MIRES - Michigan Real Estate Salesperson Exam

Question 1: Two neighbors in Grand Rapids put a loan in writing between themselves but never state any rate of interest in the document, and a dispute later arises about what interest accrued. Which of the following states the Michigan legal rate that applies where none is agreed?

Eleven percent each year

Seven percent each year

Whatever the market charges

Five percent each year

Question 2: A private investor in Traverse City who is not an approved mortgagee and is not regulated by any state or federal agency wants to carry a land contract at the highest lawful rate. Which of the following states the ceiling that applies to him?

Five percent, as the legal rate

No ceiling for a private party

Eleven percent, including the finance charge

Seven percent, as the act stipulates

Question 3: A Michigan lender making a first-lien loan on a single family home in Novi wants to charge a fee if the borrower pays the loan off early in the first few years. Which of the following describes the limit Michigan places on that charge?

Nothing, since penalties are forbidden

One percent of prepayments within three years

Six months of unearned interest

Two percent of the original loan

Question 4: A Michigan lender proposes a first-lien mortgage on a home in Kalamazoo containing a clause that would let the lender raise the initial interest rate at its discretion later. Which of the following describes that clause under Michigan law?

Prohibited on a first-lien agreement

Permitted up to the eleven percent ceiling

Permitted on any adjustable loan

Permitted if the borrower initials it

Question 5: A seller in Ionia County carries a land contract on farmland, and the buyer stops making payments after two years. Which of the following describes the cure period the buyer receives once he is served with a written notice of forfeiture?

Seven days from service of notice

Six months from service of notice

Thirty days from service of notice

Fifteen days, absent a longer agreement

Question 6: A Michigan land contract vendor in Cadillac prepares a notice of forfeiture after months of missed payments and wants to be sure it contains everything the statute demands. Which of the following identifies a required element of that notice?

Proof that the vendor holds insurance

A declaration that forfeiture takes effect

An appraisal of the current value

A copy of the recorded deed

Question 7: A Michigan land contract buyer in Alpena has paid roughly thirty percent of the purchase price when the vendor obtains a judgment for possession on forfeiture. Which of the following describes how long a writ of restitution must wait?

Ninety days after entry of judgment

One year after entry of judgment

Six months after entry of judgment

Ten days after entry of judgment

Question 8: A land contract buyer in Bay City has paid more than half of the purchase price when the seller obtains a judgment for possession on forfeiture. Which of the following describes the delay before a writ of restitution may issue?

Immediately upon entry of judgment

Fifteen days after entry of judgment

Six months after entry of judgment

Ninety days after entry of judgment

Question 9: A Michigan land contract buyer in Owosso has lost possession after a writ of restitution issued on a forfeiture judgment, and he now asks his attorney whether he may still redeem the property. Which of the following describes his position?

The writ forecloses any equitable redemption

He has six months to redeem

He may redeem until the property resells

He has one year to redeem

Question 10: A Michigan seller who wants to pursue a deficiency against a defaulting land contract buyer in Marquette asks his lawyer how that path differs from the forfeiture route he has already been considering. Which of the following describes the alternative?

A summary proceeding for possession

A foreclosure by advertisement

A construction lien foreclosure

A circuit court foreclosure with judicial sale

Question 11: A Michigan buyer purchases a home on a land contract in Escanaba and never records the instrument, and the seller later conveys the same parcel to someone who records first. Which of the following describes the buyer's exposure?

Land contracts are exempt from recording rules

Possession alone protects him fully

The unrecorded contract is vulnerable

The seller's signature makes it binding

Question 12: A Michigan seller in Traverse City sells a cottage on a land contract under which legal title stays with her until the full price is paid. Which of the following describes the state real estate transfer tax at the time that contract is signed?

Due on each installment payment

Due immediately on the full price

Exempt permanently for land contracts

Exempt, since title has not passed

Question 13: A Michigan lender is preparing to foreclose a residential mortgage by advertisement on a property in Jackson County and asks about the notice it owes. Which of the following describes the publication Michigan requires before that sale takes place?

Four successive weeks, once each week

Once, thirty days before the sale

Six successive weeks in two newspapers

Three consecutive days before sale

Question 14: After the first publication of a foreclosure notice on a home in Muskegon County, the foreclosing party must also give notice at the property itself so that occupants can see it. Which of the following describes that posting requirement?

A copy delivered to the local assessor

A true copy posted within fifteen days

A copy mailed within thirty days

A copy recorded with the register

Question 15: A single family home in Wayne County is sold at a foreclosure sale, and the amount claimed due at the date of the notice was more than two thirds of the original indebtedness. Which of the following states the redemption period?

One year from the date of sale

Thirty days from the date of sale

Six months from the date of sale

Three months from the date of sale

Question 16: A Michigan instructor tells a class that the six month redemption period for a foreclosed home depends on the parcel being no larger than three acres. Which of the following corrects that statement under the current Michigan statute?

The test depends on owner occupancy

The instructor is right for rural parcels

The acreage test now uses five acres

Four units and the debt test

Question 17: A farm in Sanilac County is sold at a foreclosure sale, and the mortgagor established before that sale that the property was used for agricultural purposes. Which of the following states the redemption period that applies to it?

Thirty days from the date of sale

One year from the date of sale

Six months from the date of sale

Two years from the date of sale

Question 18: A borrower in Tuscola County wants the agricultural redemption period to apply to the property he lost at a foreclosure sale. Which of the following describes how Michigan raises a presumption that land was used for agricultural purposes?

A statement from the county assessor

Enrollment in a farmland preservation program

A Schedule F and recorded affidavit

Evidence that crops grew last season

Question 19: A commercial office building in Kent County is sold at a foreclosure sale under a mortgage executed in the 1990s, and the owner asks his lender how long he has to redeem. Which of the following states that period?

One year from the date of sale

Six months from the date of sale

No redemption on commercial property

Ninety days from the date of sale

Question 20: A party redeeming a foreclosed property in Michigan pays the amount bid at the sale plus interest, and she asks what small fee accompanies the money when it goes to the register of deeds. Which of the following states that fee?

Two hundred fifty dollars for computation

Fifty dollars for the calculation

Nothing beyond the bid and interest

Five dollars for care and custody

MIRES Michigan Real Estate Salesperson Exam - Set 4 - Part 1

Question 1: Two neighbors in Grand Rapids put a loan in writing between themselves but never state any rate of interest in the document, and a dispute later arises about what interest accrued. Which of the following states the Michigan legal rate that applies where none is agreed?

Question 2: A private investor in Traverse City who is not an approved mortgagee and is not regulated by any state or federal agency wants to carry a land contract at the highest lawful rate. Which of the following states the ceiling that applies to him?

Question 3: A Michigan lender making a first-lien loan on a single family home in Novi wants to charge a fee if the borrower pays the loan off early in the first few years. Which of the following describes the limit Michigan places on that charge?

Question 4: A Michigan lender proposes a first-lien mortgage on a home in Kalamazoo containing a clause that would let the lender raise the initial interest rate at its discretion later. Which of the following describes that clause under Michigan law?

Question 5: A seller in Ionia County carries a land contract on farmland, and the buyer stops making payments after two years. Which of the following describes the cure period the buyer receives once he is served with a written notice of forfeiture?

Question 6: A Michigan land contract vendor in Cadillac prepares a notice of forfeiture after months of missed payments and wants to be sure it contains everything the statute demands. Which of the following identifies a required element of that notice?

Question 7: A Michigan land contract buyer in Alpena has paid roughly thirty percent of the purchase price when the vendor obtains a judgment for possession on forfeiture. Which of the following describes how long a writ of restitution must wait?

Question 8: A land contract buyer in Bay City has paid more than half of the purchase price when the seller obtains a judgment for possession on forfeiture. Which of the following describes the delay before a writ of restitution may issue?

Question 9: A Michigan land contract buyer in Owosso has lost possession after a writ of restitution issued on a forfeiture judgment, and he now asks his attorney whether he may still redeem the property. Which of the following describes his position?

Question 10: A Michigan seller who wants to pursue a deficiency against a defaulting land contract buyer in Marquette asks his lawyer how that path differs from the forfeiture route he has already been considering. Which of the following describes the alternative?

Question 11: A Michigan buyer purchases a home on a land contract in Escanaba and never records the instrument, and the seller later conveys the same parcel to someone who records first. Which of the following describes the buyer's exposure?

Question 12: A Michigan seller in Traverse City sells a cottage on a land contract under which legal title stays with her until the full price is paid. Which of the following describes the state real estate transfer tax at the time that contract is signed?

Question 13: A Michigan lender is preparing to foreclose a residential mortgage by advertisement on a property in Jackson County and asks about the notice it owes. Which of the following describes the publication Michigan requires before that sale takes place?

Question 14: After the first publication of a foreclosure notice on a home in Muskegon County, the foreclosing party must also give notice at the property itself so that occupants can see it. Which of the following describes that posting requirement?

Question 15: A single family home in Wayne County is sold at a foreclosure sale, and the amount claimed due at the date of the notice was more than two thirds of the original indebtedness. Which of the following states the redemption period?

Question 16: A Michigan instructor tells a class that the six month redemption period for a foreclosed home depends on the parcel being no larger than three acres. Which of the following corrects that statement under the current Michigan statute?

Question 17: A farm in Sanilac County is sold at a foreclosure sale, and the mortgagor established before that sale that the property was used for agricultural purposes. Which of the following states the redemption period that applies to it?

Question 18: A borrower in Tuscola County wants the agricultural redemption period to apply to the property he lost at a foreclosure sale. Which of the following describes how Michigan raises a presumption that land was used for agricultural purposes?

Question 19: A commercial office building in Kent County is sold at a foreclosure sale under a mortgage executed in the 1990s, and the owner asks his lender how long he has to redeem. Which of the following states that period?

Question 20: A party redeeming a foreclosed property in Michigan pays the amount bid at the sale plus interest, and she asks what small fee accompanies the money when it goes to the register of deeds. Which of the following states that fee?

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