Michigan Real Estate Salesperson
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. A property owner has listed their residential property with Broker A under
an exclusive right-to-sell listing agreement. During the listing period, the
owner independently finds a buyer who purchases the property without
any involvement from Broker A. Which of the following is true regarding the
commission?
A. The owner owes no commission because they found the buyer independently
B. The owner owes a commission only if Broker A can prove they were the
procuring cause
C. The owner owes the full commission as specified in the exclusive right-to-sell
agreement
D. The commission must be split equally between Broker A and the owner
Answer: The owner owes the full commission as specified in the exclusive right-
to-sell agreement
Rationale: An exclusive right-to-sell listing agreement guarantees the broker a
commission regardless of who procures the buyer, as long as the sale occurs
during the listing period. This is the most protective listing type for brokers and
creates an absolute right to compensation upon sale.
, 2. In the context of real estate procurement planning, which of the following
best describes the concept of "market absorption rate" and its primary
utility for a real estate salesperson?
A. The rate at which properties are listed on the MLS, used to determine optimal
pricing strategy
B. The rate at which available properties are sold in a specific market over a
defined period, used to forecast inventory needs and pricing adjustments
C. The percentage of buyers who successfully close on properties after making
offers, used to evaluate agent effectiveness
D. The rate at which property values appreciate annually, used to project long-
term investment returns
Answer: The rate at which available properties are sold in a specific market over
a defined period, used to forecast inventory needs and pricing adjustments
Rationale: Absorption rate is a critical metric in procurement planning for real
estate professionals. It represents the number of months it would take to sell all
currently available inventory based on current sales pace, enabling salespeople
to advise clients on pricing strategies and timing decisions. This directly impacts
how properties are procured and marketed.
3. A real estate salesperson is preparing a comparative market analysis (CMA)
for a seller. The subject property is a 3-bedroom, 2-bathroom ranch home
with an unfinished basement. Which of the following properties would be
the MOST appropriate comparable to include in the analysis?
A. A 4-bedroom, 3-bathroom colonial with a finished basement that sold 18
months ago
B. A 3-bedroom, 2-bathroom ranch with an unfinished basement that sold 3
months ago within the same school district
C. A 3-bedroom, 2-bathroom ranch with an unfinished basement that is currently
listed for sale but has not yet sold
,D. A 2-bedroom, 2-bathroom condominium with similar square footage that sold 2
months ago
Answer: A 3-bedroom, 2-bathroom ranch with an unfinished basement that sold
3 months ago within the same school district
Rationale: The most appropriate comparable property should be as similar as
possible in physical characteristics, location, and have recently sold, not merely
listed. The same bedroom/bath count, home style, basement condition, recent
sale date, and similar location make this the strongest comparable.
4. Which of the following statements regarding the Code of Ethics of the
National Association of REALTORS® is most accurate concerning a
REALTOR®'s duty to cooperate with other brokers?
A. REALTORS® must always cooperate with other brokers unless the cooperating
broker is offering compensation below the minimum amount established by the
local board
B. REALTORS® must cooperate with other brokers on all listings and must share all
information about the property without exception
C. REALTORS® have no obligation to cooperate with other brokers when the seller
has refused to offer compensation to cooperating brokers
D. REALTORS® must cooperate with other brokers only when the listing broker has
an exclusive agency agreement with the seller
Answer: REALTORS® must always cooperate with other brokers unless the
cooperating broker is offering compensation below the minimum amount
established by the local board
Rationale: Article 3 of the NAR Code of Ethics requires REALTORS® to cooperate
with other brokers except when cooperation is not in the client's best interest or
when the cooperating broker's offered compensation is below the minimum
established by the local board. This reflects the principle of cooperation as
fundamental to the real estate profession.
, 5. In a procurement context, when a licensee is representing a buyer, which of
the following actions would constitute a breach of the fiduciary duty of
loyalty?
A. The licensee shows the buyer a property listed by the licensee's own brokerage
firm
B. The licensee presents the buyer with multiple property options, including
properties the licensee has personal interest in
C. The licensee discloses to the seller that the buyer is willing to pay more than
the listed price if necessary to secure the property
D. The licensee recommends that the buyer obtain independent legal counsel
before signing a purchase agreement
Answer: The licensee discloses to the seller that the buyer is willing to pay more
than the listed price if necessary to secure the property
Rationale: The fiduciary duty of loyalty requires the licensee to prioritize the
client's interests above all others, including the licensee's own interests and
those of other parties. Disclosing the buyer's maximum budget to the seller
would severely compromise the buyer's negotiating position and violates the
duty to safeguard confidential information.
6. When applying the "procuring cause" doctrine to determine commission
entitlement in a multiple broker scenario, which factor is given the greatest
weight by Michigan courts?
A. The chronological order in which brokers were first contacted by the buyer
B. The listing agreement type between the seller and the initial broker
C. Which broker's efforts were the direct and proximate cause of the sale, creating
an unbroken chain of causation
D. The geographical proximity of each broker's office to the subject property
Answer: Which broker's efforts were the direct and proximate cause of the sale,
creating an unbroken chain of causation
Rationale: Michigan courts apply the procuring cause doctrine by evaluating
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. A property owner has listed their residential property with Broker A under
an exclusive right-to-sell listing agreement. During the listing period, the
owner independently finds a buyer who purchases the property without
any involvement from Broker A. Which of the following is true regarding the
commission?
A. The owner owes no commission because they found the buyer independently
B. The owner owes a commission only if Broker A can prove they were the
procuring cause
C. The owner owes the full commission as specified in the exclusive right-to-sell
agreement
D. The commission must be split equally between Broker A and the owner
Answer: The owner owes the full commission as specified in the exclusive right-
to-sell agreement
Rationale: An exclusive right-to-sell listing agreement guarantees the broker a
commission regardless of who procures the buyer, as long as the sale occurs
during the listing period. This is the most protective listing type for brokers and
creates an absolute right to compensation upon sale.
, 2. In the context of real estate procurement planning, which of the following
best describes the concept of "market absorption rate" and its primary
utility for a real estate salesperson?
A. The rate at which properties are listed on the MLS, used to determine optimal
pricing strategy
B. The rate at which available properties are sold in a specific market over a
defined period, used to forecast inventory needs and pricing adjustments
C. The percentage of buyers who successfully close on properties after making
offers, used to evaluate agent effectiveness
D. The rate at which property values appreciate annually, used to project long-
term investment returns
Answer: The rate at which available properties are sold in a specific market over
a defined period, used to forecast inventory needs and pricing adjustments
Rationale: Absorption rate is a critical metric in procurement planning for real
estate professionals. It represents the number of months it would take to sell all
currently available inventory based on current sales pace, enabling salespeople
to advise clients on pricing strategies and timing decisions. This directly impacts
how properties are procured and marketed.
3. A real estate salesperson is preparing a comparative market analysis (CMA)
for a seller. The subject property is a 3-bedroom, 2-bathroom ranch home
with an unfinished basement. Which of the following properties would be
the MOST appropriate comparable to include in the analysis?
A. A 4-bedroom, 3-bathroom colonial with a finished basement that sold 18
months ago
B. A 3-bedroom, 2-bathroom ranch with an unfinished basement that sold 3
months ago within the same school district
C. A 3-bedroom, 2-bathroom ranch with an unfinished basement that is currently
listed for sale but has not yet sold
,D. A 2-bedroom, 2-bathroom condominium with similar square footage that sold 2
months ago
Answer: A 3-bedroom, 2-bathroom ranch with an unfinished basement that sold
3 months ago within the same school district
Rationale: The most appropriate comparable property should be as similar as
possible in physical characteristics, location, and have recently sold, not merely
listed. The same bedroom/bath count, home style, basement condition, recent
sale date, and similar location make this the strongest comparable.
4. Which of the following statements regarding the Code of Ethics of the
National Association of REALTORS® is most accurate concerning a
REALTOR®'s duty to cooperate with other brokers?
A. REALTORS® must always cooperate with other brokers unless the cooperating
broker is offering compensation below the minimum amount established by the
local board
B. REALTORS® must cooperate with other brokers on all listings and must share all
information about the property without exception
C. REALTORS® have no obligation to cooperate with other brokers when the seller
has refused to offer compensation to cooperating brokers
D. REALTORS® must cooperate with other brokers only when the listing broker has
an exclusive agency agreement with the seller
Answer: REALTORS® must always cooperate with other brokers unless the
cooperating broker is offering compensation below the minimum amount
established by the local board
Rationale: Article 3 of the NAR Code of Ethics requires REALTORS® to cooperate
with other brokers except when cooperation is not in the client's best interest or
when the cooperating broker's offered compensation is below the minimum
established by the local board. This reflects the principle of cooperation as
fundamental to the real estate profession.
, 5. In a procurement context, when a licensee is representing a buyer, which of
the following actions would constitute a breach of the fiduciary duty of
loyalty?
A. The licensee shows the buyer a property listed by the licensee's own brokerage
firm
B. The licensee presents the buyer with multiple property options, including
properties the licensee has personal interest in
C. The licensee discloses to the seller that the buyer is willing to pay more than
the listed price if necessary to secure the property
D. The licensee recommends that the buyer obtain independent legal counsel
before signing a purchase agreement
Answer: The licensee discloses to the seller that the buyer is willing to pay more
than the listed price if necessary to secure the property
Rationale: The fiduciary duty of loyalty requires the licensee to prioritize the
client's interests above all others, including the licensee's own interests and
those of other parties. Disclosing the buyer's maximum budget to the seller
would severely compromise the buyer's negotiating position and violates the
duty to safeguard confidential information.
6. When applying the "procuring cause" doctrine to determine commission
entitlement in a multiple broker scenario, which factor is given the greatest
weight by Michigan courts?
A. The chronological order in which brokers were first contacted by the buyer
B. The listing agreement type between the seller and the initial broker
C. Which broker's efforts were the direct and proximate cause of the sale, creating
an unbroken chain of causation
D. The geographical proximity of each broker's office to the subject property
Answer: Which broker's efforts were the direct and proximate cause of the sale,
creating an unbroken chain of causation
Rationale: Michigan courts apply the procuring cause doctrine by evaluating
