Michigan Residential Builder Salesperson Practice Examination — 300 Questions & Verified Answers | 2026
Update
Section 1: Licensing Requirements and Scope of Practice (Questions
1–40)
1. Under the Michigan Occupational Code, a residential builder salesperson license is required for
any individual who:
A) Lists new construction with a real estate broker.
B) Sells or negotiates the sale of a new residential structure on behalf of a licensed residential builder.
C) Performs construction work as an employee of a builder.
D) Provides interior design services to a builder's customer.
Answer: B
Rationale: ** The law defines a residential builder salesperson as an individual who, for compensation, is
employed by a licensed residential builder to sell or negotiate the sale of new residential structures. Listing
new construction alone does not require a salesperson license if done by a real estate licensee, and
construction laborers and designers are not engaged in sales negotiations.
2. Which of the following individuals is exempt from holding a residential builder salesperson
license?
A) A commission-only sales agent working for a builder.
B) An independent contractor who shows model homes.
C) A full-time salaried employee who performs only clerical tasks and does not discuss prices or terms.
D) A real estate salesperson who sells one new home per year.
Answer: C
Rationale: ** A salaried employee who does not negotiate sales or discuss contract terms is not required to
be licensed as a salesperson. All other options involve selling or negotiating activities that require a license
under Michigan law.
3. A residential builder salesperson license authorizes the holder to:
A) Supervise construction site safety.
B) Act as a qualifying officer for a builder license.
,C) Sell new residential structures on behalf of the employing licensed builder.
D) Independently sign construction contracts on behalf of the builder.
Answer: C
Rationale: ** The salesperson license is limited to sales and negotiation of new home contracts under the
supervision of the licensed builder. It does not grant authority to act as a qualifying officer, supervise
construction, or independently bind the builder to construction contracts. Only a licensed builder or
qualifying officer may sign construction contracts.
4. An applicant for a residential builder salesperson license must be at least:
A) 16 years old.
B) 18 years old.
C) 21 years old.
D) 25 years old.
Answer: B
Rationale: ** Michigan requires a salesperson applicant to be at least 18 years of age, possess good moral
character, and meet pre-licensure education requirements.
5. To obtain a residential builder salesperson license, an applicant must complete a pre-licensure
education course of at least:
A) 60 hours.
B) 6 hours.
C) 30 hours.
D) 2 hours.
Answer: B
Rationale: ** The Michigan Occupational Code mandates a minimum 6-hour pre-licensure course covering
contract law, warranty obligations, advertising rules, and fair housing for salesperson applicants. A 60-hour
requirement applies to the builder license, not the salesperson.
6. The fee for the Salesperson License Examination administered by PSI is:
A) $50
B) $81
C) $100
D) $195
2
,Answer: B
Rationale: ** The cost of the salesperson examination is $81.
7. The fee due at the time of the salesperson license application is:
A) $50
B) $81
C) $100
D) $195
Answer: D
Rationale: ** The fee due at the time of the application is $195.
8. A salesperson license is valid for how many years in Michigan?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C
Rationale: ** Michigan residential builder salesperson licenses are valid for a 3-year term.
9. Before taking the Salesperson License Examination, a candidate must:
A) Apply to the State of Michigan for licensure.
B) Complete 60 hours of pre-licensure education.
C) Have 2 years of experience in residential construction.
D) Register directly with PSI Services LLC.
Answer: D
Rationale: ** Builder/M&A Contractor Salesperson licensing examination candidates do NOT need to apply
to the State before testing. There is no pre-licensure education requirement for the salesperson. Candidates
register directly with PSI.
10. A residential builder salesperson must work under:
A) A licensed real estate broker.
B) A licensed residential builder.
3
, C) An independent contractor.
D) The Michigan Department of Licensing and Regulatory Affairs.
Answer: B
Rationale: ** A builder salesperson must work under a licensed residential builder and cannot act
independently.
11. A salesperson shall turn over money for a sale to their licensed builder:
A) Immediately
B) Within 10 days
C) Within 48 hours
D) Within 30 days
Answer: A
Rationale: ** A salesperson shall turn over money for a sale to their licensed builder immediately.
12. Can an unlicensed contractor who is required to be licensed impose a lien against a homeowner?
A) Yes, always
B) Yes, if work was performed
C) No
D) Only with court approval
Answer: C
Rationale: ** An unlicensed contractor who is required to be licensed cannot impose a lien against a
homeowner.
13. If a salesperson doesn't intend to renew their license after it has expired, they must:
A) Notify the Department
B) Return the license to the Department
C) Pay a fine
D) Nothing is required
Answer: B
Rationale: ** If a salesperson doesn't intend to renew their license after it has expired, they must return it to
the Department.
4
Update
Section 1: Licensing Requirements and Scope of Practice (Questions
1–40)
1. Under the Michigan Occupational Code, a residential builder salesperson license is required for
any individual who:
A) Lists new construction with a real estate broker.
B) Sells or negotiates the sale of a new residential structure on behalf of a licensed residential builder.
C) Performs construction work as an employee of a builder.
D) Provides interior design services to a builder's customer.
Answer: B
Rationale: ** The law defines a residential builder salesperson as an individual who, for compensation, is
employed by a licensed residential builder to sell or negotiate the sale of new residential structures. Listing
new construction alone does not require a salesperson license if done by a real estate licensee, and
construction laborers and designers are not engaged in sales negotiations.
2. Which of the following individuals is exempt from holding a residential builder salesperson
license?
A) A commission-only sales agent working for a builder.
B) An independent contractor who shows model homes.
C) A full-time salaried employee who performs only clerical tasks and does not discuss prices or terms.
D) A real estate salesperson who sells one new home per year.
Answer: C
Rationale: ** A salaried employee who does not negotiate sales or discuss contract terms is not required to
be licensed as a salesperson. All other options involve selling or negotiating activities that require a license
under Michigan law.
3. A residential builder salesperson license authorizes the holder to:
A) Supervise construction site safety.
B) Act as a qualifying officer for a builder license.
,C) Sell new residential structures on behalf of the employing licensed builder.
D) Independently sign construction contracts on behalf of the builder.
Answer: C
Rationale: ** The salesperson license is limited to sales and negotiation of new home contracts under the
supervision of the licensed builder. It does not grant authority to act as a qualifying officer, supervise
construction, or independently bind the builder to construction contracts. Only a licensed builder or
qualifying officer may sign construction contracts.
4. An applicant for a residential builder salesperson license must be at least:
A) 16 years old.
B) 18 years old.
C) 21 years old.
D) 25 years old.
Answer: B
Rationale: ** Michigan requires a salesperson applicant to be at least 18 years of age, possess good moral
character, and meet pre-licensure education requirements.
5. To obtain a residential builder salesperson license, an applicant must complete a pre-licensure
education course of at least:
A) 60 hours.
B) 6 hours.
C) 30 hours.
D) 2 hours.
Answer: B
Rationale: ** The Michigan Occupational Code mandates a minimum 6-hour pre-licensure course covering
contract law, warranty obligations, advertising rules, and fair housing for salesperson applicants. A 60-hour
requirement applies to the builder license, not the salesperson.
6. The fee for the Salesperson License Examination administered by PSI is:
A) $50
B) $81
C) $100
D) $195
2
,Answer: B
Rationale: ** The cost of the salesperson examination is $81.
7. The fee due at the time of the salesperson license application is:
A) $50
B) $81
C) $100
D) $195
Answer: D
Rationale: ** The fee due at the time of the application is $195.
8. A salesperson license is valid for how many years in Michigan?
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C
Rationale: ** Michigan residential builder salesperson licenses are valid for a 3-year term.
9. Before taking the Salesperson License Examination, a candidate must:
A) Apply to the State of Michigan for licensure.
B) Complete 60 hours of pre-licensure education.
C) Have 2 years of experience in residential construction.
D) Register directly with PSI Services LLC.
Answer: D
Rationale: ** Builder/M&A Contractor Salesperson licensing examination candidates do NOT need to apply
to the State before testing. There is no pre-licensure education requirement for the salesperson. Candidates
register directly with PSI.
10. A residential builder salesperson must work under:
A) A licensed real estate broker.
B) A licensed residential builder.
3
, C) An independent contractor.
D) The Michigan Department of Licensing and Regulatory Affairs.
Answer: B
Rationale: ** A builder salesperson must work under a licensed residential builder and cannot act
independently.
11. A salesperson shall turn over money for a sale to their licensed builder:
A) Immediately
B) Within 10 days
C) Within 48 hours
D) Within 30 days
Answer: A
Rationale: ** A salesperson shall turn over money for a sale to their licensed builder immediately.
12. Can an unlicensed contractor who is required to be licensed impose a lien against a homeowner?
A) Yes, always
B) Yes, if work was performed
C) No
D) Only with court approval
Answer: C
Rationale: ** An unlicensed contractor who is required to be licensed cannot impose a lien against a
homeowner.
13. If a salesperson doesn't intend to renew their license after it has expired, they must:
A) Notify the Department
B) Return the license to the Department
C) Pay a fine
D) Nothing is required
Answer: B
Rationale: ** If a salesperson doesn't intend to renew their license after it has expired, they must return it to
the Department.
4
