Michigan Agency
Practice Questions & Answers (2026)
Agency law is one of the most tested subjects on the Michigan real estate exam, and it's also one of the most misunderstood. The Michigan Department of Licensing and Regulatory Affairs (LARA) expects licensees to understand the legal duties owed to clients vs. customers, and the specific timing of required disclosures under Michigan law. Study these questions carefully — candidates who rely on national agency frameworks and don't account for MI-specific rules are among the most common failures on the state portion.
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Michigan Agency — Practice Questions & Answers
118 questions on Agency from the Michigan real estate question bank. First 10 are free — sign up to unlock all 118.
Q1. Michigan law requires that a disclosure of agency relationship be provided to consumers:
Explanation
Michigan requires licensees to disclose their agency relationship in writing before or at the time a brokerage relationship is established, so consumers understand who represents their interests.
Q2. In Michigan, a buyer's agent owes which duty to the buyer client?
Explanation
A buyer's agent in Michigan owes full fiduciary duties to the buyer client: loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting.
Q3. Dual agency in Michigan requires:
Explanation
Michigan permits dual agency but requires written informed consent from both the buyer and the seller before the agent may represent both parties in the same transaction.
Q4. A seller's agent in Michigan who learns the buyer's maximum budget should:
Explanation
A seller's agent owes loyalty to the seller. Information about the buyer's maximum budget is material to the seller and must be disclosed to help the seller negotiate the best possible terms.
Q5. An agent who has no agency relationship with either party but assists in completing a transaction is acting as a:
Explanation
A transaction coordinator or facilitator assists both parties without representing either as a fiduciary, and does not owe loyalty or confidentiality to either side.
Q6. Sub-agency in Michigan means that:
Explanation
Sub-agency occurs when a cooperating broker represents the seller's interests on behalf of the listing broker. The cooperating agent is a sub-agent of the listing broker and owes fiduciary duties to the seller.
Q7. In Michigan, a dual agent owes which duties to BOTH the buyer and the seller?
Explanation
A dual agent in Michigan owes both parties honesty, disclosure of material facts affecting value, and accounting. The duties of undivided loyalty and full confidentiality are limited because of the dual nature of representation.
Q8. Michigan requires that agency disclosure be made to the consumer:
Explanation
Michigan law requires real estate licensees to disclose their agency relationship to consumers at the first substantive contact, before providing any brokerage services.
Q9. A seller's agent in Michigan has a duty to disclose to the seller which of the following?
Explanation
A seller's agent must disclose to the seller any material facts that could affect the seller's decision-making, including information about property conditions or market factors relevant to the listing.
Q10. In Michigan, a designated agent means:
Explanation
Designated agency allows a broker to designate specific licensees within the same brokerage to represent the buyer and seller respectively, reducing the conflicts inherent in dual agency.
Q11. Which of the following best describes a buyer's agent in Michigan?
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