Michigan Real Estate Exam- Questions &
Answers
Board of Directors Correct Ans-An elected group of owners in a sub or condo associaition
whose job is to meet to enforce the associations bylaws and to overlook the maintenance of the
common elements
Buffer zone Correct Ans-Zoning that sperates two diff use districts such as plnning a park bt
an industrail and a residential district
Bylaws Correct Ans-Rules enforced by subdivision and cond associations regulationg the use
of properties and common elements. For example limiting the numer of pets a co owner may
keep in a condo
Capital Gain Correct Ans-Gains resulting from the sale of a capitl asset such as real estate
Capital improvement Correct Ans-Improvements to property that add to its value extending
the useful ilfe
Capitalization Correct Ans-Determining the value of property by calculating its net operating
income and divididng it by a capitalization rate
Capitalization Rate Correct Ans-The rate of return that is expected to be obtained on capital
invesested in income property
, Cash Flow Correct Ans-The income from an ivestment
Cehck Correct Ans-An area of land, equal to 24 x 24 miles
Civil Rights act of 1866 Correct Ans-Prohibits discrimination because of race without
exceptions
Common Elements Correct Ans-Portions of condominium complex owned jointly by tenants
Community Property Correct Ans-A system of ownership adopted in some states between
married couple that gives them both rights to certain things
Concurrent estate Correct Ans-Ownership of a property by two or more persons at the same
time
Condemnation Correct Ans-The legal process of exercising the governments right of eminent
domain
Condominium Correct Ans-Ownership of a unit in a multiunit structure
Condominium Conversion Correct Ans-The act of converting inits in a rental complex into
individually owned inurs that may be bought or sold.
Answers
Board of Directors Correct Ans-An elected group of owners in a sub or condo associaition
whose job is to meet to enforce the associations bylaws and to overlook the maintenance of the
common elements
Buffer zone Correct Ans-Zoning that sperates two diff use districts such as plnning a park bt
an industrail and a residential district
Bylaws Correct Ans-Rules enforced by subdivision and cond associations regulationg the use
of properties and common elements. For example limiting the numer of pets a co owner may
keep in a condo
Capital Gain Correct Ans-Gains resulting from the sale of a capitl asset such as real estate
Capital improvement Correct Ans-Improvements to property that add to its value extending
the useful ilfe
Capitalization Correct Ans-Determining the value of property by calculating its net operating
income and divididng it by a capitalization rate
Capitalization Rate Correct Ans-The rate of return that is expected to be obtained on capital
invesested in income property
, Cash Flow Correct Ans-The income from an ivestment
Cehck Correct Ans-An area of land, equal to 24 x 24 miles
Civil Rights act of 1866 Correct Ans-Prohibits discrimination because of race without
exceptions
Common Elements Correct Ans-Portions of condominium complex owned jointly by tenants
Community Property Correct Ans-A system of ownership adopted in some states between
married couple that gives them both rights to certain things
Concurrent estate Correct Ans-Ownership of a property by two or more persons at the same
time
Condemnation Correct Ans-The legal process of exercising the governments right of eminent
domain
Condominium Correct Ans-Ownership of a unit in a multiunit structure
Condominium Conversion Correct Ans-The act of converting inits in a rental complex into
individually owned inurs that may be bought or sold.
