MICHIGAN REAL STATE PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS GUARANTEED PASS | RATED A+

MICHIGAN REAL STATE PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS GUARANTEED PASS | RATED A+

A property is being appraised by the Cost Approach. The appraiser estimates that the land is
worth $33,000 and the replacement cost of the home is $110,000. A new $20,000 garage was
recently added. Total depreciation from all causes is $7,000. What is the indicated value of the
property? - Answer>>> $156,000
A property's taxes are $9,540 and are paid for in arrears. The property was sold, and closing took
place on March 7. The seller was responsible for the day of closing. Using the 360 day method,
how will taxes be prorated? - Answer>>> Credit the buyer $1775.50 and Debit the Seller
$1775.50
The right to zone land and the right to acquire ownership of land by eminent domain are both
examples of - Answer>>> public interest.
If the duration of an owner's rights in an estate cannot be determined, the owner possesses -
Answer>>> freehold estate.
If a life tenant purposely damages or misuses a property it is known as what? - Answer>>> Act
of waste
Ownership of some combination of the bundle of rights defines - Answer>>> An interest in real
estate.
An advantage of real estate investment is tax savings, the capital gain exclusion on a principal
residence excludes the gain up to - Answer>>> $250,000 per individual (up to $500,000 for a
couple).
The following real estate financing statements all contain trigger terms under Regulation Z of the
Truth in Lending Act, except - Answer>>> "Great assumable low interest rate loan"
Real estate can be a poor investment if - Answer>>> the investor needs ready cash.
Which agency administers RESPA? - Answer>>> Consumer Financial Protection Bureau
(CFPB)
Under the ECOA, a lender can base lending decisions on all of an individual's information,
except - Answer>>> sex.
A primary purpose of the Truth in Lending Act is to - Answer>>> make loan cost information
readily available to consumer borrowers.