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

Michigan Real Estate Exam

1 / 115

Upon payment and delivery of the deed, the seller should also deliver what? Can be quite complex or quite simple—depending on the type of real estate transaction.

2 / 115

What is the measurement or boundary between a plot of land or a building and the road onto which the plot or building fronts?

3 / 115

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

4 / 115

A real estate contract can be rescinded because of what?

5 / 115

Which of the following would not be considered real property?

6 / 115

A claim that has the appearance of having valid title, but in reality, the person either does not hold actual title, or there is a significant defect in the written documents supporting title, that makes it invalid. This an example of which legal concept:

7 / 115

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

8 / 115

How long must a Michigan salesperson whose license was revoked wait until he or she can reapply for a new license?

9 / 115

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

10 / 115

A seller made a counteroffer and gave three days for acceptance. The very next day, the seller receives a better offer, which they want to accept. What is the first step the seller should make?

11 / 115

Puffing is a term referring to

12 / 115

If a legal description is too long to include in the body of a sales contract, a real estate professional should do what?

13 / 115

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

14 / 115

Which of the following statements is NOT true about radon?

15 / 115

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

16 / 115

The fact there is a limited amount of land on earth represents what essential element of value?

17 / 115

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

18 / 115

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

19 / 115

The person who hires or appoints an agent is called the:

20 / 115

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

21 / 115

Mortgage points, also known as discount points, are

22 / 115

Mrs. Jackson signs an open listing on her home with three different brokers. In this case:

23 / 115

What is the illegal action or practice of lending money at unreasonably high rates of interest?

24 / 115

A bilateral contract is one in which

25 / 115

What hazardous substance is an odorless, colorless gas that can cause death within hours of inhalation?

26 / 115

A mortgagor is also known as the:

27 / 115

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

28 / 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:

29 / 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.

30 / 115

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

31 / 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)?

32 / 115

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

33 / 115

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

34 / 115

A broker's listing on a house expired. The next day it was listed with another broker and offered in the MLS. A week later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that:

35 / 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:

36 / 115

Requires public accommodations to remove barriers in existing buildings such as adding braille markings to elevator buttons, is a requirement of which law?

37 / 115

What type of ownership model is used for vacation real estate in which multiple purchasers own allotments of usage, typically in one-week increments, for the same property?

38 / 115

An example of an antitrust violation is

39 / 115

In real estate, a deed is best defined as:

40 / 115

During your time as agent you will run into many different types of people from areas across the world. Closing is called many names depending on which region of the U.S you are from. Which of the following is NOT a legal name for closing?

41 / 115

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

42 / 115

Who must comply with Michigan Fair Housing law?

43 / 115

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

44 / 115

The majority of homes before _______ used lead paint.

45 / 115

Which situation is legal under the Federal Fair Housing Act of 1968?

46 / 115

What is the proper procedure for changing a contract that already has become binding?

47 / 115

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

48 / 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.

49 / 115

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

50 / 115

How long are terms for members of the Michigan Board of Real Estate Brokers and Salespersons?

51 / 115

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

52 / 115

Market value is

53 / 115

What does the Federal Housing Administration do?

54 / 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?

55 / 115

Which of the following best describes the prepayment penalty clause?

56 / 115

Which of the following contracts would best be described as a contract in which only one party makes a promise to perform an action?

57 / 115

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

58 / 115

What is Ginnie Mae’s primary responsibility?

59 / 115

Generally speaking, what happens when the supply of available houses in an area increases significantly?

60 / 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:

61 / 115

Which of the following would NOT apply to the income approach in the valuation process?

62 / 115

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

63 / 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

64 / 115

Compliance with zoning ordinances is monitored through the issuance of

65 / 115

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

66 / 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.

67 / 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?

68 / 115

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

69 / 115

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

70 / 115

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

71 / 115

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

72 / 115

When real estate agents alert the members of a neighborhood that it is "changing" and that they should sell their property. This is an example of what?

73 / 115

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

74 / 115

Which of the following is an example of Real Property?

75 / 115

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

76 / 115

Commingling is the opposite of what?

77 / 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?

78 / 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."

79 / 115

Acceleration is a term associated with which type of document?

80 / 115

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

81 / 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?

82 / 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?

83 / 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.

84 / 115

Which of the following is an example of Economic Obsolescence?

85 / 115

In preparing for variable expenses in a property management budget, the property manager should set up a what?

86 / 115

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

87 / 115

The execution date or date executed is the day a contract is signed. The effective date is what? Choose the best answer.

88 / 115

Generally speaking, what is the most common type of contingency?

89 / 115

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

90 / 115

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

91 / 115

If a court decides a remedy for a seller compelling them to sell the property, it is known as what?

92 / 115

Philip has a contract with his neighbor Jessica for lawn service. Philip can no longer mow the lawn due to an ankle injury. Paul, Jessica's other neighbor, agrees to carry out the terms of Philips contract. In order to do this, Jessica must substitute Philip's name with Pauls on the contract. What is this an example of?

93 / 115

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

94 / 115

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

95 / 115

Which of the following enforces all federal environmental rules and regulations?

96 / 115

Which valuation method or appraisal approach involves comparing a property to other recently sold properties in the same area of similar size and condition?

97 / 115

The best way to determine fair value.

98 / 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?

99 / 115

The term "Licensee," is commonly used in real estate law. A licensee is just:

100 / 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?

101 / 115

Which of the following best describes the acceleration clause?

102 / 115

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

103 / 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

104 / 115

Fee packing, equity stripping, and balloon payment abuses are all examples of what?

105 / 115

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

106 / 115

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

107 / 115

What is Fannie Mae’s primary responsibility?

108 / 115

The EPA requires real estate professionals to give purchasers and tenants of residential dwelling a pamphlet about Lead-Based paint if the dwelling was built before when?

109 / 115

Appraiser Leo was hired to prepare a feasibility study for a 12-unit apartment complex in which the owner is considering putting in a swimming pool. Which basic principle of appraising should Leo use?

110 / 115

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

111 / 115

The fifth and fourteenth amendments of the U.S. Constitution permit the government to exercise its power of eminent domain. Eminent Domain is commonly used for:

112 / 115

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

113 / 115

What form of legal land description uses a plat map?

114 / 115

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

115 / 115

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

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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