Michigan Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Michigan exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Michigan uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Michigan law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Michigan practice.
Michigan Exam Study Resources
Everything you need to pass — in one place.
Michigan Escrow & Title — Practice Questions & Answers
97 questions on Escrow & Title from the Michigan real estate question bank. First 10 are free — sign up to unlock all 97.
Q1. In Michigan, which document transfers ownership of real property?
Explanation
A deed is the legal instrument used to transfer ownership (title) of real property from one person (grantor) to another (grantee).
Q2. Michigan uses a title recording system based on:
Explanation
Michigan follows a race-notice recording statute: a subsequent purchaser who records first and has no notice of a prior unrecorded interest takes priority over the prior interest.
Q3. An earnest money deposit in a Michigan transaction is typically held by:
Explanation
In Michigan, earnest money is typically held by the listing broker in a separate escrow or trust account. Commingling with the broker's personal or business funds is prohibited.
Q4. A mechanic's lien in Michigan may be filed by:
Explanation
Michigan's Construction Lien Act allows contractors, subcontractors, material suppliers, and design professionals who have provided improvements to real property to file a construction lien (mechanic's lien) for unpaid amounts.
Q5. In Michigan, an owner's title insurance policy protects:
Explanation
An owner's title insurance policy protects the buyer/owner against losses from title defects, liens, or encumbrances that existed before the policy was issued and were not discovered during the title search.
Q6. A Michigan title search typically examines public records going back how many years?
Explanation
A complete title search examines the entire chain of title from the original grant to the present to identify any defects, liens, encumbrances, or breaks in the chain of ownership.
Q7. In Michigan, a quitclaim deed transfers:
Explanation
A quitclaim deed conveys whatever interest the grantor may have in the property, without any warranties or covenants of title. It provides the least protection to the grantee.
Q8. A Michigan warranty deed provides the grantee with which covenants?
Explanation
A general warranty deed provides the most comprehensive covenants including seisin, quiet enjoyment, further assurance, warranty forever, and freedom from encumbrances, covering both the grantor's and predecessors' actions.
Q9. Michigan's land contract (installment sale contract) differs from a mortgage because:
Explanation
In a Michigan land contract, the seller retains legal title while the buyer receives equitable title and possession. The buyer only receives the deed after paying off the full purchase price.
Q10. In Michigan, the term 'cloud on title' refers to:
Explanation
A cloud on title is any document, claim, unreleased lien, or encumbrance that could affect or impair the owner's clear and marketable title to real property.
Q11. In Michigan, recording a deed in the county register of deeds provides:
87 more Escrow & Title questions
Create a free account to unlock all 97 Michigan Escrow & Title questions with full explanations.
Free account · No credit card · Instant access to 25 questions
Ready to take the full exam? Start free.
25 free questions · No signup · Instant access to all Michigan topics