MICHIGAN RESIDENTIAL BUILDER SALESPERSON EXAM
2026/2027 QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A | INSTANT
DOWNLOAD PDF.
CORE DOMAINS
Licensing and Regulatory Requirements
Contracts and Contract Law
Sales Practices and Consumer Protection
Estimating and Job Costing
Business Management and Marketing
Michigan Residential Code and Construction Fundamentals
Safety Standards and Risk Management
Ethics and Professional Conduct
INTRODUCTION
This assessment evaluates the knowledge and competencies
required of residential builder salespersons in Michigan. It covers
licensing and regulatory requirements, contract law, consumer
protection, estimating and job costing, business management,
building codes, safety standards, and professional ethics. The
multiple-choice and scenario-based format measures recall,
interpretation, and real-world application of Michigan's
Occupational Code and residential construction practices. Emphasis
is placed on legal compliance, ethical sales conduct, accurate cost
estimation, and protection of the public. This exam prepares
candidates for the PSI-administered licensing examination by
testing critical thinking and practical decision-making in residential
construction sales.
SECTION ONE: QUESTIONS 1–100
1. Under the Michigan Occupational Code, a residential builder
salesperson license is required for any individual who:
,A. Lists new construction with a real estate broker
B. Sells or negotiates the sale of a new residential structure on
behalf of a licensed residential builder
C. Performs construction work as an employee of a builder
D. Provides interior design services to a builder's customer
🟢 B. Sells or negotiates the sale of a new residential structure on
behalf of a licensed residential builder
🔴 RATIONALE: The law defines a residential builder salesperson
as an individual who, for compensation, is employed by a licensed
residential builder to sell or negotiate the sale of new residential
structures. Listing new construction alone does not require a
salesperson license if done by a real estate licensee, construction
laborers are not engaged in sales negotiations, and interior design
is a design service, not a sale.
2. Which of the following individuals is exempt from holding a
residential builder salesperson license?
A. A commission-only sales agent working for a builder
B. An independent contractor who shows model homes
C. A full-time salaried employee who performs only clerical tasks
and does not discuss prices or terms
D. A real estate salesperson who sells one new home per year
🟢 C. A full-time salaried employee who performs only clerical
tasks and does not discuss prices or terms
🔴 RATIONALE: A salaried employee who does not negotiate
sales or discuss contract terms is not required to be licensed as a
salesperson. Commission agents, independent contractors
showing model homes, and real estate salespersons selling new
construction for a builder all engage in selling activities that
require a license.
,3. A residential builder salesperson license authorizes the holder
to:
A. Supervise construction site safety
B. Act as a qualifying officer for a builder license
C. Sell new residential structures on behalf of the employing
licensed builder
D. Independently sign construction contracts on behalf of the
builder
🟢 C. Sell new residential structures on behalf of the employing
licensed builder
🔴 RATIONALE: The salesperson license is limited to sales and
negotiation of new home contracts under the supervision of the
licensed builder. It does not grant authority to act as a qualifying
officer, supervise construction, or independently bind the builder
to construction contracts.
4. An applicant for a residential builder salesperson license must
be at least:
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
🟢 B. 18 years old
🔴 RATIONALE: Michigan requires a salesperson applicant to be
at least 18 years of age, possess good moral character, and meet
pre-licensure education requirements. Ages 16, 21, and 25 are not
consistent with the statutory minimum.
5. To obtain a residential builder salesperson license, an applicant
must complete a pre-licensure education course of at least:
, A. 60 hours
B. 6 hours
C. 30 hours
D. 2 hours
🟢 B. 6 hours
🔴 RATIONALE: The Michigan Occupational Code mandates a
minimum 6-hour pre-licensure course covering contract law,
warranty obligations, advertising rules, and fair housing for
salesperson applicants. A 60-hour requirement applies to the
builder license, not the salesperson.
6. Which activity is most closely associated with a residential
builder salesperson in Michigan?
A. Performing structural engineering calculations
B. Selling, negotiating, or obtaining residential building contracts
on behalf of a licensed builder
C. Conducting electrical inspections for the municipality
D. Issuing certificates of occupancy
🟢 B. Selling, negotiating, or obtaining residential building
contracts on behalf of a licensed builder
🔴 RATIONALE: A residential builder salesperson primarily
represents a licensed residential builder in sales-related activities,
including soliciting, negotiating, or obtaining contracts within the
scope permitted by Michigan law.
7. Who is generally responsible for ensuring that residential
construction work is performed in compliance with applicable
laws and codes?
A. The customer alone
B. The salesperson alone
2026/2027 QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A | INSTANT
DOWNLOAD PDF.
CORE DOMAINS
Licensing and Regulatory Requirements
Contracts and Contract Law
Sales Practices and Consumer Protection
Estimating and Job Costing
Business Management and Marketing
Michigan Residential Code and Construction Fundamentals
Safety Standards and Risk Management
Ethics and Professional Conduct
INTRODUCTION
This assessment evaluates the knowledge and competencies
required of residential builder salespersons in Michigan. It covers
licensing and regulatory requirements, contract law, consumer
protection, estimating and job costing, business management,
building codes, safety standards, and professional ethics. The
multiple-choice and scenario-based format measures recall,
interpretation, and real-world application of Michigan's
Occupational Code and residential construction practices. Emphasis
is placed on legal compliance, ethical sales conduct, accurate cost
estimation, and protection of the public. This exam prepares
candidates for the PSI-administered licensing examination by
testing critical thinking and practical decision-making in residential
construction sales.
SECTION ONE: QUESTIONS 1–100
1. Under the Michigan Occupational Code, a residential builder
salesperson license is required for any individual who:
,A. Lists new construction with a real estate broker
B. Sells or negotiates the sale of a new residential structure on
behalf of a licensed residential builder
C. Performs construction work as an employee of a builder
D. Provides interior design services to a builder's customer
🟢 B. Sells or negotiates the sale of a new residential structure on
behalf of a licensed residential builder
🔴 RATIONALE: The law defines a residential builder salesperson
as an individual who, for compensation, is employed by a licensed
residential builder to sell or negotiate the sale of new residential
structures. Listing new construction alone does not require a
salesperson license if done by a real estate licensee, construction
laborers are not engaged in sales negotiations, and interior design
is a design service, not a sale.
2. Which of the following individuals is exempt from holding a
residential builder salesperson license?
A. A commission-only sales agent working for a builder
B. An independent contractor who shows model homes
C. A full-time salaried employee who performs only clerical tasks
and does not discuss prices or terms
D. A real estate salesperson who sells one new home per year
🟢 C. A full-time salaried employee who performs only clerical
tasks and does not discuss prices or terms
🔴 RATIONALE: A salaried employee who does not negotiate
sales or discuss contract terms is not required to be licensed as a
salesperson. Commission agents, independent contractors
showing model homes, and real estate salespersons selling new
construction for a builder all engage in selling activities that
require a license.
,3. A residential builder salesperson license authorizes the holder
to:
A. Supervise construction site safety
B. Act as a qualifying officer for a builder license
C. Sell new residential structures on behalf of the employing
licensed builder
D. Independently sign construction contracts on behalf of the
builder
🟢 C. Sell new residential structures on behalf of the employing
licensed builder
🔴 RATIONALE: The salesperson license is limited to sales and
negotiation of new home contracts under the supervision of the
licensed builder. It does not grant authority to act as a qualifying
officer, supervise construction, or independently bind the builder
to construction contracts.
4. An applicant for a residential builder salesperson license must
be at least:
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
🟢 B. 18 years old
🔴 RATIONALE: Michigan requires a salesperson applicant to be
at least 18 years of age, possess good moral character, and meet
pre-licensure education requirements. Ages 16, 21, and 25 are not
consistent with the statutory minimum.
5. To obtain a residential builder salesperson license, an applicant
must complete a pre-licensure education course of at least:
, A. 60 hours
B. 6 hours
C. 30 hours
D. 2 hours
🟢 B. 6 hours
🔴 RATIONALE: The Michigan Occupational Code mandates a
minimum 6-hour pre-licensure course covering contract law,
warranty obligations, advertising rules, and fair housing for
salesperson applicants. A 60-hour requirement applies to the
builder license, not the salesperson.
6. Which activity is most closely associated with a residential
builder salesperson in Michigan?
A. Performing structural engineering calculations
B. Selling, negotiating, or obtaining residential building contracts
on behalf of a licensed builder
C. Conducting electrical inspections for the municipality
D. Issuing certificates of occupancy
🟢 B. Selling, negotiating, or obtaining residential building
contracts on behalf of a licensed builder
🔴 RATIONALE: A residential builder salesperson primarily
represents a licensed residential builder in sales-related activities,
including soliciting, negotiating, or obtaining contracts within the
scope permitted by Michigan law.
7. Who is generally responsible for ensuring that residential
construction work is performed in compliance with applicable
laws and codes?
A. The customer alone
B. The salesperson alone
