MICHIGAN REAL ESTATE 2026 TEST PAPER QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔Mechanic's Lien(construction Lien) - ✔✔a person who furnishes materials and/or
effort to improve land and is not paid by the landowner may place a lien on the property
-unpaid contractor bill
✔✔Appurtenances - ✔✔opposite of Encumbrances "Good thing"
Ex. an easement to gain access across the neighbor's parcel, or a covenant
(agreement) against blocking the neighbor's view.
✔✔Special Assessments - ✔✔cost due for improvements performed by the local
government such as installing city sewers or water, paving the street, etc.
✔✔License - ✔✔Permission, of a personal and TEMPORARY nature, granted to enter
someone's land for a particular purpose such as a license to fish or hunt
(driver license = temporary)
✔✔If you have an easement running over YOUR PROPERTY, that makes you the.... -
✔✔Servient estate
✔✔Do easements run with the land? - ✔✔yes
✔✔Fee simple - ✔✔the BEST/HIGHEST type of ownership recognized by the law
(Freehold estate)
-best type of ownership
-no restrictions, law gives maximum rights
-upon death of owner, it's passed to the heirs
✔✔Freehold Estate - ✔✔Ownership
-interest in real property for a lifetime or more. It can be obtained through inheritance or
deed
-free to do what you want with the property
✔✔Non-freehold estate (leasehold estate) - ✔✔interest in property for less than a
lifetime and considered to be personal interest
-obtained by receiving a lease on property
✔✔Qualified fee estate (Or defeasible fee)
-if grantee does not abide? - ✔✔-restricted or restriction in deed.
ex. own house but cannot build second story
if the grantee (buyer) is not abiding by the restrictions set forth by the grantor (Seller),
the property may revert back to the grantor (seller)
,✔✔life estate = - ✔✔granted to a person (life tenant) for a lifetime
-ownership for "heartbeat only", life tenant is "heartbeat only"
✔✔which is Owning in severalty? - ✔✔An Entity
-Own something alone, by yourself
✔✔Adverse Possession - ✔✔when the land of another private person is adversely and
exclusively possessed in an open and notorious way
-after 15 years, you can claim land as your own if it crosses your property
-ex. if fence is on neighbor's lawn for 15 years, you can claim it as your own
✔✔Tenants in common - ✔✔No survivorship, land goes to their heirs
✔✔Tenants by the entireties could also be.. - ✔✔joint tenancy with survivorship
-ownership with husband and wife w/ survivorship
✔✔John and bob are Joint Tenants, John dies. What happens to property? - ✔✔It goes
to bob
✔✔What happens if the deed does not state a percentage of ownership? - ✔✔each of
the grantees is presume to receive equal interest
✔✔somebody's roof starts to leak 3 months after they move into their new condo, who
is responsible for paying for it to be repaired? - ✔✔the association
✔✔What type of ownership is a condo? - ✔✔Fee simple
✔✔what do you own in a condo? - ✔✔100% of the airspace, the cube of air in a condo
✔✔In Cooperatives, what are given to owners to signify ownership? - ✔✔Proprietary
Leases
✔✔Proprietary lease - ✔✔Given to the multiple owners in a Co-OP instead of a deed
signifys ownership in a cooperation
✔✔cooperatives (co-ops) - ✔✔-buildings owned by corporations with the residents as
shareholders who each receive a properietary lease on an individual unit and the right
to use common areas
✔✔Bundle of rights - ✔✔invisible
-right to own, sell, lease, etc.
✔✔Taxation
, -what happens if you do not pay taxes? - ✔✔right of government to charge property
owners an amount in proportion to property value (Ad valorem)
-two year delinquency, if you do not pay taxes for two years, your property may go to a
tax sale
✔✔Ad valorem - ✔✔according to value
method used to calculate property taxes
✔✔special assessments - ✔✔charges assessed for improvements provided by local
government that benefit the property such as installing utilities or paving the road
✔✔Eminent domain - ✔✔the government's right to take private property for public use
provided that taking is necessary and after payment of just compensation
-condemnation happens when owner does not agree to relinquish ownership
✔✔Condemnation - ✔✔Action through which Eminent Domain is accomplished when an
owner does not voluntarily relinquish ownership
-gov. takes legal action to get property
✔✔Escheat - ✔✔property reverts to state when owner dies intestate (without will) and
has no heirs
✔✔Somebody dies with a will and with heirs, what is impossible? - ✔✔Escheat
✔✔Police power
examples? - ✔✔vested in government to make laws and regulations for the health,
safety and welfare of the public. Ex. zoning, building codes, health codes, and
environment protection laws
✔✔setback ordinance - ✔✔(Building line, setback line)
- distance from lot edge to where building is erected
✔✔Non Conforming use - ✔✔The use of the land that does not match the zoning law
-may be allowed by grandfather clause
✔✔A gas station (commercial) Owner is operating his business when the city makes an
announcement that the area is now residential. what does he have to do? - ✔✔Nothing!
he can continue to operate his business as usual
✔✔Asbestos is... - ✔✔fire resistant
✔✔If they find asbestos in a public building, what would be the safest method of
removal? - ✔✔Encapsulation - protects asbestos with adhesive spray, layer of
protection. can be safer than removal
AND ANSWERS GUARANTEE A+
✔✔Mechanic's Lien(construction Lien) - ✔✔a person who furnishes materials and/or
effort to improve land and is not paid by the landowner may place a lien on the property
-unpaid contractor bill
✔✔Appurtenances - ✔✔opposite of Encumbrances "Good thing"
Ex. an easement to gain access across the neighbor's parcel, or a covenant
(agreement) against blocking the neighbor's view.
✔✔Special Assessments - ✔✔cost due for improvements performed by the local
government such as installing city sewers or water, paving the street, etc.
✔✔License - ✔✔Permission, of a personal and TEMPORARY nature, granted to enter
someone's land for a particular purpose such as a license to fish or hunt
(driver license = temporary)
✔✔If you have an easement running over YOUR PROPERTY, that makes you the.... -
✔✔Servient estate
✔✔Do easements run with the land? - ✔✔yes
✔✔Fee simple - ✔✔the BEST/HIGHEST type of ownership recognized by the law
(Freehold estate)
-best type of ownership
-no restrictions, law gives maximum rights
-upon death of owner, it's passed to the heirs
✔✔Freehold Estate - ✔✔Ownership
-interest in real property for a lifetime or more. It can be obtained through inheritance or
deed
-free to do what you want with the property
✔✔Non-freehold estate (leasehold estate) - ✔✔interest in property for less than a
lifetime and considered to be personal interest
-obtained by receiving a lease on property
✔✔Qualified fee estate (Or defeasible fee)
-if grantee does not abide? - ✔✔-restricted or restriction in deed.
ex. own house but cannot build second story
if the grantee (buyer) is not abiding by the restrictions set forth by the grantor (Seller),
the property may revert back to the grantor (seller)
,✔✔life estate = - ✔✔granted to a person (life tenant) for a lifetime
-ownership for "heartbeat only", life tenant is "heartbeat only"
✔✔which is Owning in severalty? - ✔✔An Entity
-Own something alone, by yourself
✔✔Adverse Possession - ✔✔when the land of another private person is adversely and
exclusively possessed in an open and notorious way
-after 15 years, you can claim land as your own if it crosses your property
-ex. if fence is on neighbor's lawn for 15 years, you can claim it as your own
✔✔Tenants in common - ✔✔No survivorship, land goes to their heirs
✔✔Tenants by the entireties could also be.. - ✔✔joint tenancy with survivorship
-ownership with husband and wife w/ survivorship
✔✔John and bob are Joint Tenants, John dies. What happens to property? - ✔✔It goes
to bob
✔✔What happens if the deed does not state a percentage of ownership? - ✔✔each of
the grantees is presume to receive equal interest
✔✔somebody's roof starts to leak 3 months after they move into their new condo, who
is responsible for paying for it to be repaired? - ✔✔the association
✔✔What type of ownership is a condo? - ✔✔Fee simple
✔✔what do you own in a condo? - ✔✔100% of the airspace, the cube of air in a condo
✔✔In Cooperatives, what are given to owners to signify ownership? - ✔✔Proprietary
Leases
✔✔Proprietary lease - ✔✔Given to the multiple owners in a Co-OP instead of a deed
signifys ownership in a cooperation
✔✔cooperatives (co-ops) - ✔✔-buildings owned by corporations with the residents as
shareholders who each receive a properietary lease on an individual unit and the right
to use common areas
✔✔Bundle of rights - ✔✔invisible
-right to own, sell, lease, etc.
✔✔Taxation
, -what happens if you do not pay taxes? - ✔✔right of government to charge property
owners an amount in proportion to property value (Ad valorem)
-two year delinquency, if you do not pay taxes for two years, your property may go to a
tax sale
✔✔Ad valorem - ✔✔according to value
method used to calculate property taxes
✔✔special assessments - ✔✔charges assessed for improvements provided by local
government that benefit the property such as installing utilities or paving the road
✔✔Eminent domain - ✔✔the government's right to take private property for public use
provided that taking is necessary and after payment of just compensation
-condemnation happens when owner does not agree to relinquish ownership
✔✔Condemnation - ✔✔Action through which Eminent Domain is accomplished when an
owner does not voluntarily relinquish ownership
-gov. takes legal action to get property
✔✔Escheat - ✔✔property reverts to state when owner dies intestate (without will) and
has no heirs
✔✔Somebody dies with a will and with heirs, what is impossible? - ✔✔Escheat
✔✔Police power
examples? - ✔✔vested in government to make laws and regulations for the health,
safety and welfare of the public. Ex. zoning, building codes, health codes, and
environment protection laws
✔✔setback ordinance - ✔✔(Building line, setback line)
- distance from lot edge to where building is erected
✔✔Non Conforming use - ✔✔The use of the land that does not match the zoning law
-may be allowed by grandfather clause
✔✔A gas station (commercial) Owner is operating his business when the city makes an
announcement that the area is now residential. what does he have to do? - ✔✔Nothing!
he can continue to operate his business as usual
✔✔Asbestos is... - ✔✔fire resistant
✔✔If they find asbestos in a public building, what would be the safest method of
removal? - ✔✔Encapsulation - protects asbestos with adhesive spray, layer of
protection. can be safer than removal
