MI Licensing Exam Flashcards
What is TITLE?
evidence of a person’s right or interest in a piece of real estate.
Right to possession, use and enjoyment of land.
May be affected by covenants, conditions, restrictions (CCRs), also known as Building Use Restrictions (BURs) in Michigan.
What are CCRs and where can you find them?
Covenants, Conditions, Restrictions. These are encumbrances NOT liens.
They can be found in Schedule B-II of Title Commitment and Schedule B of a Title Policy.
Define COVENANT
agreement or promise between 2 parties. Typically give protection to the purchaser against insufficient title. Example: covenant of warranty in a warranty deed where the grantor assures the grantee that the grantor holds interest to the property being conveyed and agrees to be subject to legal action if the covenant is breached.
What types of covenants are given in a Warranty Deed?
covenants against encumbrances, covenants for further assurance (to do whatever is necessary to rectify title deficiencies), covenants of right to convey, covenants of quiet enjoyment, covenants of siesin (assurance that the seller is the rightful owner), covenants of warranty (defend against claims of 3rd parties)
Define CONDITIONS
Conditions are provisions contained in a deed or other instrument that may affect a person’s right to use, possess or enjoy land.
Makes particular right in real estate contingent upon the occurrence of a future event.
A condition usually appears with a provision that will divest/take away a person’s right or interest upon occurrence of a certain event. Example: if the property is sold within 5 years, it shall revert back to the grantor.
Define RESTRICTIONS
A restriction is a provision contained in a deed or other instrument which prohibits or limits certain uses, occupation or improvements of land. May be in the form of either a covenant or condition.
May be public or private.
Public: imposed by governmental entities, found in form of zoning ordinances.
Private: created by owners of land and enforceable by those parties. Example: Booze cannot be sold on the premises.
Private restrictions may be referred to as “covenants running with the land”.
What does it mean that “covenants run with the land”?
They will affect the right to use the property until it is terminated by all parties who have a right to enforce it.
What is an APPURTENANT Easement?
an easement which benefits one parcel of land and burdens another.
The benefited parcel is the dominant parcel/estate. The burdened parcel is the servient parcel.
Pass with conveyance of title to the dominant (benefited) estate. Example: an access road to property
What does an Owner’s Title Policy insure?
that there is a right of access to and from the real estate
What does an Owner’s Title Policy exclude?
rights of the government to appropriate land for a highway
that all taxes WILL be paid
that the mortgagor will make payments on time
What is a title agent looking for when examining a survey?
Date of survey, surveyor’s signature, location of garage (and other structures)
How many acres are contained in a standard section?
640 Acres
What is the present system of surveying known as?
The Rectangular System
After a claim has been paid and the insured made whole, the right of subrogation provided in the title policy is vested in WHO?
the insurance company
To release a mortgage of record, who must execute the satisfaction?
The mortgagee
To obtain marketable title to real property, an owner needs an unbroken chain for how many years? AKA How far back does a title search go?
40 years
The ownership of realty implies a whole group of rights, the total of which is a fee simple estate. Some of the lesser interests include all but one of the following:
- Leasehold interest
- Life Estate interest
- Remainder Interest
- Quit Claim
Quit claim
An agent must report a change in name/mailing address to the Dept. of Insurance within how many days
30 days
What type of conveyance is issued to married couples?
Tenants by the entireties
Failure to pay insurer premium collected is considered:
A Breach of Fiduciary Duty
Where do exceptions go on a title policy?
Schedule B
What document allows you to correct a minor clerical error in a legal description?
Affidavit of Scrivener’s Error
Does the personal representative in a supervised probate need court order to sell a property?
Yes
What is an improper inducement?
unfair method of competition or deception
What is a RESPA violation?
any kind of kickback or incentive
What type of legal description has township,
range, and section number?
Rectangular Survey System
How much is county transfer tax?
rate of $0.55 per every $500
Which Circuit Court does the Office of Insurance and Financial Services use?
Circuit Court of Ingham County
How long is the Michigan Marketable Title Act?
40 years
Where on the policy would you find encumbrances?
Schedule B - Exceptions
Is a Deed in Trust recorded?
No.
In MI, who is not protected by the CPL?
the seller
What type of Death Certificate is recorded?
A certified death certificate
What does Chapter 12 Bankruptcy deal with?
Liquidating or rehabilitating the estate
Is a Construction Lien voluntary?
no
Who appoints the title insurer?
Commissioner
What is the state transfer tax?
rate of 3.75 per every $500.00
What is the flat recording fee?
$30.00 (except in Wayne/Macomb county)
What is required before transfer docs can be recorded?
a tax certificate from the county treasurer showing that there are no delinquent real estate taxes
What is the chain of title?
a term to describe the series of transactions affecting title to a particular parcel
What is an abstract?
a written history/summary of all the recorded documents which evidence the series of transactions or chain of title
What does a title search and examination do?
This is a search of all recorded instruments which constitute a chain of title that determine the ownership of title to real estate and identify those other interests or encumbrances which affect such title.
