Unit 27: Contractual Relationships
Michigan Real Estate Latest Exam And
100% Correct Answers 2025-2026
Updated.
Any unlawful act or violation by a salesperson
A) will place a limitation on the broker's license.
B) may put a broker in violation of the duty to supervise.
C) is cause for revocation of the broker's license.
D) requires the Department to issue a citation to the broker - Answer "B-Explanation:
The answer is may put a broker in violation of the duty to supervise. A broker's license will not
be revoked because of a violation committed by a salesperson unless the broker had guilty
knowledge of the misconduct. However, because a broker is responsible for supervising
licensees, it is possible that the salesperson's violation would not have occurred under proper
supervision. Therefore, the salesperson's violation may evidence that the broker violated the
duty to supervise
"
"When a buyer refuses to sign a buyer representation agreement with the broker and the
company agency policy does not allow the broker to act as a transaction coordinator,
A) the broker becomes a subagent to the listing broker.
B) the company might be fined by the Department because the company's agency policy must
allow the option of becoming a transaction coordinator.
C) the licensee will owe fiduciary duties to the buyer anyway.
D) the broker cannot proceed with the transaction and must refer the buyer to another office -
Answer "A-Explanation:
The answer is the broker becomes a subagent to the listing broker. A company can set its agency
policy in any manner that it wishes. A subagency occurs when both brokers in a cooperating
transaction represent the same seller
"
, C) charging a flat fee.
D) entering into a net service provision agreement - Answer "D-Explanation:
The answer is entering into a net service provision agreement. A net service provision
agreement is illegal in Michigan in that it violates the Occupational Code
"
"Which of the following statements about real estate independent contractors is TRUE under
the Occupational Code?
A) A salesperson cannot legally be hired on an independent contractor basis.
B) A broker is not required to supervise an associate broker's activities if the associate broker is
hired on an independent contractor basis.
C) A licensee who is hired on an independent contractor basis must earn at least 90% of the
compensation based on commissions, not hours worked.
D) A licensee who is hired on an independent contractor basis must have a written agreement
with the broker specifying that the person is not considered an employee for federal or state
income tax purposes - Answer "D-Explanation:
The answer is a licensee who is hired on an independent contractor basis must have a written
agreement with the broker specifying that the person is not considered an employee for federal
or state income tax purposes. In addition, at least 75% of the annual compensation from the
real estate broker to the licensee must be based on commissions earned, not the number of
hours worked
"
"When a licensee who is not the agent of the buyer or the seller is paid a commission by the
buyer for locating him an investment property, the licensee is operating as
A) a dual agent.
B) a transaction coordinator.
C) an express agent.
D) a buyer agent - Answer "B-Explanation:
The answer is a transaction coordinator. Michigan law allows a licensee to participate in a real
estate transaction with customers without acting in an agency capacity. A nonagent is referred
to as a transaction coordinator. A licensee can be paid a commission without becoming an agent
Michigan Real Estate Latest Exam And
100% Correct Answers 2025-2026
Updated.
Any unlawful act or violation by a salesperson
A) will place a limitation on the broker's license.
B) may put a broker in violation of the duty to supervise.
C) is cause for revocation of the broker's license.
D) requires the Department to issue a citation to the broker - Answer "B-Explanation:
The answer is may put a broker in violation of the duty to supervise. A broker's license will not
be revoked because of a violation committed by a salesperson unless the broker had guilty
knowledge of the misconduct. However, because a broker is responsible for supervising
licensees, it is possible that the salesperson's violation would not have occurred under proper
supervision. Therefore, the salesperson's violation may evidence that the broker violated the
duty to supervise
"
"When a buyer refuses to sign a buyer representation agreement with the broker and the
company agency policy does not allow the broker to act as a transaction coordinator,
A) the broker becomes a subagent to the listing broker.
B) the company might be fined by the Department because the company's agency policy must
allow the option of becoming a transaction coordinator.
C) the licensee will owe fiduciary duties to the buyer anyway.
D) the broker cannot proceed with the transaction and must refer the buyer to another office -
Answer "A-Explanation:
The answer is the broker becomes a subagent to the listing broker. A company can set its agency
policy in any manner that it wishes. A subagency occurs when both brokers in a cooperating
transaction represent the same seller
"
, C) charging a flat fee.
D) entering into a net service provision agreement - Answer "D-Explanation:
The answer is entering into a net service provision agreement. A net service provision
agreement is illegal in Michigan in that it violates the Occupational Code
"
"Which of the following statements about real estate independent contractors is TRUE under
the Occupational Code?
A) A salesperson cannot legally be hired on an independent contractor basis.
B) A broker is not required to supervise an associate broker's activities if the associate broker is
hired on an independent contractor basis.
C) A licensee who is hired on an independent contractor basis must earn at least 90% of the
compensation based on commissions, not hours worked.
D) A licensee who is hired on an independent contractor basis must have a written agreement
with the broker specifying that the person is not considered an employee for federal or state
income tax purposes - Answer "D-Explanation:
The answer is a licensee who is hired on an independent contractor basis must have a written
agreement with the broker specifying that the person is not considered an employee for federal
or state income tax purposes. In addition, at least 75% of the annual compensation from the
real estate broker to the licensee must be based on commissions earned, not the number of
hours worked
"
"When a licensee who is not the agent of the buyer or the seller is paid a commission by the
buyer for locating him an investment property, the licensee is operating as
A) a dual agent.
B) a transaction coordinator.
C) an express agent.
D) a buyer agent - Answer "B-Explanation:
The answer is a transaction coordinator. Michigan law allows a licensee to participate in a real
estate transaction with customers without acting in an agency capacity. A nonagent is referred
to as a transaction coordinator. A licensee can be paid a commission without becoming an agent
