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MICHIGAN REAL ESTATE EXAM PRACTICE
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MICHIGAN REAL ESTATE EXAM PRACTICE
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MICHIGAN REAL ESTATE EXAM PRACTICEWhen land is conveyed to a trustee, what may a trustee do? - Answers-Whatever is
permitted under the trust agreement.
What is true of both special assessments an ad valorem taxes? - Answers-Delinquent
payment is grounds for sale of the property.
At the time of harvest, crops that require annual plantin gare generally considered to be
what? - Answers-Personal property.
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 _______? -
Answers-Appurtenant
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than what? - Answers-$250,000
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 ________ .
- Answers-anticipation
A competitive market analysis is MOST often used for what? - Answers-setting a listing
price.
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? - Answers-the
seller accepts the offer.
What event would AUTOMATICALLY cancel a listing agreement? - Answers-Property
owner's death
The relationship in which the agent is placed in the position of trust and confidence to
the principal is known by what term? - Answers-fiduciary.
The day after a broker's listing on a house expired, it was listed with another broker and
offered in the MLS. Several days later, a third licensee called the first broker and asked
for the key to show the home. The broker should inform the caller that - Answers-he is
no longer the listing agent.
During the listing presentation, the seller questions the amount of commission to be
paid and is told what? - Answers-the amount of commission is negotiable
, In an exclusive right-to-sell listing, an owner lists the property for sale with how many
brokers? - Answers-one
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? - Answers-a subagent of the seller.
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? - Answers-Agency coupled with an interest.
When a principal authorizes an agent to perform a particular act or transaction, it is an
example of a - Answers-special agency.
An example of a fiduciary relationship is one which exists between the listing broker and
- Answers-her client.
A seller mentions to his agent that the previous owners of his property may have
dumped hazardous waste on the site. Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), who is liable for damages from
the dumping prior to the sale of the property? - Answers-Seller.
The Department of Housing and Urban Development estimates that most private homes
built before 1978 contain potentially dangerous levels of lead. Because of this, some
Federal agencies, such as FHA, require what? - Answers-the buyer to acknowledge
disclosure of the presence of any known lead paint.
The real estate broker who is listing a house for sale should personally verify what? -
Answers-the number of square feet in the building.
A seller tells the listing agent that her home was treated for termites 10 years ago, so
there are no termites now. Before listing the property, the agent should tell the seller to
do what? - Answers-disclose the termite treatment on the property disclosure.
At the time of listing, the seller tells the listing agent they are moving because the
neighbor has loud parties every weekend. The agent should do what? - Answers-tell
potential buyers about the parties.
Which rule-of-thumb version is being offered to an investor who is told that a house
renting for $900 a month should sell for about $90,000? - Answers-GRM
When preparing a market data estimate of value, what category of adjustment is NOT
essential? - Answers-The original cost of the building.
Federal Truth-in-Lending laws are also known as - Answers-Regulation Z
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