Michigan Real Estate Exam Pass Rate: What to Know

Michigan Real Estate Exam Pass Rate

Michigan does not publicly publish official first-attempt pass rate data. Industry estimates based on PSI reporting and Michigan pre-license school data suggest that approximately 55–65% of first-time candidates pass the Michigan salesperson exam. The failure rate is largely concentrated in the state section.

Exam Format

The Michigan salesperson exam:

• 80 national questions — agency, contracts, ownership, financing, valuation, fair housing, land use
• 35 state questions — LARA rules, Michigan license law, Seller's Disclosure Act, transfer tax, riparian rights, Michigan agency law
• Total: 115 questions
• Time allowed: 3 hours
• Passing score: 70% (81 out of 115 correct)

Both sections must be passed independently. Failing one section means retaking only the failed section.

What Causes Candidates to Fail

Underestimating the state section. Michigan's 35 state questions cover content that national prep courses simply don't include: the Michigan Seller's Disclosure Act requirements, the transfer tax calculation ($3.75 per $500 state + $0.55 per $500 county), riparian rights along Michigan's Great Lakes and inland waters, and LARA's specific structure and rules.

Getting the transfer tax math wrong. Michigan's transfer tax is expressed per $500 — not as a percentage. Candidates who aren't practiced with this format make calculation errors.

Overlooking riparian rights. Michigan's thousands of miles of Great Lakes shoreline and inland waterways make riparian rights a significant Michigan-specific topic. National courses don't cover this.

Forgetting the 3-year renewal cycle. Michigan licenses renew every 3 years — not the 2-year cycle common in most states. This is a frequently tested fact.

Confusing LARA with a "commission." Michigan doesn't have a standalone real estate commission. Licensing is managed by LARA through the Michigan Board of Real Estate Brokers and Salespersons.

Scoring and Retakes

Michigan allows unlimited retakes with a 24-hour waiting period. Each retake requires paying the PSI exam fee. Candidates must complete the exam within their pre-license course validity window.

How to Improve Your Odds

• Study Michigan-specific content separately from national content
• Memorize the transfer tax rate ($4.30 per $500 combined)
• Understand riparian rights and the Great Lakes compact implications
• Take at least 3 full-length 115-question practice exams before scheduling
• Score 80%+ on practice exams consistently

Practice for Michigan

[CARealestate.com/states/michigan](https://carealestate.com/states/michigan) has Michigan-targeted practice questions with detailed answer explanations. 5 free questions — no signup needed.