Michigan Real Estate Salesperson
Specialty Exam Practice Questions And
Correct Answers (Verified Answers) Plus
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1. A licensed salesperson in Michigan must renew their license every:
A. One year
B. Two years
C. Three years
D. Four years
Licenses for real estate salespersons in Michigan are renewed
biennially, which is every two years.
2. Michigan real estate law requires continuing education for renewal of
a salesperson license. The minimum hours required each cycle is:
A. 12 hours
B. 18 hours
C. 24 hours
D. 30 hours
Michigan mandates 18 hours of continuing education each renewal
period to ensure licensees remain current on practices and laws.
3. A salesperson must place earnest money deposits with:
A. The seller
B. The buyer’s lender
C. The employing broker
D. The local title company
Earnest money must be held by the employing broker in a trust or
escrow account per Michigan regulations.
,4. In Michigan, dual agency requires:
A. Verbal consent of one party
B. Written consent of both parties
C. Implied consent
D. No consent if disclosure is given
Dual agency in Michigan real estate must be disclosed in writing and
acknowledged by all parties involved.
5. A property management agreement in Michigan must be:
A. Oral or written
B. Verbal with a deposit
C. In writing
D. Filed with the state
Property management agreements that establish agency
relationships must be in writing to be enforceable.
6. The document that transfers legal title from seller to buyer is the:
A. Bill of sale
B. Deed of trust
C. Deed
D. Promissory note
A deed conveys legal title to real property from one party to another.
7. In Michigan, a listing agreement must include:
A. A property tax certificate
B. A home inspection report
C. A definite termination date
D. The broker’s net commission
Michigan requires that all listing agreements include a clear
termination date for the contract.
8. A salesperson discovers latent defects in a property. They must:
A. Ignore them
B. Report them only if asked
C. Disclose them to all parties
D. Disclose only to the buyer
Licensees must disclose known latent defects that materially affect
value to all parties in a transaction.
, 9. The Michigan Seller Disclosure Act applies to:
A. Commercial property only
B. Property sold at auction only
C. Most residential transactions
D. All lease renewals
This act requires residential sellers to disclose known defects in most
residential sales exempting some transfers like probate or
foreclosure.
10. Fair housing in Michigan prohibits discrimination based on:
A. Employment status
B. Dental insurance
C. Familial status
D. Credit score
Familial status is a protected class under both federal and Michigan
fair housing laws.
11. A broker’s trust account must be:
A. Commingled with business funds
B. Used for operating expenses
C. Separate from personal funds
D. Maintained at any business location
Client funds must be kept in a separate trust account and cannot be
mixed with personal or business funds.
12. A mortgage that includes both the note and the pledge of
property to secure it is called:
A. Promissory note
B. Lease-option
C. Deed of trust
D. Quitclaim deed
A deed of trust secures a promissory note with real property as
collateral.
13. The Michigan Public Health Code affects real estate primarily in
relation to:
A. Zoning ordinances
B. Lead-based paint hazards
C. Illegal housing conditions
Specialty Exam Practice Questions And
Correct Answers (Verified Answers) Plus
Rationale 2026 Q&A| Instant Download
1. A licensed salesperson in Michigan must renew their license every:
A. One year
B. Two years
C. Three years
D. Four years
Licenses for real estate salespersons in Michigan are renewed
biennially, which is every two years.
2. Michigan real estate law requires continuing education for renewal of
a salesperson license. The minimum hours required each cycle is:
A. 12 hours
B. 18 hours
C. 24 hours
D. 30 hours
Michigan mandates 18 hours of continuing education each renewal
period to ensure licensees remain current on practices and laws.
3. A salesperson must place earnest money deposits with:
A. The seller
B. The buyer’s lender
C. The employing broker
D. The local title company
Earnest money must be held by the employing broker in a trust or
escrow account per Michigan regulations.
,4. In Michigan, dual agency requires:
A. Verbal consent of one party
B. Written consent of both parties
C. Implied consent
D. No consent if disclosure is given
Dual agency in Michigan real estate must be disclosed in writing and
acknowledged by all parties involved.
5. A property management agreement in Michigan must be:
A. Oral or written
B. Verbal with a deposit
C. In writing
D. Filed with the state
Property management agreements that establish agency
relationships must be in writing to be enforceable.
6. The document that transfers legal title from seller to buyer is the:
A. Bill of sale
B. Deed of trust
C. Deed
D. Promissory note
A deed conveys legal title to real property from one party to another.
7. In Michigan, a listing agreement must include:
A. A property tax certificate
B. A home inspection report
C. A definite termination date
D. The broker’s net commission
Michigan requires that all listing agreements include a clear
termination date for the contract.
8. A salesperson discovers latent defects in a property. They must:
A. Ignore them
B. Report them only if asked
C. Disclose them to all parties
D. Disclose only to the buyer
Licensees must disclose known latent defects that materially affect
value to all parties in a transaction.
, 9. The Michigan Seller Disclosure Act applies to:
A. Commercial property only
B. Property sold at auction only
C. Most residential transactions
D. All lease renewals
This act requires residential sellers to disclose known defects in most
residential sales exempting some transfers like probate or
foreclosure.
10. Fair housing in Michigan prohibits discrimination based on:
A. Employment status
B. Dental insurance
C. Familial status
D. Credit score
Familial status is a protected class under both federal and Michigan
fair housing laws.
11. A broker’s trust account must be:
A. Commingled with business funds
B. Used for operating expenses
C. Separate from personal funds
D. Maintained at any business location
Client funds must be kept in a separate trust account and cannot be
mixed with personal or business funds.
12. A mortgage that includes both the note and the pledge of
property to secure it is called:
A. Promissory note
B. Lease-option
C. Deed of trust
D. Quitclaim deed
A deed of trust secures a promissory note with real property as
collateral.
13. The Michigan Public Health Code affects real estate primarily in
relation to:
A. Zoning ordinances
B. Lead-based paint hazards
C. Illegal housing conditions
