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Michigan PSI Real Estate Salesperson License Exam Study
Guide & Practice Questions | Michigan Real Estate
Licensing Exam Prep, State & National Real Estate
Principles, Michigan Laws & Regulations, Licensing Rules,
Agency, Contracts, Property Ownership, Disclosures, Fair
Housing, Real Estate Math & Detailed Rationales
Question 1: Under Michigan law, which state agency is responsible for
administering the real estate licensing examination and regulating
licensed real estate brokers and salespersons?
A. Michigan State Housing Development Authority (MSHDA)
B. Michigan Department of Licensing and Regulatory Affairs (LARA)
C. Michigan Association of Realtors
D. Federal Housing Administration (FHA)
CORRECT ANSWER: B. Michigan Department of Licensing and
Regulatory Affairs (LARA)
Rationale: The Michigan Department of Licensing and Regulatory Affairs
(LARA) is the state agency responsible for overseeing real estate licensing,
examinations, and disciplinary actions under the Occupational Code.
MSHDA handles housing development, not licensing. Professional
associations do not have regulatory authority, and the FHA is a federal
agency that insures loans.
Question 2: Which Michigan statute contains the primary laws
governing real estate licensing, broker-salesperson relationships, and
disciplinary procedures?
A. Michigan Consumer Protection Act
B. Occupational Code, Act 299 of 1980
C. Elliott-Larsen Civil Rights Act
D. Michigan Land Division Act
CORRECT ANSWER: B. Occupational Code, Act 299 of 1980
Rationale: Article 25 of the Michigan Occupational Code, Act 299 of 1980,
contains the statutory framework for real estate licensing, regulation, and
enforcement in Michigan. The Consumer Protection Act addresses unfair
trade practices broadly, not real estate licensing specifically.
,Question 3: How many hours of approved prelicensure education are
required for a Michigan real estate salesperson applicant before taking
the state exam?
A. 20 clock hours
B. 40 clock hours
C. 60 clock hours
D. 90 clock hours
CORRECT ANSWER: B. 40 clock hours
Rationale: Michigan law requires salesperson applicants to complete at
least 40 clock hours of approved prelicensure classroom courses,
including at least 4 clock hours of civil rights law and fair housing, before
sitting for the examination. The 90-hour requirement applies to broker
applicants .
Question 4: What is the minimum passing score required on the
Michigan real estate salesperson examination?
A. 60%
B. 65%
C. 70%
D. 75%
CORRECT ANSWER: C. 70%
Rationale: Candidates must achieve a score of at least 70% to pass the
Michigan real estate salesperson exam. The exam consists of 115 scored
questions, and passing requires approximately 80 correct answers .
Question 5: A Michigan real estate salesperson must be employed by
and work under the supervision of which of the following?
A. A licensed appraiser
B. A licensed real estate broker
C. A title company officer
D. A mortgage loan originator
CORRECT ANSWER: B. A licensed real estate broker
Rationale: Michigan law requires that all real estate salespersons be
employed by and affiliated with a licensed real estate broker. Salespersons
,cannot conduct real estate activities independently or under the
supervision of appraisers, title officers, or lenders .
Question 6: Under Michigan law, which of the following activities would
require a real estate license?
A. An executor selling a decedent’s property under court order
B. An attorney providing legal advice regarding a real estate transaction
C. A property manager overseeing a 50-unit apartment complex for
compensation
D. A licensed builder selling a custom home he built himself
CORRECT ANSWER: C. A property manager overseeing a 50-unit
apartment complex for compensation
Rationale: Michigan law exempts certain persons from licensing, including
attorneys rendering legal services, executors selling under court order, and
licensed builders selling homes they constructed. However, property
managers who oversee apartment complexes for compensation must hold
a real estate license .
Question 7: Which of the following is NOT one of the fiduciary duties
owed by a Michigan real estate agent to their principal?
A. Loyalty
B. Confidentiality
C. Marketing
D. Obedience
CORRECT ANSWER: C. Marketing
Rationale: The fiduciary duties owed by an agent to a principal include
loyalty, confidentiality, obedience, disclosure, accounting, and reasonable
care. Marketing is a service the agent provides but is not classified as a
fiduciary duty in the legal sense .
Question 8: What is the maximum time period allowed for a Michigan
real estate license applicant to complete the 40-hour prelicensure
education before applying?
A. 12 months
B. 24 months
, C. 36 months
D. 48 months
CORRECT ANSWER: C. 36 months
Rationale: Michigan law requires that the 40 clock hours of prelicensure
education be completed not more than 36 months before the date of
application. Education completed beyond this window does not satisfy the
requirement .
Question 9: Which Michigan law prohibits discrimination in the sale or
rental of housing based on protected classes?
A. Michigan Land Division Act
B. Elliott-Larsen Civil Rights Act
C. Michigan Seller Disclosure Act
D. Michigan Trust Fund Act
CORRECT ANSWER: B. Elliott-Larsen Civil Rights Act
Rationale: The Elliott-Larsen Civil Rights Act prohibits discrimination in real
estate transactions based on race, color, religion, national origin, sex,
familial status, and other protected classes. The federal Fair Housing Act
also applies, but the state statute is the Elliott-Larsen Act.
Question 10: How long does a Michigan real estate salesperson license
remain valid before renewal is required?
A. One year
B. Two years
C. Three years
D. Four years
CORRECT ANSWER: C. Three years
Rationale: Michigan real estate licenses are issued for a three-year period.
Licensees must renew before expiration and complete continuing
education requirements to maintain an active license .
Question 11: Which of the following is a required element of a valid
Michigan real estate listing agreement?
A. A property tax certificate
B. A home inspection report
Michigan PSI Real Estate Salesperson License Exam Study
Guide & Practice Questions | Michigan Real Estate
Licensing Exam Prep, State & National Real Estate
Principles, Michigan Laws & Regulations, Licensing Rules,
Agency, Contracts, Property Ownership, Disclosures, Fair
Housing, Real Estate Math & Detailed Rationales
Question 1: Under Michigan law, which state agency is responsible for
administering the real estate licensing examination and regulating
licensed real estate brokers and salespersons?
A. Michigan State Housing Development Authority (MSHDA)
B. Michigan Department of Licensing and Regulatory Affairs (LARA)
C. Michigan Association of Realtors
D. Federal Housing Administration (FHA)
CORRECT ANSWER: B. Michigan Department of Licensing and
Regulatory Affairs (LARA)
Rationale: The Michigan Department of Licensing and Regulatory Affairs
(LARA) is the state agency responsible for overseeing real estate licensing,
examinations, and disciplinary actions under the Occupational Code.
MSHDA handles housing development, not licensing. Professional
associations do not have regulatory authority, and the FHA is a federal
agency that insures loans.
Question 2: Which Michigan statute contains the primary laws
governing real estate licensing, broker-salesperson relationships, and
disciplinary procedures?
A. Michigan Consumer Protection Act
B. Occupational Code, Act 299 of 1980
C. Elliott-Larsen Civil Rights Act
D. Michigan Land Division Act
CORRECT ANSWER: B. Occupational Code, Act 299 of 1980
Rationale: Article 25 of the Michigan Occupational Code, Act 299 of 1980,
contains the statutory framework for real estate licensing, regulation, and
enforcement in Michigan. The Consumer Protection Act addresses unfair
trade practices broadly, not real estate licensing specifically.
,Question 3: How many hours of approved prelicensure education are
required for a Michigan real estate salesperson applicant before taking
the state exam?
A. 20 clock hours
B. 40 clock hours
C. 60 clock hours
D. 90 clock hours
CORRECT ANSWER: B. 40 clock hours
Rationale: Michigan law requires salesperson applicants to complete at
least 40 clock hours of approved prelicensure classroom courses,
including at least 4 clock hours of civil rights law and fair housing, before
sitting for the examination. The 90-hour requirement applies to broker
applicants .
Question 4: What is the minimum passing score required on the
Michigan real estate salesperson examination?
A. 60%
B. 65%
C. 70%
D. 75%
CORRECT ANSWER: C. 70%
Rationale: Candidates must achieve a score of at least 70% to pass the
Michigan real estate salesperson exam. The exam consists of 115 scored
questions, and passing requires approximately 80 correct answers .
Question 5: A Michigan real estate salesperson must be employed by
and work under the supervision of which of the following?
A. A licensed appraiser
B. A licensed real estate broker
C. A title company officer
D. A mortgage loan originator
CORRECT ANSWER: B. A licensed real estate broker
Rationale: Michigan law requires that all real estate salespersons be
employed by and affiliated with a licensed real estate broker. Salespersons
,cannot conduct real estate activities independently or under the
supervision of appraisers, title officers, or lenders .
Question 6: Under Michigan law, which of the following activities would
require a real estate license?
A. An executor selling a decedent’s property under court order
B. An attorney providing legal advice regarding a real estate transaction
C. A property manager overseeing a 50-unit apartment complex for
compensation
D. A licensed builder selling a custom home he built himself
CORRECT ANSWER: C. A property manager overseeing a 50-unit
apartment complex for compensation
Rationale: Michigan law exempts certain persons from licensing, including
attorneys rendering legal services, executors selling under court order, and
licensed builders selling homes they constructed. However, property
managers who oversee apartment complexes for compensation must hold
a real estate license .
Question 7: Which of the following is NOT one of the fiduciary duties
owed by a Michigan real estate agent to their principal?
A. Loyalty
B. Confidentiality
C. Marketing
D. Obedience
CORRECT ANSWER: C. Marketing
Rationale: The fiduciary duties owed by an agent to a principal include
loyalty, confidentiality, obedience, disclosure, accounting, and reasonable
care. Marketing is a service the agent provides but is not classified as a
fiduciary duty in the legal sense .
Question 8: What is the maximum time period allowed for a Michigan
real estate license applicant to complete the 40-hour prelicensure
education before applying?
A. 12 months
B. 24 months
, C. 36 months
D. 48 months
CORRECT ANSWER: C. 36 months
Rationale: Michigan law requires that the 40 clock hours of prelicensure
education be completed not more than 36 months before the date of
application. Education completed beyond this window does not satisfy the
requirement .
Question 9: Which Michigan law prohibits discrimination in the sale or
rental of housing based on protected classes?
A. Michigan Land Division Act
B. Elliott-Larsen Civil Rights Act
C. Michigan Seller Disclosure Act
D. Michigan Trust Fund Act
CORRECT ANSWER: B. Elliott-Larsen Civil Rights Act
Rationale: The Elliott-Larsen Civil Rights Act prohibits discrimination in real
estate transactions based on race, color, religion, national origin, sex,
familial status, and other protected classes. The federal Fair Housing Act
also applies, but the state statute is the Elliott-Larsen Act.
Question 10: How long does a Michigan real estate salesperson license
remain valid before renewal is required?
A. One year
B. Two years
C. Three years
D. Four years
CORRECT ANSWER: C. Three years
Rationale: Michigan real estate licenses are issued for a three-year period.
Licensees must renew before expiration and complete continuing
education requirements to maintain an active license .
Question 11: Which of the following is a required element of a valid
Michigan real estate listing agreement?
A. A property tax certificate
B. A home inspection report
