REAL ESTATE MICHIGAN 2024/2025 EXAM QUESTIONS
WITH THE LATEST AND UPDATED SCORE.
In Michigan, a licensee must provide a buyer/client with a true copy of the agency
t t t t t t t t t t t t t t t
agreement.
a. at closing
t t
b. when the buyer signs it
t t t t t
c. within two business days
t t t t
d. when an offer to purchase is presented -- Correct Answer ✔✔ b. when the buyer signs
t t t t t t t t t t t t t t t t t
it
which of the following would be the commend county and state transfer tax on the sale of
t t t t t t t t t t t t t t t t t
a property in Lansing that sold for $37,500? -- Correct Answer ✔✔ $322.50
t t t t t t t t t t t t
A broker has a number of open real estate transactions. The balance of the
t t t t t t t t t t t t t
record related to these transactions should be equal to the
t t t t t t t t t
a. Trust/escrow account balance
t t t
b. brokers expense account balance
t t t t
c. real estate company business account balance
t t t t t t
d. sum of the salespersons pending commission -- Correct Answer ✔✔ a. Trust/escrow
t t t t t t t t t t t t t
account balance t
Under Michigan law and the Persons and Disabilities civil rights act, a
t t t t t t t t t t t
landlord may refuse to rent a house to which of the following?
t t t t t t t t t t t
a. a blind person with a leader dog
t t t t t t t
b. a developmentally disable individual
t t t t
c. a person who smokes
t t t t
d. a person with epilepsy -- Correct Answer ✔✔ c. a person who smokes
t t t t t t t t t t t t t
,5. Before it was recognized as a health hazard, asbestos was commonly used as
t t t t t t t t t t t t t
insulation in residential and commercial construction because it is t t t t t t t t
a. a fire resistant
t t t
b. water resistant
t t
c. an air purifier
t t t
d. repellent to common pests -- Correct Answer ✔✔ a. a fire resistant
t t t t t t t t t t t t
The city wishes to purchase a parcel of property to be used as a cloverleaf for
t t t t t t t t t t t t t t t
access to the nearby interstate. The land owner refuses to sell. To acquire life
t t t t t t t t t t t t t
to the property, the city will initiate a process of
t t t t t t t t t
a. accession
t
b. negotiation
t
c. condemnation
t
d. escheat -- Correct Answer ✔✔ c. condemnation
t t t t t t t
Which of the following is true about asbestos? t t t t t t t
a. it should be removed from houses and public buildings, regardless of its
t t t t t t t t t t t t
condition
b. duct tape should be used to repair damaged sections of asbestos
t t t t t t t t t t t
c. encapsulation of damaged asbestos can be safer than removal
t t t t t t t t t
d. most lenders will not provide mortgage funds to homes with asbestos. -- Correct
t t t t t t t t t t t t t t
Answer ✔✔ c. encapsulation of damaged asbestos can be safer than removal
t t t t t t t t t t t
An agency or brokerage relationship is most commonly established between
t t t t t t t t t
a broker and a principal by
t t t t t
a. ratification
t
b. unilateral contract
t t
c. express agreement
t t
d. implied agreement -- Correct Answer ✔✔ c. express agreement/written agreement
t t t t t t t t t t
State real estate license laws provide for a disciplinary actions against
t t t t t t t t t t
, licensees who t
a. use the realtor title when not a member
t t t t t t t t
b. list or sell property more than 25 miles from the brokers office
t t t t t t t t t t t t
c. maintain a non-interest bearing trust account
t t t t t t
d. failed to give a client a copy of the listing agreement -- Correct Answer ✔✔ d. failed to
t t t t t t t t t t t t t t t t t t t
give a client a copy of the listing agreement
t t t t t t t t
The owner of a home with no liens obtained a home equity loan of $75.000,
t t t t t t t t t t t t t t
secured by his home. Several months later, he borrowed $15.000 and then
t t t t t t t t t t t
$13.000, each loan is secured by a lien against his home. He then lost his job
t t t t t t t t t t t t t t t
and failed to pay his past due property taxes of $7.500. his loan went into
t t t t t t t t t t t t t t
default and his home was foreclosed. Assuming that the liens for all three
t t t t t t t t t t t t
loans were recorded in a timely manner, what is the order of payoff to the
t t t t t t t t t t t t t t
lien holders?t
a. $7.500, $75.000, 15,000, 13.000
t t t t
b. $7500, $13,000,15,000,$75,000
t t
c. $75,000, $7500, $15,000, $13,000
t t t t
d. $75,000, $15,000, $13,000, $7,500 -- Correct Answer ✔✔ a. $7.500, $75.000, 15,000,
t t t t t t t t t t t t t
13.000
Tom Smith is licensed as an individual broker in Michigan, under which of
t t t t t t t t t t t t
the following names may he advertise his listings?
t t t t t t t
a. Smith realty company
t t t
b. Tom smith real estate, inc.
t t t t t
c. Tom smith properties
t t t
d. Tom smith, broker -- Correct Answer ✔✔ d. Tom smith, broker
t t t t t t t t t t t
A sales associate takes a listing in the name of the sponsoring broker. When a
t t t t t t t t t t t t t t
dispute arises between the sales associates and the seller
t t t t t t t t
a. the broker must terminate the listing
t t t t t t
b. the sales associate has breached a fiduciary duty
t t t t t t t t
c. the sales associate is the only responsible party
t t t t t t t t
d. the sponsoring broker may be responsible for the sales associates
t t t t t t t t t t
WITH THE LATEST AND UPDATED SCORE.
In Michigan, a licensee must provide a buyer/client with a true copy of the agency
t t t t t t t t t t t t t t t
agreement.
a. at closing
t t
b. when the buyer signs it
t t t t t
c. within two business days
t t t t
d. when an offer to purchase is presented -- Correct Answer ✔✔ b. when the buyer signs
t t t t t t t t t t t t t t t t t
it
which of the following would be the commend county and state transfer tax on the sale of
t t t t t t t t t t t t t t t t t
a property in Lansing that sold for $37,500? -- Correct Answer ✔✔ $322.50
t t t t t t t t t t t t
A broker has a number of open real estate transactions. The balance of the
t t t t t t t t t t t t t
record related to these transactions should be equal to the
t t t t t t t t t
a. Trust/escrow account balance
t t t
b. brokers expense account balance
t t t t
c. real estate company business account balance
t t t t t t
d. sum of the salespersons pending commission -- Correct Answer ✔✔ a. Trust/escrow
t t t t t t t t t t t t t
account balance t
Under Michigan law and the Persons and Disabilities civil rights act, a
t t t t t t t t t t t
landlord may refuse to rent a house to which of the following?
t t t t t t t t t t t
a. a blind person with a leader dog
t t t t t t t
b. a developmentally disable individual
t t t t
c. a person who smokes
t t t t
d. a person with epilepsy -- Correct Answer ✔✔ c. a person who smokes
t t t t t t t t t t t t t
,5. Before it was recognized as a health hazard, asbestos was commonly used as
t t t t t t t t t t t t t
insulation in residential and commercial construction because it is t t t t t t t t
a. a fire resistant
t t t
b. water resistant
t t
c. an air purifier
t t t
d. repellent to common pests -- Correct Answer ✔✔ a. a fire resistant
t t t t t t t t t t t t
The city wishes to purchase a parcel of property to be used as a cloverleaf for
t t t t t t t t t t t t t t t
access to the nearby interstate. The land owner refuses to sell. To acquire life
t t t t t t t t t t t t t
to the property, the city will initiate a process of
t t t t t t t t t
a. accession
t
b. negotiation
t
c. condemnation
t
d. escheat -- Correct Answer ✔✔ c. condemnation
t t t t t t t
Which of the following is true about asbestos? t t t t t t t
a. it should be removed from houses and public buildings, regardless of its
t t t t t t t t t t t t
condition
b. duct tape should be used to repair damaged sections of asbestos
t t t t t t t t t t t
c. encapsulation of damaged asbestos can be safer than removal
t t t t t t t t t
d. most lenders will not provide mortgage funds to homes with asbestos. -- Correct
t t t t t t t t t t t t t t
Answer ✔✔ c. encapsulation of damaged asbestos can be safer than removal
t t t t t t t t t t t
An agency or brokerage relationship is most commonly established between
t t t t t t t t t
a broker and a principal by
t t t t t
a. ratification
t
b. unilateral contract
t t
c. express agreement
t t
d. implied agreement -- Correct Answer ✔✔ c. express agreement/written agreement
t t t t t t t t t t
State real estate license laws provide for a disciplinary actions against
t t t t t t t t t t
, licensees who t
a. use the realtor title when not a member
t t t t t t t t
b. list or sell property more than 25 miles from the brokers office
t t t t t t t t t t t t
c. maintain a non-interest bearing trust account
t t t t t t
d. failed to give a client a copy of the listing agreement -- Correct Answer ✔✔ d. failed to
t t t t t t t t t t t t t t t t t t t
give a client a copy of the listing agreement
t t t t t t t t
The owner of a home with no liens obtained a home equity loan of $75.000,
t t t t t t t t t t t t t t
secured by his home. Several months later, he borrowed $15.000 and then
t t t t t t t t t t t
$13.000, each loan is secured by a lien against his home. He then lost his job
t t t t t t t t t t t t t t t
and failed to pay his past due property taxes of $7.500. his loan went into
t t t t t t t t t t t t t t
default and his home was foreclosed. Assuming that the liens for all three
t t t t t t t t t t t t
loans were recorded in a timely manner, what is the order of payoff to the
t t t t t t t t t t t t t t
lien holders?t
a. $7.500, $75.000, 15,000, 13.000
t t t t
b. $7500, $13,000,15,000,$75,000
t t
c. $75,000, $7500, $15,000, $13,000
t t t t
d. $75,000, $15,000, $13,000, $7,500 -- Correct Answer ✔✔ a. $7.500, $75.000, 15,000,
t t t t t t t t t t t t t
13.000
Tom Smith is licensed as an individual broker in Michigan, under which of
t t t t t t t t t t t t
the following names may he advertise his listings?
t t t t t t t
a. Smith realty company
t t t
b. Tom smith real estate, inc.
t t t t t
c. Tom smith properties
t t t
d. Tom smith, broker -- Correct Answer ✔✔ d. Tom smith, broker
t t t t t t t t t t t
A sales associate takes a listing in the name of the sponsoring broker. When a
t t t t t t t t t t t t t t
dispute arises between the sales associates and the seller
t t t t t t t t
a. the broker must terminate the listing
t t t t t t
b. the sales associate has breached a fiduciary duty
t t t t t t t t
c. the sales associate is the only responsible party
t t t t t t t t
d. the sponsoring broker may be responsible for the sales associates
t t t t t t t t t t
