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

Michigan Real Estate Exam

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

2 / 115

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

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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?

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Under agency law in Michigan, dual agency is

5 / 115

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

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

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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?

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Is replacement cost and reproduction cost the same thing and if it is different, what is the difference?

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Michigan has a real estate license reciprocity agreement with:

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

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What does the Federal Housing Administration do?

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The Bundle of Rights include:

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A real estate contract can be rescinded because of what?

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A property's market value is $350,000. The assessment rate for the house is 15% with 27.50 mills. Find the annual property taxes.

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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?

16 / 115

The amount borrowed is called the:

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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?

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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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Which of the following would be an example of a deed restriction?

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Holding earnest money without depositing it, is what?

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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:

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

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

24 / 115

Real property can be converted to personal property by

25 / 115

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

26 / 115

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

27 / 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:

28 / 115

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

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

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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?

31 / 115

If a buyer refuses to go ahead with a purchase of property which he has signed a contract, what usually happens to the earnest money?

32 / 115

Is crossing out part of a printed contract allowed and legally enforceable?

33 / 115

An offer to purchase real estate becomes a contract when it is signed by the

34 / 115

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

35 / 115

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

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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:

37 / 115

Any loss in the value of a property over time from any cause.

38 / 115

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

39 / 115

When a home is purchased using an adjustable rate mortgage or ARM, the monthly loan payment on the mortgage will:

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The majority of homes before _______ used lead paint.

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A contract agreed to and signed under duress is what?

42 / 115

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

43 / 115

Restrictive covenants, are also known as

44 / 115

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

45 / 115

A double net lease is a rental agreement where:

46 / 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:

47 / 115

The legal principle under which a person who does not have legal title to a property acquires legal ownership based on the continuous occupation of the property.

48 / 115

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

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

50 / 115

To whom does an agent always owe their fiduciary responsibility?

51 / 115

A mortgagor is also known as the:

52 / 115

Mrs Thompson hired a broker to find her a 100+ unit apartment complex for sale. Upon finding one she liked, she made an offer for $2.5 million to include all the personal property as well. In order to include all the personal property Mrs Thompson needs a/an:

53 / 115

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

54 / 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.

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Which of the following are the main participants in real estate markets?

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Which of the following best describes the acceleration clause?

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

58 / 115

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

59 / 115

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

60 / 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?

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

62 / 115

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

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

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

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Which of the following would not be considered real property?

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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?

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Under what situation, if any, may a lender consider age when making a lending decision?

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

69 / 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?

70 / 115

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

71 / 115

A lender's refusal to lend money to potential homeowners attempting to purchase property located in predominantly minority neighborhoods is

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

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

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The ability to buy and sell is also known as what essential element of value?

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Tina and Tom are two unmarried individuals who own property with equal interests and without a right to survivorship. Which of the following forms of ownership would Tina and Tom most likely have?

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

77 / 115

CRV stands for Certificate of Reasonable Value and is issued by who?

78 / 115

Tenants by the Entirety and Community Property both generally pertain to

79 / 115

A seller is asked whether any known plumbing defects exist on her property. She replies that to the best of her knowledge there are no plumbing defects. However, unknown to her the pipes are corroded and due for replacement. Is the seller in violation of her disclosure responsibilities?

80 / 115

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

81 / 115

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

82 / 115

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

83 / 115

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

84 / 115

Josh agrees to represent Susan in the sale of her home. The listing contract states that Josh will receive a fee of $15,000 from Susan at closing, regardless of the sales price. Is this a legal and a valid form of compensation?

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

86 / 115

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

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If a leased premises becomes uninhabitable deliberately in an attempt to remove the tenant. What is this action called?

88 / 115

Typically a warranty deed contains how many covenants?

89 / 115

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

90 / 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.

91 / 115

During a standard residential transaction, verifying ingress and egress rights is an essential part of the:

92 / 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

93 / 115

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

94 / 115

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

95 / 115

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

96 / 115

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

97 / 115

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

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

99 / 115

After paying off a loan, the lender files what to release the lien?

100 / 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?

101 / 115

What is Fannie Mae’s primary responsibility?

102 / 115

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

103 / 115

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

104 / 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.

105 / 115

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

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

107 / 115

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

108 / 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?

109 / 115

How many miles does a township contain?

110 / 115

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

111 / 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)?

112 / 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

113 / 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

114 / 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?

115 / 115

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

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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