Michigan Real Estate Salesperson Licensing – 3 hour PSI Practice Exam

These questions are part of the practice quiz. Start practicing

• What type of listing gives a broker the exclusive right to sell a property?
• What is the primary aim of the Michigan Real Estate License Law?
• If three brokers are involved in an open listing and one broker sells the property, who receives the commission?
• What is the statutory purpose of using an administrator in estate settlement?
• When a buyer signs a promissory note for financing property, what document accompanies the note?
• What is the consequence of breaching a lease agreement?
• What type of lease specifies a set amount of rent with the landlord covering all expenses?
• In real estate, what does the term 'escrow' refer to?
• What type of ownership allows a school property to revert to the grantor if not used as a school?
• Which of the following is a potential effect of zoning laws on property value?
• What type of real estate ownership allows multiple individuals to own shares in a single property?
• How can an owner stop another person from gaining adverse possession over her land?
• What is the term for using a property in a manner inconsistent with current zoning regulations?
• What is a "subordination clause" in a secured real estate loan?
• Which document is NOT included in the required materials for rescinding a purchase agreement for a condominium unit?
• What is a fiduciary relationship in real estate?
• Which of the following is NOT considered a federally chartered secondary market?
• A person who owns property alone is known as?
• How is "contingency" defined in a real estate contract?
• What term describes a person appointed by the court to settle the estate of a deceased individual who did not leave a will?
• What must a broker do after receiving a deposit for a purchase agreement?
• Which method would an appraiser use to measure the area of a house?
• What is an example of functional obsolescence?
• What does "MREC" stand for in Michigan real estate?
• Which of the following is a key role of a broker in a real estate transaction?
• What does a "Comparative Market Analysis" (CMA) estimate?
• Which term describes the approach where the true value of property is determined based on the current market?
• What is the minimum age requirement to obtain a real estate salesperson license in Michigan?
• What does the term "home equity" refer to?
• What is one of the main purposes of the RESPA?
• What document is typically used to secure a loan for real estate?
• What is a listing agreement?
• Which factors are used to determine the "fair market value" of a property?
• Which document acts as an assurance to the lender regarding the property’s condition?
• Which of the following is a characteristic of a VA loan?
• What does a "deed" represent in the real estate process?
• What should Max do if he discovers a potential contamination issue related to a house he wants to show to a client?
• What is meant by "property management" in real estate?
• Which type of tenancy includes the right of survivorship?
• What is meant by the term "investment property"?
• What is typically included in the financing contingency of a purchase offer?
• What legal interest does John create when he transfers property to his mother with a limitation on its use until her death?
• If a bank charged $2,400 in points on a loan amount of $120,000, how many points were charged?
• A shape that measures six miles by six miles resulting from the intersection of range lines and township lines is called a?
• If a seller counters a low offer but then accepts a full-price offer before the counter is signed, what is the seller's right?
• In Michigan, what is the minimum requirement for a non-living entity, like a corporation, to be licensed as a broker?
• If a tenant ignores a notice from the landlord to provide a forwarding address, what can the landlord do regarding damages?
• Which legal concept allows the government to take private property for public use?
• What is the purpose of points in a real estate loan?
• Which factor is NOT typically assessed when determining the value of real estate?
• What is the primary purpose of a real estate appraisal?
• What is the consequence of violating fair housing laws?
• What type of reduction in property value is caused by a noisy airport located nearby?
• The Real Estate Settlement Procedures Act (RESPA) is primarily concerned with which aspect of real estate transactions?
• When must a buyer receive a Good Faith Estimate (GFE) according to RESPA?
• What illegal activity occurs when a licensee suggests that neighbors sell their homes due to a new group home opening nearby?
• What should a landlord avoid when applying tenant selection criteria?
• Which of the following is an example of discriminatory lending practices?
• When are liquidated damages typically agreed upon?
• Which of the following mortgage types allows multiple pieces of property to secure one loan?
• What is the term for the covenant that assures the Grantee of the Grantor's full interest in the property?
• A veteran buying a home from a for sale by owner and financing it with a VA loan can do all of the following except?
• What is defined as information that could affect a buyer’s decision to purchase a property?
• Which of the following individuals is exempt from obtaining a real estate license to sell real estate?
• What defines "dual agency" in real estate?
• When a tenant requests to build a ramp for accessibility, what is the owner's obligation?
• What part of the condominium does Mr. Able own without sharing with other co-owners?
• What can a veteran do with their home after obtaining a VA loan if they are being transferred?
• How many acres are there in a parcel that measures 348 by 625 feet?
• What does the Fair Housing Act primarily aim to accomplish?
• If different persons have different interests in real property and took title at different times, how do they likely hold title?
• Which ownership type provides the most complete control over a property?
• What is one essential component that must be present in the cost approach to appraisal?
• For a deed to be considered a General Warranty Deed, what must it contain?
• What does an installment contract (land contract) not provide to the buyer?
• Which type of insurance might a lender require for properties located in flood-prone areas?
• Which of the following is not typically considered in the cost approach appraisal method?
• What type of listing agreement provides for the payment of a commission to the listing broker no matter who sells the property?
• Which agency oversees real estate licensing in Michigan?
• What does "RESPA" stand for, and what is its purpose?
• A developer wanting to build a retail outlet on residentially zoned land should seek what?
• What type of insurance is typically required during the closing process of a property purchase?
• What document is required when a developer wants to convert an apartment building into condominiums?
• What essential document outlines specific terms and conditions relating to a property sale?
• What appraisal method would an appraiser likely use for valuing a 20-year-old residence?
• What document is typically required to prove ownership of real property?
• Which type of listing allows an owner to sell property themselves without paying a commission?
• Under what authority does the government enforce zoning laws, building codes, and health codes?
• What defines a life estate?
• What may occur if a seller refuses to disclose known material defects in a property?
• What is it called when an investor uses multiple parcels of land as collateral for a single loan?
• What does the term "closing" refer to in real estate transactions?
• What should Sharon negotiate to ensure she has the right to renew her lease or leave if the business does not perform well?
• What clause allows a lender to call the entire mortgage balance due upon sale of a property?
• Which of the following is protected under the Fair Housing Act?
• What does the Department have jurisdiction to do in relation to brokers?
• If a deposit check is made payable to a salesperson, what action must the salesperson take?
• Which statement is correct about counter offers in real estate transactions?
• Which of the following is NOT a characteristic of legal title to property?
• In a mortgage, what does the term "escrow" typically refer to?
• What legal document is often used to transfer interest in real property?
• How often must a real estate salesperson renew their license in Michigan?
• What is the loan origination fee based on if a house sells for $250,000 and is appraised at $220,000 with an 80% loan ratio?
• An agent is typically considered to have earned a commission after achieving what outcome?
• What is the significance of the "law of agency" in real estate?
• What is the declaration of a person’s wishes regarding their property after death called?
• What amount would Sarah clear at closing if she sold a property for $200,000 with a 6% commission and 2 points for the buyer's loan based on a 90% loan?
• In which situation would MSHDA not provide below-market interest rates?
• In a situation where a buyer made an offer below the asking price, what happens if the seller makes a counter offer?
• In which scenario is a "lease-option" agreement typically utilized?
• How is a "brokerage fee" best described?
• Which party typically pays for a property appraisal in a real estate transaction?
• What is the effect of a "Due-on-sale" clause in a mortgage?
• Which loans does the Real Estate Settlement Procedures Act apply to?
• Which activity is not allowed for a broker licensed in Michigan?
• Where should an agent refer a potential buyer interested in obtaining an FHA loan?
• Why might a landlord prefer a triple net lease?
• What does "due diligence" refer to in real estate?
• What constitutes "illegal steering" in real estate practices?
• What happens to a dishwasher purchased by the Johnsons after they install it in their kitchen cabinets?
• What must a licensee do when an offer is received and the seller is unavailable?
• What does "eminent domain" allow the government to do?
• What is the right of a person to regain their property after a foreclosure sale called?
• What distinguishes a buyer's agent from a seller's agent?
• What does "fair housing" law in real estate refer to?
• What is meant by "title insurance" in real estate?
• What is the role of a real estate agent during a transaction?
• What does a "counteroffer" in real estate negotiation entail?
• Upon receiving a deposit on a transaction, what must a salesperson do?
• What type of payment can a broker accept for a deposit with the seller's approval?
• What is the term used to describe the cost to build an exact duplicate of an existing structure?
• Which of the following actions is often prohibited for a realtor when marketing a property?
• What must David apply for if local zoning requires a 30-ft setback but his architect indicates a 20-ft distance?
• Under Truth-in-Lending, which type of statement can be advertised alone?
• If a salesperson is transitioning to a new company, what is a potential way to avoid delays in licensure?
• When is a "Statement of Information" typically requested in real estate transactions?
• In real estate transactions, what does "escrow" refer to?
• What must a broker do to open a branch office in another city?
• Which breach of contract remedy requires a seller to complete a contract of sale?
• What can be concluded about functional obsolescence in a property?
• What is it called when property is turned over to the state due to lack of heirs?
• How many hours of pre-licensure education are required to obtain a real estate salesperson license in Michigan?
• What is the primary intent behind seeking a zoning variance?
• If a buyer places a deposit subject to zoning change but does not exercise the option in 90 days, what happens to his option?
• In a scenario where multiple real estate agents are involved, what happens if one closes a deal?
• If charges are filed against a licensee, what is the first step they may attend?
• What role does a mortgage broker play in real estate transactions?
• Which of the following is not considered a limitation on licensees?
• What is required for a salesperson to operate independently in Michigan?
• What is the duration of the rescission period for a purchaser of a new condominium unit after receiving important documents?
• What action is required when a salesperson receives an offer while the seller is uncontactable?
• What is the effect of the Fair Housing Act on landlords?
• How should a mortgage lender react if a property with an existing mortgage is sold?
• An owner of a 40-acre parcel who wants to split land without formally creating a subdivision can get what number of parcels?
• What must occur for a real estate licensee to enter into a contract with a client?
• In the assignment of a lease, what is true regarding what is transferred?
• What does the term "rescission" refer to in a contract context?
• What is typically required in Michigan when a real estate agent represents a client?
• Which property interest does NOT have the right of survivorship?
• An arrangement where the seller finances the sale and deeds the property to the buyer at closing is called what?
• What is the primary purpose of establishing a trust account by a broker?
• In Michigan real estate, what is the purpose of a title search?
• Under which circumstance does the property go to the state?
• Which of the following scenarios would typically call for the invocation of 'eminent domain'?
• Who must possess a license to perform real estate services and receive compensation?
• For a property priced at $150,000 with an 80% loan-to-value ratio and 3 points, how much does the buyer need to close the transaction?
• What is the purpose of a "declaration of restrictions" in real estate?
• What is a person who authorizes another to act on their behalf called?
• In real estate transactions, what does the acronym LTV stand for?
• What is the term for the government's right to take private property for public use?
• What key aspect does a lease agreement address?
• What would be a potential outcome of applying for a zoning variance?
• What tax is due to the county and state for recording a deed and is paid by the seller?
• What is one major component of a property due diligence process?
• What type of property is characterized as temporary and movable?
• What authority does the real estate board NOT have according to its governing principles?
• A line of townships that runs in a North-South direction is referred to as what?
• As a special agent, what does a salesperson NOT need written authority to do?
• If a broker believes a property is worth more than the owner’s listed price, what must the broker do?
• What does due diligence typically involve?
• Discount points charged by a lender on a loan are based on what?
• Which of the following is not true regarding a broker's advertising practices?
• Why are deeds recorded?
• What does "zoning" refer to in real estate terms?
• What is true about a nonconforming use in relation to zoning changes?
• When must a seller provide a property disclosure statement in Michigan?
• What should a licensee do if the property owner requests not to mention a shared driveway to prospective buyers?
• Which of the following is NOT typically included in the finance charge under Truth-in-Lending provisions?
• An estate that is held by a husband and wife is called?
• What is a "triple net lease" in the context of commercial real estate?
• How frequently must a Michigan real estate licensee complete continuing education?
• An agent's exaggerated opinion of property features can be referred to as?
• In a condominium project, what is typically considered a common element?
• What type of mortgage requires the borrower to make payments on both existing and new loans?
• What does the three-day rule in real estate transactions stipulate?
• What is the purpose of the Michigan "Seller's Disclosure Act"?
• What does "earnest money" refer to in a real estate transaction?
• Which type of deed provides the least liability for the grantor?
• What was asbestos primarily used for in construction?
• What is the primary function of an "open house" in real estate?
• When can a closing be conducted differently from the purchase agreement?
• Which of the following is typically covered by zoning ordinances?
• What is the term for when a deceased person did not leave a will and has no heirs?
• What is the total area of a township in Michigan?
• What action can a borrower take if they experience loan default?
• What is one characteristic of the secondary mortgage market?
• What role does an executor perform in the probate process?
• How is "foreclosure" defined in real estate terms?
• What does a quick claim deed convey?
• What must Charlie obtain to extend the side of his house beyond the setback boundary?
• What does an "acceleration clause" in a mortgage stipulate?
• What is the best course of action when a title search reveals a cloud on the title?
• If property is appraised for $158,000 and the tax rate is 33 mills, how much tax is due?
• What characterizes a "wraparound mortgage"?
• What is the main purpose of an appraisal in real estate?
• What is the role of the Michigan Board of Real Estate Brokers and Salespersons?
• Which of the following best describes a land contract?
• If a broker secures a signed offer with a deposit but the seller refuses to accept, what is true about the broker's fee?
• When developing a condominium, what is a necessary document to provide purchasers?
• What conclusion can buyers draw if a seller accepts their initial offer after making a counter offer?
• Under which circumstance might a temporary license be allowed by the Department?
• Can a real estate salesperson operate independently without a broker?
• Which entity typically oversees the mortgage application process?
• For a deed to successfully transfer title from one owner to another, what is required?
• What is the primary purpose of a real estate brokerage?
• What is a seller required to disclose in the property disclosure statement?
• Which of the following is a sign of functional obsolescence?
• What type of listing gives a broker the right to sell the property exclusively?
• Max has a buyer looking for a house but hasn't signed a buyer-broker agreement. What should Max do regarding his professional obligation?
• In which type of estate can an individual have sole ownership that can be transferred to heirs?
• Which statement is true concerning properties registered under the condominium law?
• What are the primary types of property ownership in Michigan?
• What is the primary purpose of the federal Truth-in-Lending (Regulation Z)?
• What is the next step for a primary lender who has exhausted its funds for home mortgages?
• Which action is permissible under the law regarding tenant selection?
• What are the cash flow responsibilities of a tenant in a triple net lease?
• What is a requirement for a valid deed transfer in real estate?
• Which type of lease often benefits the lessor as they cover the operation costs?
• What type of ownership do David and Susan have if they are tenants in common?
• What is the primary purpose of a lease agreement?
• What is an imaginary line that runs north-south and intersects with the base line called?
• Under the principles of the cost approach, which factor is crucial in determining value?
• Which situation is considered a violation of the law?
• Which of the following best describes an earnest money deposit?
• What is the approximate price per acre if a parcel of land measuring 485 ft by 1,210 ft sold for $122,000?
• Upon receipt of an offer to purchase, what should a licensee recommend to the buyers?
• How much will the listing salesperson make if a house is sold for $134,500 with a commission rate of 6% and the brokers split is 60/40?
• In real estate, what does the term "commission split" refer to?
• What is the primary function of a home inspector in real estate transactions?
• Which document is used to transfer ownership of a property?
• What is the significance of the term "closing costs" in real estate?
• In an adjustable-rate mortgage (ARM), where is information about interest rate changes typically found?
• What is one of the main benefits of having a lease agreement?
• The practice of not lending money to applicants based on location is known as what?
• In real estate contracts, what are "liquidated damages"?
• What type of employment does Sharon have if she is paid only on sales production and can work any number of hours?
• Under what condition does an agent typically earn a commission?
• What action can Charlie's wife take after his death when his will indicates all property must go to charity?
• What type of deed contains all the covenants of title?