Free Michigan Real Estate Practice Exam Questions (September 2023) 115+

Michigan Real Estate Exam

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What is Ginnie Mae’s primary responsibility?

2 / 115

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

3 / 115

A seller tells the listing agent that her home was treated for termites five years ago, and that there are no termites now. Before listing the property, the agent should

4 / 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?

5 / 115

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

6 / 115

Usually, the appraiser is hired by the:

7 / 115

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

8 / 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.

9 / 115

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

10 / 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?

11 / 115

Real property can be converted to personal property by

12 / 115

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

13 / 115

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

14 / 115

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

15 / 115

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

16 / 115

A tenant rented an apartment, signing a 16-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of type of lease does the tenant have?

17 / 115

What is it called when parties have fully performed the terms of a contract?

18 / 115

A non licensed buyer negotiated the purchase of a house. During a conversation with the seller, the seller agreed to include both the washer and the dryer, in the sale, and this was included in the sales contract. In this situation, if the seller takes the appliances, what recourse (if any) does the buyer have?

19 / 115

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

20 / 115

If a Michigan real estate salesperson is fired by their broker, the broker has how many days to deliver the salesperson's wall license to the Department?

21 / 115

State laws differ on whether a buyer is entitled to know about:

22 / 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?

23 / 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:

24 / 115

Which type of lien is a claim imposed against a property without the consent of its owner?

25 / 115

How long must real estate brokers keep records in Michigan?

26 / 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:

27 / 115

A salesperson working for Trinity Real Estate LLC has moved to Lotus Realty. What happens to the listings the salesperson took at Trinity Real Estate LLC?

28 / 115

The fact that land has a number of important uses is the basis for what essential element of value?

29 / 115

Closing is always the ____ step in executing a real estate transaction.

30 / 115

Which act amended the comprehensive environmental response, compensation, and liability act (also known as CERCLA)?

31 / 115

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

32 / 115

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

33 / 115

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

34 / 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.

35 / 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.

36 / 115

What is the difference between a testate estate and an intestate estate?

37 / 115

Earnest money should be deposited into a trust account:

38 / 115

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

39 / 115

Compliance with zoning ordinances is monitored through the issuance of

40 / 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:

41 / 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

42 / 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

43 / 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?

44 / 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?

45 / 115

A bilateral contract is one in which

46 / 115

Which of the following would generally constitute an antitrust violation?

47 / 115

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

48 / 115

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

49 / 115

How often is continuing education required for Michigan Real Estate Licensees?

50 / 115

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

51 / 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.

52 / 115

Who administers the Michigan real estate state licensing exam?

53 / 115

It is the _____ duty to explain the purchase agreement and to not mislead any parties.

54 / 115

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

55 / 115

Joint tenants with a right of survivorship means

56 / 115

The cost of public services is distributed among real estate owners through what?

57 / 115

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

58 / 115

What form of legal land description uses a plat map?

59 / 115

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

60 / 115

Which of the following is an example of Real Property?

61 / 115

A buyer gave a broker a written offer to purchase property, which contained a 14-day acceptance clause along with a $3,000 deposit. On the seventh day, before acceptance by the seller, the buyer notified the broker that they were withdrawing their offer and asked for the return of the $3,000 deposit. Which of the following statements are true?

62 / 115

Which term refers to the packaging of a number of mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans?

63 / 115

What is the outcome when a purchaser signs a purchase agreement and gives the seller's broker a large check?

64 / 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)?

65 / 115

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

66 / 115

Typically a trust is a _____ -party relationship.

67 / 115

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

68 / 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?

69 / 115

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

70 / 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?

71 / 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

72 / 115

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

73 / 115

Tenants by the Entirety and Community Property both generally pertain to

74 / 115

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

75 / 115

Michigan has a real estate license reciprocity agreement with:

76 / 115

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

77 / 115

At the very minimum advertising property or services by real estate professionals, should include what?

78 / 115

Which answer includes 3 actual types of business structures? Choose the best answer.

79 / 115

To whom does an agent always owe their fiduciary responsibility?

80 / 115

The real estate contract clause that almost always begins with the words "to have and to hold."

81 / 115

Which of the following is a physical characteristic of real estate?

82 / 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?

83 / 115

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

84 / 115

Assuming there are no extra fees, and the broker is representing the buyer and the seller, what was the final sales price of a property if the commission rate was 5.5% and the broker received $11,000.

85 / 115

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

86 / 115

Mortgage points, also known as discount points, are

87 / 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?

88 / 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?

89 / 115

Most real estate sales contracts include contingency clauses, making them what?

90 / 115

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

91 / 115

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

92 / 115

Which of the following would be classified as “consideration” in a real estate contract?

93 / 115

Is commingling legal in Michigan?

94 / 115

A property owner enters into a listing agreement with an agent. The seller obtains a buyer for the house, but the agent receives a commission. The listing agreement between the agent and the property owner was probably

95 / 115

Which of the following is an example of Economic Obsolescence?

96 / 115

A mortgage loan that requires monthly payments of $400.00 for 15 years and a final payment of $20,000. Typically a loan structured like is called a

97 / 115

What does the Federal Housing Administration do?

98 / 115

Which of the following statements is NOT true about radon?

99 / 115

In most cases, a tenant in an apartment holds:

100 / 115

Holding earnest money without depositing it, is what?

101 / 115

Complete the following statement. The rescission of a contract occurs when:

102 / 115

Generally speaking, in the state of Michigan, you do not need a real estate license for which of the following activities?

103 / 115

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

104 / 115

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

105 / 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.

106 / 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?

107 / 115

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

108 / 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.

109 / 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:

110 / 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?

111 / 115

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

112 / 115

A property owner enters into an exclusive agency listing with an agent. The seller ends up obtaining a buyer for the house themselves. Is the agent entitled to compensation?

113 / 115

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

114 / 115

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

115 / 115

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

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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