Free Michigan Real Estate Practice Exam Questions (October 2025) 115+

Michigan Real Estate Exam

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Liquidated damage is most likely to be found in which of the following documents?

2 / 115

Who must comply with Michigan Fair Housing law?

3 / 115

If a minor signs a contract to buy real estate, the resulting contract is legally what?

4 / 115

An example of functional obsolescence in real estate is

5 / 115

When a furnishing company creates materials for the construction of a house and is subsequently not paid, it may file a(n):

6 / 115

The “time is of the essence” contract clause in real estate contracts generally has to do with what?

7 / 115

Which of the following statements is TRUE about trusts and trustors?

8 / 115

An interest in real property which is held for the duration of the life of a designated person is called a

9 / 115

In order for a month-to-month tenancy to be legally valid which of the following MUST the contract include?

10 / 115

What is the best definition listed for the term: “conventional loan?”

11 / 115

Which business structure traditionally features a board of directors?

12 / 115

Commingling is the opposite of what?

13 / 115

The owner of a condominium has the use of many facilities there, including a pool. Under the typical condominium arrangement, the facilities are owned by

14 / 115

In a typical real estate market, if the demand for commercial office space declines and the supply of office space also declines at the same ratio, market rent per square foot should:

15 / 115

A buyer was negotiating the purchase of a lot to build a new family house, the seller indicated that the land was firm enough to support the construction of a building when, in fact, the seller knew it was not. The contract is

16 / 115

Which of the following best describes a balloon payment?

17 / 115

A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of

18 / 115

How long must a Michigan salesperson whose license was revoked wait until he or she can reapply for a new license?

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A parcel of real property that has an easement over another piece of property is best described as:

20 / 115

One individual or married couple in business alone (The most common form of business structure):

21 / 115

Which of the following best describes real property?

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What is the purpose of the Michigan Board of Real Estate Brokers and Salespersons?

23 / 115

A property owner enters into a listing agreement with an agent. Another agent obtains a buyer for the house, and the first agent does not receive a commission. The listing agreement between the first agent and the property owner was probably

24 / 115

Which of the following can be achieved by dividing the price of the property by the rent that is produced?

25 / 115

Which of the following fits the description? "A mortgage loan available for military service members, veterans, and eligible surviving spouses; which often comes with better terms than a traditional mortgage."

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Which of the following might suggest that rent is too low in an apartment unit?

27 / 115

A real estate commission is usually based on the:

28 / 115

Aaron can't get to his property from a public road without crossing over his neighbor Ron's property. In this situation, Aaron needs a/an:

29 / 115

A contract may include a clause that limits the amount of money to which the seller is entitled in case the buyer breaches the contract. What is this called?

30 / 115

What is the total quantity that buyers are willing to buy at a given time at certain prices?

31 / 115

The deed that offers the grantee the most protection. With this type of deed, the grantor makes a series of legally binding promises (called covenants) and warranties to the grantee agreeing to protect the grantee against any prior claims and demands of all persons whomsoever in regards to the conveyed land.

32 / 115

What determines who pays for what and how much at closing?

33 / 115

Andrew created a life estate on his property for his sister Gabby. Under the terms of the deed, ownership of the property will last until

34 / 115

When calculating the amount of real estate taxes owed, calculations are based on what type of value?

35 / 115

Who dictates trust accounts and when to deposit earnest money or other trust funds?

36 / 115

The Latin phrase ad valorem comes up often when talking about property taxes. What does ad valorem mean?

37 / 115

Which of the following best describes the term "encroachment?"

38 / 115

Buyer Dan is considering buying a lot to build a single family residence. Dan hires an appraiser to appraise the lot. Which approach to value would the appraiser choose to complete the task?

39 / 115

The best way to determine fair value.

40 / 115

When you borrow money to buy real estate, you give the lender a _____ against the property.

41 / 115

Who or what determines the amount of an earnest money deposit?

42 / 115

Utilizing the 28/36 rule, if Rebbecas gross income is $4,500 a month, she would need to spend less than ______ in housing costs a month to qualify for most loans.

43 / 115

Under these rights, all landowners whose properties adjoin a river or stream, have the right to make reasonable use of it as it flows through or over their properties.

44 / 115

Which of these meets the Department of Housing and Urban Development’s (HUD) definition of family as a protected class?

45 / 115

Which of the following statements does NOT correctly describe a fiduciary?

46 / 115

What is radioactive gas dispersed from natural decay of mineral in earth (odorless, colorless, tasteless)?

47 / 115

Holding earnest money without depositing it, is what?

48 / 115

The type of easement that is a right-of-way for a utility company's power lines is what?

49 / 115

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset:

50 / 115

Which of the following best describes the term "emblements?"

51 / 115

What is an item on a property that is installed by the tenant, and is related to the tenant's business classified as?

52 / 115

By which of the following can you not lose title to your property involuntarily?

53 / 115

How many miles does a township contain?

54 / 115

Compliance with zoning ordinances is monitored through the issuance of

55 / 115

Which of the following is not a type of depreciation used in the cost approach?

56 / 115

What is the procedure used by a public or private entity with the powers granted to take privately owned real estate?

57 / 115

When you buy real property, you gain several different kinds of rights. One of which are rights called "surface rights." What are surface rights?

58 / 115

Appraiser Larry has a set of special-purpose and public service buildings like schools, churches, and post offices, which he needs to appraise. Which approach to value would Larry, the appraiser choose to complete the task?

59 / 115

As a listing agent, what obligations do you owe to an unrepresented buyer?

60 / 115

A man named Troy lives in California, but owns property across the U.S. He owns property in cities like Pittsburgh, Philadelphia, and D.C. Troy decides he wants to sell his property in D.C. Instead of traveling all the way to D.C. to complete all the paperwork, he calls up his buddy Tony. Troy authorizes Tony, who lives in D.C., to sell his property for him. Troy gives Tony a/an:

61 / 115

Government power is the constitutional authority and inherent power of a state to adopt and enforce laws and regulations to promote and support the public health, safety, morals, and general welfare. Escheat is

62 / 115

According to the Do Not Call list and Established Business Relationship (EBR) Rules, a real estate professional may contact a past client for relationship building purposes when?

63 / 115

Which of the following best describes a blind offer?

64 / 115

How many members are there in the Michigan Board of Real Estate Brokers and Salespersons in total?

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Who is most likely to win a suit for specific performance?

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What party usually pays the loan origination fee on a Federal Housing Administration (FHA) loan?

67 / 115

Typically a trust is a _____ -party relationship.

68 / 115

An example of economic obsolescence in real estate is

69 / 115

When, if all, can an executed contract be assigned?

70 / 115

Which of the following is NOT a main element of a valid real estate contract?

71 / 115

The statute of frauds, applies to

72 / 115

What is the document that defines the relationship between the broker and the seller?

73 / 115

Tony and Taylor are two unmarried individuals who own property with equal interests and a right to survivorship. Which of the following forms of ownership would Tony and Taylor most likely have?

74 / 115

Of the total Michigan Board of Real Estate Brokers and Salespersons Board members, how many must be licensed to practice real estate in Michigan?

75 / 115

A married couple intends to purchase property, but only if they can qualify for a mortgage loan at a reasonable rate. The qualification is

76 / 115

If a seller rejects a written offer made by a buyer, changes the terms of the offer, and has the new offer delivered to the buyer, it is considered what?

77 / 115

Which of the following would MOST likely be considered a fixture?

78 / 115

During the listing agreement a commission of 6% is established. The house is sold for $250,000. What is the commission?

79 / 115

Richard is renting property from Becky. Richard is on a month to month lease agreement. This past month he did not pay his rent. Richard's interest would be classified as:

80 / 115

Which of the following is a lien?

81 / 115

In real estate, alienation is best described as:

82 / 115

What is a legally enforceable obligation that arises from one or more parties due to the parties actions, conduct, or circumstances?

83 / 115

An unlicensed employee or unlicensed personal assistant may NOT do the following?

84 / 115

A tenant rented an apartment, signing a 12-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have?

85 / 115

In terms of financing involved for a real estate purchase, which custom is practiced in Michigan?

86 / 115

Whose obligation is it to disclose potential lead-based paint to buyers of homes built before 1978?

87 / 115

When an asset is pledged as collateral to secure a loan what is it called?

88 / 115

If a contract has prepayment penalties, they can be found in which real estate contract clause?

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Which of the following best describes the prepayment penalty clause?

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Which of the following statements is NOT true about radon?

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What is the highest form of real estate ownership that is recognized by law, in which the owner can enjoy the property to its fullest extent?

92 / 115

Fees that the buyer pays to close the deal are called:

93 / 115

Which of the following legal concepts requires real estate listings to be in writing?

94 / 115

Antitrust laws prohibit competing brokers from all of the following except:

95 / 115

Local zoning ordinances often regulate all of the following except

96 / 115

There are three different main approaches that appraisers use while they make an appraisal. What are they?

97 / 115

Which of the following statements about water rights is true? Choose the best answer.

98 / 115

An appurtenant easement has several ways of legal termination. Which of the following is NOT a valid way to terminate an easement?

99 / 115

Acceleration is a term associated with which type of document?

100 / 115

A buyer of a home was not informed that his house was on a septic tank system. The buyer has the right to:

101 / 115

In most cases, a tenant in an apartment holds:

102 / 115

Title III of the Americans with Disabilities Act (ADA) impacts which type of property?

103 / 115

Brokerages and real estate agents across America connect using a

104 / 115

Which of the following laws prohibits discrimination in the buying, selling, renting or financing of housing. These laws prohibit discrimination based on race, religion, color, sex, disability, children, nationality and more.

105 / 115

If someone is unlawfully forced to execute a contract it is called what?

106 / 115

What is the difference between commingling and conversion in real estate?

107 / 115

What is the difference between the market value of your home, and the amount you owe the lender who holds the mortgage?

108 / 115

Three identical properties in a suburban neighborhood were listed at the same time in a market where demand was constant. According to the law of supply and demand, which property would have sold for the lowest price?

109 / 115

An appraiser has been hired to prepare an appraisal report of a property for loan purposes. The property is a 25-year-old strip mall. To which approach to value should the appraiser give the greatest weight when making this appraisal?

110 / 115

Used in connection with CERCLA and the creation of The Superfund; Retroactive liability means:

111 / 115

A real estate contract can be rescinded because of what?

112 / 115

Which of the following consumers would most likely qualify and be able to derive the most benefit from a reverse mortgage?

113 / 115

Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?

114 / 115

A lease agreement where the tenant has the right to buy the property within a specified period of time is called what?

115 / 115

Traditionally real estate agents are paid through a fee paid for performing a transaction, called a

Your score is

Hello, welcome to our Michigan Real Estate Practice Exam.

In Michigan, there are 115 questions on the exam. Many states have a national portion and a state portion, but Michigan has one section combining both for a total of 115 questions. 

The two most effective study tools for the state exam are practice exams and learning the state-specific license laws. 

Our state-specific practice exam is a fantastic tool to help you grasp your state's real estate topics. It works just like the national practice exam and is updated annually. Usually, using the state practice exam is enough for students to grasp the concepts. However, if you want more, the single most important resource out there is the laws they base the questions on. 

If you haven't looked at your state's Real Estate Statutes or Regulations, it's strongly recommended.

The test makers take snippets of laws applicable to your state and use them for the questions. We use the actual state laws to create our questions, which is why some of the questions may look familiar to you. Some websites and prep providers do not, and that's the secret. You need to know your state's laws. 

Furthermore, It would be best if you read through your laws at least once, and that's the greatest advice we can give you. Trust us, we know it can be very time-consuming, but reading through each one of these will provide you with precisely the information you need to pass. 

Best of luck, reach out if you need anything,

Real Estate License Wizard Team

Michigan Real Estate Statutes and Regulations

Here is our list of recommended Real Estate Statutes and Regulations you need to know:

NOTE: State websites update semi-frequently, and sometimes their website URLs change. If any of the links posted below do not work, please reach out, and we will update the links promptly. Thank you.


Michigan Real Estate Exam FAQs

Have a question about the real estate exam? Find the answers to all your real estate license questions here:

What are Michigan’s Real Estate License Requirements?

Real estate license requirements vary from state to state. Here are Michigan’s requirements:

  • Must be 18 years or older.
  • Must complete a background check.
  • Must complete required state approved pre-licensing courses (40 credit hours).
  • Estimated cost of total fees and license: $125-$175

How Hard is the Michigan Real Estate Exam?

The real estate exam is a rigorous and challenging test that weeds out those who are not committed to being skilled agents. To pass the exam in Michigan, you’ll need to get a score of at least 70%. With a total of 115 questions, that means the score to pass is 80.

How Many Questions Can You Miss on the Michigan Real Estate Exam?

In Michigan, you can miss 35 questions and still pass the real estate exam.

How Many Times Can You Take the Michigan Real Estate Exam?

There are no limits to the number of times you can take your real estate exam. Anyone who fails the Michigan state exam may immediately pay and reschedule the exam. There are no restrictions.


What Is on the Michigan Real Estate Exam?

The 115 multiple-choice questions on the salesperson examination cover a variety of topics that are relevant to Michigan real estate license law. Here are what topics you are expected to know:

Michigan General Exam Topics:

  1. Property Ownership
  2. Land Use Controls and Regulations
  3. Valuation and Market Analysis
  4. Financing
  5. General Principles of Agency
  6. Property Disclosures
  7. Contracts
  8. Leasing and Property Management
  9. Transfer of Title
  10. Practice of Real Estate

Michigan State Exam Topics:

  1. Michigan State License Law
  2. Michigan Real Estate Occupational Code
  3. Michigan Board of Real Estate Brokers and Salespersons
  4. Michigan Real Estate Prohibited Practices
  5. Michigan Agency and License Disclosures

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