MICHIGAN REAL ESTATE PRACTICE TIPS EXAM QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔Factors Affecting Supply - ✔✔Labor Force Availability
Construction and Material Costs
Governmental Controls - environmental restrictions, land use, building codes, zoning
Governmental Financial Policies - impact interest rates and money supply
✔✔Factors Affecting Demand - ✔✔Population - some areas grow faster than others,
some decline
Demographics - family size, lifestyles, niche marketing
Employment and Wage Levels - influence housing affordability
✔✔Land - ✔✔The earth's surface, where water rights are held by owners of land
adjacent to rivers, lakes, or oceans
Extends downward to the center of the earth, where subsurface rights include mineral
rights and other natural resources that can be transferred separately from surface rights
Stretches upward to infinity, where air rights can be sold separately from surface rights
with some limitations to enable air travel
Includes things naturally attached to the land, such as trees and crops that do not need
cultivation and perennial crops, orchards and vineyards
✔✔Fructus Naturales - ✔✔Includes things naturally attached to the land, such as trees
and crops that do not need cultivation and perennial crops, orchards and vineyards
✔✔Real Estate Includes - ✔✔Land at, above and below the earth's surface, plus all
things permanently attached to the land both natural and man made
✔✔Real Property Includes - ✔✔Interests, benefits, and rights that are automatically
included in the ownership of the land and real estate
✔✔Bundle of Rights - ✔✔Right of Possession
Right to Control the property
Right of Enjoyment
Right of Exclusion
Right of Disposition
✔✔Title - ✔✔Right to ownership of the land, bundle of legal rights, and evidence of
ownership provided by a written document
✔✔Deed - ✔✔Written document by which title is transferred
, ✔✔Appurtenance - ✔✔Right or privilege associated with real property in some way,
such as a parking space in a multiunit building, and easement, or water rights, and is
normally conveyed tot he new owner when the property is sold
✔✔Personal Property (Chattel) - ✔✔Includes movable items, such as a chair or sofa;
emblements, such as annual plantings or crops of grains, vegetables, and fruit; items of
real property that can become personal property by severance; items of personal
property that can become real property by attachment; and manufactured homes unless
permanently affixed to the land
✔✔Fructus Indutriales - ✔✔Annual plantings or crops of grains, vegetables, and fruit
✔✔Fixture - ✔✔Personal property that has been affixed to teh land or to a building so
that by law it becomes part of the real property
✔✔Legal Tests for a Fixture - ✔✔Method of Annexation - not easily removable
Adaptation to Real Estate - ordinarily considered a permanent addition
Agreement of the Parties - stated as part of real estate in the offer to purchase
✔✔Trade Fixtures - ✔✔Include property attached to the structure but used in the course
of business such as
- personal property, if removed by the tenant and the premises are returned to original
condition before the lease expires
- real property is left behind by the tenant, the landlord and acquire this type of property
by accession
✔✔Characteristics of Real Estate - ✔✔Economic
- Scarcity
- Improvements
- Permanence of Investment
- Location (most important)
Physical
- Immobility
- Indestructibility
- Nonhomogeneity, or Uniqueness
✔✔Laws that affect Real Estate - ✔✔contracts, property, agency, and real estate
licensing, where all states require real estate brokers and salespeople to be licensed
with requirements differing from state to state
state and local land use and zoning laws
federal and state environmental regulations and tax laws
✔✔Types of Housing - ✔✔Single family homes
Apartment complexes
AND ANSWERS GUARANTEE A+
✔✔Factors Affecting Supply - ✔✔Labor Force Availability
Construction and Material Costs
Governmental Controls - environmental restrictions, land use, building codes, zoning
Governmental Financial Policies - impact interest rates and money supply
✔✔Factors Affecting Demand - ✔✔Population - some areas grow faster than others,
some decline
Demographics - family size, lifestyles, niche marketing
Employment and Wage Levels - influence housing affordability
✔✔Land - ✔✔The earth's surface, where water rights are held by owners of land
adjacent to rivers, lakes, or oceans
Extends downward to the center of the earth, where subsurface rights include mineral
rights and other natural resources that can be transferred separately from surface rights
Stretches upward to infinity, where air rights can be sold separately from surface rights
with some limitations to enable air travel
Includes things naturally attached to the land, such as trees and crops that do not need
cultivation and perennial crops, orchards and vineyards
✔✔Fructus Naturales - ✔✔Includes things naturally attached to the land, such as trees
and crops that do not need cultivation and perennial crops, orchards and vineyards
✔✔Real Estate Includes - ✔✔Land at, above and below the earth's surface, plus all
things permanently attached to the land both natural and man made
✔✔Real Property Includes - ✔✔Interests, benefits, and rights that are automatically
included in the ownership of the land and real estate
✔✔Bundle of Rights - ✔✔Right of Possession
Right to Control the property
Right of Enjoyment
Right of Exclusion
Right of Disposition
✔✔Title - ✔✔Right to ownership of the land, bundle of legal rights, and evidence of
ownership provided by a written document
✔✔Deed - ✔✔Written document by which title is transferred
, ✔✔Appurtenance - ✔✔Right or privilege associated with real property in some way,
such as a parking space in a multiunit building, and easement, or water rights, and is
normally conveyed tot he new owner when the property is sold
✔✔Personal Property (Chattel) - ✔✔Includes movable items, such as a chair or sofa;
emblements, such as annual plantings or crops of grains, vegetables, and fruit; items of
real property that can become personal property by severance; items of personal
property that can become real property by attachment; and manufactured homes unless
permanently affixed to the land
✔✔Fructus Indutriales - ✔✔Annual plantings or crops of grains, vegetables, and fruit
✔✔Fixture - ✔✔Personal property that has been affixed to teh land or to a building so
that by law it becomes part of the real property
✔✔Legal Tests for a Fixture - ✔✔Method of Annexation - not easily removable
Adaptation to Real Estate - ordinarily considered a permanent addition
Agreement of the Parties - stated as part of real estate in the offer to purchase
✔✔Trade Fixtures - ✔✔Include property attached to the structure but used in the course
of business such as
- personal property, if removed by the tenant and the premises are returned to original
condition before the lease expires
- real property is left behind by the tenant, the landlord and acquire this type of property
by accession
✔✔Characteristics of Real Estate - ✔✔Economic
- Scarcity
- Improvements
- Permanence of Investment
- Location (most important)
Physical
- Immobility
- Indestructibility
- Nonhomogeneity, or Uniqueness
✔✔Laws that affect Real Estate - ✔✔contracts, property, agency, and real estate
licensing, where all states require real estate brokers and salespeople to be licensed
with requirements differing from state to state
state and local land use and zoning laws
federal and state environmental regulations and tax laws
✔✔Types of Housing - ✔✔Single family homes
Apartment complexes
