How to Pass the Michigan Real Estate Exam on Your First Try

Michigan's real estate salesperson exam is 115 questions — 80 national and 35 state-specific — with a 70% passing threshold on each section. The exam is administered by PSI.

Michigan Exam Fast Facts - Questions: 115 (80 national + 35 state) - Passing score: 70% on each section (56 national, 25 state) - Time limit: 4 hours - Provider: PSI - Pre-license education: 40 hours (salesperson) - Governing body: Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Professional Licensing

Michigan Occupational Code

Michigan's real estate licensing is governed by the Occupational Code (MCL 339) and the Real Estate Brokers and Salespersons Act. The Bureau of Professional Licensing (BPL) administers licenses.

Key BPL facts: - Salesperson licenses renew every 3 years; 18 hours of CE required - New salespersons must complete a 40-hour post-license course within the first 3-year renewal cycle - Michigan does not have a Recovery Fund - Background check required; certain criminal convictions are disqualifying

Michigan Agency Law

Michigan uses the Disclosure of Agency Relationship form. Michigan recognizes:

• Seller's agent: fiduciary duties to seller
• Buyer's agent: fiduciary duties to buyer
• Disclosed dual agent: represents both with written consent from both parties
• Transaction coordinator: assists without representing either party

The agency disclosure must be provided at first contact and signed before substantive discussions begin.

Key Michigan rule: A buyer broker agreement must be in writing to enforce a buyer's agent commission claim. Michigan brokers are not entitled to compensation from a buyer without a written buyer agency agreement.

Michigan Disclosure Requirements

Michigan's Seller Disclosure Act (MCL 565.951) requires residential sellers to provide the Seller's Disclosure Statement before buyers sign a purchase agreement.

The buyer has 72 hours (3 business days) to review the disclosure after receiving it. During this period, the buyer may rescind for any reason.

Required disclosures include: - Structural and mechanical systems - Environmental hazards (underground storage tanks, lead, radon) - Water and sewer system condition - HOA assessments and restrictions - Known legal issues (easements, encroachments)

Exempt transactions: Court orders, foreclosures, and probate sales are exempt from the Seller Disclosure Act.

Michigan-Specific Topics

Riparian rights: Michigan has more coastline than any other state (excluding Alaska) — over 3,000 miles on four Great Lakes. Riparian rights (rights of property owners adjacent to water) are heavily tested: - Riparian owners have the right to reasonable use of the water - The state owns the bottom of the Great Lakes; private ownership extends to the ordinary high-water mark - Docks and boat hoists require permits from the Michigan Department of Environment, Great Lakes, and Energy (EGLE)

Property transfer tax: Michigan charges a state transfer tax of $3.75 per $500 of value (0.75%). Counties add $0.55 per $500 (0.11%).

Homestead exemption: Michigan's Principle Residence Exemption (PRE) reduces property taxes for owner-occupied primary residences. Know how it works and how it's lost.

Topics That Catch Candidates Off Guard

72-hour rescission: Michigan's 72-hour review period for the Seller Disclosure Statement is shorter than the 3+ business days in many states. Make sure you know it's 72 hours.

Riparian rights on the Great Lakes: The state owns the Great Lakes bottomland — private ownership ends at the ordinary high-water mark. This is tested specifically for Great Lakes coastal properties.

PRE (Principle Residence Exemption): Michigan's homestead exemption is called the PRE. Know what it reduces and when it's uncapped.

40-hour post-license: Michigan's post-license course is 40 hours, requiring a real commitment in the first renewal cycle.

Your 4-Week Michigan Study Plan

Week 1: National — agency, contracts, ownership, land use, fair housing Week 2: National — financing, valuation, math, environmental Week 3: Michigan-specific — BPL/LARA structure, agency law, Seller Disclosure Act, riparian rights Week 4: Full practice exams. Target 75%+. Drill the 72-hour rescission, Great Lakes riparian rules, and PRE requirements.

Practice for the Michigan Exam

[CARealestate.com/states/michigan](https://carealestate.com/states/michigan) has Michigan-specific practice questions covering BPL rules, agency law, the Seller Disclosure Act, and Great Lakes riparian rights. 5 free questions, no signup needed.

Michigan's riparian rights questions are entirely state-specific and reflect Michigan's unique coastal geography. Candidates from inland states often skip this topic — don't.