PSI REAL ESTATE PRACTICE EXAM - MICHIGAN (CHAPTER 1)
Designated Agent
Correct answer: A person authorized by the broker to act as the agent of a specic
principal - common in dual agency relationships, two salespersons from the same
company can represent opposite sides of the sale.
Income Approach
Correct 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"
Correct answer: Charlie is the personal assistant for the top producer in the oice, and he
would like to have his own business cards. What can Charlie list as his title?
1.) They have the same force and eect 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 eect than the Code. (Answer)
Correct 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.
Correct 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.
Correct answer: In the state of Michigan, you do not need a real estate license to
1.) engage in a minimum of ve real estate transactions in a 12 month period. (Answer)
2.)perform a minimum of 40 hours per month on oor time.
3.) le $40,000 or more in commissions on their income tax return.
4.) become a broker within two years of getting a salesperson's license.
Correct 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.
Correct 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)
Correct 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.
Correct answer: The Department of Licensing and Regulatory Aairs 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
Correct answer: _______________ are policies used by the Department of Licensing and
Regulatory Aairs to interpret and enforce the Occupational Code.
1.) Discuss the nancing 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.
Correct answer: An unlicensed assistant in a real estate oice 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)
Correct answer: Of the total Board members, how many must be licensed to practice real
estate in Michigan?
1.) Information on nancing
2.) Information on the number of bathrooms a listing has (Answer)
3.) Information on closings
4.) Information on title insurance
Correct 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
Correct 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
Correct answer: _______________ is not a responsibility of the Board.
1.) the Michigan Occupational Code.
Designated Agent
Correct answer: A person authorized by the broker to act as the agent of a specic
principal - common in dual agency relationships, two salespersons from the same
company can represent opposite sides of the sale.
Income Approach
Correct 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"
Correct answer: Charlie is the personal assistant for the top producer in the oice, and he
would like to have his own business cards. What can Charlie list as his title?
1.) They have the same force and eect 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 eect than the Code. (Answer)
Correct 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.
Correct 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.
Correct answer: In the state of Michigan, you do not need a real estate license to
1.) engage in a minimum of ve real estate transactions in a 12 month period. (Answer)
2.)perform a minimum of 40 hours per month on oor time.
3.) le $40,000 or more in commissions on their income tax return.
4.) become a broker within two years of getting a salesperson's license.
Correct 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.
Correct 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)
Correct 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.
Correct answer: The Department of Licensing and Regulatory Aairs 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
Correct answer: _______________ are policies used by the Department of Licensing and
Regulatory Aairs to interpret and enforce the Occupational Code.
1.) Discuss the nancing 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.
Correct answer: An unlicensed assistant in a real estate oice 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)
Correct answer: Of the total Board members, how many must be licensed to practice real
estate in Michigan?
1.) Information on nancing
2.) Information on the number of bathrooms a listing has (Answer)
3.) Information on closings
4.) Information on title insurance
Correct 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
Correct 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
Correct answer: _______________ is not a responsibility of the Board.
1.) the Michigan Occupational Code.
