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

Michigan Real Estate Exam

1 / 115

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

2 / 115

An unlicensed employee or unlicensed personal assistant may NOT do the following?

3 / 115

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

4 / 115

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

5 / 115

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

6 / 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

7 / 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?

8 / 115

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

9 / 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:

10 / 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

11 / 115

Which of the following best describes the prepayment penalty clause?

12 / 115

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

13 / 115

Acceleration is a term associated with which type of document?

14 / 115

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

15 / 115

What best describes the type of agency typical in property management - in which an agent has limited power?

16 / 115

Typically a warranty deed contains how many covenants?

17 / 115

How long must a Michigan salesperson whose license was revoked wait until he or she can reapply for a new license?

18 / 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)?

19 / 115

A real estate commission is usually based on the:

20 / 115

Using a trust typically has advantages and disadvantages. One of the main advantages of Land Trusts are:

21 / 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.

22 / 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?

23 / 115

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

24 / 115

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

25 / 115

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

26 / 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

27 / 115

Who is most likely to win a suit for specific performance?

28 / 115

The amount borrowed is called the:

29 / 115

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?

30 / 115

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

31 / 115

The statute of frauds, applies to

32 / 115

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

33 / 115

Usually, the appraiser is hired by the:

34 / 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?

35 / 115

Which of the following best describes a balloon payment?

36 / 115

Restrictive covenants, are also known as

37 / 115

What is the law regulating the licensing of occupations in Michigan known as?

38 / 115

Which of the following best describes the acceleration clause?

39 / 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.

40 / 115

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

41 / 115

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

42 / 115

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

43 / 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?

44 / 115

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?

45 / 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

46 / 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:

47 / 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?

48 / 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?

49 / 115

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset:

50 / 115

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

51 / 115

Local zoning ordinances often regulate all of the following except

52 / 115

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

53 / 115

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

54 / 115

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

55 / 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

56 / 115

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

57 / 115

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

58 / 115

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

59 / 115

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

60 / 115

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

61 / 115

While the economy is experiencing inflation, interest rates typically:

62 / 115

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

63 / 115

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

64 / 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?

65 / 115

How long are terms for members of the Michigan Board of Real Estate Brokers and Salespersons?

66 / 115

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

67 / 115

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

68 / 115

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

69 / 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.

70 / 115

All of the following will void an offer except

71 / 115

Is Michigan a Community Property state?

72 / 115

An example of functional obsolescence in real estate is

73 / 115

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

74 / 115

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

75 / 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?

76 / 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

77 / 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?

78 / 115

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

79 / 115

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

80 / 115

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

81 / 115

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

82 / 115

The Bundle of Rights include:

83 / 115

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

84 / 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:

85 / 115

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

86 / 115

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

87 / 115

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

88 / 115

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

89 / 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?

90 / 115

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

91 / 115

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

92 / 115

When calculating the amount of real estate taxes owed, calculations are based on what type of value?

93 / 115

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

94 / 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:

95 / 115

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

96 / 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?

97 / 115

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

98 / 115

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

99 / 115

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

100 / 115

Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?

101 / 115

Puffing is a term referring to

102 / 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?

103 / 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?

104 / 115

The Latin phrase ad valorem comes up often when talking about property taxes. What does ad valorem mean?

105 / 115

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

106 / 115

An example of an antitrust violation is

107 / 115

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

108 / 115

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

109 / 115

What is Fannie Mae’s primary responsibility?

110 / 115

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

111 / 115

Which of the following BEST describes a contract that is voidable?

112 / 115

Compliance with zoning ordinances is monitored through the issuance of

113 / 115

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.

114 / 115

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

115 / 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?

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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