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Michigan Real State Practice Exam Questions with correct answers
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Michigan Real State Practice Exam Questions with correct answers
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Michigan Real State Practice ExamQuestions
A buyer will receive a power bill for an estimated $140 at the end of the month. At closing, the seller has
used an estimated $67 in power. What should appear on the closing statement? - correct answer
✔✔Credit the buyer $67 and debit the seller $67
How many Commission members come from the general public? - correct answer ✔✔3 members
Which of the following situations would satisfy the continuing education requirement? - correct answer
✔✔Completing 18 hours of education from an approved sponsor
If a salesperson fails to renew his or her license for more than 3 years after it expires, he or she can do
any one of the following to renew EXCEPT - correct answer ✔✔Complete 18 hours of continuing
education
A town has a tax base of $411,000,000 and a budget of $850,000. What is the tax rate in terms of mills? -
correct answer ✔✔2.1 mills (Hint mills are the same as percentage)
Paul is applying for a broker's license as a sole proprietor. On his application, he must indicate all of the
following EXCEPT - correct answer ✔✔How many affiliates he has working for him
William has applied to transfer to another brokerage firm. How long will his current pocket card be
proper evidence of a valid license? - correct answer ✔✔It's valid for 45 days from the latest date written
on the back of the card.
A developer wants to develop a 18-acre subdivision. He figures that the streets and common area will
take up about 20% of this overall area. If the minimum lot size is to be 10,000 SF, how many lots can the
developer have on this property? - correct answer ✔✔62 lots (Hint: 18 acres - 20% = 18 x .20 = 3.6 acres
for streets and common area, leaving 14.4 acreas for lots (18 - 3.6 = 14.4). 43,560 SF per acre x 14.4
acres = 627,264 SF. 627,264 SF / 10,000 SF per lot = 62.7 or 62 full lots.)
,What duties does a licensee owe to his or her customer? - correct answer ✔✔Material fact disclosure
Brokers and salespersons who are not lawyers may do which of the following tasks? - correct answer
✔✔Fill in blanks on preprinted form contracts.
The relationship of a salesperson to his or her broker can be compared to that of - correct answer
✔✔Employee to employer
Which of the following is exempt from the Civil Rights Act? - correct answer ✔✔Les who occupies one of
the two units of his duplex
When do salesperson's licenses expire in Michigan? - correct answer ✔✔October 31 of every third year
Before licensee Dan can receive any confidential information from a prospective buyer, what must he
do? - correct answer ✔✔Give the buyer a copy of the written disclosure about agency relationships.
A property is being appraised by the Cost Approach. The appraiser estimates that the land is worth
$33,000 and the replacement cost of the home is $110,000. A new $20,000 garage was recently added.
Total depreciation from all causes is $7,000. What is the indicated value of the property? - correct
answer ✔✔$156,000
A property's taxes are $9,540 and are paid for in arrears. The property was sold, and closing took place
on March 7. The seller was responsible for the day of closing. Using the 360 day method, how will taxes
be prorated? - correct answer ✔✔Credit the buyer $1775.50 and Debit the Seller $1775.50
A property is purchased for $480,000. The land is valued at 10% of the initial purchase price of the
property. Given a 39-year depreciation term, what is the annual depreciation expense? - correct answer
✔✔$11,077
All of the following agreements must be in writing EXCEPT which one? - correct answer ✔✔MLS listing
, Natalie wants to make a 25% profit on her $70,000 land investment (there is no mortgage). She figures
agents charge a 6% commission, and that closing costs will be an additional $1,200. What should she
accept as a final sale price (to the nearest hundred)? - correct answer ✔✔$94,400
Lyla suffers from cerebral palsy. She believes she was discriminated against when purchasing a home.
Which of the following courses of action would Lyla NOT be able to take herself? - correct answer
✔✔Have the broker's license revoked.
Dan is buying Jessica's house. The closing date (day belongs to seller) of the sale transaction is March
9th. Current year real estate taxes are $1,900 (will be billed to Dan next year). Use the 365-day method
for prorating. What is Jessica's share of the real estate taxes for the current year? - correct answer
✔✔$354 (Hint: Annual amount / 365 days or monthly amount /length of month = daily amount. Daily
amount x # days = proration. So, $1, = $5.21 daily amount x (31 January days + 28 February
days + 9 March days =) 68 days = $354.28, or $354 Jessica's share.)
A partnership, association, or corporation will be granted a license only under which circumstance? -
correct answer ✔✔The principal broker has a current license.
Broker Cathy must deposit all funds that she receives on behalf of her principals within what timeframe?
- correct answer ✔✔Two banking days after all parties have signed a purchase agreement
A listing agreement is considered to be - correct answer ✔✔An employment contract
If a rectangular office space is 72 feet wide and has a 410-foot perimeter, what is its area? - correct
answer ✔✔9,576 square feet
A property sells for $140,000 two years after it was purchased. If the annual appreciation rate is 6%, how
much did the original buyer pay for it? - correct answer ✔✔$124,600 (Hint: Beginning value x (1 +
annual rate ) x (1 + annual rate) = appreciated value. So, working backwards with the appreciated value,
1.06 (1 + annual rate) x 1.06 (1 + annual rate) = 1.1236. $140,.1236 = $124,600.)
A building has 9 apartments generating annual potential rent of $1,500 each month. Vacancy = 6% and
annual expenses are $84,000. Vending machines yield $1,800 per year. What is the NOI? - correct answer
✔✔$70,080
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