Michigan Real Estate Broker Specialty
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
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1. A broker in Michigan must maintain earnest money deposits in a/an:
A. Personal business account
B. Office petty cash fund
C. Trust or escrow account
D. Mortgage company account
Bold-italic rationale: Brokers are required to hold client funds in a
trust/escrow account separate from personal or business accounts to
avoid commingling.
2. A Michigan broker is responsible for supervising licensees affiliated
with the firm under the doctrine of:
A. Actual authority
B. Vicarious liability
C. Rescission
D. Estoppel
Bold-italic rationale: Vicarious liability holds the broker accountable
for acts of affiliated licensees performed in the scope of their duties.
3. In Michigan, a broker must retain copies of contracts and transaction
records for at least:
A. One year
B. Three years
C. Six years
D. Ten years
, Bold-italic rationale: Michigan real estate law generally requires
brokers to maintain records for six years for audit and regulatory
compliance.
4. A Michigan broker receives an offer with a financing contingency. The
broker should:
A. Ignore the contingency
B. Present the offer promptly to the seller
C. Advise the seller to reject the financing clause
D. Wait for the buyer to remove the contingency
Bold-italic rationale: Brokers must present all offers promptly
regardless of contingencies.
5. A dual agency in Michigan requires:
A. No written consent
B. Seller consent only
C. Written consent of all parties
D. Approval of the Michigan Real Estate Commission
Bold-italic rationale: Dual agency requires written informed consent
from both buyer and seller.
6. A Michigan broker advertising property for sale must include the:
A. Tax assessor’s ID
B. Appraised value
C. Broker’s firm name
D. List price only
Bold-italic rationale: Advertising must clearly disclose the broker’s
firm name to avoid misleading the public.
7. An unlicensed assistant may perform all of the following except:
A. Copying documents
B. Negotiating contract terms
C. Delivering forms
D. Scheduling appointments
Bold-italic rationale: Only licensed individuals may negotiate
contract terms; assistants’ duties are limited to administrative tasks.
8. In Michigan, a broker’s earnest money trust account is subject to
examination by:
A. Federal Reserve
, B. Michigan Department of Licensing and Regulatory Affairs
C. Internal Revenue Service
D. Seller only
Bold-italic rationale: The Michigan Department of Licensing and
Regulatory Affairs has authority to audit trust accounts.
9. A listing agreement that automatically renews without seller consent
is:
A. Valid
B. Preferred
C. Prohibited
D. Rescindable only by buyer
Bold-italic rationale: Automatic renewal clauses without consent
violate Michigan real estate advertising and contracting standards.
10. A Michigan broker must disclose known material defects in a
property to:
A. Neighbors
B. The seller only
C. The buyer only
D. Both buyer and seller
Bold-italic rationale: Material defect disclosure is required to both
parties when the broker is aware.
11. A broker owes the fiduciary duty of loyalty to:
A. All visitors
B. The public
C. The client
D. Mortgage lenders
Bold-italic rationale: Fiduciary duties, including loyalty, are owed to
clients represented by the broker.
12. A Michigan broker license expires:
A. On March 31 of even years
B. December 31 of odd years
C. June 30 of every year
D. After one year from issuance
Bold-italic rationale: Michigan broker licenses expire March 31 of
even-numbered years unless renewed.
Exam Practice Questions And Correct
Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. A broker in Michigan must maintain earnest money deposits in a/an:
A. Personal business account
B. Office petty cash fund
C. Trust or escrow account
D. Mortgage company account
Bold-italic rationale: Brokers are required to hold client funds in a
trust/escrow account separate from personal or business accounts to
avoid commingling.
2. A Michigan broker is responsible for supervising licensees affiliated
with the firm under the doctrine of:
A. Actual authority
B. Vicarious liability
C. Rescission
D. Estoppel
Bold-italic rationale: Vicarious liability holds the broker accountable
for acts of affiliated licensees performed in the scope of their duties.
3. In Michigan, a broker must retain copies of contracts and transaction
records for at least:
A. One year
B. Three years
C. Six years
D. Ten years
, Bold-italic rationale: Michigan real estate law generally requires
brokers to maintain records for six years for audit and regulatory
compliance.
4. A Michigan broker receives an offer with a financing contingency. The
broker should:
A. Ignore the contingency
B. Present the offer promptly to the seller
C. Advise the seller to reject the financing clause
D. Wait for the buyer to remove the contingency
Bold-italic rationale: Brokers must present all offers promptly
regardless of contingencies.
5. A dual agency in Michigan requires:
A. No written consent
B. Seller consent only
C. Written consent of all parties
D. Approval of the Michigan Real Estate Commission
Bold-italic rationale: Dual agency requires written informed consent
from both buyer and seller.
6. A Michigan broker advertising property for sale must include the:
A. Tax assessor’s ID
B. Appraised value
C. Broker’s firm name
D. List price only
Bold-italic rationale: Advertising must clearly disclose the broker’s
firm name to avoid misleading the public.
7. An unlicensed assistant may perform all of the following except:
A. Copying documents
B. Negotiating contract terms
C. Delivering forms
D. Scheduling appointments
Bold-italic rationale: Only licensed individuals may negotiate
contract terms; assistants’ duties are limited to administrative tasks.
8. In Michigan, a broker’s earnest money trust account is subject to
examination by:
A. Federal Reserve
, B. Michigan Department of Licensing and Regulatory Affairs
C. Internal Revenue Service
D. Seller only
Bold-italic rationale: The Michigan Department of Licensing and
Regulatory Affairs has authority to audit trust accounts.
9. A listing agreement that automatically renews without seller consent
is:
A. Valid
B. Preferred
C. Prohibited
D. Rescindable only by buyer
Bold-italic rationale: Automatic renewal clauses without consent
violate Michigan real estate advertising and contracting standards.
10. A Michigan broker must disclose known material defects in a
property to:
A. Neighbors
B. The seller only
C. The buyer only
D. Both buyer and seller
Bold-italic rationale: Material defect disclosure is required to both
parties when the broker is aware.
11. A broker owes the fiduciary duty of loyalty to:
A. All visitors
B. The public
C. The client
D. Mortgage lenders
Bold-italic rationale: Fiduciary duties, including loyalty, are owed to
clients represented by the broker.
12. A Michigan broker license expires:
A. On March 31 of even years
B. December 31 of odd years
C. June 30 of every year
D. After one year from issuance
Bold-italic rationale: Michigan broker licenses expire March 31 of
even-numbered years unless renewed.
