Michigan Real Estate - Exam Practice Questions + Answers Graded A+

A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to do what? - demand immediate payment of the entire note A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when what happens? - the seller accepts the offer. A broker lists a property, with a listing contract allowing subagency and dual agency. One of the broker's salespersons shows the property. The salesperson would be classified as what? - a subagent of the seller. A broker says, while showing a rural property, "This property has the world's purest well water." This would be an example of - an expression of opinion, or puffing, which could lead to misrepresentation A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship? - Agency coupled with an interest. A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years at 5 1/2% or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.) - $409.20. A buyer made an offer on a property that was listed at $350,000. She wanted to put $35,000 down and make payments to the seller, allowing the seller to retain title until the principal was paid off. The seller accepted, and the buyer became a ______. - Vendee A charge of violation of Federal Fair Housing laws can be heard by an administrative law judge within the Department of Housing and Urban Development (HUD) or by a Federal district court judge in Federal court. The advantage of a Federal court hearing to the complaining party is what? - there is no dollar limit on damages paid.A competitive market analysis is MOST often used for what? - setting a listing price. A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31st. This is called what? - an option contract. A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of ________ . - anticipation A couple signed a lease on an apartment for a period of 1 year. The lease does NOT contain an automatic renewal clause. The couple plans to move out at the end of the lease rather than renew it. How much notice MUST they give to comply with the lease term? - No notice is required. A deed restriction is applicable to the activities of who? - present and future owners. A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern part of the neighbor's land to gain access to the river. He pays the neighbor $9,000 for the right of access and receives a deed. This is an easement _______? - Appurtenant A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given - A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given what? - constructive notice. A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. What would MOST likely be used to obtain permission for this store? - Conditional use permit or zoning variance. A lawsuit for inverse condemnation may be brought by whom? - a homeowner