Free Michigan Real Estate Salesperson Practice Exam 2025

The purchase agreement outlines the terms of the sale between buyer and seller, forming the legal basis for transferring ownership at closing.

Valid real estate contracts must include mutual agreement (offer and acceptance), consideration, and signatures of the parties involved.

The Michigan Board of Real Estate includes 9 appointed members who regulate licensing, enforce standards, and oversee professional conduct.

Michigan brokers must report changes in their business address to the Department of Licensing within 30 days to stay compliant.

This form informs clients whether the agent is working for the buyer, the seller, or both (dual agency), promoting transparency in representation.

Only licensed appraisers are allowed to perform real estate appraisals in Michigan, ensuring professional standards and legal compliance.

The Recovery Fund offers financial compensation to consumers harmed by fraudulent or unethical conduct of licensed real estate professionals.

Real estate transfer taxes are commonly split between buyer and seller in Michigan, but the parties can agree otherwise in the sales contract.

A license expires if continuing education is incomplete by the renewal deadline. The licensee cannot practice until CE is fulfilled and the license is renewed.

Applicants must complete 60 hours of approved pre-licensing education to be eligible for the Michigan salesperson exam.

Michigan permits dual agency, single agency, and transactional agency, but all must be disclosed and consented to in writing by all parties involved.

The seller disclosure statement is legally required to inform buyers about the condition of the property, revealing any known defects or issues.

A deed is the official legal instrument used to transfer real estate ownership in Michigan. It must be signed and delivered to be effective.

Landlords must return the security deposit within 30 days after lease termination, along with an itemized list of deductions if applicable.

Michigan law caps security deposits at one month’s rent unless there is a written agreement for more. This protects tenants from excessive upfront costs.

A dual agent represents both buyer and seller in a transaction but must obtain written informed consent from both parties to avoid conflict of interest.

Trust accounts must follow strict Michigan laws to safeguard client funds. Brokers must keep detailed records and avoid commingling.

A complaint against a licensee must be filed within 3 years from the date of the alleged misconduct, according to Michigan law.

The broker must immediately notify LARA when terminating a salesperson’s license. Delay in reporting could result in liability or discipline.

Applicants for a real estate license in Michigan must be at least 18 years of age to ensure legal capacity to contract.

Practicing without a license is a criminal offense in Michigan and may lead to fines and even imprisonment. It is taken very seriously by regulators.

Disclosure of agency must occur at the first substantive contact—before any confidential information is exchanged—to ensure transparency.

Earnest money is held in trust by the broker to ensure neutral handling until closing, reflecting fiduciary responsibility to both buyer and seller.

To apply for a real estate license in Michigan, you must be at least 18 years old, have a high school diploma or equivalent, and pass the licensing exam.

The Commission enforces licensing laws, disciplines violators, and protects consumers. It functions as the oversight body for the real estate profession.

Michigan brokers must retain records of real estate transactions for at least 5 years to comply with regulatory oversight and audit preparedness.

An open listing permits multiple brokers and allows the seller to sell independently without paying a commission unless a broker is the procuring cause.

Licensees must disclose all material facts—conditions or details that could impact a buyer’s decision or affect the value of the property.

Continuing education in Michigan is required every two years. It ensures that licensees stay current with real estate laws and professional standards.

LARA does not set property tax rates—that’s a function of local governments. LARA’s role is regulation, licensing, and enforcement in real estate.

Consumers most protected by Michigan law are those vulnerable to financial abuse, especially during refinancing. Laws target unfair lending to individuals with low credit.

A revoked salesperson must wait one full year before reapplying for a Michigan license. This waiting period ensures time for reflection and correction of prior misconduct.

When a broker’s license is revoked, salespersons under that broker lose their licenses automatically because they must be affiliated with a licensed broker to legally operate.

A special agent represents a client in one specific transaction only—most commonly a seller in a single real estate sale. This limits the scope of authority but allows focused representation.

An exclusive right to sell listing gives the broker the strongest protection by guaranteeing commission regardless of who sells the property, including the seller. This listing type discourages competition and ensures broker motivation.