PSI Real Estate Practice Exam - Michigan (Chapter 1)

Designated Agent - Answer- A person authorized by the broker to act as the agent of a specific principal - common in dual agency relationships, two salespersons from the same company can represent opposite sides of the sale. Income Approach - Answer- What approach does an appraiser take primarily for an investment property? 1.) "Personal Assistant" (Answer) 2.) "Agent-Assistant" 3.) "Proxy-Agent" 4.) "Broker-Assignee" - Answer- Charlie is the personal assistant for the top producer in the office, and he would like to have his own business cards. What can Charlie list as his title? 1.) They have the same force and effect as the Code. 2.) They provide additional detail for the administration of the law. 3.) They provide guidelines for the real estate licensee. 4.) They have less force and effect than the Code. (Answer) - Answer- Which of the following is NOT true regarding the Administrative Rules in Michigan? 1.) adopt regulations for real estate standards. 2.) protect the public. (Answer) 3.) prosecute unethical brokers. 4.) investigate commission disputes between associates. - Answer- The primary purpose of Michigan License Law is to: 1.) sell a home you built as part of your business. 2.) sell your own property. (Answer) 3.) be a property manager. 4.) auction a home and handle the closing. - Answer- In the state of Michigan, you do not need a real estate license to 1.) engage in a minimum of five real estate transactions in a 12 month period. (Answer) 2.)perform a minimum of 40 hours per month on floor time. 3.) file $40,000 or more in commissions on their income tax return. 4.) become a broker within two years of getting a salesperson's license. - Answer- For real estate sales to be considered a principal vocation, a licensee must 1.) Occupational Code PA 299 of 1980. (Answer) 2.) Michigan License Act 152 of 1979. 3.) Administrative Rules for Michigan Licensing. 4.) Michigan Code of Ethics. - Answer- The law regulating the licensing of occupations in Michigan is known as 1.) A person who lists real estate 2.) Someone negotiating the exchange of real estate for a consumer 3.) A person assisting a landlord with real estate activities 4.) An executor of an estate selling property for the deceased (Answer) - Answer- Which of the following persons would NOT need a real estate license? 1.) to develop salesperson and broker examinations. (Answer) 2.) to issue and renew licenses. 3.) to interpret license requirements. 4.) only when there is a crisis. - Answer- The Department of Licensing and Regulatory Affairs and the Michigan Board of Real Estate Brokers and Salespersons work together 1.) The NAR Code of Ethics 2.) The Code of Federal Regulations 3.) The Administrative Code (Answer) 4.) The NAR Field Guide - Answer- _______________ are policies used by the Department of Licensing and Regulatory Affairs to interpret and enforce the Occupational Code. 1.) Discuss the financing options for the property. 2.) Take his name and have a licensee call him. (Answer) 3.) Say that they are the agent for the property. 4.) Give him whatever information he wants since he's a member of the real estate community. - Answer- An unlicensed assistant in a real estate office receives a call from Salesperson Jones, who works for another company. He wants information about a property. What can the assistant do? 1.) 0 members 2.) 3 members 3.) 5 members 4.) 6 members (Answer) - Answer- Of the total Board members, how many must be licensed to practice real estate in Michigan? 1.) Information on financing 2.) Information on the number of bathrooms a listing has (Answer) 3.) Information on closings 4.) Information on title insurance - Answer- Sara Sanders has started working at ABC Realty. Since Sara does not yet have her real estate license, what information may she give out? 1.) A trustee selling under a deed of trust 2.) A Michigan-licensed builder who sells the custom homes he builds 3.) A property manager who oversees a 50-unit apartment complex (Answer) 4.) An attorney at law - Answer- Which of the following would be required to have a real estate license to perform his or her job duties? 1.) Issuing and renewing licenses (Answer) 2.) Aiding in investigations 3.) Interpreting license requirements 4.) Administering exams as delegated by the Department - Answer- _______________ is not a responsibility of the Board. 1.) the Michigan Occupational Code. 2.) the National Association of Housing Professionals Regulation. 3.) the National Association of REALTORS®. 4.) the Michigan state constitution. - Answer- The Department of Licensing and Regulatory Affairs is authorized under 1.) No, John can auction only the property of a family member without a license. 2.) Yes, auctions are not regulated by the Michigan Real Estate Commission. 3.) No, only an auctioneer with a valid real estate license can auction property in Michigan. 4.) Yes, auctioneers can auction property in Michigan, as long as they do not handle the closing. (Answer) - Answer- Auctioneer John is not a real estate agent. A neighbor wants him to auction her property. Is this legal? 1.) Tori helps her former neighbor find a renter for his house. (Answer) 2.) Tori sells her father's home as executor of his estate. 3.) Tori sells the new luxury home that she and her husband's building company built. 4.) Tori is an auctioneer who has been contracted to auction the personal belongings, home and outbuildings of a local farmer. - Answer- In which of the following scenarios would Tori need a real estate license? 1.) 5 members 2.) 7 members 3.) 9 members (Answer) 4.) 12 members - Answer- The Michigan Board of Real Estate Brokers and Salespersons has how many members? 1.) have business cards implying they are an agent for a real estate broker. 2.) perform host or hostess functions at an agent's open house. (Answer) 3.) solicit prospects via telephone. 4.) answer questions on title insurance, financing or closing. - Answer- Personal assistants may 1.) Someone who negotiates the rental or lease of a property for a consumer (Answer) 2.) An executor handling a decedent's estate 3.) A licensed builder selling a new triplex he built 4.) An attorney performing a real estate transaction as part of his legal duties - Answer- Which of the following would need a real estate license? 1.) the state's habeas corpus. 2.) the state's police power. (Answer) 3.) the Michigan Occupational Code. 4.) the first amendment of the Constitution. - Answer- Michigan's authority to protect the public is granted under 1.) pass out literature at an open house. 2.) show property to prospective buyers without a licensee present. (Answer) 3.) courier documents unless a licensee is present. 4.) register prospects in a guest book at an open house. - Answer- Personal assistants may not 1.) who will be performing real estate acts as principals. (Answer) 2.) who will be the office manager. 3.) names of all personal assistants. 4.) the number of people who will be employed by the broker. - Answer- When a partnership applies for a broker's license, the application must indicate 1.) Request a reciprocity application from the Department. 2.) Provide a letter of good standing from the state of Wisconsin and pay any applicable licensing fees. 3.) Meet the same education, exam and experience qualifications as any Michigan applicant and provide a letter of good standing from the state of Wisconsin. (Answer) 4.) He must surrender his Wisconsin license as Michigan does not allow dual-licenses. - Answer- Sam has a valid Wisconsin real estate license. What must he do to become licensed in Michigan? 1.) has completed a six month apprenticeship under an established broker. 2.) has a Master's Degree in Business Administration. (Answer) 3.) has a Bachelor's Degree in Communications. 4.) has an Associate's Degree in Property Management. - Answer- A licensee can get 60 hours credited towards a broker's license if he or she 1.) Michigan Division of Licenses and Exams 2.) Michigan Department of Licensing and Regulatory Affairs (Answer) 3.) State of Michigan Division of Real Estate 4.) Bureau of Alcohol and Licenses - Answer- The _______________________ contracts with an exam vendor to conduct the examination program. 1.) By submitting a new registration form and fee to Promissor. (Answer) 2.) By immediately retaking the exam that same day only. 3.) A candidate cannot retake the exam. 4.) By retaking the prelicense education course, then retaking the exam. - Answer- If an applicant fails the licensing exam, how can he or she retake the exam? 1.) an applicant has been accused of embezzlement. 2.) an applicant has been arrested for embezzlement. 3.) an applicant has been prosecuted for embezzlement. 4.) an applicant has been convicted of embezzlement. (Answer) - Answer- The Department may deny a license if 1.) A nonprincipal broker has same duties as a salesperson. 2.) A nonprincipal broker is an owner in the business. (Answer) 3.) A nonprincipal broker can sign closing statements. 4.) A nonprincipal broker can be a signatory on the trust account. - Answer- Which of the following is not true regarding a nonprincipal broker? 1.) 40 (Answer) 2.) 60 3.) 70 4.) 90 - Answer- A qualified salesperson applicant must complete how many hours of approved instruction? 1.) Broker 2.) Associate Broker 3.) Transaction Broker (Answer) 4.) Branch Office - Answer- Which of the following licenses is not available in the state of Michigan? 1.) 12 months 2.) 24 months 3.) 36 months (Answer) 4.) 48 months - Answer- An applicant for a broker's license must complete his or her education no more than _____________ before the date of the application, unless the applicant has held a salesperson license for that intervening period. 1.) The local REALTOR® association 2.) PSI (Answer) 3.) The Michigan Department of Licensing 4.) A proctor which the applicant has paid for - Answer- Who administers the state licensing exam? 1.) An applicant who qualifies under the American with Disabilities Act 2.) An applicant who has held a salesperson, broker or associate broker's license at sometime within the previous three years (Answer) 3.) An applicant with a Master's Degree in Business Administration 4.) An applicant with a reciprocal license - Answer- Which of the following may be exempt from taking the written examination? 1.) is a silent partner. 2.) could be one of the owners of a real estate company. (Answer) 3.) could be the spouse of one of the real estate company's partners. 4.) has the same responsibilities as a salesperson. - Answer- A principal associate broker 1.) Investor 2.) Loan officer at a bank 3.) Licensed developer 4.) Receptionist at a real estate company (Answer) - Answer- Which of the following positions would not fulfill the real estate experience requirement for a broker applicant? 1.) be at least 18 years old. (Answer) 2.) have a high school diploma. 3.) have never been arrested. 4.) have one year's experience working in a real estate office. - Answer- Two of the requirements for applying for a real estate license are the applicant must have passed the state licensing exam and 1.) Broker associate 2.) Nonprincipal broker 3.) Partnership (Answer) 4.) Branch office - Answer- Which of the following license types is NOT available in Michigan? 1.) 90 hours in business administration instruction. 2.) 36 hours in property management instruction. 3.) 9 hours of civil rights law and equal opportunity in housing instruction. (Answer) 4.) 9 hours in advertising and marketing instruction. - Answer- To be eligible to take the broker licensing exam, an applicant must have completed 1.) must have at least a high school education. 2.) must have at least some college education. 3.) must have an associate's degree. 4.) does not need to have a formal education. (Answer) - Answer- A license applicant 1.) they are exempt from continuing education requirements. 2.) they may earn continuing education credit for teaching a course. (Answer) 3.) they can continuing education courses free of charge. 4.) they are exempt from relicensing fees. - Answer- One benefit the Department gives to real estate instructors is 1.) Retake the 60 hour prelicense course. 2.) Retake the state licensing exam. 3.) Complete 6 hours of continuing education. 4.) Complete 6 hours of continuing education for each year the license was lapsed. (Answer) - Answer- Janie let it expire when her first child was born. As Janie wants to return to the real estate profession, what is one of the requirements she must fulfill? 1.) he must pay the regular renewal fee. 2.) he must pay a late fee. 3.) he may still do a limited amount of licensed real estate transactions. (Answer) 4.) he must complete the continuing education requirements if they were not already complete. - Answer- If a licensee missed his license expiration date of October 31 and then tried to renew his license on December 15 of the same year, all of the following are true EXCEPT 1.) 6 hours 2.) 18 hours (Answer) 3.) 30 hours 4.) 60 hours - Answer- How many hours of continuing education must a licensee complete each cycle? 1.) by issuing grants to hire more instructors. 2.) sponsoring studies, research and programs. (Answer) 3.) by developing ethics courses schools can adopt at no charge. 4.) by sponsoring scholarships for low income students. - Answer- The Department may assist educational institutions in an effort to raise the standards of professional practice by 1.) 6 hours 2.) 12 hours (Answer) 3.) 18 hours 4.) 24 hours - Answer- A salesperson who obtained his or her license in the second year of the cycle must complete how many hours of continuing education for the first renewal? 1.) two years. 2.) three years. (Answer) 3.) five years. 4.) seven years. - Answer- Branch office licenses are issued for terms of 1.) 15 days 2.) 30 days 3.) 45 days 4.) 60 days (Answer) - Answer- How long is the grace period for a salesperson who does not renew his or her license by the expiration date? 1.) within 30 days from the license's expiration. 2.) There is a 60-day late renewal period if payed after October 31st, a late renewal fee will apply. (Answer) 3.) never; Michigan does not allow late renewals. 4.) within one year of the license's expiration. After that, the licensee must apply for relicensure. - Answer- In Michigan, a late license renewal can be done 1.) Salesperson 2.) Non-principal broker 3.) Licensed administrator 4.) Principle associate broker (Answer) - Answer- Which license is not transferable? 1.) 2 years 2.) 3 years (Answer) 3.) 5 years 4.) 7 years - Answer- All approved real estate schools must maintain students' educational records for a minimum of how long? 1.) 30 days 2.) 1 year 3.) 3 years (Answer) 4.) 6 years - Answer- How long must a salesperson whose license was revoked wait until he or she can reapply for a new license? 1.) the treasurer's fund. 2.) the Board. 3.) the employing broker's escrow account. 4.) the Real Estate Education Fund. (Answer) - Answer- Fifteen dollars ($15.00) from each license fee will be credited to 1.) Sue, who has 20+ years experience as an administrative assistant in a busy real estate office. 2.) Jim, who teaches photography classes at the local community college and is looking to supplement his income. 3.) Raphael, who is a licensed attorney specializing in real estate law. (Answer) 4.) Sharon, an unlicensed investor who has been flipping houses for five years. - Answer- Which of the following would be most likely to be approved as a real estate instructor in the state of Michigan? 1.) Any licensee with a disability covered under the Americans with Disabilities Act 2.) Any licensee who is on active duty in the armed forces of the United States in an area designated as a combat zone (Answer) 3.) Any licensee who appeals the licensing requirements on a financial basis 4.) The state of Michigan does not grant temporary exemptions - Answer- Which of the following would be eligible for a temporary exemption from the renewal license fee and continuing education requirements? 1.) Yes, without limitations 2.) Yes, but only up to 6 hours 3.) Yes, but not more than once for the same course (Answer) 4.) No, not under any circumstances - Answer- Is it legal for a real estate instructor to receive CE credit toward the renewal of his real estate license for teaching a class? 1.) 2 hours (Answer) 2.) 6 hours 3.) 18 hours 4.) 30 hours - Answer- What is the minimum number of continuing education hours a licensee must complete each calendar year? 1.) The pocket card sent from the Department (Answer) 2.) The original real estate license sent from the Department 3.) A laminated copy of the original real estate license sent from the Department 4.) A letter of verification from the employing broker - Answer- What must a licensee carry at all times while transacting real estate business? 1.) March 22, 2019 2.) January 1, 2018 3.) October 31, 2018 4.) October 31, 2019 (Answer) - Answer- Janice obtained her license on March 22, 2016. When will her license expire? 1.) the prosecution of licensees found to be in violation of the Occupational Code. 2.) the operation of programs related to the educational requirements of licensees and applicants. 3.) the enforcement of the NAR code of ethics. 4.) the enforcement of Article 25 of the Occupational Code regarding unlicensed activity. (Answer) - Answer- Funds deposited into the Real Estate Enforcement fund are used for 1.) A licensed salesperson 2.) A licensed broker (Answer) 3.) A licensed associate broker 4.) An unlicensed owner - Answer- ___________ can open a real estate office. 1.) can be virtual offices where brokers conduct business and maintain records via the internet. 2.) must have a physical location for conducting business but records can be stored via the internet. 3.) must have a physical location where records are stored but all other work can be done in a virtual office. 4.) must be a physical location where a broker conducts business and records are maintained. (Answer) - Answer- Real estate offices in Michigan 1.) 5 (Answer) 2.) 14 3.) 30