Michigan Real Estate L/icense Exam Questions & Answers (Graded A+)

A landlord must place security deposits into a regulated financial institution unless the - ANSWER-a. landlord deposits a bond with the Secretary of State. REASONING: The security deposit must be deposited in a regulated financial institution. A landlord may use the security deposit if the landlord posts a cash or surety bond with the secretary of state. A broker has inherited a one-tenth interest in her father's house. If the heirs agree to sell the property as for sale by owner, the broker must - ANSWER-disclose her ownership interest and licensure to a buyer before an offer is signed. REASONING: In selling property in which a licensee has any interest, the licensee must reveal her interest and her licensure to the purchaser, in writing, before the offer to purchase is signed. A residential tenant who signs a lease containing a provision waiving his right to a jury trial - ANSWER-may terminate the lease if the landlord refuses to cure the lease by removing the clause from all existing leases. REASONING: A lessor may cure a violation of the Truth in Renting Act by giving written notice to all current tenants stating that the provision is void or by altering the provision to bring it into compliance. Who can be authorized to sign checks drawn against a property management account? - ANSWER-The broker's bookkeeper, A salesperson licensed to the broker REASONING: A real estate broker or any designated employee of the real estate broker engaged in property management may be a signatory on checks drawn on property management accounts. Who may NOT be authorized to act as a supervisory broker? - ANSWER-The office manager who holds a salesperson's license REASONING: A supervisory broker is the associate broker designated in a written agency agreement to act in a supervisory role in a designated agency relationship. A defendant will prevail on an action brought under the Michigan Environmental