MICHIGAN REAL ESTATE EXAM PRACTICE QUESTIONS WITH
COMPLETE SOLUTIONS.
1) When land is conveyed to a trustee, what may a trustee do? -- Correct Answer ✔✔
t t t t t t t t t t t t t t t t
Whatever is permitted under the trust agreement. t t t t t t
2) A homeowner has negotiated with a neighbor to obtain the permanent right to pass
t t t t t t t t t t t t t t
over the northern part of the neighbor's land to gain access to the river. He pays the
t t t t t t t t t t t t t t t t t
neighbor $9,000 for the right of access and receives a deed. This is an easement
t t t t t t t t t t t t t t t
_______? -- Correct Answer ✔✔ Appurtenant t t t t t
3) Two lots of the same size are sold on a street. The lot on the corner sells for $20,000
t t t t t t t t t t t t t t t t t t t
more than the lot in the middle of the street. What characteristic MOST likely explains
t t t t t t t t t t t t t t t
the price difference? -- Correct Answer ✔✔ Situs.
t t t t t t t
4) A tenant rented an apartment, signing a 15-month lease. After the lease expired, the
t t t t t t t t t t t t t t
tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant
t t t t t t t t t t t t t t t t
have? -- Correct Answer ✔✔ Holdover Tenancy.
t t t t t t
5) Legal descriptions using the government survey system are NOT generally used
t t t t t t t t t t t
where? -- Correct Answer ✔✔ the original 13 states
t t t t t t t t
6) A deed restriction is applicable to the activities of who? -- Correct Answer ✔✔
t t t t t t t t t t t t t t
present and future owners. t t t
7) A landowner wishes to build a neighborhood grocery store on a busy street in an area
t t t t t t t t t t t t t t t t
zoned for residential use. What would MOST likely be used to obtain permission for
t t t t t t t t t t t t t t
this store? -- Correct Answer ✔✔ Conditional use permit or zoning variance.
t t t t t t t t t t t
8) If conditions for purchase are included in a deed and these conditions are violated,
t t t t t t t t t t t t t t
what is the penalty? -- Correct Answer ✔✔ Return of the property to the original
t t t t t t t t t t t t t t t
owner.
, 9) An environmental impact statement typically describes the effects of a proposed
t t t t t t t t t t t
project on factors such as what? -- Correct Answer ✔✔ public health and safety.
t t t t t t t t t t t t t
10) Although states make specific laws governing water rights and the rights in land that
t t t t t t t t t t t t t t
borders water, most states generally follow one of two basic doctrines regarding water
t t t t t t t t t t t t
trights. In many states, the common law doctrine of riparian and littoral rights dictates
t t t t t t t t t t t t t t
that water rights are automatically conveyed with property. In others, all water rights
t t t t t t t t t t t t t
are controlled by the state under the doctrine of ______________ _____________
t t t t t t t t t t
t? -- Correct Answer ✔✔ prior appropriation.
t t t t t t
11) A lawsuit for inverse condemnation may be brought by whom? -- Correct Answer ✔✔
t t t t t t t t t t t t t t
a homeowner
t
12) What is true of both special assessments an ad valorem taxes? -- Correct Answer ✔✔
t t t t t t t t t t t t t t t
Delinquent payment is grounds for sale of the property. t t t t t t t t
13) At the time of harvest, crops that require annual planting Gare generally considered to
t t t t t t t t t t t t t t
be what? -- Correct Answer ✔✔ Personal property.
t t t t t t t
14) When a sewer line is installed down a rural road, the cost will probably be shared by
t t t t t t t t t t t t t t t t t
whom? -- Correct Answer ✔✔ all current owners of real estate fronting on that road.
t t t t t t t t t t t t t t
15) All of the following are methods to calculate the reproduction or replacement cost of a
t t t t t t t t t t t t t t
tbuilding EXCEPT what? -- Correct Answer ✔✔ straight-line method.
t t t t t t t t
16) If all other factors are equal, in which location is a parking lot likely to bring the highest
t t t t t t t t t t t t t t t t t t
sales price? -- Correct Answer ✔✔ Business district zoned for a six-story office
t t t t t t t t t t t t t
building.
17) An appraiser MUST be licensed or certified to handle Federally related work on
t t t t t t t t t t t t t
residential property valued at more than what? -- Correct Answer ✔✔ $250,000
t t t t t t t t t t t
18) A couple owns an older home in a neighborhood that is becoming a commercial area.
t t t t t t t t t t t t t t t
Because of the change in the use of the land, the couple can expect the value of their
t t t t t t t t t t t t t t t t t t
COMPLETE SOLUTIONS.
1) When land is conveyed to a trustee, what may a trustee do? -- Correct Answer ✔✔
t t t t t t t t t t t t t t t t
Whatever is permitted under the trust agreement. t t t t t t
2) A homeowner has negotiated with a neighbor to obtain the permanent right to pass
t t t t t t t t t t t t t t
over the northern part of the neighbor's land to gain access to the river. He pays the
t t t t t t t t t t t t t t t t t
neighbor $9,000 for the right of access and receives a deed. This is an easement
t t t t t t t t t t t t t t t
_______? -- Correct Answer ✔✔ Appurtenant t t t t t
3) Two lots of the same size are sold on a street. The lot on the corner sells for $20,000
t t t t t t t t t t t t t t t t t t t
more than the lot in the middle of the street. What characteristic MOST likely explains
t t t t t t t t t t t t t t t
the price difference? -- Correct Answer ✔✔ Situs.
t t t t t t t
4) A tenant rented an apartment, signing a 15-month lease. After the lease expired, the
t t t t t t t t t t t t t t
tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant
t t t t t t t t t t t t t t t t
have? -- Correct Answer ✔✔ Holdover Tenancy.
t t t t t t
5) Legal descriptions using the government survey system are NOT generally used
t t t t t t t t t t t
where? -- Correct Answer ✔✔ the original 13 states
t t t t t t t t
6) A deed restriction is applicable to the activities of who? -- Correct Answer ✔✔
t t t t t t t t t t t t t t
present and future owners. t t t
7) A landowner wishes to build a neighborhood grocery store on a busy street in an area
t t t t t t t t t t t t t t t t
zoned for residential use. What would MOST likely be used to obtain permission for
t t t t t t t t t t t t t t
this store? -- Correct Answer ✔✔ Conditional use permit or zoning variance.
t t t t t t t t t t t
8) If conditions for purchase are included in a deed and these conditions are violated,
t t t t t t t t t t t t t t
what is the penalty? -- Correct Answer ✔✔ Return of the property to the original
t t t t t t t t t t t t t t t
owner.
, 9) An environmental impact statement typically describes the effects of a proposed
t t t t t t t t t t t
project on factors such as what? -- Correct Answer ✔✔ public health and safety.
t t t t t t t t t t t t t
10) Although states make specific laws governing water rights and the rights in land that
t t t t t t t t t t t t t t
borders water, most states generally follow one of two basic doctrines regarding water
t t t t t t t t t t t t
trights. In many states, the common law doctrine of riparian and littoral rights dictates
t t t t t t t t t t t t t t
that water rights are automatically conveyed with property. In others, all water rights
t t t t t t t t t t t t t
are controlled by the state under the doctrine of ______________ _____________
t t t t t t t t t t
t? -- Correct Answer ✔✔ prior appropriation.
t t t t t t
11) A lawsuit for inverse condemnation may be brought by whom? -- Correct Answer ✔✔
t t t t t t t t t t t t t t
a homeowner
t
12) What is true of both special assessments an ad valorem taxes? -- Correct Answer ✔✔
t t t t t t t t t t t t t t t
Delinquent payment is grounds for sale of the property. t t t t t t t t
13) At the time of harvest, crops that require annual planting Gare generally considered to
t t t t t t t t t t t t t t
be what? -- Correct Answer ✔✔ Personal property.
t t t t t t t
14) When a sewer line is installed down a rural road, the cost will probably be shared by
t t t t t t t t t t t t t t t t t
whom? -- Correct Answer ✔✔ all current owners of real estate fronting on that road.
t t t t t t t t t t t t t t
15) All of the following are methods to calculate the reproduction or replacement cost of a
t t t t t t t t t t t t t t
tbuilding EXCEPT what? -- Correct Answer ✔✔ straight-line method.
t t t t t t t t
16) If all other factors are equal, in which location is a parking lot likely to bring the highest
t t t t t t t t t t t t t t t t t t
sales price? -- Correct Answer ✔✔ Business district zoned for a six-story office
t t t t t t t t t t t t t
building.
17) An appraiser MUST be licensed or certified to handle Federally related work on
t t t t t t t t t t t t t
residential property valued at more than what? -- Correct Answer ✔✔ $250,000
t t t t t t t t t t t
18) A couple owns an older home in a neighborhood that is becoming a commercial area.
t t t t t t t t t t t t t t t
Because of the change in the use of the land, the couple can expect the value of their
t t t t t t t t t t t t t t t t t t
