Real Estate State of Michigan Final Exam Flashcards

Real Estate State of Michigan Final Exam Flashcards a counteroffer constitutes achange Which is NOT a fiduciary duty?achievement When a contract is breached, what describes the equitable remedy that allows a court to order someone to perform as agreed instead of paying damages?specific performance Buyers who are eligible of the Michigan State Housing Development Authority (MSHDA) assistance must meet

certain criteria including all EXCEPT:

Buyer does not occupy home as a primary residence A salesperson decides to purchase her own listing. This

salesperson:

Must make required disclosures, but may proceed to make an offer

A broker may, with the proper license, operate under:An assumed name

What grants zoning authority to municipal governments?Police power Under which Claus in a contract must the seller give the buyer notice to remove the condition in the contract that stipulates the buyer has to sell her own property before performing the term of the current purchase agreement?contingency A real estate salesperson can be considered an independent contractor if the proper written agreement

exists, and:

Not less than 75% o the annual compensation is from commissions on real estate sales.A buyer writes a purchase contract dependent on a satisfactory termite inspection. What is this inspection called?contingency A salesperson is told by his client not to disclose the fact that, during heavy rains, the basement takes on water. The agent must disclose the defect to any interested buyers For a conventional loan, how much of a borrower's income can be used to service debt?36% A real estate broker who engages in property management

shall maintain property management accounts:

Separate from all other accounts A real estate broker's license may be issued to any of

these entities EXCEPT a(n):

Syndicate A map of a subdivision that is recorder at the county clerk's office is called a recorder subdivision plat which is NOT a contract ?License A salesperson wishing to close a real estate transaction

must:

Do so under the supervision of his or her broker A corporation is a legal entity ( an artificial person); therefore, real estate owned by the corporation is owned in severalty Billy has a 2 acre lot that is zoned agricultural. He asks his real estate agent if she could tell him how to go about building a house on the land. Billy's agent tells him that he

needs a use variance An option, prior to being exercised, is an example of a(n)unilateral contract

An option agreement allows a prospective buyer a period of time to examine property before deciding to complete the contract. Payments are often made for the privilege of making the examination. What usually happens to those payments if the buyer does not buy?Whatever the parties decided in the contract What would be considered a private control on the real use of real property?deed restriction A contract in which only one of the parties has an obligation best describes a(n) unilateral contract What is the sq ft of an irregular lot that has 200 front feet by 80 feet by 150 back feet?

14,000

The type of Broker which denotes operation as a sole proprietorship is called?Individual Broker What is NOT a governmental restriction on the use of real property?Adverse possession When an old plat is up for sale, and is deemed too small for a building site today, it is possible to repeat these

subdivisions. However, in all cases:

A new plat must be filed The contract that a broker would enter with either buyer or seller who becomes clients of the broker is called?A service provision agreement the bundle of rights does NOT include the right ofencroachment under common law of agency, whose best interest should be kept first at all times?client's The local utility company holds an easement to install power lines on a vacant lot. This is what type of easement?in gross Billy has completed his seller disclosure form and is in contract with Bob to sell his home. A day before the closing, Billy gets notice of an outstanding municipal

assessment. Billy must:

Notify Bob of the new municipal assessment Net income best describesincome after expenses Which best defines a phase 2 environmental inspection?Actual testing of underground storage tanks, soil samples, ground water, or wells Transferring one's rights or obligations under a contract to another and being relieves of liability best describes Novation Which term best describes vale being attributed to a property because of its desirable location?situs What would terminate a listing agreement? death of the principal Deeds may not be recorded showing lots designated by

numbers unless:

The lots are in a recorded plot What insulating material was pumped into houses until its ban in the 1970s ?Urea-formaldehyde insulation An agent is showing a house to a customer. The agent tells the buyer that the seller is desperate for an offer. Which duty has the agent breached?loyalty

Rick hires Sally as a buyer's agent and explains that he wishes to buy a large home that will allow him to start a bed and breakfast. Sally sells him a property, but never advises the buyer to check to see if zoning will allow such a business. Rick later finds out that a bed and breakfast would be illegal at that location. Which common law due has Sally violated?Reasonable skill and care The Smiths purchase a cooperative on the Gold Coast.What will they receive at closing?shares of stock and a proprietary lease A broker would not be in violation of the Elliot-Larsen Civil Rights Act if the broker asked about marital status for the

purpose of:

Preparation of a deed or other instrument of conveyance The Closing Statement, required by RESPA, must be used in what instance?residential transactions financed by federally related mortgage loans Chemicals used in refrigeration, air conditioning, insulation, and aerosol propellants that drift into the upper atmosphere where their chlorine components destroy ozone are called CFCs Those mortgage brokers who must provide proof of financial responsibility to the state must show what amount of responsibility?

$25,000

Replacement of a building best describes building the functional equivalent of the original structure An offer to purchasemay be revoked at any time prior to acceptance Which gives a government the right t take private property for public use provided to owner is just compensation?eminent domain A broker has a policy that agents will not be dual agents in in-common transactions or when the agents sell their own listings. Which would a potential buyer be to the listing agent if the buyer wants to buy the agent's listing?customer When a contract is terminated without undoing anything that has been done so far, the action is called cancellation The most common type of FHA- insured mortgage is called Section 203(b) An owner of a property enters into a purchase money mortgage with a buyer whereby the buyer will make payments to the seller and the seller will continue making payments to the mortgagee. which clause does the lender enforce when sending a notice to the seller that the loan is due and payable?alienation A broker can only operate under:A name which the broker is licensed, or an approved assumed name An agency agreement that allows the sellers to procure the buyer and forgo paying the broker a commission best describes a(n) exclusive agency Fee simple absolute estates are notconditional