Michigan Practice TestMichigan License Law

Michigan Michigan License Law
Practice Questions & Answers (2026)

Michigan license law questions make up a substantial portion of the MI state exam and cover rules that are specific to Michigan — national study materials often miss these details entirely. The Michigan Department of Licensing and Regulatory Affairs (LARA) tests its own licensing requirements, broker supervision standards, trust account rules, continuing education mandates, and advertising regulations. Candidates who pass the national portion comfortably often struggle on the state portion specifically because of these Michigan-specific provisions. Every question in this section tests something the Michigan Department of Licensing and Regulatory Affairs (LARA) enforces directly, so study each answer explanation carefully for the specific MI rule being tested.

Practice Questions

Michigan Michigan License Law — Practice Questions & Answers

137 questions on Michigan License Law from the Michigan real estate question bank. First 10 are free — sign up to unlock all 137.

Q1. Which agency oversees real estate licensing in Michigan?

A.Michigan Real Estate Commission
B.Michigan Department of Licensing and Regulatory Affairs (LARA)
C.Michigan Bureau of Consumer Protection
D.Michigan Association of Realtors

Explanation

The Michigan Department of Licensing and Regulatory Affairs (LARA), through the Bureau of Professional Licensing, regulates real estate licensees in Michigan.

Q2. How many hours of pre-license education are required for a Michigan real estate salesperson license?

A.20 hours
B.40 hours
C.60 hours
D.90 hours

Explanation

Michigan requires 40 hours of pre-license education for a salesperson license, which must be completed before taking the licensing examination.

Q3. The Michigan real estate salesperson licensing exam contains how many questions?

A.100
B.110
C.115
D.120

Explanation

The Michigan real estate salesperson exam contains 115 questions. Candidates must score at least 70% to pass.

Q4. What is the minimum passing score on the Michigan real estate salesperson exam?

A.65%
B.70%
C.75%
D.80%

Explanation

Michigan requires a minimum passing score of 70% on the real estate salesperson licensing examination.

Q5. Under the Michigan Occupational Code, a real estate salesperson must be affiliated with:

A.LARA directly
B.A supervising broker
C.Any licensed real estate professional
D.A real estate school

Explanation

A Michigan salesperson must work under the supervision and sponsorship of a licensed real estate broker and cannot independently practice real estate.

Q6. Michigan real estate licenses must be renewed every:

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

Explanation

Michigan real estate salesperson and broker licenses are renewed on a 2-year cycle. Continuing education is required for renewal.

Q7. The Michigan Seller Disclosure Act requires sellers to:

A.Disclose only structural defects discovered within the past year
B.Complete a written disclosure form revealing known material defects
C.Pay for a home inspection before listing
D.Provide a warranty covering all mechanical systems

Explanation

The Michigan Seller Disclosure Act requires sellers of residential property to complete a Seller's Disclosure Statement, disclosing known material defects, conditions, and other information about the property.

Q8. Under Michigan law, an unlicensed person who performs real estate brokerage activities is subject to:

A.A warning letter only
B.Criminal penalties and civil fines
C.A mandatory education requirement
D.Suspension of their salesperson application

Explanation

Practicing real estate without a license in Michigan is a violation of the Occupational Code and can result in criminal charges (misdemeanor), civil fines, and other penalties.

Q9. How many hours of continuing education does Michigan require per 2-year renewal cycle for salespersons?

A.6 hours
B.12 hours
C.18 hours
D.24 hours

Explanation

Michigan requires 18 hours of continuing education per 2-year renewal cycle for real estate salespersons, including mandatory legal issues and fair housing topics.

Q10. A Michigan real estate broker is required to maintain trust account records for a minimum of:

A.1 year
B.2 years
C.3 years
D.5 years

Explanation

Michigan requires brokers to retain transaction and trust account records for a minimum of 3 years, available for audit by LARA.

Q11. Under Michigan law, a licensed broker may do all of the following EXCEPT:

A.Hire salespersons as independent contractors
B.Operate more than one office under the same license
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