MIRES Michigan Real Estate Salesperson Exam - Set 5 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A home in Kalamazoo County sells in June, and the buyer asks her closing agent when the property's taxable value will finally reset to the state equalized valuation. Which of the following states when that uncapping takes effect?

Only after a homestead affidavit

Immediately upon the closing date

The calendar year following the transfer

The year the sale occurs

Question 42: A Michigan buyer is reviewing a tax estimate that lists a millage rate for her local school district, and she asks her agent what a single mill actually represents. Which of the following states that relationship for a Michigan taxpayer?

One dollar per thousand of taxable value

One dollar per hundred of taxable value

One percent of the taxable value

One dollar per thousand of market value

Question 43: A Michigan homeowner in Holland claims the principal residence exemption on the house she just bought and sees her tax bill drop noticeably the following year. Which of the following describes what that exemption removes from the bill?

Half of the total bill

Up to eighteen school operating mills

All county and township operating taxes

All school related taxes on the property

Question 44: A buyer closing on a home in Ottawa County in the month of April wants her principal residence exemption to apply to the coming summer levy on that property. Which of the following states the filing deadline she must meet?

At any time during the tax year

On or before November 1

Within forty-five days of closing

On or before June 1

Question 45: A Michigan owner in Petoskey moves out of the home she had claimed as her principal residence and begins renting it to a tenant. Which of the following describes what she must do about the exemption, and when?

Rescind within ninety days of the change

Rescind only when the property is sold

Nothing, since the exemption expires by itself

Rescind within forty-five days of the change

Question 46: A Michigan buyer notices that the property taxes on her new home in Eaton County arrive in two entirely separate bills during the year, rather than in one annual statement. Which of the following explains that billing pattern?

Only principal residences receive two bills

Michigan bills summer and winter levies

The second bill reflects the uncapping

One bill covers state tax, one local

Question 47: A Michigan licensee is asked by a buyer in Van Buren County exactly how the property taxes will be prorated between the two parties at the closing table. Which of the following best describes the source of that convention?

Federal settlement rules for closings

A uniform statewide statutory formula

The purchase agreement and local custom

The assessor's published proration table

Question 48: A Michigan lender is deciding how much to advance on a home in Livingston County and compares the proposed loan amount against the appraised value of that particular property. Which of the following identifies that comparison between the two figures?

The gross rent multiplier

The debt to income ratio

The capitalization rate

The loan to value ratio

Question 49: An investor comparing two small rental houses in Flint divides each asking price by the annual rent that the property collects, so that she can rank the two quickly. Which of the following measures is she computing for those two houses?

A loan to value ratio

A gross rent multiplier

A capitalization rate

An assessment ratio

Question 50: A Michigan owner in Grand Rapids has a home worth substantially more than the balance remaining on her mortgage, and she asks what the difference between those two figures is properly called. Which of the following identifies it?

Her taxable value on the roll

Her return on investment

Her equity in the property

Her basis in the property

Congratulations!

You have completed all 5 question sets. Good job!

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