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

Michigan Real Estate Exam

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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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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?

3 / 115

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

4 / 115

A parcel of land that is subject to an easement is best described as:

5 / 115

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

6 / 115

What form of legal land description uses a plat map?

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Johnny is purchasing a house and does not want to purchase all of the furniture that is being left behind. He signs the contract on Tuesday, and on Thursday changes his mind about the furniture. He calls his agent, and they add the furniture to the contract. What is this an example of?

8 / 115

How long must real estate brokers keep records in Michigan?

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

10 / 115

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

11 / 115

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

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

13 / 115

In a single agency relationship a real estate broker represents who?

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

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Who funds the Michigan Real Estate Education Fund?

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

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What is the highest form of real estate ownership that is recognized by law, in which the owner can enjoy the property to its fullest extent?

19 / 115

When talking about business and professional ethics, as a licensed real estate agent, it is important to make sure:

20 / 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?

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Which of the following best describes real property?

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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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Which of the following would not be considered real property?

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Which of the following would NOT be covered under a builder's new home warranty?

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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.

26 / 115

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

27 / 115

Which of the following real estate contracts is a service contract?

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

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

30 / 115

Which of the following best describes the prepayment penalty clause?

31 / 115

One individual or married couple in business alone (The most common form of business structure):

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

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

35 / 115

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?

36 / 115

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

37 / 115

The amount borrowed is called the:

38 / 115

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

39 / 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

40 / 115

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

41 / 115

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

42 / 115

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

43 / 115

An example of functional obsolescence in real estate is

44 / 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.

45 / 115

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

46 / 115

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

47 / 115

The Bundle of Rights include:

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

49 / 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

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

51 / 115

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

52 / 115

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

53 / 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:

54 / 115

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

55 / 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.

56 / 115

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

57 / 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.

58 / 115

How many miles does a township contain?

59 / 115

Antitrust laws prohibit competing brokers from all of the following except:

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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?

61 / 115

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

62 / 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?

63 / 115

Tenants by the Entirety and Community Property both generally pertain to

64 / 115

All of the following will void an offer except

65 / 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?

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

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

68 / 115

In most cases, a tenant in an apartment holds:

69 / 115

Compliance with zoning ordinances is monitored through the issuance of

70 / 115

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

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A real estate contract can be rescinded because of what?

72 / 115

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

73 / 115

What best describes an agent hired to perform a specific duty?

74 / 115

In an offer to purchase property, the buyer states, "If we cannot obtain a mortgage loan for 4.5 percent or less, we will not purchase the property and expect the earnest money to be refunded in full." This is an example of what?

75 / 115

Acceleration is a term associated with which type of document?

76 / 115

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

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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

78 / 115

During the listing agreement a commission of 6% is established. The house is sold for $250,000. What is the commission?

79 / 115

A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of

80 / 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:

81 / 115

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

82 / 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

83 / 115

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

84 / 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?

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Choose the best answer. Which of the following is an example of a Special Use property?

86 / 115

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

87 / 115

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

88 / 115

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

89 / 115

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

90 / 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)?

91 / 115

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

92 / 115

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?

93 / 115

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

94 / 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:

95 / 115

Mrs. Jane lives in a small residential neighborhood. 100-year-old trees surround her home, and her neighbor Mr. Joe claims the trees are on his property and is planning on cutting them down. Mrs. Jane tries to reason with Mr. Joe, but he refuses to listen. Mrs. Jane files a lawsuit that includes a court order for Mr. Joe to stop his actions until they can work something out. What type of court order is this?

96 / 115

Michigan has a real estate license reciprocity agreement with:

97 / 115

Holding earnest money without depositing it, is what?

98 / 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.

99 / 115

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

100 / 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

101 / 115

An appraiser has been hired to prepare an appraisal report of a property for loan purposes. The property is a 25-year-old strip mall. To which approach to value should the appraiser give the greatest weight when making this appraisal?

102 / 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

103 / 115

An example of economic obsolescence in real estate is

104 / 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?

105 / 115

What is the agency responsible for the enforcement of the Fair Housing Act?

106 / 115

Which of the following best describes Eminent Domain?

107 / 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?

108 / 115

To whom does an agent always owe their fiduciary responsibility?

109 / 115

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

110 / 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?

111 / 115

Which of the following statements is NOT true about radon?

112 / 115

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

113 / 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?

114 / 115

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

115 / 115

Which of the following is NOT a main element of a valid real estate contract?

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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