Michigan Salesperson PSI Practice Exam

These questions are part of the practice quiz. Start practicing

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