Michigan Real Estate Salesperson
Exams Practice Questions And Correct
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1. A real estate agent owes fiduciary duties to a client. Which of the following is not a
fiduciary duty?
A. Disclosure
B. Loyalty
C. Obedience
D. Advertising
Advertising is a marketing activity and not one of the core fiduciary duties owed to a
client.
2. In Michigan, a salesperson must operate under the supervision of a licensed broker. If
the broker terminates the relationship, the salesperson must:
A. Continue practicing independently
B. Cease all real estate activities until reaffiliated
C. Apply for a new broker license immediately
D. Maintain active status without supervision
A salesperson cannot practice real estate independent of a broker and must stop
activities until affiliated with a new broker.
3. The Michigan Real Estate Commission requires that trust (escrow) funds be handled:
A. In the salesperson’s personal account
B. In a broker’s escrow account
C. At the bank chosen by the buyer only
D. In cash held by the broker until closing
Trust funds must be deposited in the broker’s escrow account to protect parties and
comply with law.
4. A listing agreement created by a broker and seller that establishes the broker’s right to
compensation is:
A. An implied contract
B. A unilateral contract
, C. A bilateral contract
D. An executed contract
Both parties exchange promises in a bilateral contract, which is typical in listing
agreements.
5. A property disclosure statement in Michigan must be given to buyers:
A. After closing
B. Before offer acceptance
C. Only if the property is older than 20 years
D. Only for commercial property
Michigan law requires disclosure before offer acceptance to ensure informed consent.
6. A dual agency situation arises when:
A. The agent represents only the seller
B. The agent represents only the buyer
C. The agent represents both buyer and seller in the same transaction
D. Two agents from different firms work together
Dual agency involves representation of both sides, requiring informed consent.
7. In Michigan, what is required for an earnest money deposit to be valid?
A. It must be at least 10% of the purchase price
B. It must be delivered to the seller personally
C. It must be specified in the purchase agreement
D. It must be held by the buyer’s attorney
Earnest money must be clearly defined and agreed to within the purchase agreement.
8. A buyer’s agent owes which of the following to the buyer?
A. Commission
B. Confidentiality
C. Property taxes
D. Repairs
Confidentiality is part of the agent’s duties to protect client interests.
9. A property with continuous, open, notorious, exclusive, and hostile use by another may
be subject to:
A. Adverse possession
B. Easement by necessity
C. Adverse possession
D. Warranty deed
Those elements define adverse possession, potentially giving rights to the occupant.
10. A gross lease requires the tenant to pay:
A. All operating expenses
B. A fixed rental amount
C. Percentage rent
D. Common area maintenance
In a gross lease, the landlord typically pays operating expenses, and the tenant pays
fixed rent.
11. The Michigan Consumer Protection Act applies to:
A. Only residential leases
, B. Only real estate brokers
C. Unfair or deceptive acts in trade or commerce
D. Mortgage interest rates only
It covers unfair or deceptive business practices affecting consumers broadly.
12. A property manager collecting rents on behalf of an owner acts as:
A. A principal
B. A fiduciary
C. A mortgagor
D. A trustee in bankruptcy
Property managers have fiduciary responsibilities to the owner.
13. When a seller accepts an offer with contingencies, the contract:
A. Becomes void
B. Is immediately enforceable
C. Is contingent on those conditions being satisfied
D. Requires no closing
Contingencies must be met before the contract becomes fully enforceable.
14. In Michigan, the Real Estate Commission requires continuing education for license
renewal. If a licensee fails to complete it, the license:
A. Remains active indefinitely
B. May become inactive or lapse
C. Converts to broker status
D. Is revoked permanently
Failure to meet continuing education can result in inactive or lapsed status.
15. A licensee must disclose to a buyer that the property is in a flood zone. This is an
example of:
A. Latent defect concealment
B. Puffing
C. Material fact disclosure
D. Non-disclosure exception
Flood zone status is a material fact that could affect value or use.
16. Constructive eviction occurs when:
A. The tenant pays rent late
B. The lease expires naturally
C. Conditions are so bad the tenant must leave
D. The landlord increases rent legally
Constructive eviction is eviction by condition, forcing tenant to vacate.
17. A broker’s legal responsibility to account for all funds entrusted to them is known as:
A. Obedience
B. Accounting
C. Disclosure
D. Competence
Accounting means properly handling and documenting funds held.
18. A quitclaim deed conveys:
A. A guarantee marketable title
Exams Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. A real estate agent owes fiduciary duties to a client. Which of the following is not a
fiduciary duty?
A. Disclosure
B. Loyalty
C. Obedience
D. Advertising
Advertising is a marketing activity and not one of the core fiduciary duties owed to a
client.
2. In Michigan, a salesperson must operate under the supervision of a licensed broker. If
the broker terminates the relationship, the salesperson must:
A. Continue practicing independently
B. Cease all real estate activities until reaffiliated
C. Apply for a new broker license immediately
D. Maintain active status without supervision
A salesperson cannot practice real estate independent of a broker and must stop
activities until affiliated with a new broker.
3. The Michigan Real Estate Commission requires that trust (escrow) funds be handled:
A. In the salesperson’s personal account
B. In a broker’s escrow account
C. At the bank chosen by the buyer only
D. In cash held by the broker until closing
Trust funds must be deposited in the broker’s escrow account to protect parties and
comply with law.
4. A listing agreement created by a broker and seller that establishes the broker’s right to
compensation is:
A. An implied contract
B. A unilateral contract
, C. A bilateral contract
D. An executed contract
Both parties exchange promises in a bilateral contract, which is typical in listing
agreements.
5. A property disclosure statement in Michigan must be given to buyers:
A. After closing
B. Before offer acceptance
C. Only if the property is older than 20 years
D. Only for commercial property
Michigan law requires disclosure before offer acceptance to ensure informed consent.
6. A dual agency situation arises when:
A. The agent represents only the seller
B. The agent represents only the buyer
C. The agent represents both buyer and seller in the same transaction
D. Two agents from different firms work together
Dual agency involves representation of both sides, requiring informed consent.
7. In Michigan, what is required for an earnest money deposit to be valid?
A. It must be at least 10% of the purchase price
B. It must be delivered to the seller personally
C. It must be specified in the purchase agreement
D. It must be held by the buyer’s attorney
Earnest money must be clearly defined and agreed to within the purchase agreement.
8. A buyer’s agent owes which of the following to the buyer?
A. Commission
B. Confidentiality
C. Property taxes
D. Repairs
Confidentiality is part of the agent’s duties to protect client interests.
9. A property with continuous, open, notorious, exclusive, and hostile use by another may
be subject to:
A. Adverse possession
B. Easement by necessity
C. Adverse possession
D. Warranty deed
Those elements define adverse possession, potentially giving rights to the occupant.
10. A gross lease requires the tenant to pay:
A. All operating expenses
B. A fixed rental amount
C. Percentage rent
D. Common area maintenance
In a gross lease, the landlord typically pays operating expenses, and the tenant pays
fixed rent.
11. The Michigan Consumer Protection Act applies to:
A. Only residential leases
, B. Only real estate brokers
C. Unfair or deceptive acts in trade or commerce
D. Mortgage interest rates only
It covers unfair or deceptive business practices affecting consumers broadly.
12. A property manager collecting rents on behalf of an owner acts as:
A. A principal
B. A fiduciary
C. A mortgagor
D. A trustee in bankruptcy
Property managers have fiduciary responsibilities to the owner.
13. When a seller accepts an offer with contingencies, the contract:
A. Becomes void
B. Is immediately enforceable
C. Is contingent on those conditions being satisfied
D. Requires no closing
Contingencies must be met before the contract becomes fully enforceable.
14. In Michigan, the Real Estate Commission requires continuing education for license
renewal. If a licensee fails to complete it, the license:
A. Remains active indefinitely
B. May become inactive or lapse
C. Converts to broker status
D. Is revoked permanently
Failure to meet continuing education can result in inactive or lapsed status.
15. A licensee must disclose to a buyer that the property is in a flood zone. This is an
example of:
A. Latent defect concealment
B. Puffing
C. Material fact disclosure
D. Non-disclosure exception
Flood zone status is a material fact that could affect value or use.
16. Constructive eviction occurs when:
A. The tenant pays rent late
B. The lease expires naturally
C. Conditions are so bad the tenant must leave
D. The landlord increases rent legally
Constructive eviction is eviction by condition, forcing tenant to vacate.
17. A broker’s legal responsibility to account for all funds entrusted to them is known as:
A. Obedience
B. Accounting
C. Disclosure
D. Competence
Accounting means properly handling and documenting funds held.
18. A quitclaim deed conveys:
A. A guarantee marketable title
