MICHIGAN REAL ESTATE EXAM
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📋 DOCUMENT OVERVIEW 78 Qs
This document, "Michigan Real Estate Exam," covers topics such as fair housing laws, estate
distribution, inverse condemnation, condominium ownership, property disclosure, commission
negotiations, agency relationships, earnest money, and closing procedures. The document provides 78
questions with correct answers and detailed explanations, allowing users to review and understand real
estate concepts for exam preparation. By leveraging this resource, students can study, review, and
grasp key concepts, enhancing their knowledge and confidence in preparing for the Michigan real estate
exam.
✓ Verified Answers ✓ Exam Ready ✓ Study Guide
Trusted by thousands of students and professionals worldwide
EXAM QUESTIONS
QUESTION 1
Under the Federal Fair Housing Law, give an example of discriminatory advertising.
CORRECT ANSWER
"Catholics preferred."
RATIONALE: This is an example of discriminatory advertising because it implies that the rental property is only available
to Catholics, potentially excluding non-Catholic individuals, which is a form of discrimination based on religion. By using
the word "preferred," the ad is subtly suggesting that Catholics are the preferred demographic, which can be seen as
discriminatory under the Federal Fair Housing Law.
QUESTION 2
When someone has living heirs but dies without leaving a will, the estate is distributed according to
what?
CORRECT ANSWER
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, that statute of descent.
RATIONALE: The correct answer is "that statute of descent" because when someone dies without a will, their estate is
distributed according to the laws and regulations outlined in the statute of descent, which govern how property is
passed down to living heirs. This ensures a fair and orderly distribution of assets, as the laws dictate the specific shares
and distribution methods for different types of property and family relationships.
QUESTION 3
A lawsuit for inverse condemnation may be brought by whom?
CORRECT ANSWER
a homeowner
RATIONALE: A lawsuit for inverse condemnation may be brought by a homeowner because it is a claim that the
government has taken a property right through a regulatory action, rather than a formal condemnation, and the
homeowner has suffered a direct loss as a result. In this context, "a homeowner" is the correct answer because it
specifically refers to an individual who has a direct interest in the property affected by the government's action.
QUESTION 4
A major reason for buying and owning a condominium rather than a detached single-family home is
what?
CORRECT ANSWER
a condominium tends to be more affordable.
RATIONALE: A condominium tends to be more affordable because it requires shared maintenance costs with other
owners, which reduces the financial burden typically associated with owning a detached single-family home. This shared
responsibility allows condominium owners to allocate their finances more efficiently, making the condominium a more
financially viable option.
QUESTION 5
A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no
termites now. Before listing the property, the agent should tell the seller to do what?
CORRECT ANSWER
disclose the termite treatment on the property disclosure.
RATIONALE: The seller is required to disclose the termite treatment on the property disclosure because it's a material
fact that could affect the buyer's decision to purchase the property. The Real Estate Disclosure Laws typically mandate
sellers to reveal any known defects or issues, including termite treatments, to maintain transparency and avoid potential
lawsuits.
QUESTION 6
During the listing presentation, the seller questions the amount of commission to be paid and is told
what?
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, CORRECT ANSWER
the amount of commission is negotiable
RATIONALE: The amount of commission is negotiable because real estate commission rates are typically set by the
brokerage company, not mandated by law or industry standards, allowing for room for negotiation between the seller
and the agent. This negotiation is a standard practice in the real estate industry, enabling sellers to explore different
options and potentially secure better rates or terms.
QUESTION 7
What is true of both special assessments an ad valorem taxes?
CORRECT ANSWER
Delinquent payment is grounds for sale of the property.
RATIONALE: Special assessments and ad valorem taxes are both forms of property taxes that provide a basis for
foreclosure and sale of the property if the delinquent payments are not made, giving the government a financial
incentive to enforce timely payments. This commonality in consequences highlights the shared nature of these two
types of taxes, making the statement a correct assertion about both special assessments and ad valorem taxes.
QUESTION 8
A deed restriction is applicable to the activities of who?
CORRECT ANSWER
present and future owners.
RATIONALE: A deed restriction is a legally binding covenant that affects the rights and responsibilities of property
owners, making it applicable to both present and future owners of a property. The restriction remains in effect even
when ownership changes, thereby binding future owners to the terms of the deed, which is why the answer includes
both present and future owners.
QUESTION 9
A seller mentions to his agent that the previous owners of his property may have dumped hazardous
waste on the site. Under the Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA), who is liable for damages from the dumping prior to the sale of the property?
CORRECT ANSWER
Seller.
RATIONALE: The key concept here is that CERCLA imposes strict liability on parties responsible for hazardous waste
contamination, and in this case, the previous owners are deemed responsible for any dumping prior to the sale of the
property. This is because CERCLA holds current and previous owners who contributed to the contamination of a site
liable, regardless of whether they directly dumped the hazardous waste or not.
QUESTION 10
In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers?
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75+ (2026 Exam Bundle) Solved Questions | Correct Answer Keys | 100%
Verified
100% Guarantee Pass
📋 DOCUMENT OVERVIEW 78 Qs
This document, "Michigan Real Estate Exam," covers topics such as fair housing laws, estate
distribution, inverse condemnation, condominium ownership, property disclosure, commission
negotiations, agency relationships, earnest money, and closing procedures. The document provides 78
questions with correct answers and detailed explanations, allowing users to review and understand real
estate concepts for exam preparation. By leveraging this resource, students can study, review, and
grasp key concepts, enhancing their knowledge and confidence in preparing for the Michigan real estate
exam.
✓ Verified Answers ✓ Exam Ready ✓ Study Guide
Trusted by thousands of students and professionals worldwide
EXAM QUESTIONS
QUESTION 1
Under the Federal Fair Housing Law, give an example of discriminatory advertising.
CORRECT ANSWER
"Catholics preferred."
RATIONALE: This is an example of discriminatory advertising because it implies that the rental property is only available
to Catholics, potentially excluding non-Catholic individuals, which is a form of discrimination based on religion. By using
the word "preferred," the ad is subtly suggesting that Catholics are the preferred demographic, which can be seen as
discriminatory under the Federal Fair Housing Law.
QUESTION 2
When someone has living heirs but dies without leaving a will, the estate is distributed according to
what?
CORRECT ANSWER
Trusted by thousands of students and professionals worldwide Page 1 of 22
, that statute of descent.
RATIONALE: The correct answer is "that statute of descent" because when someone dies without a will, their estate is
distributed according to the laws and regulations outlined in the statute of descent, which govern how property is
passed down to living heirs. This ensures a fair and orderly distribution of assets, as the laws dictate the specific shares
and distribution methods for different types of property and family relationships.
QUESTION 3
A lawsuit for inverse condemnation may be brought by whom?
CORRECT ANSWER
a homeowner
RATIONALE: A lawsuit for inverse condemnation may be brought by a homeowner because it is a claim that the
government has taken a property right through a regulatory action, rather than a formal condemnation, and the
homeowner has suffered a direct loss as a result. In this context, "a homeowner" is the correct answer because it
specifically refers to an individual who has a direct interest in the property affected by the government's action.
QUESTION 4
A major reason for buying and owning a condominium rather than a detached single-family home is
what?
CORRECT ANSWER
a condominium tends to be more affordable.
RATIONALE: A condominium tends to be more affordable because it requires shared maintenance costs with other
owners, which reduces the financial burden typically associated with owning a detached single-family home. This shared
responsibility allows condominium owners to allocate their finances more efficiently, making the condominium a more
financially viable option.
QUESTION 5
A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no
termites now. Before listing the property, the agent should tell the seller to do what?
CORRECT ANSWER
disclose the termite treatment on the property disclosure.
RATIONALE: The seller is required to disclose the termite treatment on the property disclosure because it's a material
fact that could affect the buyer's decision to purchase the property. The Real Estate Disclosure Laws typically mandate
sellers to reveal any known defects or issues, including termite treatments, to maintain transparency and avoid potential
lawsuits.
QUESTION 6
During the listing presentation, the seller questions the amount of commission to be paid and is told
what?
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, CORRECT ANSWER
the amount of commission is negotiable
RATIONALE: The amount of commission is negotiable because real estate commission rates are typically set by the
brokerage company, not mandated by law or industry standards, allowing for room for negotiation between the seller
and the agent. This negotiation is a standard practice in the real estate industry, enabling sellers to explore different
options and potentially secure better rates or terms.
QUESTION 7
What is true of both special assessments an ad valorem taxes?
CORRECT ANSWER
Delinquent payment is grounds for sale of the property.
RATIONALE: Special assessments and ad valorem taxes are both forms of property taxes that provide a basis for
foreclosure and sale of the property if the delinquent payments are not made, giving the government a financial
incentive to enforce timely payments. This commonality in consequences highlights the shared nature of these two
types of taxes, making the statement a correct assertion about both special assessments and ad valorem taxes.
QUESTION 8
A deed restriction is applicable to the activities of who?
CORRECT ANSWER
present and future owners.
RATIONALE: A deed restriction is a legally binding covenant that affects the rights and responsibilities of property
owners, making it applicable to both present and future owners of a property. The restriction remains in effect even
when ownership changes, thereby binding future owners to the terms of the deed, which is why the answer includes
both present and future owners.
QUESTION 9
A seller mentions to his agent that the previous owners of his property may have dumped hazardous
waste on the site. Under the Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA), who is liable for damages from the dumping prior to the sale of the property?
CORRECT ANSWER
Seller.
RATIONALE: The key concept here is that CERCLA imposes strict liability on parties responsible for hazardous waste
contamination, and in this case, the previous owners are deemed responsible for any dumping prior to the sale of the
property. This is because CERCLA holds current and previous owners who contributed to the contamination of a site
liable, regardless of whether they directly dumped the hazardous waste or not.
QUESTION 10
In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers?
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