MIRES - Michigan Real Estate Salesperson Exam

Question 21: A lender takes back a house in Flint through a sale under a power of sale and now offers it for resale to an owner occupant. Which of the following describes the seller disclosure obligation on that resale?

Required, since a family will occupy it

Exempt, as a transfer following foreclosure

Required, but limited to known defects

Exempt only if sold within one year

Question 22: A deed in lieu of foreclosure is delivered on a home in Genesee County, and the parties want to know how the state real estate transfer tax applies to that instrument. Which of the following describes its treatment?

Exempt from the state transfer tax

Exempt only if debt is forgiven

Taxable at half the ordinary rate

Taxable on the unpaid loan balance

Question 23: A Michigan licensee in Portage wants to be paid a fee for arranging a borrower's mortgage financing in addition to her commission on the same sale. Which of the following describes what Michigan requires before she takes that fee?

A separate mortgage originator license

Approval from her employing broker

Prior written consent of buyer and seller

Nothing, if the lender pays the fee

Question 24: A first-time buyer in Lansing asks her agent to name the state agency that administers the down payment assistance and mortgage programs written for eligible low and moderate income households in Michigan. Which of the following identifies that agency?

The Michigan State Housing Development Authority

The Board of Brokers and Salespersons

The Department of Licensing and Regulatory Affairs

The Michigan Department of Treasury

Question 25: A buyer in Ann Arbor is comparing loan programs and learns that one of them requires an upfront mortgage insurance premium and an annual premium regardless of how much she puts down. Which of the following loan types is she describing?

A conventional loan with twenty percent down

A home equity line of credit

An FHA insured loan

A VA guaranteed loan

Question 26: A borrower in Saginaw is told that her lender will let her put nothing down and will charge no monthly mortgage insurance, all because of her prior military service. Which of the following programs is being described to her?

A VA guaranteed loan

A rural development loan

An FHA insured loan

A conventional conforming loan

Question 27: A Michigan buyer purchasing a home in Novi is quoted a loan on which she will pay several discount points in cash at the closing table. Which of the following best describes what she receives in exchange for paying them?

A larger loan than she qualifies

Release from private mortgage insurance

A guarantee of loan approval

A lower interest rate on the loan

Question 28: A Michigan lender includes a clause in its mortgage on a home in Troy allowing it to declare the entire unpaid balance due if the borrower conveys the property without consent. Which of the following identifies that clause?

A subordination clause

An alienation clause

An acceleration clause

A defeasance clause

Question 29: A Michigan buyer takes title to a home in Lapeer and agrees to become personally liable on the seller's existing mortgage, and the lender formally approves that arrangement. Which of the following best describes what this buyer has done?

Refinanced the seller's existing debt

Created a wraparound financing arrangement

Taken title subject to the mortgage

Assumed the loan with personal liability

Question 30: A Michigan lender declines a loan application from a woman in Pontiac, and she suspects the decision turned on the fact that she receives public assistance income. Which of the following federal laws most directly addresses that concern?

The Equal Credit Opportunity Act

The Real Estate Settlement Procedures Act

The Truth in Lending Act

The Fair Credit Reporting Act

Question 31: A Michigan grantor conveys a home in Petoskey and promises in the deed itself to defend the title against all claims arising at any point in the property's long history. Which of the following deeds is she delivering?

A quitclaim deed

A sheriff's deed

A general warranty deed

A special warranty deed

Question 32: A Michigan property owner wants to clear a possible cloud on the title created by a former spouse who may hold no interest at all in the parcel. Which of the following deeds is customarily used for that purpose?

A trustee's deed

A general warranty deed

A bargain and sale deed

A quitclaim deed

Question 33: A Michigan deed is signed and sitting in the grantor's desk drawer at her death, never having been handed to the named grantee and never recorded anywhere. Which of the following best describes whether title passed to him?

No, because the deed was never recorded

Yes, because the deed was properly signed

No, because there was no delivery

Yes, because intent to convey was clear

Question 34: A Michigan buyer records her deed at the county register of deeds, and her licensee explains why that step still matters even though she already holds title to the home. Which of the following best states the purpose of recording?

It satisfies the transfer tax obligation

It transfers ownership from the seller

It guarantees the title is marketable

It gives constructive notice to the world

Question 35: Two buyers each receive a deed to the same parcel in Ottawa County from the same seller, and the second buyer paid value, knew nothing of the first deed, and recorded first. Which of the following describes the outcome in Michigan?

The second prevails only with warranties

The first buyer prevails, having taken delivery

The second buyer prevails under race-notice

They share title as cotenants

Question 36: A Michigan buyer in Livonia takes title by quitclaim deed, pays full value for the parcel, knows of no earlier unrecorded conveyance, and records immediately. Which of the following describes the effect of that deed form on her good faith?

It automatically destroys her good faith

The form alone does not defeat it

It matters only below market value

It requires a second title search

Question 37: A Michigan married man conveys a parcel he owns individually in Midland, and his spouse does not sign the deed, prompting an older title examiner to raise a dower question. Which of the following describes current Michigan law?

The spouse must sign to bar dower

Dower survives for marriages before 2017

Dower applies only to homestead property

Dower has been abolished in Michigan

Question 38: A Michigan deed is presented for recording in Oakland County bearing the grantor's signature but nothing printed or typed beneath it identifying who actually signed the instrument. Which of the following describes a Michigan requirement for recording that deed?

Names printed beneath each original signature

Two witnesses to each signature

A legal description in metes and bounds

The county assessor's certification of value

Question 39: A Michigan drafter is preparing a deed for recording in Washtenaw County and asks the register of deeds about the blank space that is required at the top of the first page. Which of the following states that requirement?

At least one inch of clear space

No margin, provided the text is legible

At least four inches of clear space

At least two and one-half inches

Question 40: A home in Genesee County sells for a price on which the state real estate transfer tax must now be computed at the closing table by the settlement agent. Which of the following states the Michigan state rate for that tax?

Fifty-five cents per five hundred dollars

Three dollars seventy-five cents per five hundred

Seven dollars fifty cents per five hundred

One percent of the total sale price

MIRES Michigan Real Estate Salesperson Exam - Set 4 - Part 2