Real Estate Practice Exam - Michigan Rules and Regulations

Which of the following is not a purpose of the land division act? - Answer- So that the price of the sold lots would not inflate beyond the cpi. Purpose DOES include so that the size of the divided parcels of land will not be too large to be served with enough streets, roads, and adequate drainage and sewers; So that when the land is bought and sold, people could accurately and upon the proper service, tell the boundaries of their land and be able to use accurate legal description; so that the land may be properly divided and laid out Under the land division act, property up to the size of 10 acres can be divided into four parcels. How many splits are allowed for each additional 10 acres? - Answer- 1 If the monthly rent is $600 a month, what is the most amount of money a landlord can charge the tenant to move in? - Answer- $1500 A landlord charging a deposit must inform the tenant of his obligation to notify the landlord of a forwarding address within _______ days after vacating. - Answer- 4 In regards to construction of new condominiums, I purchase agreement is not binding until nine business days after developer delivers condominium documents to purchaser. Which of the following is not required? - Answer- Evidence of a two year warranty on construction. IS required: condominium buyers handbook; copy of purchase and escrow agreements; recorded master deed with attached bylaws and subdivision plans Interval ownership of property is reflected in which of the following? - Answer- timeshare A licensee is selling vacant home site in an area that does not have municipal sewer's. Which of the following is true? - Answer- The sale should be made contingent on a percolation test that would be acceptable to the health department Which of the following is true with regards to the Michigan condominium act? - Answer- Recorded master deed, bylaws, purchase and escrow agreement, condominium buyers handbook and disclosure statement are all documents that must be delivered by the developer to the purchaser All of the following are true with regards to MSHDA: - Answer- Provide financing for low and moderate income households; borrowers must occupy property as principal residence; money is available for existing homes or new construction Which of the following statements are acceptable under the antitrust act? - Answer- Our company pays a 25% referral fee if you send us business