Michigan Property Management
Certification Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationale 2026 Q&A| Instant
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1. In Michigan, the primary law governing real estate brokerage and
property management practices is the
A. Michigan Landlord-Tenant Act
B. Michigan Fair Housing Act
C. Michigan Occupational Code – Real Estate Brokers License Act
D. Uniform Commercial Code
Correct answer is bolded because the Real Estate Brokers License Act
establishes licensing, duties, and standards for property managers
functioning as brokers.
2. A licensed property manager in Michigan holds client funds in a(n):
A. Personal business account
B. Operating account only
C. Escrow/trust account separate from personal funds
D. Petty cash drawer
Correct answer is bolded because escrow/trust accounts are legally
required to hold client funds separate from the manager’s own
money.
3. Under Michigan law, how many days does a landlord have to return a
security deposit after the tenant vacates?
A. 10 days
B. 30 days
C. 45 days
, D. 60 days
Correct answer is bolded because Michigan statute requires security
deposits to be returned, with itemized accounting, within 30 days of
lease termination.
4. Which federal law must Michigan property managers follow to avoid
discrimination in housing?
A. Michigan Civil Rights Act
B. Equal Pay Act
C. Fair Housing Act
D. Americans with Disabilities Act
Correct answer is bolded because the federal Fair Housing Act
prohibits discrimination based on protected classes in housing
transactions.
5. When screening tenants, which practice is prohibited?
A. Running a credit check
B. Requesting rental history
C. Charging different application fees based on race
D. Verifying employment
Correct answer is bolded because charging different fees based on a
protected characteristic is discriminatory and illegal.
6. A property manager’s fiduciary duty includes:
A. Acting in their own best interest
B. Delegating all responsibilities
C. Acting in the principal’s best interest
D. Making independent investments with client funds
Correct answer is bolded because fiduciary duty requires loyalty to
the principal, not personal gain.
7. Under Michigan law, late fees must be:
A. Any amount the landlord chooses
B. Reasonable and set forth in the lease agreement
C. Paid directly to the city
D. Calculated weekly
Correct answer is bolded because Michigan requires late fees to be
reasonable and disclosed in the lease.
, 8. Lead-based paint disclosures are required for:
A. All buildings built after 1978
B. Commercial properties only
C. Residential properties built before 1978
D. Properties with no children occupants
Correct answer is bolded because federal law requires disclosure for
pre-1978 residential properties.
9. A property manager must disclose an existing lease to a potential
buyer:
A. Only if asked verbally
B. Always, because leases are encumbrances on title
C. Only after closing
D. Only for commercial leases
Correct answer is bolded because existing leases impact value and
use and must be disclosed to buyers.
10. Which document outlines the duties and authority of a property
manager?
A. Rental application
B. Lease addendum
C. Management agreement
D. Purchase agreement
Correct answer is bolded because the management agreement
defines the scope of authority and compensation.
11. Eviction actions in Michigan are initiated by filing a:
A. Complaint for possession
B. Writ of attachment
C. Summons and complaint for possession
D. Notice to quit only
Correct answer is bolded because eviction requires formal court filing
beyond notice to quit.
12. Which is NOT a protected class under the federal Fair Housing
Act?
A. Race
B. Religion
C. Credit score
Certification Exam Practice Questions
And Correct Answers (Verified Answers)
Plus Rationale 2026 Q&A| Instant
Download Pdf
1. In Michigan, the primary law governing real estate brokerage and
property management practices is the
A. Michigan Landlord-Tenant Act
B. Michigan Fair Housing Act
C. Michigan Occupational Code – Real Estate Brokers License Act
D. Uniform Commercial Code
Correct answer is bolded because the Real Estate Brokers License Act
establishes licensing, duties, and standards for property managers
functioning as brokers.
2. A licensed property manager in Michigan holds client funds in a(n):
A. Personal business account
B. Operating account only
C. Escrow/trust account separate from personal funds
D. Petty cash drawer
Correct answer is bolded because escrow/trust accounts are legally
required to hold client funds separate from the manager’s own
money.
3. Under Michigan law, how many days does a landlord have to return a
security deposit after the tenant vacates?
A. 10 days
B. 30 days
C. 45 days
, D. 60 days
Correct answer is bolded because Michigan statute requires security
deposits to be returned, with itemized accounting, within 30 days of
lease termination.
4. Which federal law must Michigan property managers follow to avoid
discrimination in housing?
A. Michigan Civil Rights Act
B. Equal Pay Act
C. Fair Housing Act
D. Americans with Disabilities Act
Correct answer is bolded because the federal Fair Housing Act
prohibits discrimination based on protected classes in housing
transactions.
5. When screening tenants, which practice is prohibited?
A. Running a credit check
B. Requesting rental history
C. Charging different application fees based on race
D. Verifying employment
Correct answer is bolded because charging different fees based on a
protected characteristic is discriminatory and illegal.
6. A property manager’s fiduciary duty includes:
A. Acting in their own best interest
B. Delegating all responsibilities
C. Acting in the principal’s best interest
D. Making independent investments with client funds
Correct answer is bolded because fiduciary duty requires loyalty to
the principal, not personal gain.
7. Under Michigan law, late fees must be:
A. Any amount the landlord chooses
B. Reasonable and set forth in the lease agreement
C. Paid directly to the city
D. Calculated weekly
Correct answer is bolded because Michigan requires late fees to be
reasonable and disclosed in the lease.
, 8. Lead-based paint disclosures are required for:
A. All buildings built after 1978
B. Commercial properties only
C. Residential properties built before 1978
D. Properties with no children occupants
Correct answer is bolded because federal law requires disclosure for
pre-1978 residential properties.
9. A property manager must disclose an existing lease to a potential
buyer:
A. Only if asked verbally
B. Always, because leases are encumbrances on title
C. Only after closing
D. Only for commercial leases
Correct answer is bolded because existing leases impact value and
use and must be disclosed to buyers.
10. Which document outlines the duties and authority of a property
manager?
A. Rental application
B. Lease addendum
C. Management agreement
D. Purchase agreement
Correct answer is bolded because the management agreement
defines the scope of authority and compensation.
11. Eviction actions in Michigan are initiated by filing a:
A. Complaint for possession
B. Writ of attachment
C. Summons and complaint for possession
D. Notice to quit only
Correct answer is bolded because eviction requires formal court filing
beyond notice to quit.
12. Which is NOT a protected class under the federal Fair Housing
Act?
A. Race
B. Religion
C. Credit score
