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216 Cards in this Set

  • Front
  • Back
In Lansing, the office which houses all of our bureaucracy is referred to as
The Department (specifically the Department of Licensing and Regulatory Affairs)
The board which represents our occupation is called:
The Board of Real Estate Brokers and Salespersons.
How many members of the Board represent the occupation?

How many represent the general public?

Who sets the penalty when a violation has been substantiated?
The Board.
What is the name of the individual who, in a formal hearing, determines guilt or innocence.
The Administrative Law Judge.
What is the maximum first time penalty for a lay person practicing real estate without a license?

What about second or subsequent violation?
A non-licensee could face a fine up to $500 and/or ninety days in jail as the result of a civil action

Second offence this could be up to $,1000 and/or one year in jail.
Name the five tests for a salesperson to be considered an independent contractor.
1. Licensed
2. At Risk
3. No minimum job requirements
4. Annually negotiated independent contract
5. Not less than 90% of money from broker is commission from real estate activities.
If the Department denies one's application for license, is there any recourse?
One may go before the Board for a review of this decision.
How could a non-licensee be exempt from having to obtain a real estate license?
The following are exemptions:
Engaging in 5 of less real estate transations.
Not holding oneself out as being in real estate.
Devoting less than 50% or 15 or less hours of time per week to the pursuit of real estate.
Need a licensed builder who is selling his own inventory get a real estate license?
A licensed builder may sell all of the one to four family, new construction, never having been occupied, that he builds and owns.
Need property managers in Michigan carry a real estate license,.
The Occupational Code includes leasing or offing for lease, renting or offering for rent real estate or its improvements for others for compensation as an activity requiring a real estate license.
How many brokers in a real estate company?
There can be only one broker per company. if the company is the broker, everyone else within the company that has achieved that level of education is actually an associate broker
There are two kinds of association brokers, principal and non-principal.

Explain the difference.
A principal associate broker is one who is either owner, officer, member or manager of the company.

A non- principal associate broker is neither owner, officer, member or manager of the company.
How many non-principal associate brokers licenses may a person hold?

How many principal associate brokers licenses may a person hold?
A person may only act in one instance where they are not in charge. Just as one may only have one salesperson's license, the same is true for a non-principal associate broker. However, a person may own as many companies as they wish. A person may hold multiple principal associate broker licenses.
Real estate licensees are required to take how much continuing education every three year cycle?
Eighteen hours are required every three years, of which at least two hours of legal update (core curriculum) must be taken each year.
Name as any as possible of the board imposed penalties a licensee may face.
Denial, suspension, limitation, revocation, civil fine not to exceed $10,000, censure, probation, making restitution, posting a bond.
One is said to possess a lack of good moral character if
They have committed a felony or demonstrated an inability to serve the public in a fair, honest and open fashion.
If a broker decides to open a branch office in a nearby town, what is required?
The broker needs to apply for a branch office license and if the branch is more than 25 miles from the city limits of the main office, an additional associate broker will be needed to manage that office.
Must a broker have a written policy and procedures manual?
If a broker supervises others, she must have a written policy and procedures manual.
From whom may a licensee receive compensation for an activity which requires a license?

Are there any exceptions?
A salesperson or associate broker may only receive compensation for an activity requiring a license from the employing broker.

A former broker may pay a licensee no longer in his employ for an activity which was earned while in that company.
What is it called to advertise property for sale without clearly indicating the ad was placed by a licensee?
This is a blind ad and is illegal in Michigan and most other states.
Must you disclose the property was the site of a murder, suicide or paranormal event?
Michigan requires no such disclosure and does not consider it a material fact.
May you disclose the previous owner of the property had a disability?
No, to disclose such information would violate Federal Fair Housing and Americans with Disabilities Act.
Need you disclose your license status when buying or selling real estate which you own?
Such disclosure must be in writing and made before the offer to purchase is presented.
Must a listing be fully complete before it is signed?

Must a licensee give all contract signers a copy at the time of the signing.
anytime anyone signs anything in real estate, they are entitled to a copy.

The contracts need to be fully complete before signing. We do not add things above the signature.T
Which broker is responsible for the earnest money deposit?
Whoever receives the deposit is responsible for bringing it to the closing.
How long after learning the offer has been accepted must the earnest money be deposited?
Upon receipt of an earnest money deposit, the broker shall deposit within two banking days of learning of the acceptance.
How much of the broker's own personal funds may remain in the trust account?
Allow that amount to get to large is called what?
The personal funds may only be used for what purpose
The most a broker may keep of personal funds is $2,000. More than that is referred to as commingling. The funds may only be used for bank service charges or to satisfy a minimum deposit requirement.
At what step does an offer to purchase become a binding, bilateral, executory contract?
The offer becomes binding after step three:
#1 Offer
#2 Acceptance
#3 Notification of acceptance
There are four tests to determine a valid contract. Name them.
#1 Legally competent parties
#2 Mutual agreement
#3 Lawful object
#4 Consideration
A contract between someone of legal contractual capacity and someone of limited contractual capacity is said to be what?
A contract requiring the law to broken or not meeting one of the tests of a valid contract is said to be what?
A contract in which a promise is exchanged for a promise and two parties are bound is called?
A bilateral contract.
A contract in which a promise is exchanged for performance and only one party is bound is called?
A unilateral contract.
A contract which is created by the acts of the parties is said to be:
An implied contract. Implied contracts are never a good idea in real estate. Get it in writing.
The legal term for deciding to opt out of a binding agreement is referred to as:
Breach of contract
In the event of breach of contract, the non-breaching party may seek remedy. Name the remedies
Damages, compensatory or liquidated
Specific performance
To sell, set over or transfer all of ones rights or liabilities in a contract is referred to as:
When a new contract replaces an old contract, this is called:
A civil wring in which the injured party may sue the wrongdoer and recover damages is referred to as:
A tort.
A contract that is pending and not yet fully performed is said to be:
An opportunity to acquire property at some time in the future which is fixed as to price terms and time is called an:
An opportunity to acquire property before it is conveyed to someone else is called a:
Right of First Refusal
An agent who is only authorized to do a particular task for another and has limited power is referred to as:
A special agent. Real estate brokers and salespersons are generally special agents.
An agent who represents someone in a range or group of activities on somewhat of a more continued basis is said to be a:
General Agent. Property managers are usually general agents. They formulate management plans, collect rent, pay bills, authorize repairs, negotiate lease and do whatever is in the contract on behalf of their client.
An agent who acts on a client's behalf in all matters and situations is said to be a:
General Agent. A power-of -attorney is usually the document that creates this relationship.
Name as many of the duties of agency as you can remember.
Loyalty, account for all monies, obey all lawful instructions, confidentiality, disclosure, care.
An office which has adopted the policy of allowing the agents to represent sellers or buyers but never both in the same transaction is said to practice why style of agency?
Single agency
An office which has adopted a policy in which the contract the agent signs with the client does not bind the entire office but only that agent and the supervisory associate broker is said to practice what style of agency?
Designated agency
Agency disclosure is required in Michigan at what point?
Before confidential information has been disclosed.
The listing that gives the broker the most protection and is also the one most brokers use is the
Exclusive right to sell listing agreement.
A listing which involves one broker only, however the seller reserves the right to sell the property themselves and not pay a commission is referred to as an
Exclusive listing
A listing which allows the sellers to list with as many brokers as they wish and still reserve the right to sell the property themselves and not pay a commission is called an
Open listing
That law which was drafted to protect Michigan comers which we could summarize as enforcing the fact that we must be honest and not even lie by omission is called
The Michigan Consumers Protection Act
Harmless exaggeration such as , the greatest neighborhood in town is referred to as
Puffing or puffery and is not a violation of the Consumers Protection Act.
Trigger words such as "at risk, venture, syndicate, investment, REIT, trust, stock, corporation, co-operative" could make one need to ask if a certain license may be required. That license is called
A Security Broker Dealer's License. The law involved could either be the Michigan Uniform Securities Act or the Federal Securities Act.
To discuss the going rate of commission could be construed as what activity and would be violating which law?
Price fixing is a violation of the Michigan Uniform State Anti-Trust Act and the Federal Sherman Anti-Trust Act.
To co-join two professional services and insist if the consumer uses one provider he must also use the other could be construed as what activity and would be violating which law?
The activity would be an illegal tying agreement and is a violation of the Michigan Uniform State Anti-Trust Act and the Federal Sherman Anti-Trust Act.
What was the effective date of banning lead based paint from residential application?
January 1, 1978
What must the agent do when selling a residential property that was built before the banning of lead based paint?
The agent must insure the seller provide the buyer a lead based paint disclosure form and a booklet entitled, "Protecting Your Family From Lead in the Home" and give the buyer a ten day opportunity to inspect for lead.
The type of legal description which starts at a place and describes the distance and direction and brings you back to a place is referred to as:
Metes and Bounds

Metes means distance
Bounds means direction
The description starts and ends at the Point of Beginning. (POB)
The type legal description which makes reference to portions of sections, townships and their relationship to the Michigan Meridian and the Baseline is called
Government survey also known as rectangular survey.
Lot 6, Block K, Pleasant Valley, Saginaw County, State of Michigan is an example of what type legal description
Subdivision, sometimes called lot-block-tract method.
When the accuracy of conveying a portion of ones property is important, what type survey should be recommended?
A stake survey.
If the property is already in a platted subdivision, perhaps a stake survey is not necessary. Instead the engineering firm determines if the legal description is correct, the improvements are on the subject property and there are no encroachments. This is referred to as:
A mortgage survey or a mortgage report. In some parts of the country it is called a Spot Survey.
How many feet in an acre?
How many acres in a section?
How many sections in a township?
In square miles how big is a section
One square mile. 5,280 by 5,280
The effective date of the Land Division Act was March 31, 1997. Before that time, it was referred to as the
Subdivision Control Act
If a person owns a parent parcel and conveys a portion but gives no divisions with the conveyance, Generally, how long must the grantee wait to split up the property again?
Ten (10) years
When creating a simple division, generally the depth to width ration may not exceed
Four to One
Every conveyance of non-platted land must state
The property may be located within the vicinity of farm land or a farm operation . Generally accepted agricultural and management practices which may generate noise, odors, dust and other associated conditions may be used and are protected by the Michigan Right to Farm Act.
If a property is on a non-public maintained road, what law requires this be disclosed?
The Land Division Act.
In addition to the number of divisions which are allowed to the parent parcel, there are two activities which can earn bonuses under the Land Division Act. Name them.
One may reserve 60% of the parent parcel intact or build a new road so there are no additional driveways coming out onto the existing road.
An interest in real property that is actual ownership and ownership for an unpredictable period of time is referred to as
A freehold estate
An estate which is not full ownership and is sometimes referred to as non-freehold is called
A leasehold estate
The highest form of freehold estate is referred to as
Fee Simple, also called, Fee Simple Absolute. For a simple fee, the purchase price, I can absolutely hold the property. The owner is entitled to all writes possible by law and upon the passing of an owner in Fee Simple, the property goes to the heirs or survivors.
An estate or tenancy in which if something happens the estate is over.
Defeasable Fee estates have strings attached. They contain such words as "So long as". If a specific event occurs of fails to occur the estate is defeated. The action to complete this task is called forfeiture.
An estate based upon the lifetime of the life tenant or the lifetime of another is called:
A life estate.
The holder of the life estate is called the:
Life tenant
The person who receives the life estate after the passing of the life tenant is called the
Remainderman or reversioner.
Name the sticks in the bundle of rights.
Sell , lease, encumber, use, enjoy and will.
Ownership by one person, only is called:
Tenancy in severalty. Note, a corporation is a single entity and as such also takes title in severalty.
Ownership by two or more persons in which their interest does not have to be the same and upon the passing of one of the owners, their share goes to their heirs or devisees is called
Tenants in common.
Upon the passing of a tenant in common the property goes to
The heirs or devisees
In which form concurrent ownership must the shares of ownership be exactly alike.
Joint and entireties. With entireties, each spouse owns 100%
Upon the passing of a joint tenant, the property goes to the
The type of concurrent ownership which in which property does not go to the heirs but instead remains with the surviving owners is called
Joint tenancy.
The law which provides widows protection from being left homeless are referred to as what rights?
Dower. Some states give equal rights to husbands. Those rights are referred to as curtesy. Some states are set up such that all properties become 50-50 ownership upon possession. Those state have community property laws. Michigan has none of the above.
If a person only owns paper and a corporation has title to the real property, they are said to own a share in a
Individual ownership in a multi unit complex consisting of many individual units and a separate unit for the common elements is referred to as
The right to use the water adjacent to a property is generally referred to as
Riparian rights.
May one sell of the riparian rights and retain the land?
No, the land may not be separated from the riparian rights.
On Great Lakes ones right more correctly be referred to as
The opposite of accretion is
The gain of land due to the permanent withdrawal of a body of water is called
A sudden loss of land when an act of nature results in its watching away is called
If a grantee acquires a parcel of land, but the grantor does not also grant the mineral interests, how many years must pass before the interests will pass to the grantee if nothing is recorded and no mineral activity takes place on the property.
After twenty years with no activity and no recording by the grantor, The Michigan Dormant Mineral Rights Act automatically terminates the grantors interest in those rights.
May you put fill in or take fill out of a wetland without a permit? What is the possible consequence?
The penalty for failure to get the permit under the Wetland Protection Act can be as high as $10,000 per day.
If a person becomes aware of someone polluting our environment, ave they any recourse?
They may bring court action under the Michigan Environmental Protection Act, to protect the environment, but not to profit from the lawsuit.
See if you can name all of those owners of 1-4 family dwellings who are exempt from being required to fill out the seller's disclosure form.
Government, family, builder, foreclosure, if subject to a court order one is the seller but not the owner.
What should a licensee do if t seller refuses to fill out the sellers disclosure statement when required?
Refuse the listing.
When retaining the services of a contractor to provide goods or services to improve a property, what is the most important form the property owner should request when making payment?
Waiver of lien.
The governments right to take privately held property for public purpose is referred to as:

The process is called:
Eminent Domain

If property is abandoned or the owner dies with no heirs the property goes to the state by
If someone uses the property of another for a period of time they may actually acquire ownership by

The number of years required is
Adverse possession

Joan built a storage shed on Sue's adjacent lot. It was in use for eight years. Joan sold her property to Edward who used the shed for seven more years. Can Edward assert a claim to Sue's property where the shed is located?
Yes, tacking on is permitted in Michigan. The total years of use equaled fifteen so Edward my commence a quite title suit to perfect title.
If one dies without a will, the property
goes to the heirs as determined by the state's order of intestate succession. It is said to pass by descent.
If one dies with a will, they are said to be testate and the property goes
to their heirs or devisees as determined in the will.
Something that was once personal property but now due to the manner of attachment becomes part of the real estate and as such runs with the land is referred to as a
Personal property used in ones business, such as machinery or equipment, even if attached to the real estate may remain personal property if it is deemed to be a
Trade Fixture
All things tangible and intangible that pass with title to the real property are referred to as
The conveyance which passes title to real property is referred to as a
The conveyance which passes title to personal property is referred to as a
Bill of sale
A deed is considered valid if it has the name of the grantor, words of conveyance, name of the grantee, consideration, description, signature and what else?
Delivery and acceptance
Need a deed be acknowledged to be valid?
Acknowledgment (signed in front of a notary who witnesses the signing) is necessary for recording but not for validity.
What type deed provides the most protection for the grantee?
Warranty or General Warranty Deed
What type deed to banks usually use when conveying REO properties?
Special warranty. This my also be called Covenant Deed, Deed C, Limited Warranty Deed. It merely states the bank has the right to sell and has not encumbered title.
The type deed which makes no promises but only conveys whatever interest the grantor may have is called
Quit claim deed
The type title insurance policy which is ordinarily paid for by the seller and names the buyer as beneficiary and is in the amount of the purchase price is referred to as an
Owner's Title Policy
The type title insurance policy which is ordinarily paid for by the buyer and names the lender as beneficiary and is in the amount of the loan is called the
Mortgage Title Policy
The type easement in which there are two properties side by side with one benefitting the other for the purpose of ingress and egress is called
An Easement Appurtenant
The type easement in which there is no dominant estate, just the servient is referred to as
An Easement in Gross
When an unauthorized intrusion onto the subject property by an adjacent property owner, such as a fence, storage shed, tree, this use could ripen into
Adverse possession or a prescriptive easement
Things that can terminate an easement
Merger, abandonment, agreement
May an owner place a restriction on the use of property that will run with the land? What is this called?
If it is on an individual parcel of property it could be called a deed restriction. If it is on an entire subdivision more likely it would be called a restrictive covenant.
What is the nickname for what has occurred is when an existing use does not conform to new zoning requirements?

What is the legal term?
Grandfathered in

Called "non-conforming and permitted to continue.
If zoning is creating a hardship the property owner may seek what relief?
A Variance
How long may one miss paying property taxes in Michigan before the process begins in which they may lose their property?
Two years
Michigan calculates property taxes on real property by multiplying the millage rate by which value
The assessed value which is one-half the market value of the property.
The appraisal principal which is being addressed when it is know that a buyer will pay as little as possible for the property that meets their needs is called
The principal of substitution
When an agent is helping a seller determine if it would be cost effective to remodel the kitchen the agent is addressing the principal of
The amount of time a property can be used is referred to as
Its useful life
A person may have a greater use for a particular piece of property than another person. They hare said to have a higher _____________
Utility value
What method would an appraiser chose to value vacant land
The Market Comparison Approach
The appraisal method in which one determines the expense to make a new building, determines depreciation and values the land separately as though vacant is called:
The Cost Approach
The method of determining the value of a business property by making a comparison between the income and the value of the building will achieve the
Capitalization rate. This process may also be called the Income Approach.
As the capitalization rate goes up, the value______
Goes down
Devaluing of property can be caused by physical deterioration, functional obsolescence, and what other form
Economic or external obsolescence, which is caused by factors outside the lot lines. Poor location, neighborhood decay are examples.
Of the three forms of devaluing of property, which is most readily curable? Physical, functional or economic?
Physical deterioration is normally considered the most curable.
On the federal 1040 Schedule A, what residential interest may be deducted?
The total equity may not exceed $1,000,000 and interest on the principal residence and second home qualify for the deduction.
What property taxes may be claimed as an itemized deductions on federal 1040 Schedule A?
All ad-valorem property taxes may be deducted.
May one itemize home repairs or capitol improvements on their federal 1040 Schedule A?
No, home repairs and capitol improvements are not deductible However, capitol improvements will add to the basis of the property, thereby someday reducing any possible taxable gain.
If one receives $10,000 in cash, is there any action required?
A form 8300 must be completed and the information reported to the Internal Revenue Service?
If the seller is neither a citizen nor registered resident alien, is there any action required?
A form must be submitted to the IRS and 10% of the sale proceeds must be withheld by the buyer.
How many times may an individual elect to use the Universal Exclusion and elect to not pay capitol gain taxes on up to $250,000 on the sale of her principal residence?
Generally, once every two years.
The formula for area is

If the answer is in square feet and one wishes to convert to square yards, one needs to divide the result by
Length times width

The formula for volume is

If the answer is in cubic feet and one wishes to convert to cubic yards, one needs to divide the result by
Length times width times depth.

Is the Federal Reserve System a branch of the government
No, it is the central banking authority of the United States. Banks belonging to the FRS hold 80% of all deposits in this country.
That law which prohibits kickback between settlement service providers is called:
RESPA - Real Estate Settlement Providers Act.
Which law states one may only say the APR or purchase price without being required to disclose all pertinent facts about the loan?
Truth in Lending, also referred to as Regulation Z.
Which law requires the lender, when refinancing a principal residence, to allow the borrower a three day right of rescission.
Truth in Lending, also referred to as Regulation Z.
Which law makes it illegal for a lender to discriminate based on a protected category?
Equal Credit Opportunity Act, ECOA
Charging more interest than the law allows is called:
True or false, there is a federal usury law?
False. The laws in the state where the real properties are located are those which apply.
Generally, what is the maximum one may charge on land contract interest in Michigan?

Are there exceptions?
11%, unless the buyer is a business or the property in question is a principal residence and neither seller nor buyer further encumber the property. There are other exceptions.
Which individuals actually loan mortgage monies, bankers or brokers
Bankers actually loan. Mortgage brokers are intermediaries who bring together the borrower and the money source.
Of the three buyers in the secondary mortgage market, Fannie Mae, Freddie Mac and Ginnie Mae, which actually belong to the Federal Government
Ginnie Mae is a branch of the federal government. Government National Mortgage Association was created in 1968 to fill the gap created when FNMA was privatized.
Why would a borrower chose to pay Discount Points, also referred to as Buy-Downs?
To obtain a lower mortgage interest rate.
Does FHA loan money?
No, FHA has a loan insurance program which is conducted by HUD, a branch of the Federal Government.
Are FHA loans assumable?
After the first year, a buyer may seek a formal assumption of the existing FHA loan.
What is the minimum down payment for a VA loan?
Who may obtain a VA loan?
Veterans or spouses of deceased veterans.
True or false, a VA loan is a once in a lifetime opportunity?
False, once the veteran has paid of the mortgage, they may seek another entitlement and get another loan.
Are VA loans assumable?
Yes, if a non-veteran assumes the loan, that will prevent the veteran for getting another entitlement until the first loan is satisfied.
Is a VA loan only for a single family dwelling?
VA loans may be used for one to four family dwelling. However, the veteran must sign a statement of intent to occupy the property for at least one year.
A zero down loan that is either issued or guaranteed by the Department of Agriculture for sparsely populated rural areas is called?
Rural Development
The type loan which is interest only until the maturity date of the loan is referred to as:
A term loan or straight loan.
The type loan that is amortized as thought it were going to be paid off over a long period of time but includes a balloon payment after a shorter period is called:
Partially amortized. A balloon payment is any payment larger than the others which applies to principal only.
Why would an individual chose to pay Private Mortgage Insurance, also called PMI?
In order to get a loan when they are using a down payment of less ta 20%
What percentage of principal into the original purchase price of the property, must the lender remove the PMI?
When the borrower has achieved 22% equity into the original purchase price, the lend must remove the PMI.
The lender is called?

The borrower is called
Simone LeGree the Mortgagee

The Mortgagor comes in the door, the Mortgagee is Simone LeGree.
Is Michigan a Lien theory or Title theory state?
We are a lien, mean fighting machine. The lender merely has a lien on the property. In Title theory states, the borrower actually writes a deed to the lender or a third party.
That clause in a mortgage which allows the lender to speed up the due date and cause the entire amount to be due in full is called?
The acceleration clause. This along with the Power of Sale clause allows lenders in Michigan to use a non-judicial method of foreclosure called advertisement.
In the non-judicial method of foreclosure called advertisement, after the Sheriff Sale, does the borrower in default have another chance to avoid losing the property?
There is a statutory right of redemption, which varies based on circumstance.
That clause in a mortgage which requires a borrower to pay of the loan when selling is called the Due on Sale clause. It may also be called what?
Alienation clause.
A loan in which the security for the debt is personal property is called?
A chattel mortgage.
A loan which has both real and personal property as collateral is called?
A package mortgage.
A loan in which the rate of interest is tied to some index is called a
Variable rate or adjustable rate mortgage.
When a loan requires, in addition to principal and interest, an amount for insurance and property taxes, the payments are sometimes referred to as PITI. This loan may be called what?
A budget mortgage.
A loan which has no prepayment penalty and allows for additional payments to principal may be referred to as an:
Open mortgage
A loan which allows additional borrowing up to the original amount so long as payments are timely is called:
An open-end mortgage.
A loan in which the borrower must be at least 62 and will not have to make payments is called
A reverse mortgage.
Rural Development loans have a recapture. If the borrower resells the property in a short period of time at a profit, they may have to share that profit with the government. These type loans are called:
Shared appreciation mortgages.
A loan in which the entire amount is not advanced at once because the building is not yet complete, but instead is paid in"draws" is called:
A construction loan. It may also be referred to as gap financing.
In which type seller financing instrument does the seller retain legal title and the buyer achieves equitable title? Land contract or purchase money mortgage
In a land contract, the buyer achieves equitable title, while the seller retains legal title. In a purchase money mortgage, the buyer immediately gets legal title and the seller has equitable title.
Must a person engaged in the management of property for others for compensation be licensed in real estate?
Yes, the Occupational code specifically states, "those or lease or offer for lease, rent or offer to rent" are required to carry a broker's license or be a salesperson with a broker.
That law which requires a paragraph about seeking legal advise to understand the leasehold agreement is called"
Truth in Renting.
The law which is also referred to as the Security Deposit Act and limits the amount which may be retained in a residential lease is also known as the:
Landlord-tenant Relationship Act.
What is the maximum security deposit a landlord may require in Michigan?
One and one-half a month's rent.
What is the name of Michigan's eviction law?

Does it apply to both residential and commercial leases?
The law is called the Summary Procedures Act and does apply to both residential and commercial leases.
A lease which is for a set period of time and must be renegotiated if continuation is desired is called"
An estate for years.
A lease which renews itself again and again in the same increment as the original lease is referred to as a period estate What other name may it be called?
An estate from year to year
The estate which is the one most effected by the death of either party is called?
An estate at will. It is non-incremental.
A leasehold agreement in Michigan may be valid and enforceable even without a written agreement in what instance.
If it is for a year or less, it may be oral and still enforceable.
A lease whereby the landlord takes care of the various expenses of ownership is generally called?
A gross lease.
A lease which requires the tenant to take care of some or all of the expenses of ownership is called a
Net Lease, net-net lease, triple net lease.
What are the three most common expenses of ownership?

What is one of the expenses of ownership that the landlord may never assign to the tenant?
TIM. Taxes, Insurance and Maintenance. The one thing a landlord may never require a tenant to pay is the mortgage payment. This may also be referred to as debt service.
The type lease which has a minimum rent clause and the a portion of gross receipts is called a:
Percentage lease
A clause in a lease which allows the landlord to take back the property in a percentage lease if gross receipts fall below a certain level is called"
A recapture clause
By which other name is a step-up lease known?
A graduated lease.
A clause in a lease which allows the landlord to raise the rent in the event of some subsequent change such as use or expense is called?
An escalation clause may help protect a landlord against unexpected changes in expenses.
In a sale and lease back, what benefit is there for the seller-lessee?
They receive a cash-flow. They are able to fully deduct the actual expenses for occupancy in the form of rent.
Why may an investor wish to purchase a commercial investment building and lease it to the company?
There is usually a good rate of return on the investment which is offset at income tax time by the ability to claim depreciation against their investment. At the conclusion of the lease term, the property comes into full possession and control of this investor/owner.
The IRS term for a tax-deferred exchange is"
a 1031 Exchange.
The oldest civil rights law that was ever written has one protected category of individuals, which is race. Name that law.
1866 Civil Rights Act
What is the maximum first time offence penalty for violation of the 1866 Civil Rights Act?

What is the recourse for the offended party?
There is no limit on punitive damages.

The complainant must proceed through the federal courts.
That fair housing law which has race, color, national origin, sex, familial status and disability as protected categories is called?
Federal Fair Housing Act
What is the maximum, first time offence, penalty for violation of the Federal Fair Housing Act?

What is the recourse for the offended party?
The first offence maximum is $11,000

One may either bring action in federal court or file a complaint with HUD within one year.
Michigan adopted its own civil rights laws and named them the Elliot Larson Civil Rights Act and Persons with Disabilities Act. Regarding housing, what are the two categories of individuals that are protected under Elliot Larson that are not covered under Federal Fair Housing?
Marital Status and Age are the two that are in Elliot Larson that are not in Federal Fair Housing.
"Sell Now! Green people are moving in next door", is an example of what illegal activity?
Blockbusting, also known as panic peddling.
Trying to maintain the homogeneity of the neighborhood is an example of what illegal activity?
Steering or racial steering.
Lenders who chose to not loan in a neighborhood which happens to be occupied by a particular minority are engaging in what illegal activity?
In 1968, an important US Supreme Court decision was handed down which tells us there is no exception to the 1866 Civil Rights Act. One may NEVER discriminate due to race. Name this case.
Jones V Meyer
Americans with Disabilities Act requires a landlord to allow a tenant to make reasonable modifications to a unit. Must the landlord pay for these modifications?
The landlord must allow the tenant to make reasonable modifications at the tenants expense and the landlord may require the tenant to return the premises to its original condition, except the widened doorways.