Michigan Salesperson PSI Practice Exam

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• Which remedy would compel performance of the contract terms?
• Under Michigan Right to Farm Act, if a farm operation causes noise and odors but is legal, what can the association do?
• Which of the following persons must have a license to perform real estate services and receive compensation?
• In lien priority terms, a subordination clause allows which of the following?
• How many voting members are on the governor-appointed real estate board?
• Exterior dimensions are used to determine which area?
• Which statement is true regarding the transfer of title by deed?
• Which instrument is used to transfer ownership of real property?
• Which form of ownership allows title to revert to the grantor if the property ceases to be used for the described purpose?
• A veteran buying a home from a for sale by owner and financing it with a VA loan can do all of the following except:
• One mill equals what fraction of a dollar per dollar of assessed value?
• When a primary lender uses all its funds for home mortgages and ends up with a number of notes and mortgages, what is the normal procedure to free capital for new lending?
• The right of the government to enforce zoning laws, building codes, health codes, and environmental protection laws is exercised under:
• Without signing a Buyer-Broker Agreement, a buyer's representation is described as what?
• Which action may cause title to a property to be lost through condemnation?
• David and Susan purchased real estate as tenants in common. Which statement is NOT true?
• After Charlie's death, his will indicates that all of his real property must go to charity. What can Charlie's wife do?
• An adjustable rate mortgage (ARM) may cite changes in the interest rate based on market conditions. This information would most likely be found in which clause?
• When a title search reveals a cloud on the title, the best cure is to:
• Which of the following is exempt from obtaining a real estate license to sell real estate?
• The breach of contract remedy that would force a seller to complete a contract of sale (purchase agreement) is:
• The real estate board, appointed by the governor and consisting of nine voting members, has authority to decide on all of the following except:
• If a tenancy in common exists, which statement best describes survivorship?
• Asbestos historically served as insulation against what?
• An appraiser measuring the area of a house would use which measurement?
• MSHDA provides below market interest rates to borrowers whose income does not exceed a limit in all of the following circumstances except?
• The nine-day rescission period for a new condominium purchase begins after which event?
• An installment contract (land contract) for the sale of real estate does not give the buyer which of the following?
• Zoning ordinances usually cover such matters as:
• Which document is used to transfer ownership of personal property?
• Which action is essential for a deed to pass title?
• A non-living entity such as a corporation may be licensed as a broker as long as it consists of at least:
• All of the following activities may be conducted by a Broker except:
• The covenant that gives assurance by the Grantor to the Grantee that he does have the interest being conveyed in full is called?
• Under Truth-in-Lending, which item is not included in the finance charge?
• If a $120,000 loan has prepaid points totaling $2,400, how many discount points is the borrower paying?
• After a tenant's daughter becomes wheelchair-bound, the owner is asked to build a ramp at the tenant's expense. The owner must:
• Which term describes a mortgage secured by more than one parcel of real estate?
• Which statement best describes the purpose of an escalation clause in an adjustable-rate mortgage?
• In a real estate closing, which practice is addressed by RESPA?
• A broker secured a signed offer with a $5,000 deposit on the exact terms of a listing but the seller refused to accept it. Which statement is true?
• The due-on-sale clause is also known as what?
• An owner on an inland lake owns property to which boundary?
• Discount points charged by a lender on a loan are a percentage of which amount?
• Which term describes the person who administers the estate of a deceased person without a will?
• Which concept is most closely associated with condemnation?
• In the rectangular survey system, which lines are used to define property locations?
• Which of the following is permissible under the law?
• A person appointed by the court to settle the estate of a deceased without a will is called:
• An estate owned by a single person is called what?
• The term 'status quo' in contract contexts refers to which condition?
• Which statement best describes a purchase money mortgage?
• A deed that contains all the covenants of title is a:
• Which listing type guarantees a broker a commission no matter who sells the property?
• The use of a property that is inconsistent with the current zoning regulation is called:
• When a broker receives a deposit, the funds must be deposited into the trust account within how many banking days after notice that all parties have signed the purchase agreement?
• In a condominium project, the pool is classified as what type of asset?
• Which of the following is NOT typically required to establish adverse possession?
• A broker can take which of the following for a deposit with seller's approval?
• In a mortgage market, selling mortgages and notes to the secondary market provides what benefit to lenders?
• Which statement best describes the main purpose of RESPA?
• For a deed to pass title, which of the following must occur?
• Under Truth-in-Lending, which statement cannot be advertised alone without additional disclosures?
• Which statement best describes the difference between a life estate and a fee simple ownership?
• A General Warranty Deed includes covenants of title that include which of the following?
• Property is appraised for $158,000 and tax rate is 33 mills. How much tax is due?
• If a real estate agent receives a $1,000 referral fee from a title company for referrals, this action is:
• Sharon's job at Sunshine Realty includes wearing a badge and being paid only if she produces sales and can work any number of hours. What is her employment status?
• An investor took out a loan and gave three different parcels of land as collateral for the mortgage, this is known as:
• A buyer wants to buy a parcel of land but only if zoning changes; he can place a $10,000 deposit on the purchase agreement subject to obtaining a change in zoning or purchase a 90-day option by paying a $10,000 option fee. Which of the following is true regarding the buyer's choices?
• A title search is performed to determine which of the following?
• Max finds that a listed house is in a neighborhood previously affected by underground gas leaks. Assuming he has not met the seller, what should he do regarding disclosure?
• When different persons have different interests in real property and have taken title at different times they probably hold title as:
• Where must a salesperson deliver a deposit once received?
• RESPA addresses which of the following?
• The following is an example of functional obsolescence?
• Which statement accurately describes the independent contractor arrangement for a licensee who works flexibly and is paid on production?
• An owner may stop another person from gaining adverse possession over her land by:
• In a life estate with remainder to charity, who holds the property after the life tenant dies?
• Nine business days to rescind after developer delivers documents to purchaser. All of the following documents are included except which?
• Which listing type grants a broker an exclusive right to act as agent while the owner retains the right to sell without paying a commission?
• When charges are filed against a licensee, what is the typical hearing process?
• Which document must be provided to a condominium purchaser?
• In land surveying, the north-south reference line that intersects the base line is called what?
• Paying two points for the buyer's loan as a concession by the seller is an example of:
• After purchasing a home, the Johnson's purchased a dishwasher and installed it into the kitchen cabinets. This item has now become:
• Which listing would have the broker with exclusive agency rights but owner can still sell without paying commission?
• For a deed to pass title, it must be:
• A line of townships that runs in a North-South direction is called:
• Which statement best describes occupancy requirements when using a VA loan to purchase a home?
• A developer who wants to build a retail outlet on land zoned for residential use must try to obtain what?
• The cost involved to build an exact duplicate of an existing structure is called what?
• XYZ Mortgage Company's practice of not lending in a designated area is best described as which term?
• As a special agent of the owner, the salesperson needs written authority to do all of the following except:
• The Real Estate Settlement Procedures Act (RESPA) addresses which of the following?
• Which entity is NOT a federally chartered secondary market?
• Which statement reflects the timing for broker trust account deposits?
• Which deed provides the most protection to a grantee and contains covenants of title?
• Sarah sold property for 200,000 and agreed to pay 6% commission as well as 2 points for the buyer's loan as concessions based on 90% loan. What would she clear at closing?
• In a condominium, who owns the common elements such as lobbies and hallways?
• A lease that calls for a certain amount of rent and the landlord pays all the expenses is called?
• When Sharon leased a store in a strip center for three years and wanted the option to renew or leave after lease expiration, what should she negotiate?
• A Quitclaim Deed contains:
• The Department has jurisdiction to do which of the following?
• To cancel a contract and return to 'status quo' is
• Upon receiving a deposit on a real estate transaction, a salesperson must deliver it to which party?
• For a General Warranty Deed, covenants of title must include which of the following?
• Which term describes the government's right to take private property for public use with compensation?
• If the purchase price is 150,000 and the loan-to-value ratio is 80%, what is the loan amount?
• Seller is asked; full price 300k offer came, initial buyer countered 280k; before buyer signs, seller got full-price 300k; he contacts the first buyer to revoke the counteroffer before acceptance. Which is true?
• What is the effect of a subordination clause in a secured real estate loan?
• All but which would be considered in the cost approach appraisal method?
• If an owner wants to grant a neighbor the right to cross his property but does not want a permanent irrevocable right, what type of right should be granted?
• An imaginary line running in a North-South direction and intersects with the base line is:
• Which statement about the effect of a counteroffer is true?
• A tax that is due to the county and the state for recording a deed and is paid by the seller is?
• The legal remedy allowing a property owner to build closer to a lot line than permitted by setback requirements is called a:
• Which listing type provides exclusive rights to sell?
• John deeded property to his mother with the stipulation that she could own it for as long as she lived and upon her death property will go to charity. This is an example of:
• If zoning is changed to residential after Able builds a factory, which statement about Able's situation is true?
• An agent's exaggerated opinion of property features is known as:
• A mortgagee's title policy remains in effect until:
• If a buyer makes an offer at a price below asking, the seller counters, the buyer rejects the counteroffer, and the seller later accepts the original offer, which statement is true?
• An arrangement by which the seller finances the sale and deeds the property to the buyer at closing is which of the following?
• John, a Detroit broker who wants to open a branch in Grand Rapids, must?
• In the rectangular survey system, a township is divided into how many sections?
• A person who authorizes another to act on his behalf is called what?
• Which form of co-ownership is commonly used by married couples and provides the right of survivorship?
• A Bill of Sale is used to transfer what type of property?
• RESPA's core focus is best described as which of the following?
• When opening a branch, who must manage it?
• A person who owns property alone is known as what?
• To estimate the value of a 20-year-old residence, which appraisal method would an appraiser most commonly use?
• When is a real estate agent considered to have earned a commission?
• Under condominium ownership, which statement accurately describes the unit title status?
• Upon receiving an offer to purchase, the licensee should recommend to the buyers that:
• David's architect told him that the house built on the lot must be within 20 feet from the lot line, while the zoning ordinance requires a 30-ft setback. David must apply and receive:
• Property that is of temporary and movable nature, is called:
• Which statement is correct about modifying a purchase agreement?
• Which of the following items is a fixture?
• A deposit check is made payable to Sally Jones, a salesperson for Sunshine Realty. Sally must?
• Which statement is correct regarding a closing and the purchase agreement when a written amendment exists?
• What type of depreciation occurs when a noisy airport is located next to a property?
• A mortgage contains a due-on-sale clause. What effect does this clause have when the property is sold?
• Which statement best describes condominium ownership with respect to deeds and encumbrances?
• Which of the following is an indicator of functional obsolescence?
• Under a land contract, who typically holds the legal title until the contract is fully paid?
• In Michigan real estate licensing, a temporary license is likely to be allowed in which circumstance?
• The standard size of a township is 36 square miles.
• Which action constitutes condemnation that may affect title?
• The right of a person to regain his or her property after foreclosure sale is called what?
• Which of the following is real property?
• In co-ownership, if owners take title at different times, the form of ownership is called:
• Which statement about open listings is generally true?
• If a property owner dies with no heirs and no will, the property escheats to the state.
• Under a land contract, who retains the legal title until full payment is made?
• How many square feet are there in one acre?
• Which government power allows municipalities to require zoning, building codes, and environmental rules?
• The swimming pool in a condominium project is usually:
• What is the total commission on a sale of $300,000 at a 6% rate?
• Which form of co-ownership includes survivorship and unity of possession, typically held by more than one person?
• If an offer is received and the seller cannot be reached in Canada on vacation, the licensee must?
• In a net lease, who typically pays property taxes, insurance, and maintenance costs?
• In a condominium, what part does the unit owner hold without sharing with others?
• After a zoning change, a nonconforming use may continue to operate but cannot be expanded.
• Sharon moved out from her apartment, ignoring a forwarding address; regarding the security deposit, which statement is true if the landlord finds damages but did not send notice or details?
• Deeds are recorded to provide which type of notice?
• When a buyer finances property and signs a promissory note in favor of the lender, what accompanies the promissory note?
• Which term is used for the court-appointed person who handles the estate of a person who dies without a will?
• How many acres are there in a parcel measuring 348 by 625 feet?
• Which organization provides below-market interest rates to eligible borrowers in Michigan?
• All of the following are examples of limitations on licensees except:
• Redlining is best described as what practice?
• Two Brokers decide to go 60/40 in favor of the listing broker, and each broker split 50/50 with his salesperson. How much will the listing salesperson make if the house sells for 134,500 and the commission rate is 6%?
• Under condominium law, which statement is true about ownership of units?
• A veteran with a VA loan is being transferred. What could John do with his present home?
• A condominium developer converting an apartment building into condominiums and selling units must provide which documents to buyers?
• Charlie wants to extend the side of his house beyond the setback boundary. What must Charlie obtain?
• An estate held by a husband and wife is called which of the following?
• When a person dies intestate and there are no heirs, the property goes to the state. This is called:
• An acceleration clause is commonly invoked after which event?
• The right of the government to condemn private property for public use is known as:
• Which listing type allows multiple brokers and pays a commission only to the broker who procures a ready, willing, and able buyer?
• If a deposit is paid to a salesperson, what is the proper handling?
• The illegal conduct of contacting neighbors to suggest selling due to a new group home being opened nearby is known as:
• Under fair housing laws, which practice would be discriminatory?
• In the process of listing a property that shares a driveway with the adjacent house, the owner insists that you don't mention this fact to any prospective purchaser. Regarding this problem, you should:
• Where would an agent refer a potential buyer who wants to obtain an FHA loan?
• What is the term for the government's right to take private property for public use?
• The Real Estate Settlement Procedures Act applies to which of the following loans?
• All of the following statements are true except: which is false?
• What does title insurance primarily protect a buyer from?
• After charges are filed against a licensee, a formal hearing may be scheduled if the informal hearing does not resolve the matter.
• If three brokers are involved in an open listing and one broker sells the property, who receives the commission?
• A parcel of land measuring 485 ft by 1,210 ft sold for $122,000. Calculate the approximate price per acre.
• Real Estate Settlement Procedures Act applies to which of the following loan types?
• An owner requests a broker to list a property for sale at $70,000. Upon inspection, the broker believes the property is worth $80,000. The broker must:
• Which statement is true in respect to the assignment of a lease?
• The right of survivorship is a feature of which ownership form among the following?
• An acceleration clause in a mortgage means that upon the happening of a specified event, the entire loan balance becomes due.
• House is sold for $250,000 and the lender's appraiser valued the property at $220,000. Based on an 80% loan ratio and a one-point origination fee, how much is the loan origination fee?
• What is the primary purpose of Regulation Z (Truth-in-Lending)?
• From a 40-acre parcel, if a subdivision is not formally created, the maximum number of parcels that can be created is?
• On a $150,000 purchase with 80% loan-to-value and 3 points, how much does the buyer need to bring to closing?
• A contract providing for the payment of a commission to the listing broker no matter who sells the property is called a (n):
• The concept of a wall license in real estate licensing applies to which scenario?
• A person's declaration to his wishes to dispose of property after his death, is called:
• Which statement about tenancy in common is true?
• RESPA primarily addresses disclosure of closing information and kickbacks at closings. Which option best describes this focus?
• A shape six miles by six miles square that results from intersection of range lines and township lines is called a: