MICHIGAN REAL ESTATE COMPREHENSIVE EXAM
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Capital improvement - ✔✔Improvements to property that add to its value extending
the useful ilfe
✔✔Capitalization - ✔✔Determining the value of property by calculating its net operating
income and divididng it by a capitalization rate
✔✔Capitalization Rate - ✔✔The rate of return that is expected to be obtained on capital
invesested in income property
✔✔Cash Flow - ✔✔The income from an ivestment
✔✔Cehck - ✔✔An area of land, equal to 24 x 24 miles
✔✔Civil Rights act of 1866 - ✔✔Prohibits discrimination because of race without
exceptions
✔✔Common Elements - ✔✔Portions of condominium complex owned jointly by tenants
✔✔Community Property - ✔✔A system of ownership adopted in some states between
married couple that gives them both rights to certain things
✔✔Concurrent estate - ✔✔Ownership of a property by two or more persons at the same
time
✔✔Condemnation - ✔✔The legal process of exercising the governments right of
eminent domain
✔✔Condominium - ✔✔Ownership of a unit in a multiunit structure
✔✔Condominium Conversion - ✔✔The act of converting inits in a rental complex into
individually owned inurs that may be bought or sold.
✔✔Condominium Declaration - ✔✔An instrument that is recorded with the govt to
establish a condominium development
✔✔Condominium Fee - ✔✔An Expense assessed in proportion to the cost necessary to
operate the condominium association such as maintenance and insurance of common
elements
✔✔Constructive Notice - ✔✔Notice given to the public when legal documents are
recorded at the register of deeds office.
, ✔✔Contribution - ✔✔Value added by one component of property in comparison to the
whole.
✔✔Cooperatives - ✔✔A system of ownership reflected in leasing a unit by a stock
holder of a corporation that owns the entire multi unit structure
✔✔Corporation - ✔✔A non-living entity that is treated as a person with rights and
liabilities as well as income tax
✔✔Covenant - ✔✔A provision entered into an instrument promising certain action or
inaction possibly limiting or allowing the use of property
✔✔Curable Obsolescence - ✔✔Outdated feature in property tht may be feasibly
corrected to bring the property to current standards
✔✔Curtesy - ✔✔A lifetime granted to the husband in his wife's real estate granted to
him upon her death.
✔✔Debt servce - ✔✔Loan payments including principle of interest
✔✔Dedication - ✔✔The donation of privately owned property to the public use.
✔✔Deed Restrictions (Restrictive Covenant) - ✔✔A requirement in a deed tht limits the
future use of propety being conveyed.
✔✔Defeasible Fee - ✔✔Also called a qualifieid fee. Interest in real estate that may be
canceled upon happening of a certain event
✔✔Deferred Maintenance - ✔✔Existing maintenance and repair requirements that are
put off.
✔✔Depreciation - ✔✔Loss of property value
✔✔Desireability - ✔✔Economic charactersitic of a property affecting value which
represents whether or not their are possible buyers
✔✔Deterioration - ✔✔The physical wear and tear that leads to depreciation
✔✔Devise - ✔✔A gift of real estate by will.
✔✔Devisee - ✔✔A person real estate title through will.
✔✔Decisor - ✔✔The person transfering the title of real estate through will
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Capital improvement - ✔✔Improvements to property that add to its value extending
the useful ilfe
✔✔Capitalization - ✔✔Determining the value of property by calculating its net operating
income and divididng it by a capitalization rate
✔✔Capitalization Rate - ✔✔The rate of return that is expected to be obtained on capital
invesested in income property
✔✔Cash Flow - ✔✔The income from an ivestment
✔✔Cehck - ✔✔An area of land, equal to 24 x 24 miles
✔✔Civil Rights act of 1866 - ✔✔Prohibits discrimination because of race without
exceptions
✔✔Common Elements - ✔✔Portions of condominium complex owned jointly by tenants
✔✔Community Property - ✔✔A system of ownership adopted in some states between
married couple that gives them both rights to certain things
✔✔Concurrent estate - ✔✔Ownership of a property by two or more persons at the same
time
✔✔Condemnation - ✔✔The legal process of exercising the governments right of
eminent domain
✔✔Condominium - ✔✔Ownership of a unit in a multiunit structure
✔✔Condominium Conversion - ✔✔The act of converting inits in a rental complex into
individually owned inurs that may be bought or sold.
✔✔Condominium Declaration - ✔✔An instrument that is recorded with the govt to
establish a condominium development
✔✔Condominium Fee - ✔✔An Expense assessed in proportion to the cost necessary to
operate the condominium association such as maintenance and insurance of common
elements
✔✔Constructive Notice - ✔✔Notice given to the public when legal documents are
recorded at the register of deeds office.
, ✔✔Contribution - ✔✔Value added by one component of property in comparison to the
whole.
✔✔Cooperatives - ✔✔A system of ownership reflected in leasing a unit by a stock
holder of a corporation that owns the entire multi unit structure
✔✔Corporation - ✔✔A non-living entity that is treated as a person with rights and
liabilities as well as income tax
✔✔Covenant - ✔✔A provision entered into an instrument promising certain action or
inaction possibly limiting or allowing the use of property
✔✔Curable Obsolescence - ✔✔Outdated feature in property tht may be feasibly
corrected to bring the property to current standards
✔✔Curtesy - ✔✔A lifetime granted to the husband in his wife's real estate granted to
him upon her death.
✔✔Debt servce - ✔✔Loan payments including principle of interest
✔✔Dedication - ✔✔The donation of privately owned property to the public use.
✔✔Deed Restrictions (Restrictive Covenant) - ✔✔A requirement in a deed tht limits the
future use of propety being conveyed.
✔✔Defeasible Fee - ✔✔Also called a qualifieid fee. Interest in real estate that may be
canceled upon happening of a certain event
✔✔Deferred Maintenance - ✔✔Existing maintenance and repair requirements that are
put off.
✔✔Depreciation - ✔✔Loss of property value
✔✔Desireability - ✔✔Economic charactersitic of a property affecting value which
represents whether or not their are possible buyers
✔✔Deterioration - ✔✔The physical wear and tear that leads to depreciation
✔✔Devise - ✔✔A gift of real estate by will.
✔✔Devisee - ✔✔A person real estate title through will.
✔✔Decisor - ✔✔The person transfering the title of real estate through will
