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

Michigan Real Estate Exam

1 / 115

The increase of value with the passage of time is best described as:

2 / 115

What is the difference between void and voidable contracts? Choose the best answer.

3 / 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?

4 / 115

What is the biggest difference between private and public land use controls?

5 / 115

A real estate agent advertised a home for $250,000. When a Chinese couple asked the agent for the price of the house. The agent told them the seller wanted $260,000 instead. Under the federal Fair Housing Act of 1968, such a statement is

6 / 115

Which of the following two real estate contract clauses protect the lenders in some way, usually by asking for some form of payment(insurance)?

7 / 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

8 / 115

In a single agency relationship a real estate broker represents who?

9 / 115

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

10 / 115

A seller named Joan gave a buyer named Bob an option for thirty days to purchase her property for a consideration of $750. There is no anti-assignment clause in the contract. Which of the following statements is NOT true?

11 / 115

Which of the following statements is NOT true about radon?

12 / 115

A contract for the sale of real estate that does not state the consideration to be paid for the property and is not signed by the parties is considered what?

13 / 115

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

14 / 115

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

15 / 115

What is Ginnie Mae’s primary responsibility?

16 / 115

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

17 / 115

A parcel of land that is subject to an easement is best described as:

18 / 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

19 / 115

Which of the following would not be considered real property?

20 / 115

What is the key difference between a Less than Freehold Estate and a Freehold estate is

21 / 115

What is a one-of-a-kind contract that is solely between the seller and the buyer. In this arrangement, the seller gives the buyer the option to purchase property at a given price for a set period?

22 / 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.

23 / 115

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

24 / 115

What is the difference between a lease option contract and lease purchase contract?

25 / 115

Choose the best answer. A lawsuit for inverse condemnation may be brought by:

26 / 115

What is a written supplement or amendment to an existing will such as one affecting the transfer of real estate upon death?

27 / 115

Altering a written document by improperly signing someone else's name to an instrument is what?

28 / 115

Under the terms in a mortgage, the lender must be paid in full if the property is sold to another person. This is known as the

29 / 115

All of the following will void an offer except

30 / 115

Economic life is the length of time during which a piece of property may be put to profitable use. Economic life is usually:

31 / 115

A property owner acquired the ownership of land that was deposited by a river running through his property by what?

32 / 115

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

33 / 115

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

34 / 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.

35 / 115

A legal way to dissolve the relationship when the parties don't voluntarily agree to its termination is called

36 / 115

In the appraisal of a building constructed in the 1930s, the cost approach would be the least accurate method because of difficulties in

37 / 115

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

38 / 115

Unlike apartments, which are leased by their tenants, condominium units are owned outright. A condominium is often shortened to

39 / 115

Mrs. Jane lives in a small residential neighborhood. 100-year-old trees surround her home, and her neighbor Mr. Joe claims the trees are on his property and is planning on cutting them down. Mrs. Jane tries to reason with Mr. Joe, but he refuses to listen. Mrs. Jane files a lawsuit that includes a court order for Mr. Joe to stop his actions until they can work something out. What type of court order is this?

40 / 115

This act, allowed greater control for the EPA to control contaminant levels, take legal action against public water auth. for violations, and require periodic water testing and notification to state authority and homeowners if contaminated.

41 / 115

Which of the following best describes the acceleration clause?

42 / 115

Which action is legal as a real estate agent? (Antitrust Laws)

43 / 115

Which of the following is a common example of real estate police power?

44 / 115

A mortgagor is also known as the:

45 / 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.

46 / 115

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

47 / 115

Using a trust typically has advantages and disadvantages. One of the main advantages of Land Trusts are:

48 / 115

Why is an oral lease for two years not generally enforceable in law?

49 / 115

The statute of frauds, applies to

50 / 115

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

51 / 115

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

52 / 115

The amount borrowed is called the:

53 / 115

Local zoning ordinances often regulate all of the following except

54 / 115

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

55 / 115

What is the law regulating the licensing of occupations in Michigan known as?

56 / 115

Purchase agreements come big and small, and are a crucial aspect of real estate contract law. Which of the following would be an example of a purchase agreement?

57 / 115

In the case of a standard tax lien who gets paid first?

58 / 115

Which of the following would not be considered appurtenant?

59 / 115

What type of court handles the analysis and transfer of real estate or general estate assets of a deceased person (without a will)?

60 / 115

What is the state law that established additional fair housing protected classes for Michigan citizens?

61 / 115

Often required for mortgages, property insurance for a home is commonly called:

62 / 115

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

63 / 115

Which of the following is a Michigan fair housing protected class?

64 / 115

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

65 / 115

Which of the following would NOT be covered under a builder's new home warranty?

66 / 115

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

67 / 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:

68 / 115

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

69 / 115

What form of legal land description consists of principal meridian lines that cover most states in the US, running north to south and baselines running east to west?

70 / 115

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

71 / 115

An example of an antitrust violation is

72 / 115

Your client signs a contract to buy a house and the seller refuses to sell the house at the very last minute. Your client still wants the house. What should your client do?

73 / 115

What is the act of mixing the client’s funds with the broker’s own funds? This can be both legal and illegal depending on the state and circumstance.

74 / 115

Which of the following best describes a balloon payment?

75 / 115

Which of the following real estate contracts is a service contract?

76 / 115

An agent took a listing and later discovered that her client had previously been declared incompetent by the court. The listing is now

77 / 115

A senior housing development may refuse to rent to families if what?

78 / 115

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

79 / 115

Under agency law in Michigan, dual agency is

80 / 115

An individual seeking to be excused from the requirements of a zoning ordinance needs a

81 / 115

Under a lease for a commercial property, a tenant agrees to pay $3,000 per month plus 4% of the gross monthly sales. This type of lease is called a:

82 / 115

How many miles does a township contain?

83 / 115

Which of the following fiduciary duties continues after a listing agreement expires?

84 / 115

Mr. Jay lives on a property right next to a bridge. The state wants to widen the bridge due to the higher amounts of traffic reported. The state needs the space on either side of the bridge to widen the road. The government seizes Mr. Johnson’s property and gives him $150,000 for it. This government's right to take over privately-owned real for public use is an example of:

85 / 115

There are three main forms of depreciation, what are they?

86 / 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

87 / 115

Enacted in 1974, which of the following is a regulation that aims to give all legal individuals an equal opportunity to apply for loans?

88 / 115

According to the Do Not Call list and Established Business Relationship (EBR) Rules, how many months does a company have to call the consumer if they made an inquiry with the company?

89 / 115

How many hours of continuing education are required for real estate license renewal in Michigan?

90 / 115

A buyer and seller entered into a contract, they negotiated the sale of the side lot at the same time as the transfer of the home. What is the second document called?

91 / 115

What specific formula would be used to estimate the value of a property using the income approach?

92 / 115

As a general rule of thumb ALL written offers must be:

93 / 115

What is the LAST requirement in the process of offer and acceptance that creates an executory contract?

94 / 115

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

95 / 115

If a Michigan real estate broker's license is revoked, what happens to the licenses under that broker's authority?

96 / 115

Even after an offer has been accepted and signed (by all parties), the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the following circumstances would NOT give either party a justifiable reason to insist on a mutual release?

97 / 115

Find the annual GRM. A 9-unit building in Cleveland Ohio, with an asking price of $500,000 and gross annual rents of $75,000.

98 / 115

Which type of property would an appraisal use a depth table to estimate the property value?

99 / 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?

100 / 115

What is the general technique of determining three-dimensional positions of points and the distances and angles between them?

101 / 115

A collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers.

102 / 115

Amendments and addendum are essentially the same thing, correct? Choose the best answer.

103 / 115

An example of functional obsolescence in real estate is

104 / 115

A property owner wishes to build a neighborhood grocery store in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission to build the store?

105 / 115

To whom does an agent always owe their fiduciary responsibility?

106 / 115

This approach determines what the property generates in profit for it’s owner or potential owner.

107 / 115

Holding earnest money without depositing it, is what?

108 / 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:

109 / 115

A property's market value is $400,000. The assessment rate for the house is 25% with 22.75 mills and a $25,000 property tax deduction. Find the annual property taxes.

110 / 115

Michigan has a real estate license reciprocity agreement with:

111 / 115

Which of the following is an economic characteristic of real estate?

112 / 115

The lender in a traditional mortgage loan transaction is known as what?

113 / 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?

114 / 115

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

115 / 115

Is Michigan a Community Property state?

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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