Free Michigan Real Estate Practice Exam

Q1.A tenant with a mobility disability requests that the landlord install a ramp at the building entrance. Under the FHA, this is an example of:

• A.A reasonable modification — the tenant pays for the physical change
• B.A reasonable accommodation — the landlord must change a policy
• C.An unreasonable request that the landlord may deny
• D.A building code violation that requires a permit

Q2.Under Michigan law, how long must property management records be retained?

• A.2 years
• B.3 years
• C.5 years
• D.7 years

Q3.According to Michigan Real Estate Commission rules, what continuing education requirement must brokers complete for license renewal?

• A.18 hours every 3 years
• B.24 hours every 3 years
• C.30 hours every 3 years
• D.36 hours every 3 years

Q4.What is the primary purpose of an appraisal in a real estate transaction?

• A.To determine the listing price
• B.To establish property taxes
• C.To provide an unbiased estimate of market value
• D.To identify needed repairs

Q5.A Michigan property manager discovers that rent money from their trust account was mistakenly used to pay a business expense. The manager should:

• A.Replace the funds immediately and document the error
• B.Deduct the amount from the next month's management fee
• C.Wait until the next rent payment to correct the balance
• D.Report the error to the property owner only

Q6.A Michigan broker discovers a $500 shortage in their trust account during monthly reconciliation. The proper course of action is to:

• A.Wait until next month to see if the discrepancy resolves
• B.Immediately investigate, correct the shortage, and document the cause and resolution
• C.Notify the Real Estate Commission within 24 hours
• D.Transfer funds from the general account to cover the shortage without documentation

Q7.Under Michigan license law, when must a broker notify the Michigan Real Estate Commission about a change in business address?

• A.Within 10 days of the change
• B.Within 15 days of the change
• C.Within 30 days of the change
• D.At the time of license renewal

Q8.According to Michigan Real Estate Commission rules, what must a broker do if a client requests to terminate an exclusive listing agreement before its expiration date?

• A.The broker must immediately terminate and cannot claim compensation
• B.The broker can refuse termination until the contract expires
• C.The broker should negotiate terms for early termination in writing
• D.The termination is automatically void under Michigan law

Q9.Under Michigan law, when may a salesperson work independently without broker affiliation?

• A.After completing 2 years of supervised experience
• B.When handling transactions under $100,000
• C.After obtaining broker education credits
• D.Never - salespersons must always be affiliated with a broker

Q10.A property is purchased for $250,000 with a down payment of 20%. What is the loan amount?

• A.$50,000
• B.$200,000
• C.$230,000
• D.$270,000

Q11.Under RESPA, which service provider relationship must be disclosed to borrowers when a real estate agent refers clients?

• A.Any business relationship where the agent receives compensation or has an ownership interest
• B.Only relationships where the agent owns more than 50% of the service provider
• C.Relationships established within the past 12 months only
• D.Only relationships involving mortgage lenders, not other settlement service providers

Q12.Under Michigan's Occupational Code, which statement about designated agency is correct?

• A.It is prohibited in all circumstances
• B.It allows different licensees within the same firm to represent different parties in the same transaction
• C.It requires the broker to represent both parties equally
• D.It eliminates all fiduciary duties

Q13.In a township using the rectangular survey system, which section number is located in the northeast corner?

• A.Section 1
• B.Section 6
• C.Section 31
• D.Section 36

Q14.Under Michigan law, what happens to earnest money if a buyer defaults on a Purchase Agreement without legal justification?

• A.The earnest money is automatically forfeited to the seller
• B.The earnest money is returned to the buyer
• C.The earnest money is split equally between buyer and seller
• D.The earnest money is held pending mutual agreement or court order

Q15.What is the primary federal law that requires disclosure of known lead-based paint hazards in residential properties built before 1978?

• A.Clean Air Act
• B.Toxic Substances Control Act (TSCA)
• C.Residential Lead-Based Paint Hazard Reduction Act
• D.Safe Drinking Water Act