Free Michigan Real Estate Practice Exam Questions (February 2024) 115+

Michigan Real Estate Exam

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A contract that legally binds two or more parties together, to specific obligations, that create a legally binding contract between the buyer and the seller.

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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?

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

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

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Which of the following is an example of Economic Obsolescence?

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What best describes an agency relationship where an agent has legal authority to act on behalf of the principal?

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

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

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

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

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

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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

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Brokerages and real estate agents across America connect using a

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

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

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According to the Do Not Call list and Established Business Relationship (EBR) Rules, how many months does a real estate professional have to call an expired listing client to solicit new business (referral)?

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Which of the following is a lien?

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

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All of the following will void an offer except

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

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What is best defined as, a document in which a property owner contracts with a real estate agent to find a buyer for the owner's property?

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Which of the following best describes the acceleration clause?

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

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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?

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Which of the following best describes a blind offer?

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A real estate contract can be rescinded because of what?

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

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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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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?

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

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

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A housing development advertising its units being only available to people over 55 is what?

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Is commingling legal in Michigan?

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Researching recently sold homes in the area and homes that haven't been sold in the area and comparing their prices. Is an example of

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A mortgagor is also known as the:

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If a Michigan real estate licensee receives notice that their license is suspended or revoked, how long do they have to send to forward their pocket card to the department?

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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:

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

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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

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

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The statute of frauds, applies to

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The owner of a secluded area adjacent to the ocean noticed that people from the local town walked along the shore in front of his property. The owner learned that the local citizens had been walking along this beach for half a century. The owner went to court to try to stop people from walking along the water's edge in front of his property. The owner is likely to be:

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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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While the economy is experiencing inflation, interest rates typically:

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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?

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

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

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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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Which of the following real estate contract clauses establishes order of priorities of financial claims (liens)?

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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:

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

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An individual owned three acres of land. When she sold one acre to her friend, she reserved for herself and family an appurtenant easement over the friend's land for ingress and egress. The friend's land is what?

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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.

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

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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:

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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?

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An example of economic obsolescence in real estate is

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

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

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Which of the following situations would a percentage lease be most commonly used in?

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

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Local zoning ordinances often regulate all of the following except

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

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

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

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

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The Bundle of Rights include:

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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

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

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

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

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

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

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

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

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

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Steve (a real estate agent of five years) was at his local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. What should Steve do?

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

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A contract agreed to and signed under duress is what?

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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?

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

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

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

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In most cases, a tenant in an apartment holds:

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

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

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

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

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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?

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Usually, the appraiser is hired by the:

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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?

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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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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?

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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?

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Which of the following best describes Eminent Domain?

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

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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?

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

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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.

103 / 115

Joint tenants with a right of survivorship means

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

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

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Which of the following best describes a balloon payment?

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How long must real estate brokers keep records in Michigan?

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

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

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

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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

112 / 115

After smoking, this is the second leading cause of lung cancer in the United States. A naturally occurring gas that forms in rocks, soil, and water.

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

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

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An elderly man in a nursing home, has no family and is suffering from Alzheimer’s. Because of his Alzheimers, he doesn’t remember much. Eventually, he passes away in his sleep. There is no will for the man, and again he has no family. So what happens to the money left in his savings account and his old farm that has been left untouched since he entered the nursing home?

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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