Michigan Real Estate Salesperson Exam — All Questions

In Michigan, a common method of financing in which the seller retains legal title while the buyer takes possession and pays in installments is called a:

• a.Land contract✓
• b.Reverse mortgage
• c.Sale-leaseback
• d.Wraparound appraisal

Land contracts (installment sales) are a traditional Michigan seller-financing tool: the buyer takes possession and pays over time while the seller keeps legal title until the contract is paid in full.

When a Michigan brokerage holds a buyer's earnest money deposit pending closing, those funds must be kept in:

• a.The broker's personal savings account
• b.The listing salesperson's account
• c.A separate broker trust or escrow account✓
• d.The seller's account immediately

Client deposits must be held in a separate broker trust/escrow account, not mixed with the broker's or salesperson's personal funds. This protects the funds and prevents commingling.