property that had been given up due to mortgage default; also known as right of
redemption
✔✔Leverage - ✔✔The use of borrowed money to purchase property
✔✔Judgment - ✔✔The final legal decision of a judge in a court of law regarding the
legal rights of parties to a dispute
,✔✔Undivided Interest - ✔✔That interest a co-owner has in property, which carries with
it the right to possession and use of the whole property, along with the co-owners
✔✔Estate - ✔✔A legal interest in land that defines the nature, degree, extent, and
duration of a person's ownership in land
✔✔Customer - ✔✔A prospective buyer of real estate
✔✔Manufactured Home - ✔✔A home built in a factory after June 15, 1976 and must
conform to the federal Manufactured Home Construction and Safety Standards
✔✔Negotiable Instrument - ✔✔A written promise or order to pay a specific sum of
money that may be transferred by endorsement or delivery. The transferee then has the
original payee's right to payment.
✔✔Vacancy Factor - ✔✔Lost income because of a vacant unit
✔✔Servicemembers Civil Relief Act - ✔✔A federal law designed to protect persons in
military service from loss of property when their ability to make the payment has been
affected by their entering military service
✔✔Patents - ✔✔Deeds used by the U.S. government when confirming or transferring
ownership to private parties
✔✔Estate in Fee - ✔✔A freehold estate that is the most complete form of ownership of
real property; also known as a fee, fee simple, or fee simple absolute. It is an estate of
inheritance.
✔✔Public Grant - ✔✔The transfer of title by the government to a private individual
✔✔Fraud - ✔✔An act meant to deceive in order to get someone to part with something
of value
✔✔Title Insurance - ✔✔An insurance policy that protects the insured against loss or
damage due to defects in the property's title
✔✔Statute of Frauds - ✔✔A state law which requires that certain contracts must be in
writing and contain certain essential elements in order to be enforceable
✔✔Bill of Sale - ✔✔A written agreement used to transfer ownership in personal property
✔✔Principle of Anticipation - ✔✔The market anticipates the future benefits that are to
be derived from the property.
, ✔✔Equity - ✔✔Value remaining in a property after payment of all liens; the difference
between the amount that is owed and the fair market value
✔✔Erosion - ✔✔The gradual wearing away of land by natural process
✔✔Appurtenance - ✔✔Those rights, privileges, and improvements that belong to and
pass with the transfer of real property, but are not necessarily a part of the actual
property
✔✔Alluvium - ✔✔Soil that builds up as a result of accretion
✔✔Reproduction Cost - ✔✔The current cost of building a replica of the subject structure
using similar quality materials; refers to exact duplication of the buildings; usually costs
more than replacement costs
✔✔Grace Period - ✔✔An agreement upon time after the payment of a debt is past due
during which a party can perform without being considered in default; usually 10 to 15
days
✔✔Earnest Money - ✔✔Down payment made by a purchaser of real estate as evidence
of good faith; or a deposit or partial payment
✔✔Cul-de-Sac Lot - ✔✔A lot on a dead-end street
✔✔Beneficiary - ✔✔The lender under a deed of trust
✔✔Partially Amortizing Note - ✔✔A promissory with repayment that is not sufficient to
amortize the loan over its term; usually contains a balloon payment at the end
✔✔Valid - ✔✔Legally binding
✔✔Bilateral Contract - ✔✔A contract in which each party to the contract promises to
perform some act or duty in exchange for the promise of the other party
✔✔Gross Rent - ✔✔Income (figured annually) received from rental units before any
expenses are deducted
✔✔Vendor - ✔✔The seller under a contract of sale (land contract)
✔✔Gross income multiplier (GIM - ✔✔A figure which, when multiplied by the annual
gross income from all sources, not just annual rent, equals the property's market value.
