Michigan Real Estate Salesperson
Practice Examination Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. A property is encumbered by a restrictive covenant that prohibits the
construction of any structure exceeding thirty-five feet in height. A new
owner wishes to build a forty-foot tall addition to the existing single-family
home. Which of the following is the most accurate statement regarding this
situation?
A. The restrictive covenant is invalid because it is an unreasonable restraint
on the use of the property.
B. The new owner may proceed with construction because zoning laws
supersede all private covenants.
C. The restrictive covenant runs with the land and is enforceable against the
new owner if it was properly recorded and the owner had notice.
D. The covenant is automatically voided after a period of ten years under
Michigan law.
Answer: C
Rationale: A restrictive covenant is a private, written agreement that
limits the use of real property. It runs with the land and binds subsequent
purchasers if it is recorded in the chain of title and the owner has actual,
constructive, or inquiry notice. Zoning laws are governmental regulations
that do not automatically supersede private covenants; the more
restrictive standard typically applies.
2. In a valid real estate contract, the seller breaches the agreement by failing
to deliver marketable title at closing. The buyer has paid a substantial
, earnest money deposit. Which of the following remedies is the buyer NOT
entitled to pursue?
A. Rescission of the contract and a refund of the earnest money deposit.
B. A suit for specific performance to force the seller to convey the title.
C. A suit for monetary damages based on the loss of the bargain.
D. A mechanics lien against the seller's property for the value of the deposit
and search costs.
Answer: D
Rationale: A mechanics lien is a statutory claim filed by contractors,
subcontractors, or suppliers who have provided labor or materials for
improvements to real property. It is not a remedy available to a buyer for
a seller's breach of a purchase agreement. The buyer's remedies include
rescission, specific performance, and monetary damages for breach of
contract.
3. The legal concept of "estoppel" in real estate transactions is best described
as:
A. A legal doctrine that prevents a person from asserting a claim or right
that contradicts what they have previously stated or done, especially when
another party has relied on that statement.
B. A government's right to take private property for public use with just
compensation.
C. The legal process of transferring title from one person to another.
D. A court order that prohibits a party from transferring property pending
the outcome of a lawsuit.
Answer: A
Rationale: Estoppel is an equitable doctrine that prevents a party from
taking a legal position that is inconsistent with a prior position or
representation, particularly when the other party has relied on that
representation to their detriment. In real estate, this can apply to matters
like boundary disputes or representations made during a transaction.
4. A commercial lease contains a clause that increases the base rent annually
based on the Consumer Price Index. This type of escalation clause is known
, as:
A. A revaluation clause.
B. A percentage rent clause.
C. An index lease clause.
D. A step-up lease clause.
Answer: C
Rationale: An index lease clause, also known as an indexed escalation
clause, ties rent increases to a generally recognized economic index, such
as the Consumer Price Index (CPI). This provides an objective measure for
rent adjustments. A revaluation clause ties rent to the fair market value, a
percentage rent clause is based on gross sales, and a step-up clause has
predetermined fixed increases.
5. The primary purpose of the Uniform Commercial Code (UCC) in the context
of real estate is to:
A. Govern the transfer of real property through deeds.
B. Establish uniform building codes for all residential structures.
C. Govern the sale of goods and fixtures, and security interests in personal
property that may be affixed to real estate.
D. Regulate the licensing of real estate professionals across all states.
Answer: C
Rationale: The UCC provides a standardized set of rules for commercial
transactions. In real estate, it is most relevant for governing the sale of
fixtures (goods that become attached to land) and for security interests in
personal property. The transfer of real property is governed by state
property law, not the UCC.
6. A property owner grants an easement to a utility company to install and
maintain power lines across the rear ten feet of their lot. This easement is
most specifically classified as:
A. An easement by prescription.
B. An easement in gross.
C. An appurtenant easement.
D. An easement by necessity.
, Answer: B
Rationale: An easement in gross benefits a specific individual or entity, not
a dominant parcel of land. A utility easement is a classic example, as it
provides a right to a utility company across a property without benefiting
any adjacent land. An appurtenant easement benefits a dominant estate,
a necessity easement arises from landlocking, and a prescriptive
easement arises from adverse use.
7. The statute of frauds in Michigan requires that certain contracts be in
writing to be enforceable. Which of the following real estate contracts is
NOT required to be in writing under the statute of frauds?
A. A contract for the sale of a commercial office building.
B. A lease for a period of three years.
C. An agreement between a buyer and a seller for the sale of vacant land.
D. An exclusive right to sell listing agreement.
Answer: B
Rationale: Under the Michigan statute of frauds, a lease for more than
one year must be in writing to be enforceable. A lease for exactly one year
or less does not require a written agreement to be enforceable, though it
is still advisable. The sale of real property, any interest in it, and exclusive
listing agreements must generally be in writing.
8. A buyer is purchasing a property that has a certified survey map dividing a
larger tract into lots, streets, and other public areas. This map is officially
recorded and is known as:
A. A plat map.
B. A metes and bounds description.
C. A tax parcel map.
D. A topographic map.
Answer: A
Rationale: A plat map (or subdivision plat) is a recorded map that divides
a tract of land into lots, blocks, streets, and easements. It is the primary
method for describing land in a subdivision. Metes and bounds describe
Practice Examination Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. A property is encumbered by a restrictive covenant that prohibits the
construction of any structure exceeding thirty-five feet in height. A new
owner wishes to build a forty-foot tall addition to the existing single-family
home. Which of the following is the most accurate statement regarding this
situation?
A. The restrictive covenant is invalid because it is an unreasonable restraint
on the use of the property.
B. The new owner may proceed with construction because zoning laws
supersede all private covenants.
C. The restrictive covenant runs with the land and is enforceable against the
new owner if it was properly recorded and the owner had notice.
D. The covenant is automatically voided after a period of ten years under
Michigan law.
Answer: C
Rationale: A restrictive covenant is a private, written agreement that
limits the use of real property. It runs with the land and binds subsequent
purchasers if it is recorded in the chain of title and the owner has actual,
constructive, or inquiry notice. Zoning laws are governmental regulations
that do not automatically supersede private covenants; the more
restrictive standard typically applies.
2. In a valid real estate contract, the seller breaches the agreement by failing
to deliver marketable title at closing. The buyer has paid a substantial
, earnest money deposit. Which of the following remedies is the buyer NOT
entitled to pursue?
A. Rescission of the contract and a refund of the earnest money deposit.
B. A suit for specific performance to force the seller to convey the title.
C. A suit for monetary damages based on the loss of the bargain.
D. A mechanics lien against the seller's property for the value of the deposit
and search costs.
Answer: D
Rationale: A mechanics lien is a statutory claim filed by contractors,
subcontractors, or suppliers who have provided labor or materials for
improvements to real property. It is not a remedy available to a buyer for
a seller's breach of a purchase agreement. The buyer's remedies include
rescission, specific performance, and monetary damages for breach of
contract.
3. The legal concept of "estoppel" in real estate transactions is best described
as:
A. A legal doctrine that prevents a person from asserting a claim or right
that contradicts what they have previously stated or done, especially when
another party has relied on that statement.
B. A government's right to take private property for public use with just
compensation.
C. The legal process of transferring title from one person to another.
D. A court order that prohibits a party from transferring property pending
the outcome of a lawsuit.
Answer: A
Rationale: Estoppel is an equitable doctrine that prevents a party from
taking a legal position that is inconsistent with a prior position or
representation, particularly when the other party has relied on that
representation to their detriment. In real estate, this can apply to matters
like boundary disputes or representations made during a transaction.
4. A commercial lease contains a clause that increases the base rent annually
based on the Consumer Price Index. This type of escalation clause is known
, as:
A. A revaluation clause.
B. A percentage rent clause.
C. An index lease clause.
D. A step-up lease clause.
Answer: C
Rationale: An index lease clause, also known as an indexed escalation
clause, ties rent increases to a generally recognized economic index, such
as the Consumer Price Index (CPI). This provides an objective measure for
rent adjustments. A revaluation clause ties rent to the fair market value, a
percentage rent clause is based on gross sales, and a step-up clause has
predetermined fixed increases.
5. The primary purpose of the Uniform Commercial Code (UCC) in the context
of real estate is to:
A. Govern the transfer of real property through deeds.
B. Establish uniform building codes for all residential structures.
C. Govern the sale of goods and fixtures, and security interests in personal
property that may be affixed to real estate.
D. Regulate the licensing of real estate professionals across all states.
Answer: C
Rationale: The UCC provides a standardized set of rules for commercial
transactions. In real estate, it is most relevant for governing the sale of
fixtures (goods that become attached to land) and for security interests in
personal property. The transfer of real property is governed by state
property law, not the UCC.
6. A property owner grants an easement to a utility company to install and
maintain power lines across the rear ten feet of their lot. This easement is
most specifically classified as:
A. An easement by prescription.
B. An easement in gross.
C. An appurtenant easement.
D. An easement by necessity.
, Answer: B
Rationale: An easement in gross benefits a specific individual or entity, not
a dominant parcel of land. A utility easement is a classic example, as it
provides a right to a utility company across a property without benefiting
any adjacent land. An appurtenant easement benefits a dominant estate,
a necessity easement arises from landlocking, and a prescriptive
easement arises from adverse use.
7. The statute of frauds in Michigan requires that certain contracts be in
writing to be enforceable. Which of the following real estate contracts is
NOT required to be in writing under the statute of frauds?
A. A contract for the sale of a commercial office building.
B. A lease for a period of three years.
C. An agreement between a buyer and a seller for the sale of vacant land.
D. An exclusive right to sell listing agreement.
Answer: B
Rationale: Under the Michigan statute of frauds, a lease for more than
one year must be in writing to be enforceable. A lease for exactly one year
or less does not require a written agreement to be enforceable, though it
is still advisable. The sale of real property, any interest in it, and exclusive
listing agreements must generally be in writing.
8. A buyer is purchasing a property that has a certified survey map dividing a
larger tract into lots, streets, and other public areas. This map is officially
recorded and is known as:
A. A plat map.
B. A metes and bounds description.
C. A tax parcel map.
D. A topographic map.
Answer: A
Rationale: A plat map (or subdivision plat) is a recorded map that divides
a tract of land into lots, blocks, streets, and easements. It is the primary
method for describing land in a subdivision. Metes and bounds describe
