Michigan Security Deposit Law Quiz

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What is the purpose of Michigan Security Deposit Law (Act 348 of 1972)?

To establish standards for property tax assessment in Michigan
To regulate the minimum age requirement for entering into rental agreements
To set a maximum late fee limit for tenants
To outline guidelines for returning a tenant's security deposit (correct)

What entity oversees licensing and sets standards for real estate agents in Michigan?

Real Estate Ethics Board
Real Estate Licensing Commission (correct)
Real Estate Professional Standards Board
Real Estate Agents Regulatory Authority

What is the key benefit of understanding the property tax system in Michigan for property owners?

Setting the minimum age requirement for occupants in rental properties
Determining the maximum late fee that can be charged to tenants
Planning finances to anticipate property tax obligations (correct)
Ensuring timely return of security deposits to tenants

What legal consequences may landlords face for not adhering to the Michigan Security Deposit Law?

$200 fine per day for each day the deposit is not returned (A) Signup and view all the answers

What aspect of a rental agreement is critical for ensuring its validity and enforceability?

The minimum age required to enter into the agreement (B) Signup and view all the answers

How can property owners best plan for their tax obligations under Michigan's property tax system?

By anticipating their tax obligations through financial planning (A) Signup and view all the answers

What is the purpose of a property manager in an investment property?

To handle all day-to-day problems in the building (A) Signup and view all the answers

What is the difference between an operating budget and a capital budget?

An operating budget estimates costs to operate a building while a capital budget estimates costs for major renovations (D) Signup and view all the answers

What is the purpose of a prepayment penalty in a mortgage?

To charge a fee if the mortgage is paid off early (C) Signup and view all the answers

What is the difference between principal and interest, and principal, interest, and taxes due on a mortgage?

Principal and interest is the amount you actually borrowed, while principal, interest, and taxes is the full monthly payment (B) Signup and view all the answers

What is the purpose of a leaseback agreement?

You know what this agency does (C) Signup and view all the answers

What is the purpose of the 'Put-In-Use' concept?

To account for all costs capitalized when a building is constructed and ready for occupancy (C) Signup and view all the answers

Which of the following entities is responsible for licensing and regulating real estate agents in Michigan?

Michigan Real Estate Commission (C) Signup and view all the answers

In Michigan, what is the maximum time period within which a landlord must return a tenant's security deposit after the lease ends?

45 days (B) Signup and view all the answers

What is the legal minimum age for an individual to enter into a rental agreement in Michigan?

18 years old (B) Signup and view all the answers

Which Michigan city is known for its vibrant real estate market, particularly in downtown areas, and is often referred to as 'The Motor City'?

Detroit (A) Signup and view all the answers

What type of property tax system does Michigan utilize, where property taxes are calculated based on a property's assessed value multiplied by the local tax rate?

Ad valorem taxation (A) Signup and view all the answers

In Michigan, what is the legal limit for late fees that landlords can charge tenants who fail to pay rent on time?

There is no legal limit on late fees (A) Signup and view all the answers