Chapter 1-PSI Real Estate Practice
Michigan Exam with Guaranteed Pass
Solutions 2026 Updated.
Designated Agent - Answer A person authorized by the broker to act as the agent of a
specific principal - common in dual agency relationships, two salespersons from the same
company can represent opposite sides of the sale.
Income Approach - Answer What approach does an appraiser take primarily for an
investment property?
1.) "Personal Assistant" (Answer)
2.) "Agent-Assistant"
3.) "Proxy-Agent"
4.) "Broker-Assignee" - Answer Charlie is the personal assistant for the top producer in the
office, and he would like to have his own business cards. What can Charlie list as his title?
1.) They have the same force and effect as the Code.
2.) They provide additional detail for the administration of the law.
3.) They provide guidelines for the real estate licensee.
4.) They have less force and effect than the Code. (Answer) - Answer Which of the following
is NOT true regarding the Administrative Rules in Michigan?
1.) adopt regulations for real estate standards.
2.) protect the public. (Answer)
3.) prosecute unethical brokers.
4.) investigate commission disputes between associates. - Answer The primary purpose of
Michigan License Law is to:
1.) sell a home you built as part of your business.
2.) sell your own property. (Answer)
3.) be a property manager.
4.) auction a home and handle the closing. - Answer In the state of Michigan, you do not
need a real estate license to
1.) engage in a minimum of five real estate transactions in a 12 month period. (Answer)
,2.)perform a minimum of 40 hours per month on floor time.
3.) file $40,000 or more in commissions on their income tax return.
4.) become a broker within two years of getting a salesperson's license. - Answer For real
estate sales to be considered a principal vocation, a licensee must
1.) Occupational Code PA 299 of 1980. (Answer)
2.) Michigan License Act 152 of 1979.
3.) Administrative Rules for Michigan Licensing.
4.) Michigan Code of Ethics. - Answer The law regulating the licensing of occupations in
Michigan is known as
1.) A person who lists real estate
2.) Someone negotiating the exchange of real estate for a consumer
3.) A person assisting a landlord with real estate activities
4.) An executor of an estate selling property for the deceased (Answer) - Answer Which of
the following persons would NOT need a real estate license?
1.) to develop salesperson and broker examinations. (Answer)
2.) to issue and renew licenses.
3.) to interpret license requirements.
4.) only when there is a crisis. - Answer The Department of Licensing and Regulatory Affairs
and the Michigan Board of Real Estate Brokers and Salespersons work together
1.) The NAR Code of Ethics
2.) The Code of Federal Regulations
3.) The Administrative Code (Answer)
4.) The NAR Field Guide - Answer _______________ are policies used by the Department of
Licensing and Regulatory Affairs to interpret and enforce the Occupational Code.
1.) Discuss the financing options for the property.
2.) Take his name and have a licensee call him. (Answer)
3.) Say that they are the agent for the property.
4.) Give him whatever information he wants since he's a member of the real estate community.
- Answer An unlicensed assistant in a real estate office receives a call from Salesperson
Jones, who works for another company. He wants information about a property. What can the
assistant do?
,1.) 0 members
2.) 3 members
3.) 5 members
4.) 6 members (Answer) - Answer Of the total Board members, how many must be licensed
to practice real estate in Michigan?
1.) Information on financing
2.) Information on the number of bathrooms a listing has (Answer)
3.) Information on closings
4.) Information on title insurance - Answer Sara Sanders has started working at ABC Realty.
Since Sara does not yet have her real estate license, what information may she give out?
1.) A trustee selling under a deed of trust
2.) A Michigan-licensed builder who sells the custom homes he builds
3.) A property manager who oversees a 50-unit apartment complex (Answer)
4.) An attorney at law - Answer Which of the following would be required to have a real
estate license to perform his or her job duties?
1.) Issuing and renewing licenses (Answer)
2.) Aiding in investigations
3.) Interpreting license requirements
4.) Administering exams as delegated by the Department - Answer _______________ is not
a responsibility of the Board.
1.) the Michigan Occupational Code.
2.) the National Association of Housing Professionals Regulation.
3.) the National Association of REALTORS®.
4.) the Michigan state constitution. - Answer The Department of Licensing and Regulatory
Affairs is authorized under
1.) No, John can auction only the property of a family member without a license.
2.) Yes, auctions are not regulated by the Michigan Real Estate Commission.
3.) No, only an auctioneer with a valid real estate license can auction property in Michigan.
4.) Yes, auctioneers can auction property in Michigan, as long as they do not handle the closing.
(Answer) - Answer Auctioneer John is not a real estate agent. A neighbor wants him to
auction her property. Is this legal?
, 1.) Tori helps her former neighbor find a renter for his house. (Answer)
2.) Tori sells her father's home as executor of his estate.
3.) Tori sells the new luxury home that she and her husband's building company built.
4.) Tori is an auctioneer who has been contracted to auction the personal belongings, home and
outbuildings of a local farmer. - Answer In which of the following scenarios would Tori need a
real estate license?
1.) 5 members
2.) 7 members
3.) 9 members (Answer)
4.) 12 members - Answer The Michigan Board of Real Estate Brokers and Salespersons has
how many members?
1.) have business cards implying they are an agent for a real estate broker.
2.) perform host or hostess functions at an agent's open house. (Answer)
3.) solicit prospects via telephone.
4.) answer questions on title insurance, financing or closing. - Answer Personal assistants
may
1.) Someone who negotiates the rental or lease of a property for a consumer (Answer)
2.) An executor handling a decedent's estate
3.) A licensed builder selling a new triplex he built
4.) An attorney performing a real estate transaction as part of his legal duties - Answer
Which of the following would need a real estate license?
1.) the state's habeas corpus.
2.) the state's police power. (Answer)
3.) the Michigan Occupational Code.
4.) the first amendment of the Constitution. - Answer Michigan's authority to protect the
public is granted under
1.) pass out literature at an open house.
2.) show property to prospective buyers without a licensee present. (Answer)
3.) courier documents unless a licensee is present.
4.) register prospects in a guest book at an open house. - Answer Personal assistants may not
1.) who will be performing real estate acts as principals. (Answer)
Michigan Exam with Guaranteed Pass
Solutions 2026 Updated.
Designated Agent - Answer A person authorized by the broker to act as the agent of a
specific principal - common in dual agency relationships, two salespersons from the same
company can represent opposite sides of the sale.
Income Approach - Answer What approach does an appraiser take primarily for an
investment property?
1.) "Personal Assistant" (Answer)
2.) "Agent-Assistant"
3.) "Proxy-Agent"
4.) "Broker-Assignee" - Answer Charlie is the personal assistant for the top producer in the
office, and he would like to have his own business cards. What can Charlie list as his title?
1.) They have the same force and effect as the Code.
2.) They provide additional detail for the administration of the law.
3.) They provide guidelines for the real estate licensee.
4.) They have less force and effect than the Code. (Answer) - Answer Which of the following
is NOT true regarding the Administrative Rules in Michigan?
1.) adopt regulations for real estate standards.
2.) protect the public. (Answer)
3.) prosecute unethical brokers.
4.) investigate commission disputes between associates. - Answer The primary purpose of
Michigan License Law is to:
1.) sell a home you built as part of your business.
2.) sell your own property. (Answer)
3.) be a property manager.
4.) auction a home and handle the closing. - Answer In the state of Michigan, you do not
need a real estate license to
1.) engage in a minimum of five real estate transactions in a 12 month period. (Answer)
,2.)perform a minimum of 40 hours per month on floor time.
3.) file $40,000 or more in commissions on their income tax return.
4.) become a broker within two years of getting a salesperson's license. - Answer For real
estate sales to be considered a principal vocation, a licensee must
1.) Occupational Code PA 299 of 1980. (Answer)
2.) Michigan License Act 152 of 1979.
3.) Administrative Rules for Michigan Licensing.
4.) Michigan Code of Ethics. - Answer The law regulating the licensing of occupations in
Michigan is known as
1.) A person who lists real estate
2.) Someone negotiating the exchange of real estate for a consumer
3.) A person assisting a landlord with real estate activities
4.) An executor of an estate selling property for the deceased (Answer) - Answer Which of
the following persons would NOT need a real estate license?
1.) to develop salesperson and broker examinations. (Answer)
2.) to issue and renew licenses.
3.) to interpret license requirements.
4.) only when there is a crisis. - Answer The Department of Licensing and Regulatory Affairs
and the Michigan Board of Real Estate Brokers and Salespersons work together
1.) The NAR Code of Ethics
2.) The Code of Federal Regulations
3.) The Administrative Code (Answer)
4.) The NAR Field Guide - Answer _______________ are policies used by the Department of
Licensing and Regulatory Affairs to interpret and enforce the Occupational Code.
1.) Discuss the financing options for the property.
2.) Take his name and have a licensee call him. (Answer)
3.) Say that they are the agent for the property.
4.) Give him whatever information he wants since he's a member of the real estate community.
- Answer An unlicensed assistant in a real estate office receives a call from Salesperson
Jones, who works for another company. He wants information about a property. What can the
assistant do?
,1.) 0 members
2.) 3 members
3.) 5 members
4.) 6 members (Answer) - Answer Of the total Board members, how many must be licensed
to practice real estate in Michigan?
1.) Information on financing
2.) Information on the number of bathrooms a listing has (Answer)
3.) Information on closings
4.) Information on title insurance - Answer Sara Sanders has started working at ABC Realty.
Since Sara does not yet have her real estate license, what information may she give out?
1.) A trustee selling under a deed of trust
2.) A Michigan-licensed builder who sells the custom homes he builds
3.) A property manager who oversees a 50-unit apartment complex (Answer)
4.) An attorney at law - Answer Which of the following would be required to have a real
estate license to perform his or her job duties?
1.) Issuing and renewing licenses (Answer)
2.) Aiding in investigations
3.) Interpreting license requirements
4.) Administering exams as delegated by the Department - Answer _______________ is not
a responsibility of the Board.
1.) the Michigan Occupational Code.
2.) the National Association of Housing Professionals Regulation.
3.) the National Association of REALTORS®.
4.) the Michigan state constitution. - Answer The Department of Licensing and Regulatory
Affairs is authorized under
1.) No, John can auction only the property of a family member without a license.
2.) Yes, auctions are not regulated by the Michigan Real Estate Commission.
3.) No, only an auctioneer with a valid real estate license can auction property in Michigan.
4.) Yes, auctioneers can auction property in Michigan, as long as they do not handle the closing.
(Answer) - Answer Auctioneer John is not a real estate agent. A neighbor wants him to
auction her property. Is this legal?
, 1.) Tori helps her former neighbor find a renter for his house. (Answer)
2.) Tori sells her father's home as executor of his estate.
3.) Tori sells the new luxury home that she and her husband's building company built.
4.) Tori is an auctioneer who has been contracted to auction the personal belongings, home and
outbuildings of a local farmer. - Answer In which of the following scenarios would Tori need a
real estate license?
1.) 5 members
2.) 7 members
3.) 9 members (Answer)
4.) 12 members - Answer The Michigan Board of Real Estate Brokers and Salespersons has
how many members?
1.) have business cards implying they are an agent for a real estate broker.
2.) perform host or hostess functions at an agent's open house. (Answer)
3.) solicit prospects via telephone.
4.) answer questions on title insurance, financing or closing. - Answer Personal assistants
may
1.) Someone who negotiates the rental or lease of a property for a consumer (Answer)
2.) An executor handling a decedent's estate
3.) A licensed builder selling a new triplex he built
4.) An attorney performing a real estate transaction as part of his legal duties - Answer
Which of the following would need a real estate license?
1.) the state's habeas corpus.
2.) the state's police power. (Answer)
3.) the Michigan Occupational Code.
4.) the first amendment of the Constitution. - Answer Michigan's authority to protect the
public is granted under
1.) pass out literature at an open house.
2.) show property to prospective buyers without a licensee present. (Answer)
3.) courier documents unless a licensee is present.
4.) register prospects in a guest book at an open house. - Answer Personal assistants may not
1.) who will be performing real estate acts as principals. (Answer)
