MICHIGAN REAL ESTATE EXAM AND
PRACTICE EXAM NEWEST 2026 TEST
BANK| QUESTIONS AND CORRECT
VERIFIED ANSWERS/ ALREADY GRADED
A+ ( RECENT!!)
1. Which Department investigates complaints against real estate
licensees in Michigan?
o Answer: The Department of Licensing and Regulatory Affairs
(LARA).
2. What is the role of the Board in relation to the Department
regarding licensing?
o Correct Answer: Both act together to review and approve the
licensing examination.
3. What are the functions of the Board?
o Correct Answer: They interpret licensure requirements and aid
in investigations, members are appointed by the governor, and
they serve 2 four-year terms.
4. How long can someone wait before they have to take the test
again if they don't practice real estate for a period of time?
o Correct Answer: 3 Years.
License Requirements and Types
5. How many hours of approved schooling does a Broker require?
o Correct Answer: 90 Hours.
, 6. Does a Builder need a real estate license if they build and sell
single-family dwellings, duplexes, triplexes, or quadruplexes?
o Correct Answer: No, not if they build and sell those types of
dwellings.
7. What is the minimum age requirement to receive a salesperson
real estate license in Michigan?
o Correct Answer: At least 19 years old.
8. What is one of the requirements for an applicant for a real estate
license in Michigan?
o Correct Answer: Be of good moral character.
9. A corporation may become a real estate broker and has the right
to deal with the public as long as it consists of what?
o Correct Answer: One principal broker.
Brokerage and Licensee Duties
10. What is the definition of a Real Estate Broker?
o Correct Answer: A person or company licensed to buy, sell,
exchange, or lease real property for others for compensation
and who may be the agent of the buyer, seller, or both, or not
be the agent of any party to the transaction.
11. What is the definition of a Real Estate Salesperson?
o Correct Answer: Conducts brokerage activities on behalf of the
broker.
12. What must a salesperson do with a deposit (earnest money)
after receiving it?
o Correct Answer: Give it to the broker immediately.
13. How many days does a broker have to deposit the earnest
money after receiving notice that an offer to purchase is
accepted?
o Correct Answer: 2 days.
, 14. When can a broker release the funds from a trust or escrow
account?
oCorrect Answer: At the consummation or termination of the
transaction.
15. From whom may a Michigan real estate salesperson collect
compensation?
o Correct Answer: Only from the employing broker.
16. What is a "blind ad"?
o Correct Answer: An advertisement that does not identify the
company or broker.
17. Where must a real estate licensee keep their pocket license?
o Correct Answer: Must be carried with the person when
practicing real estate.
18. To whom may a real estate agent divulge confidential
information about a client?
o Correct Answer: To the supervising broker for the purposes of
obtaining advice or assistance for the client.
19. What is a key responsibility of a Property Manager?
o Correct Answer: The basic responsibility is to protect the
owner's investment while maximizing the owner's financial
return.
Agency and Ethics
20. Which duty does an agent owe to a client?
oCorrect Answer: Loyalty. The Agent owes undivided loyalty to
the client and must put the client's interest above his or her
own.
21. A real estate agent's exaggerated obvious opinion of
property features is known as what?
o Correct Answer: Puffing.
, 22. If a past client asks for a valuation of their property for a
divorce settlement, what should the salesperson do?
o Correct Answer: Refer this out to an appraiser.
23. Who is ultimately responsible for preparing documents for
a closing?
o Correct Answer: The listing broker.
Property Ownership and Interests
24. Real Estate includes all of the following except:
o Correct Answer: Farm equipment.
25. The highest form of ownership recognized by law is:
o Correct Answer: Fee simple absolute.
26. Dower rights apply to:
o Correct Answer: A widow not on the title.
27. What is a key characteristic of a cooperative ownership?
o Correct Answer: The owner receives a proprietary lease, not a
warranty deed.
28. What does the Bundle of Rights refer to?
o Correct Answer: The interests, benefits, and rights that are
automatically included in the ownership of land and real estate.
Property Management and Land Use
29. A landowner wishes to build a grocery store in a residential
zone. What would most likely be used to obtain permission?
o Correct Answer: A conditional use permit or zoning variance.
30. What is a primary risk associated with underground storage
tanks?
o Correct Answer: Leaking which would contaminate soil and
ground water.
PRACTICE EXAM NEWEST 2026 TEST
BANK| QUESTIONS AND CORRECT
VERIFIED ANSWERS/ ALREADY GRADED
A+ ( RECENT!!)
1. Which Department investigates complaints against real estate
licensees in Michigan?
o Answer: The Department of Licensing and Regulatory Affairs
(LARA).
2. What is the role of the Board in relation to the Department
regarding licensing?
o Correct Answer: Both act together to review and approve the
licensing examination.
3. What are the functions of the Board?
o Correct Answer: They interpret licensure requirements and aid
in investigations, members are appointed by the governor, and
they serve 2 four-year terms.
4. How long can someone wait before they have to take the test
again if they don't practice real estate for a period of time?
o Correct Answer: 3 Years.
License Requirements and Types
5. How many hours of approved schooling does a Broker require?
o Correct Answer: 90 Hours.
, 6. Does a Builder need a real estate license if they build and sell
single-family dwellings, duplexes, triplexes, or quadruplexes?
o Correct Answer: No, not if they build and sell those types of
dwellings.
7. What is the minimum age requirement to receive a salesperson
real estate license in Michigan?
o Correct Answer: At least 19 years old.
8. What is one of the requirements for an applicant for a real estate
license in Michigan?
o Correct Answer: Be of good moral character.
9. A corporation may become a real estate broker and has the right
to deal with the public as long as it consists of what?
o Correct Answer: One principal broker.
Brokerage and Licensee Duties
10. What is the definition of a Real Estate Broker?
o Correct Answer: A person or company licensed to buy, sell,
exchange, or lease real property for others for compensation
and who may be the agent of the buyer, seller, or both, or not
be the agent of any party to the transaction.
11. What is the definition of a Real Estate Salesperson?
o Correct Answer: Conducts brokerage activities on behalf of the
broker.
12. What must a salesperson do with a deposit (earnest money)
after receiving it?
o Correct Answer: Give it to the broker immediately.
13. How many days does a broker have to deposit the earnest
money after receiving notice that an offer to purchase is
accepted?
o Correct Answer: 2 days.
, 14. When can a broker release the funds from a trust or escrow
account?
oCorrect Answer: At the consummation or termination of the
transaction.
15. From whom may a Michigan real estate salesperson collect
compensation?
o Correct Answer: Only from the employing broker.
16. What is a "blind ad"?
o Correct Answer: An advertisement that does not identify the
company or broker.
17. Where must a real estate licensee keep their pocket license?
o Correct Answer: Must be carried with the person when
practicing real estate.
18. To whom may a real estate agent divulge confidential
information about a client?
o Correct Answer: To the supervising broker for the purposes of
obtaining advice or assistance for the client.
19. What is a key responsibility of a Property Manager?
o Correct Answer: The basic responsibility is to protect the
owner's investment while maximizing the owner's financial
return.
Agency and Ethics
20. Which duty does an agent owe to a client?
oCorrect Answer: Loyalty. The Agent owes undivided loyalty to
the client and must put the client's interest above his or her
own.
21. A real estate agent's exaggerated obvious opinion of
property features is known as what?
o Correct Answer: Puffing.
, 22. If a past client asks for a valuation of their property for a
divorce settlement, what should the salesperson do?
o Correct Answer: Refer this out to an appraiser.
23. Who is ultimately responsible for preparing documents for
a closing?
o Correct Answer: The listing broker.
Property Ownership and Interests
24. Real Estate includes all of the following except:
o Correct Answer: Farm equipment.
25. The highest form of ownership recognized by law is:
o Correct Answer: Fee simple absolute.
26. Dower rights apply to:
o Correct Answer: A widow not on the title.
27. What is a key characteristic of a cooperative ownership?
o Correct Answer: The owner receives a proprietary lease, not a
warranty deed.
28. What does the Bundle of Rights refer to?
o Correct Answer: The interests, benefits, and rights that are
automatically included in the ownership of land and real estate.
Property Management and Land Use
29. A landowner wishes to build a grocery store in a residential
zone. What would most likely be used to obtain permission?
o Correct Answer: A conditional use permit or zoning variance.
30. What is a primary risk associated with underground storage
tanks?
o Correct Answer: Leaking which would contaminate soil and
ground water.
