A commercial tenant bolts custom display shelving to the walls to run a retail store. Absent any agreement to the contrary, what is the usual character of that shelving?

A trade fixture the tenant may remove before the lease ends

A permanent fixture that automatically belongs to the landlord

Real property that must be conveyed with the building

An easement appurtenant to the leased space

A subdivision's recorded CC&Rs limit buildings to one story, while local zoning would permit two stories. Which limit controls a buyer's plans?

The more restrictive of the two, so one story

Zoning always overrides private restrictions

The buyer may choose whichever limit is more favorable

Neither applies until the buyer joins the HOA

In a deed of trust, what is the role of the trustee?

A neutral third party who holds bare legal title until the debt is repaid

The lender who advances the loan funds

The borrower who repays the note

A government official who records the lien

A licensee wants to represent both the buyer and the seller in the same transaction. Under general agency principles, when is this permitted?

Only with the informed written consent of both parties

Automatically, because the broker holds both listings

Only if the buyer and seller are related

Which deed gives the grantee the greatest protection by warranting title against all defects, including those that arose before the grantor owned the property?

Special (limited) warranty deed

Which of the following is a core reason a brokerage maintains a written office policy manual and reviews transaction files?

To supervise licensees and reduce the firm's risk of violations

To guarantee every agent earns the same commission

To eliminate the need for errors-and-omissions insurance

To set commission rates jointly with other firms

Which Michigan department licenses and regulates real estate brokers?

The Department of Licensing and Regulatory Affairs (LARA)

The Michigan Association of Realtors

The Michigan Department of Treasury

An employing broker's supervisory responsibility over an associate broker in Michigan means the employing broker:

Remains accountable for the associate broker's licensed activity and trust-fund handling

Has no liability once the associate broker is licensed

Must personally attend every showing

May ignore the associate broker's advertising

Michigan Real Estate Broker Exam Practice Test

Frequently asked questions

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A full bank of original Michigan Real Estate Broker Exam practice questions across the official content areas, weighted like the real exam, with explanations. Free, no signup.

What is the Michigan Real Estate Broker Exam exam like?+

About 120 questions, 210 minutes, and you need 75% to pass. Practice by topic here, then take the full timed mock exam to gauge readiness.

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Sample practice questions

A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.

1. Property Ownership
A commercial tenant bolts custom display shelving to the walls to run a retail store. Absent any agreement to the contrary, what is the usual character of that shelving?
- a.A permanent fixture that automatically belongs to the landlord
- b.Real property that must be conveyed with the building
- c.A trade fixture the tenant may remove before the lease ends
- d.An easement appurtenant to the leased space
Answer: c
Explanation: Items a commercial tenant installs to conduct business are trade fixtures. Even though they are attached, the law lets the tenant remove them before the lease ends (repairing any damage), because the tenant's intent was to use them in the business, not to improve the landlord's property permanently. This is an exception to the general rule that attached items become part of the realty. It is not an easement, which is a right to use another's land, not an object.
2. Land Use Controls and Regulations
A subdivision's recorded CC&Rs limit buildings to one story, while local zoning would permit two stories. Which limit controls a buyer's plans?
- a.Zoning always overrides private restrictions
- b.The buyer may choose whichever limit is more favorable
- c.The more restrictive of the two, so one story
- d.Neither applies until the buyer joins the HOA
Answer: c
Explanation: When a public control (zoning) and a private control (deed restriction or CC&R) both apply, the more restrictive one governs. Here the CC&Rs are stricter, so the one-story limit controls even though zoning would allow two stories. Private restrictions run with the land and bind the buyer automatically upon purchase, regardless of HOA membership formalities. A broker must disclose known private restrictions that could defeat a buyer's intended use.
3. Financing
In a deed of trust, what is the role of the trustee?
- a.A neutral third party who holds bare legal title until the debt is repaid
- b.The lender who advances the loan funds
- c.The borrower who repays the note
- d.A government official who records the lien
Answer: a
Explanation: A deed of trust involves three parties: the trustor (borrower), the beneficiary (lender), and the trustee, a neutral third party who holds bare legal title as security. When the loan is paid, the trustee issues a reconveyance releasing the lien; on default, the trustee may conduct a nonjudicial foreclosure where the state allows. This differs from a mortgage, which has only two parties. Knowing the roles helps a broker explain closing documents accurately.
4. Contracts
A buyer breaches a signed purchase contract on a unique property, and the seller wants a court to force the buyer to complete the purchase. Which remedy is the seller seeking?
- a.Liquidated damages
- b.Rescission
- c.Novation
- d.Specific performance
Answer: d
Explanation: Specific performance is a court order compelling a party to carry out the contract as agreed. It is available in real estate because each parcel of land is considered unique, so money damages may not be an adequate substitute. Liquidated damages is a pre-agreed sum (often the earnest money) the injured party keeps instead. Rescission cancels the contract and returns the parties to their starting positions. Novation substitutes a new contract or party for the original.
5. General Principles of Agency
A licensee wants to represent both the buyer and the seller in the same transaction. Under general agency principles, when is this permitted?
- a.Never, under any circumstances
- b.Automatically, because the broker holds both listings
- c.Only with the informed written consent of both parties
- d.Only if the buyer and seller are related
Answer: c
Explanation: Dual agency, representing both buyer and seller in one transaction, creates a conflict of interest and is permitted only with the informed written consent of both parties. A dual agent may not advocate price or terms for either side and must protect each party's confidential information. Some states instead use designated agency, where different agents in one firm each represent one party, or a non-agency transaction-broker role. A broker must ensure no licensee slips into an undisclosed dual agency.
6. Property Disclosures
The federal lead-based paint disclosure rule applies to most residential housing built:
- a.Before 1978
- b.Before 1950
- c.After 1978
- d.Only to commercial buildings
Answer: a
Explanation: The federal lead-based paint rule applies to most residential housing built before 1978, the year lead-based paint was banned for residential use. Sellers and landlords must disclose known lead hazards, provide available records, deliver the EPA pamphlet, and give buyers a period to test. The rule is nationwide and does not depend on the buyer asking. A broker must ensure the office consistently uses the correct current lead-paint forms for pre-1978 homes.
7. Transfer of Title
Which deed gives the grantee the greatest protection by warranting title against all defects, including those that arose before the grantor owned the property?
- a.Quitclaim deed
- b.General warranty deed
- c.Special (limited) warranty deed
- d.Bargain and sale deed
Answer: b
Explanation: A general warranty deed offers the most protection: the grantor warrants title against all defects, including those predating the grantor's ownership, and stands behind covenants such as seisin, quiet enjoyment, and warranty forever. A special (limited) warranty deed covers only defects arising during the grantor's ownership. A bargain and sale deed implies ownership but adds few or no warranties, and a quitclaim conveys only whatever interest the grantor has, with no warranties. A broker should know which deed a transaction requires.
8. Practice of Real Estate
Which of the following is a core reason a brokerage maintains a written office policy manual and reviews transaction files?
- a.To guarantee every agent earns the same commission
- b.To supervise licensees and reduce the firm's risk of violations
- c.To eliminate the need for errors-and-omissions insurance
- d.To set commission rates jointly with other firms
Answer: b
Explanation: Written policies and regular file review are supervision and risk-management tools: they help the broker ensure agents follow the law, deliver required disclosures, and handle funds correctly, reducing the chance of violations for which the broker could be liable. They do not standardize commissions (which are negotiable) or set rates with competitors (which would be illegal antitrust conduct), and they complement rather than replace errors-and-omissions coverage. Supervision is a defining broker responsibility.
9. Occupational Code Art. 25 License Law
Which Michigan department licenses and regulates real estate brokers?
- a.The Michigan Association of Realtors
- b.The Michigan Department of Treasury
- c.The Department of Licensing and Regulatory Affairs (LARA)
- d.The county register of deeds
Answer: c
Explanation: Michigan real estate brokers and associate brokers are licensed by the Department of Licensing and Regulatory Affairs (LARA) under the Occupational Code, Article 25 (MCL 339.2501-2518). A trade association is a private membership group with no licensing authority, and the Treasury and register of deeds have no licensing jurisdiction.
10. Agency & Broker Supervision
An employing broker's supervisory responsibility over an associate broker in Michigan means the employing broker:
- a.Remains accountable for the associate broker's licensed activity and trust-fund handling
- b.Has no liability once the associate broker is licensed
- c.Must personally attend every showing
- d.May ignore the associate broker's advertising
Answer: a
Explanation: Even though an associate broker has met broker qualifications, when working under an employing broker that employing broker remains responsible for supervising the associate's licensed activity, advertising, and handling of trust funds. Supervision is an ongoing duty, not a one-time check at licensing, though it does not require attending every showing. Failure to supervise is a common basis for discipline.