Michigan Real Estate Salesperson Exam — All Questions
471 questions
A Michigan applicant finished her 40-hour prelicensure course four years ago and has never held a licence. What is the effect?
- a.It is stale; only the prior 36 months count✓
- b.The course still counts because it was approved when taken
- c.It counts if she passes the exam on the first attempt
- d.It counts once she pays a late examination fee
The 40 hours of prelicensure education must be completed within the 36-month period preceding the date of the application, so a course older than three years no longer supports the application. Cite: MCL 339.2504(2), as amended by 2016 PA 502, eff. Mar. 29, 2017.
Beyond education and the examination, what experience must a Michigan real estate broker applicant prove?
- a.Two years of licensure as a salesperson in any state
- b.One year of licensure with an active broker
- c.Five years of full-time work in real estate
- d.The equivalent of 3 years of full-time experience✓
The department requires proof that a broker applicant, or each principal of a business entity applicant, has the equivalent of 3 years of full-time experience in the business of real estate, credited according to the statutory schedule. Cite: MCL 339.2505(7), as amended by 2016 PA 502, eff. Mar. 29, 2017.
How does a licensed Michigan salesperson earn one year of credit toward the broker experience requirement?
- a.By listing at least ten properties in a year
- b.By closing 5 or more transactions in a 12-month period✓
- c.By working at least 30 hours in each week of the year
- d.By completing an extra 30 hours of coursework
In calculating the equivalent of three years of experience, a salesperson receives one year of credit for each 12-month period of licensure in which he or she closed 5 or more real estate transactions. Cite: MCL 339.2505(7)(b)(i), as amended by 2016 PA 502, eff. Mar. 29, 2017.
A candidate passes the Michigan licensing examination but does not apply for a licence right away. How long does the passing score stay good?
- a.30 days from the date of the examination
- b.6 months from the date of the examination
- c.1 year from the date of the examination✓
- d.3 years from the date of the examination
A passing score on the examination, or on a portion of it where the examination is given in separate parts, is valid for 1 year from the date of the examination. Cite: MCL 339.2505(6)(b), as amended by 2016 PA 502, eff. Mar. 29, 2017.
Which conviction bars the department from issuing a Michigan real estate broker's licence to an individual outright?
- a.Embezzlement or misappropriation of funds✓
- b.Any misdemeanour within the past year
- c.Driving while intoxicated twice
- d.Failing to file a state income tax return
The statute is categorical on this point: the department shall not issue a real estate broker's licence to an individual who has been convicted of embezzlement or misappropriation of funds. Other convictions are weighed through the good moral character review. Cite: MCL 339.2505(2), as amended by 2016 PA 502, eff. Mar. 29, 2017.
A Michigan broker and a seller sign a listing but no designated agency agreement. Who is the seller's agent?
- a.Only the salesperson who took the listing
- b.The broker and all its affiliated licensees✓
- c.Only the broker, personally and individually
- d.Whichever licensee first shows the property
In the absence of a written designated agency agreement, the client is considered to have an agency relationship with the broker and all affiliated licensees. A designated agency agreement is what narrows the relationship to a named licensee. Cite: MCL 339.2517(6), as amended by 2008 PA 91, eff. July 1, 2008.
Two designated agents at the same Michigan brokerage represent the buyer and the seller in one transaction. What is the result?
- a.Each designated agent becomes a disclosed dual agent
- b.The transaction must be referred out to another firm
- c.Neither the agents nor the broker owe dual agency duties
- d.The broker and supervisory brokers become dual agents✓
Two designated agents who are affiliated licensees may each represent a different party and are not dual agents, but the broker and all supervisory brokers are then considered disclosed consensual dual agents, and the clients must be notified before an offer is made or presented. Cite: MCL 339.2517(7) and (8), as amended by 2008 PA 91, eff. July 1, 2008.
Which duty owed by a Michigan licensee under a service provision agreement can never be waived by a limited service agreement?
- a.Loyalty to the interest of the client✓
- b.Presenting offers and counteroffers
- c.Negotiating and communicating offers
- d.Assistance after the purchase agreement is signed
Only the three services in section 2512d(3)(b), (c) and (d) may be waived in a limited service agreement. The duties in subsection (2), including loyalty, reasonable care, confidentiality and accounting, are not waivable. Cite: MCL 339.2512d(2) and (5), added by 2008 PA 90 and amended by 2016 PA 502, eff. Mar. 29, 2017.
At the time a purchaser executes an offer, what must a Michigan licensee acting under a service provision agreement recommend?
- a.A structural inspection by a licensed engineer
- b.A survey certified to the date of the closing
- c.A fee title policy in the amount of the price✓
- d.A home warranty contract paid for by the seller
Among the minimum services, at the time an offer to purchase is executed the licensee must recommend that the purchaser require the seller to provide a fee title policy in the amount of the purchase price, issued or certified to the approximate date of closing. Cite: MCL 339.2512d(3)(b), as amended by 2016 PA 502, eff. Mar. 29, 2017.
A Michigan seller under a limited service agreement asks the listing broker to market the house as "for sale by owner" so buyers will negotiate directly. The broker may:
- a.Do so, because the service was waived
- b.Not do so; that advertising is prohibited by statute✓
- c.Do so if the commission is reduced accordingly
- d.Do so with written consent from both parties
A broker or salesperson representing a seller under a service provision agreement may not advertise the property to the public as "for sale by owner" or otherwise mislead the public into believing the seller is unrepresented. Waiving services does not authorise that advertising. Cite: MCL 339.2512d(4), as amended by 2016 PA 502, eff. Mar. 29, 2017.
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Michigan's agency statute defines a transaction coordinator as a licensee who:
- a.Represents the seller only after the closing date
- b.Works exclusively for the title insurance company
- c.Represents both parties with their written consent
- d.Is the agent of neither the buyer nor the seller✓
A transaction coordinator is defined as a licensee who is not acting as the agent of either the buyer or the seller, and Article 25 does not prevent a licensee from acting in that role on proper notice to all parties. Cite: MCL 339.2517(11)(k) and 339.2517(5), as amended by 2008 PA 91, eff. July 1, 2008.
In a Michigan sale, when must the Seller Disclosure Statement be delivered to the prospective buyer?
- a.Before the seller executes a binding purchase agreement✓
- b.Within 7 days after the offer is accepted
- c.At the closing, with the other transfer documents
- d.Only when the buyer asks to see it in writing
For a sale, the written statement must reach the prospective transferee before the transferor executes a binding purchase agreement; for an installment sales contract or lease with option, before the transferor executes that contract. Cite: MCL 565.954(1), Seller Disclosure Act, 1993 PA 92, eff. Jan. 10, 1994.
A Michigan buyer signs a purchase agreement and is handed the Seller Disclosure Statement in person the next day. How long does she have to terminate?
- a.24 hours after delivery of the statement
- b.48 hours after delivery of the statement
- c.72 hours after delivery of the statement✓
- d.10 days after delivery of the statement
If a disclosure or amendment is delivered after the seller executes a binding purchase agreement, the buyer may terminate by written notice within 72 hours of personal delivery, or within 120 hours if the statement was delivered by registered mail. Cite: MCL 565.954(3), 1993 PA 92, eff. Jan. 10, 1994.
Which Michigan transfer is exempt from the Seller Disclosure Act?
- a.A sale of a rented duplex to an investor
- b.A transfer from a parent to a child✓
- c.A sale of a lakefront cottage held in joint names
- d.A sale by an owner who occupied the home for a decade
Section 3 exempts transfers made to a spouse, parent, grandparent, child or grandchild, alongside court-ordered transfers, foreclosure sales, transfers between co-tenants and transfers to or from a governmental entity. Cite: MCL 565.953(f), 1993 PA 92, eff. Jan. 10, 1994.
At what rate is the Michigan state real estate transfer tax levied?
- a.$0.55 for each $500.00 of value
- b.$1.10 for each $1,000.00 of value
- c.$2.20 for each $500.00 of value
- d.$3.75 for each $500.00 of value✓
Since January 1, 1995 the state tax has been levied at $3.75 for each $500.00, or fraction of $500.00, of the total value of the property transferred. Cite: MCL 207.525(1), State Real Estate Transfer Tax Act, 1993 PA 330, as amended by 1994 PA 224, eff. July 5, 1994.
Who is liable for the Michigan state real estate transfer tax, and when is it due?
- a.The seller, within 15 days after delivery of the instrument✓
- b.The buyer, within 15 days after delivery of the instrument
- c.The seller, within 45 days after the closing date
- d.The buyer and seller equally, at the time of recording
The person who is the seller or grantor is liable for the tax, and it must be paid to the county treasurer where the property is located not later than 15 days after the instrument effecting the conveyance is delivered. Cite: MCL 207.523(2) and (3), as amended by 2015 PA 217, imd. eff. Dec. 15, 2015.
In addition to the state tax, what county real estate transfer tax applies in a Michigan county of fewer than 2,000,000 people?
- a.No county tax is levied in those counties
- b.25 cents for each $500.00 of total value
- c.55 cents for each $500.00 of total value✓
- d.75 cents for each $500.00 of total value
The county tax is 55 cents for each $500.00 or fraction of the total value in a county with a population under 2,000,000; only a county of 2,000,000 or more may authorise up to 75 cents. Cite: MCL 207.504, 1966 PA 134, as amended by 1980 PA 413, eff. Mar. 31, 1981.
Michigan buyers and sellers sign a land contract under which title passes only when the price is fully paid. How does the state transfer tax treat that instrument?
- a.Tax is due on the full contract price at signing
- b.The land contract itself is exempt from the tax✓
- c.Tax is due on each installment as it is paid
- d.Tax is due only if the contract is not recorded
A land contract in which legal title does not pass to the grantee until the total consideration specified in the contract has been paid is expressly exempt from the state transfer tax; the taxable event comes with the later conveyance. Cite: MCL 207.526(o), as amended by 2018 PA 172, imd. eff. June 11, 2018.
A Michigan land contract vendee falls behind. After the vendor serves a written notice of forfeiture, how long does the vendee have to pay up or cure, absent a longer agreed period?
- a.3 days after service of the notice
- b.7 days after service of the notice
- c.10 days after service of the notice
- d.15 days after service of the notice✓
Unless the parties have agreed in writing to a longer time, a person served with a notice of forfeiture has 15 days to pay the money due and cure other material breaches or deliver possession, and the notice must declare the forfeiture effective in that period. Cite: MCL 600.5728, added by 1972 PA 120, eff. July 1, 1972.
A Michigan court enters a judgment for possession on a forfeited land contract where the buyer had paid 30% of the price. When may the writ of restitution issue?
- a.After 90 days from entry of the judgment✓
- b.After 10 days from entry of the judgment
- c.After 6 months from entry of the judgment
- d.Immediately, because the contract was forfeited
Where judgment for possession rests on forfeiture of an executory purchase contract, the writ may not issue for 90 days if less than 50% of the purchase price has been paid, or for 6 months if 50% or more has been paid. Cite: MCL 600.5744(4), as amended by 2019 PA 2, eff. July 2, 2019.
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Michigan's Elliott-Larsen Civil Rights Act bars a broker from refusing to negotiate on a basis the federal Fair Housing Act does not list. Which basis is that?
- a.Religion of the prospective buyer
- b.National origin of the prospective buyer
- c.Marital status of the prospective buyer✓
- d.Familial status of the prospective buyer
Section 502 forbids discrimination in real estate transactions on the basis of religion, race, colour, national origin, age, sex, sexual orientation, gender identity or expression, familial status or marital status. Age and marital status go beyond the federal list. Cite: MCL 37.2502(1), Elliott-Larsen Civil Rights Act, as amended by 2023 PA 6, eff. Feb. 13, 2024 and 2024 PA 180, eff. Apr. 2, 2025.