Michigan Real Estate Exam Practice Questions (2025)

Michigan Real Estate Exam Practice Questions

The Michigan real estate salesperson exam is 115 questions (80 national + 35 state) administered by PSI. You need 70% (81 out of 115 correct) to pass. The state section covers LARA rules, Michigan agency law, the Michigan Seller's Disclosure Act, transfer tax, and riparian rights.

Sample Practice Questions

1. Which agency oversees real estate licensing in Michigan?

A) Michigan Real Estate Commission B) Michigan Department of Labor and Economic Growth C) Michigan Department of Licensing and Regulatory Affairs (LARA) D) Michigan Board of Realtors

*Answer: C — LARA (Department of Licensing and Regulatory Affairs) oversees Michigan real estate licensing through the Michigan Board of Real Estate Brokers and Salespersons.*

2. Michigan real estate license law is found in:

A) Michigan Compiled Laws Chapter 339, Article 25 B) Michigan Administrative Code Section 600 C) Michigan Revised Statutes Title 32, Chapter 82 D) Michigan Code of Commerce, Title 9

*Answer: A — Michigan real estate license law is in MCL Chapter 339 (Occupational Code), Article 25.*

3. Michigan requires a salesperson applicant to complete how many pre-license education hours?

A) 30 B) 40 C) 55 D) 60

*Answer: B — Michigan requires 40 hours of pre-license education for salesperson applicants.*

4. Michigan real estate licenses renew every:

A) 1 year B) 2 years C) 3 years D) 4 years

*Answer: C — Michigan licenses renew every 3 years.*

5. Michigan's continuing education requirement per 3-year renewal cycle is:

A) 12 hours B) 15 hours C) 18 hours D) 21 hours

*Answer: C — Michigan requires 18 hours of CE per 3-year cycle, including 2 hours of legal updates annually.*

6. The Michigan Seller's Disclosure Act requires disclosure for:

A) All real property sales B) Residential properties with 1–4 units C) Commercial properties only D) Properties over $500,000

*Answer: B — The Michigan Seller's Disclosure Act applies to residential properties with 1–4 units.*

7. The Michigan state transfer tax rate (state portion only) is approximately:

A) $0.55 per $500 B) $1.10 per $500 C) $3.75 per $500 D) $7.50 per $500

*Answer: C — Michigan's state transfer tax is $3.75 per $500 of sale price. The county portion adds $0.55 per $500, for a combined rate of approximately $4.30 per $500.*

8. The standard deed type used in Michigan residential transactions is:

A) Bargain and sale deed B) Quitclaim deed C) Warranty deed D) Special warranty deed

*Answer: C — Michigan uses a warranty deed as the standard in residential transactions.*

9. Riparian rights in Michigan refer to:

A) Rights of adjacent property owners along a public roadway B) Rights of property owners whose land borders a body of water C) Rights of landlocked property owners to access public roads D) Water rights acquired through adverse possession

*Answer: B — Riparian rights in Michigan give property owners whose land borders a lake, river, or other body of water specific rights to use and access that water.*

10. Michigan's right of redemption after a foreclosure sale is typically:

A) 30 days B) 3 months C) 6 months D) 12 months

*Answer: C — Michigan generally provides a 6-month right of redemption after a foreclosure sale.*

How to Use These Questions

For every missed question, return to the underlying rule. Michigan state questions cluster around LARA structure, the Seller's Disclosure Act, transfer tax calculations, riparian rights, and agency law.

Michigan Real Estate Exam Practice Questions (2025)