Michigan Real estate exam questions with completely solved answers (latest update 2024)

vendee - Answer- a buyer or purchaser particularly someone buying property under a deed vendor - Answer- seller ,particularly someone selling property by means of a contract for deed escalation clause - Answer- increase or decrease interest rate based on annual percent deed - Answer- written document conveys title to real property deed of trust - Answer- voluntary lien on real property to secure repayment of debt deed restriction - Answer- provisions in deed that restrict land use quitclaim deed - Answer- deed that clears clouds and has highest risk. general warranty - Answer- deed that grantor warrants the title against defects during ownership encumbrance - Answer- right or interest in land that affects the value lien - Answer- claim on property(unpaid taxes, judgements) habendum clause - Answer- to have and to hold describes the type of estates will hold home owners association - Answer- organization created to enforces deed restrictions (subdivision) principle - Answer- client/buyer property manager - Answer- the owner physical deterioration - Answer- loss in value from wear and tear functional obsolescence - Answer- refers to functions of property(one bathroom 4bedroom) economic obsolescence - Answer- incurable location(next to unlicensed junkyard) curable depreciation - Answer- correction cost recovered in sales price incurable depreciation - Answer- impossible to correct or not economical cost approach - Answer- estimate of property value replacement costs to rebuild with todays materials income approach - Answer- appraisal method that estimates of property value based on net income it produces (capitalization) gross rent multiplier - Answer- figure multiplied rental property's gross income to get estimate property's value emblements - Answer- crops produced annually (farmer wins) Manufactured housing - Answer- can be real property if chassis is removed and get affidavit of fixture from lasing and put on foundation. rectangular survey system - Answer- grid system made up of range and base lines to create : townships, sections,