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

Michigan Real Estate Exam

1 / 115

What does the Federal Housing Administration do?

2 / 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.

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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.

4 / 115

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

5 / 115

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

6 / 115

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

7 / 115

In real estate, alienation is best described as:

8 / 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:

9 / 115

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

10 / 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?

11 / 115

Puffing is a term referring to

12 / 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

13 / 115

A double net lease is a rental agreement where:

14 / 115

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

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

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In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring title to property. Within deeds, covenants are:

18 / 115

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

19 / 115

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

20 / 115

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

21 / 115

A homeowner hired a construction company to build a swimming pool at his home. The homeowner failed to pay the bill once the work was completed and the construction company filed a lien to obtain payment of the debt. The encumbrance created is called a:

22 / 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?

23 / 115

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

24 / 115

Restrictive covenants, are also known as

25 / 115

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

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Which of the following best describes real property?

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

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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?

29 / 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

30 / 115

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

31 / 115

Usually, the appraiser is hired by the:

32 / 115

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

33 / 115

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

34 / 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?

35 / 115

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

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

37 / 115

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

38 / 115

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

39 / 115

The Bundle of Rights include:

40 / 115

While the economy is experiencing inflation, interest rates typically:

41 / 115

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

42 / 115

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

43 / 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?

44 / 115

To whom does an agent always owe their fiduciary responsibility?

45 / 115

Is Michigan a Community Property state?

46 / 115

Compliance with zoning ordinances is monitored through the issuance of

47 / 115

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

48 / 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

49 / 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?

50 / 115

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

51 / 115

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

52 / 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?

53 / 115

A lender agrees to release the first borrower from all financial obligations and let a second buyer be responsible for the repayment of the debt. What is this an example of?

54 / 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.

55 / 115

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

56 / 115

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

57 / 115

Which of the following would generally constitute an antitrust violation?

58 / 115

Tenants by the Entirety and Community Property both generally pertain to

59 / 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?

60 / 115

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

61 / 115

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

62 / 115

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

63 / 115

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

64 / 115

Three identical properties in a suburban neighborhood were listed at the same time in a market where demand was constant. According to the law of supply and demand, which property would have sold for the lowest price?

65 / 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.

66 / 115

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

67 / 115

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

68 / 115

Real property can be converted to personal property by

69 / 115

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

70 / 115

Joint tenants with a right of survivorship means

71 / 115

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

72 / 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."

73 / 115

Used in connection with CERCLA and the creation of The Superfund; Retroactive liability means:

74 / 115

Is commingling legal in Michigan?

75 / 115

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

76 / 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:

77 / 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?

78 / 115

A married couple intends to purchase property, but only if they can qualify for a mortgage loan at a reasonable rate. The qualification is

79 / 115

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

80 / 115

Which of the following best describes the prepayment penalty clause?

81 / 115

Which business structure traditionally features a board of directors?

82 / 115

Which of the following is a private land-use control?

83 / 115

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

84 / 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?

85 / 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.

86 / 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?

87 / 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?

88 / 115

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

89 / 115

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

90 / 115

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.

91 / 115

A bilateral contract is one in which

92 / 115

Which of the following real estate contract clauses is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off?

93 / 115

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

94 / 115

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

95 / 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:

96 / 115

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.

97 / 115

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

98 / 115

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)?

99 / 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?

100 / 115

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

101 / 115

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

102 / 115

What is Ginnie Mae’s primary responsibility?

103 / 115

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

104 / 115

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

105 / 115

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?

106 / 115

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

107 / 115

Market value is

108 / 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)?

109 / 115

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

110 / 115

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:

111 / 115

A buyer wants to be represented by several different agents while looking at various properties. This is an example of what?

112 / 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?

113 / 115

Which of the following would not be considered appurtenant?

114 / 115

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

115 / 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.

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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