Free Michigan Real Estate Practice Exam 2026

Michigan real estate exam sample questions and answers

6 of the 115 practice questions, one from each topic, with the answer explained.

1. 1. A Michigan seller signs a limited service agreement with her listing broker. Which service may the seller waive in it?

   • A.Loyalty to the seller's interest
   • B.Presenting offers and counteroffers
   • C.Accounting for money received
   • D.Keeping client information confidential

   Answer: B. Under MCL 339.2512d(5) and 339.2517(4), a limited service agreement may waive only the services in MCL 339.2512d(3)(b), (c) and (d): presenting offers, help negotiating them and help after the purchase agreement. The minimum duties, including loyalty, confidentiality and accounting, cannot be waived.

2. 2. A seller delivers the Seller's Disclosure Statement in person after the buyer signed a binding purchase agreement. The buyer may terminate by written notice within:

   • A.7 days
   • B.48 hours
   • C.120 hours
   • D.72 hours

   Answer: D. MCL 565.954(3)(a) gives the buyer 72 hours after in-person delivery to terminate, and MCL 565.954(3)(b) allows 120 hours when the statement is delivered by registered mail. The right ends once the property is conveyed by deed or land contract.

3. 3. The Michigan State Housing Development Authority was created mainly to:

   • A.Finance affordable housing
   • B.License mortgage lenders
   • C.Set property tax values
   • D.Insure lenders against default

   Answer: A. Under 1966 PA 346, MCL 125.1401, the legislature created MSHDA to finance housing for low and moderate income families and persons who could not otherwise afford adequate dwellings. Mortgage lenders are licensed under the mortgage brokers, lenders, and servicers licensing act, 1987 PA 173, not by MSHDA.

4. 4. A Michigan home sells for $300,000. How much tax is due at the state real estate transfer tax rate?

   • A.$330
   • B.$2,580
   • C.$2,250
   • D.$1,125

   Answer: C. MCL 207.525 sets the state tax at $3.75 for each $500, so $300,000 / $500 = 600 units x $3.75 = $2,250. The $330 is the county tax at 55 cents per $500 under MCL 207.504 (Wayne County may charge up to 75 cents), and $2,580 is both taxes together.

5. 5. A salesperson plans to cold-call homeowners about listing their homes. Under federal Do Not Call rules, the salesperson must:

   • A.Call only on weekdays
   • B.Get written consent before every call
   • C.Check the registry at least every 31 days
   • D.Register with HUD as a telemarketer

   Answer: C. Telemarketers, including real estate licensees making cold calls, must scrub their call lists against the National Do Not Call Registry at least every 31 days. Federal rules allow calls between 8 in the morning and 9 at night on any day, not only weekdays.

6. 6. A buyer wants protection against covered title defects for as long as she or her heirs own the home. She should purchase:

   • A.An owner's title policy
   • B.An updated abstract of title
   • C.A one-year home warranty
   • D.A lender's (mortgagee's) title policy

   Answer: A. An owner's policy protects the buyer and her heirs for as long as they hold title, up to the policy amount. A lender's policy protects only the mortgagee and declines as the loan is paid down, while an abstract is merely a summary of the recorded documents.