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REAL ESTATE FINAL EXAM 2024/
QUESTIONS AND CERTIFIED ANSWERS
"Which of the following types of ownership CANNOT be created by operation of law, but must be created by the parties' expressed intent?
- 1 Community property
- 2 Tenancy in common
- 3 Condominium ownership
- 4 Tenancy by the entireties - CORRECT ANSWER • 4 Tenancy by the entireties Tenancy by the entireties is a form of ownership that husbands and wives can choose or create by deciding to do so and declaring it as such in contracts and deeds. Tenancy in common is put in motion by state law. Community Property is a law of ownership that exists in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and some other states. Tenancy by the Entireties is an estate that is recognized in some states between husband and wife, who have equal right of possession and enjoyment during their joint lives and with the right of survivorship--that is when one dies, the property goes to the surviving tenant. (In many states, if couples do not specify "Joint Tenancy," this form of ownership will be automatically assumed.) Tenancy in Common is a type of joint ownership by parties NOT married, that allows a person to sell his share or leave it in a will without the consent of the other owners. If a person dies without a will, his share goes to his heirs, not to the other owners." "Personal property includes all of the following EXCEPT
- 1 chattels.
- 2 fructus industriales.
- 3 emblements.
- 4 fixtures. - CORRECT ANSWER • 4 fixtures. "Chattel" is a legal term that means personal property. Emblements and fructus industriales refer to profit from crops that are grown as a result of a person's labor, such as corn, as opposed to those that occur naturally, such as grass or minerals. By the custom of English common law, they are considered personal property. By contrast, a fixture is considered attached to a property and thus part of the structure." "A person who has complete control over a parcel of real estate is said to own a
- 1 leasehold estate.
- 2 fee simple estate.
- 3 life estate.
- 4 defeasible fee estate. - CORRECT ANSWER • 2 fee simple estate. All the other options have conditions attached. A leasehold estate is, as the name implies, leased property. Similarly, a life estate gives a person ownership or control of a property only for the
duration of his or her natural life. "Defeasible estates" give a person or entity control over a property only so long as certain conditions are met or avoided. For example, a community might be deeded a property on the condition that it be used only for building a school, or land willed to a child on the condition it never be used for commercial development. If the community tries to use the property for a recreation complex or the heir tries to sell to a retail developer, control would automatically revert to another party and the deed would become void." "A portion of Wendell's building was inadvertently built on Ginny's land. This is called an
- 1 accretion.
- 2 avulsion.
- 3 encroachment.
- 4 easement. - CORRECT ANSWER • 3 encroachment. The principal attributes of an encroachment are: 1) It is accidental and 2) it involves only part of a structure. Typically, the issue would be resolved by selling Wendell an easement or a lease or, if practical, actually moving the structure." "The purchase of a ticket for a professional sporting event gives the bearer what?
- 1 An easement right to park his car
- 2 A license to enter and claim a seat for the duration of the game
- 3 Partial ownership in the professional sporting team
- 4 A license to sell food and beverages at the sporting event - CORRECT ANSWER • 2 A license to enter and claim a seat for the duration of the game Easements grant access, not use. Commercial licenses, such as those required to sell beverages, souvenirs or services, cover extended periods. Although tickets to sporting events, concerts, shows and the like are technically licenses, they differ from most in their degree of restriction. For example, a concert ticket does not give the bearer the right to sit anywhere he or she chooses or wander backstage to meet the performers." "Jim and Sandy are next-door neighbors. Sandy tells Jim that he can store his camper in her yard for a few weeks until she needs the space. Sandy did not charge Jim rent for the use of her yard. Sandy has given Jim a(n) what?
- 1 Easement appurtenant
- 2 Easement by necessity
- 3 Estate in land
- 4 License - CORRECT ANSWER • 4 License Granting the use of property for a defined period for a specific purpose is almost always a form of licensing. Easements grant only access, not ownership, use or occupancy rights. Further, that access is generally for the benefit of the property owner, such as maintaining utilities or sidewalks."
This essentially means that all parties to the agreement share equally in all aspects of the property, including the length of time it's been held. That means if one party sells or transfers interest in a joint tenancy relationship, his or her place is taken by another in the same capacity." "What is a Schedule of Exceptions on a title policy?
- 1 Encumbrances
- 2 Tax liens
- 3 List of things not insured in the policy
- 4 Defects - CORRECT ANSWER • 3 List of things not insured in the policy Almost no title insurance policy protects against all conceivable events. As the name suggests, the Schedule of Exceptions is a specific list of items not covered and can include things such as unrecorded mechanic's liens, assessments, water rights and mining claims." "Owner Grace's property has been foreclosed. After the property was sold for $340,000, she still owed $60,000 to the lender. The lender may be able to get a personal judgment against Grace for the $60,000. This is called a
- 1 leverage lien.
- 2 partition lawsuit.
- 3 reverse foreclosure judgment.
- 4 deficiency judgment. - CORRECT ANSWER • 4 deficiency judgment. A deficiency judgment enables the lender to attach and foreclose a judgment lien on other real or personal property the borrower owns.The lender's ability to pursue such a judgment may be limited, however." "Which of the following liens does not need to be recorded to be valid?
- 1 Materialman's lien
- 2 Real estate tax lien
- 3 Judgment lien
- 4 Mechanic's lien - CORRECT ANSWER • 2 Real estate tax lien The requirement for individuals to record liens is due in part to the necessity of correctly identifying the complainant. For example, not just "Jones Contracting," but the specific Jones Contracting that performed the work and is owed the money. Because they bear the authority of government and are easily identified, liens by taxing authorities do not need to be recorded." "A homeowner owned a house on a lot. The front ten feet of the lot were taken by eminent domain for a sidewalk. Would the homeowner be entitled to compensation?
- 1 Yes. The land was taken for public use by eminent domain.
- 2 Yes. He must be paid for the use of the sidewalk.
- 3 No. He still had use of the house and lot.
- 4 No. Compensation is not given on land taken for public use. - CORRECT ANSWER • 1 Yes. The land was taken for public use by eminent domain.
Governments and municipalities can only seize property (other than in criminal cases) for the public good and through eminent domain, which is a process, not an arbitrary action. Part of that process involves determining fair compensation to the owner." "The covenant in a deed which states that the grantor is the owner and has the right to convey the title is called
- 1 covenant of power.
- 2 covenant of warranty forever.
- 3 covenant of seisin.
- 4 covenant against encumbrances. - CORRECT ANSWER • 3 covenant of seisin. Another outgrowth of the feudal system, "seisen" derives from the French meaning to "sit upon or own" and gives owners the right to sell or transfer property at will." "The recording of a deed
- 1 is all that is required to transfer the title to real estate.
- 2 gives constructive notice of the ownership of real property.
- 3 insures the interest in a parcel of real estate.
- 4 warrants the title to real property. - CORRECT ANSWER • 2 gives constructive notice of the ownership of real property. Recording a deed does not convey, insure or warrant ownership. However, it does protect the owner's interest in a property by serving notice that the recorded owner is the only recognized holder of title. This places a larger burden of proof and process on someone trying to assert a prior ownership interest and/or claiming a deedholder's title is clouded." "Which of the following provides a buyer with the best assurance of clear, marketable title?
- 1 Certificate of title
- 2 Title insurance
- 3 Abstract of title
- 4 General warranty deed - CORRECT ANSWER • 2 Title insurance Title insurance provides the best assurance of marketable title." "What do liens and easements have in common?
- 1 Both are encumbrances.
- 2 Both must be on the public record to be valid.
- 3 Neither can be done without the consent of the owner.
- 4 Both are money claims against the property. - CORRECT ANSWER • 1 Both are encumbrances. Liens are, of course, serious in that they indicate the owner has failed to pay a debt secured directly or indirectly by the property. Easements, on the other hand, are generally a practical necessity for most residential properties."
"All real estate sales must be reported to the Internal Revenue Service after closing. The sale must be reported on
- 1 a W-2.
- 2 a Form-2555.
- 3 a Form-1099.
- 4 a Form-5305. - CORRECT ANSWER • 3 a Form-1099. The responsibility for filling out and submitting the 1099 generally falls to the person who conducted the closing." "When the preliminary title report reveals the existence of an easement on the property, it indicates that the easement is a(n)
- 1 lien.
- 2 encumbrance.
- 3 encroachment.
- 4 tenement. - CORRECT ANSWER • 2 encumbrance. Anything that limits a person's use of a property is an encumbrance. Easements limit use in that they generally prohibit any kind of permanent structure on the area in question. For example, if a homeowner wanted to build a swimming pool in an area of his back yard and the local sewer company had an easement for pipes running under that area, he would have to find another location for his pool, even if it was not as desirable." "The Federal Fair Housing Act states that a prima facie case against a broker for discrimination be established after a complaint has been received because the broker has failed to do which of the following?
- 1 The broker has failed to display a HUD Equal Opportunity poster.
- 2 The broker has failed to hire any minority salespeople.
- 3 The broker has failed to join the NAACP anti-discriminatory task force.
- 4 The broker has failed to attend mandatory classes on fair housing. - CORRECT ANSWER • 1 The broker has failed to display a HUD Equal Opportunity poster. Included among Fair Housing regulations is the requirement that the HUD Equal Opportunity signage be prominently displayed." "A broker is discussing a new listing with a prospective Mexican-American buyer. The buyer wants to inspect the property immediately, but the owner of said property has instructed the broker, in writing, not to show the house during the owner's three-week absence. The buyer insists on viewing the property. The broker should
- 1 show the property to avoid a violation of the Federal Fair Housing Act.
- 2 request the Real Estate Commission arbitrate the problem.
- 3 inform the buyer of the seller's instructions.
- 4 notify the nearest HUD office. - CORRECT ANSWER • 3 inform the buyer of the seller's instructions.
Following an owner's lawful instructions is not only allowable, but a responsibility of the licensee. However, if the owner instructed the broker to tell minority buyers that he was out of town when he was not in order to avoid selling to a minority, the broker would be in violation of the law if he acted as the owner requested." "A three-story apartment complex built in 1965 does not meet with the handicapped access provisions for the 1988 Fair Housing Act. The owner must
- 1 make the ground floor handicapped accessible.
- 2 make the 1st and 2nd floors accessible.
- 3 make the entire building accessible.
- 4 the owner doesn't have to comply since it's less than 4 stories. - CORRECT ANSWER • 1 make the ground floor handicapped accessible. Because the building was constructed before the 1991 standards went into effect, only the first floor needs to be modified." "Carl Chauvinist, the owner of an apartment complex, lives in one unit of a triplex and routinely refuses to rent either of the other two units to a female. Can he do this?
- 1 Yes. He may do this if he does not use a broker or discriminate in advertising.
- 2 Yes. He may do this if he doesn't ask the tenant's age.
- 3 No. Carl can never discriminate on sex.
- 4 No. Carl must live in a single family home to discriminate. - CORRECT ANSWER • 1 Yes. He may do this if he does not use a broker or discriminate in advertising. Although laws vary by state as to number of units that fall under this type of provision, if a person owns and lives in a unit, he or she is entitled to practice a certain measure of discrimination. The view is that a person's dwelling (which includes units such as duplexes and triplexes) enjoys a degree of "sanctity" and the person may choose whom he or she brings into their "home."" "An aggrieved party with a Fair Housing violation claim has how long to file a complaint with the Department of Housing and Urban Development?
- 1 1 month
- 2 6 months
- 3 1 year
- 4 3 years - CORRECT ANSWER • 3 1 year If the complaint is not filed within one year, a person may still file a civil suit in a Federal Court." "A void contract is one that is
- 1 not in writing.
- 2 not legally enforceable.
- 3 rescindable by agreement.
4 voidable by only one of the parties. - CORRECT ANSWER • 2 not legally enforceable.
Brokers and salespeople only earn their commission when a transaction closes. Since the transaction was never completed, no commission is owed. Additionally, H is entitled to have all his earnest money returned since it was the seller, not he, who defaulted on the contract." "A buyer makes an earnest money deposit of $10,000 on a $300,000 property and then withdraws her offer before the seller can accept it. The broker is responsible for disposing of the earnest money by
- 1 turning it over to the seller.
- 2 deducting the commission and giving the balance to the seller.
- 3 returning it to the buyer.
- 4 depositing it in his or her trust account. - CORRECT ANSWER • 3 returning it to the buyer. A contract only exists when it is both offered by the buyer and accepted by the seller. Since the second part of this requirement was never fulfilled, the buyer is entitled to have his earnest money returned." "Broker K arrives to present a purchase offer to Mrs. D, an 80 year old invalid who is not always of sound mind, and finds her son and her daughter-in-law present. In the presence of Broker K, both individuals persistently urge D to accept the offer, even though it is much lower than the price she has been asking for her home. If D accepts the offer, she may later claim that
- 1 broker K should not have brought her such a low offer for her property.
- 2 she was under undue duress from her son and daughter-in-law, and, therefore, the contract is voidable.
- 3 broker K defrauded her by allowing her son and daughter-in-law to see the purchase offer he brought to her.
- 4 her consumer protection rights have been usurped by her son and daughter-in-law. -
CORRECT ANSWER • 2 she was under undue duress from her son and daughter-in-law, and,
therefore, the contract is voidable. "Duress" is the application of coercion or pressure to influence a person to act in a way contrary to his/her best interests. Further, since voluntary participation is a key condition of any contract, Mrs. D could well be successful in such an action. A voidable contract is one that is able to be voided because Mrs D was under duress or undue influence." "Which of the following closing costs is typically paid by the buyer?
- 1 Private mortgage insurance (PMI)
- 2 Broker's commission
- 3 Satisfy existing liens
- 4 A flip tax - CORRECT ANSWER • 1 Private mortgage insurance (PMI) A buyer has to pay private mortage insurance if they did not have a 20%+ down payment (unless they have a VA or FHA loan). The others are paid by the seller"
"A(n) _______ is when an owner takes his property off the market for a definite period of time in exchange for some consideration, but he grants the right to purchase the property within that period for a stated price.
- 1 option
- 2 contract of sale
- 3 right of first refusal
- 4 installment agreement - CORRECT ANSWER • 1 option It's important to note that options generally give flexibility to only one side of the transaction. For example, let's say Barney is expecting a big promotion in six months and wants to buy Fred's house for $300,000 if it comes through. In exchange for keeping his home off the market for six months and agreeing to sell it to Barney for $300,000 at Barney's option, Barney gives Fred $3,000. The $3,000 is Fred's to keep no matter what. However, Barney is not obligated to buy Fred's house; it's his choice. Further, if he does get the promotion and wants to exercise his option, Fred must sell Barney his home for $300,000, even if market conditions have now made it worth more." "Which of the following is TRUE of buyer-brokerage contracts in Michigan?
- 1 The appropriate form must be used for the contract to be valid.
- 2 The contract must be in writing to be enforceable.
- 3 Such contracts are not regulated.
- 4 Such contracts are illegal. - CORRECT ANSWER • 2 The contract must be in writing to be enforceable. The buyer-brokerage agreement is an employment contract and must be in writing to be enforceable in Michigan." "John has started taking real estate re-licensing classes and agrees to help his neighbor sell her house for 3% commission. The house is sold and closing takes place 1 day after John receives his salesperson's license, but the neighbor refuses to pay the commission. Can John sue to recover the commission fee?
- 1 Yes, Michigan law permits enforcement of an oral agreement in these circumstances.
- 2 No, Michigan law prohibits lawsuits to collect commissions unless the injured party is a licensed broker whose license was in effect at the time the agreement was made.
- 3 Yes, because John was formally enrolled in real estate education, the agreement is seen as professional and binding.
- 4 No, because his commission rate was less than 5%. - CORRECT ANSWER • 2 No, Michigan law prohibits lawsuits to collect commissions unless the injured party is a licensed broker whose license was in effect at the time the agreement was made. John cannot sue because his license was not active when the agreement was made." "Which of the following type of agency relationship is NOT recognized in Michigan?
- 1 Designated agency
- 2 Disclosed dual agency
- 1 The agent can provide information on mortgage interest rates and terms.
- 2 The agent can explain to the buyer about buyer agency seller agency, and dual agency.
- 3 The agent can prequalify the buyer for a mortgage.
- 4 The agent can provide information on properties for sale in the area. - CORRECT ANSWER
- 3 The agent can prequalify the buyer for a mortgage. An agent cannot obtain confidential information about a buyer without first entering into a buyer agency relationship. Thus, the agent may NOT prequalify the buyer for a mortgage." "Which of the following pieces of information is NOT considered confidential in a dual agency relationship?
- 1 The buyer's financial situation
- 2 That the buyer's offer exceeds the seller's minimum price
- 3 That the buyer would actually be willing and able to pay more than they offered
- 4 Comparable market data for the seller after the buyer has requested and received such
information - CORRECT ANSWER • 4 Comparable market data for the seller after the buyer
has requested and received such information Any information about the buyer's or seller's finances or minimum/maximum acceptable price is to be kept confidential, but comparable market data may be shared with the seller after the buyer has requested and received such information." "At which point must an agency relationship be formally established between the broker and a buyer or seller?
- 1 Prior to receiving any information that is considered confidential
- 2 Prior to showing any properties or making a substantial business contact
- 3 At least by the time that a written offer is tendered and accepted
- 4 At any time before the closing - CORRECT ANSWER • 1 Prior to receiving any information that is considered confidential The brokerage relationship with a buyer or seller must be determined before receiving any type of information that could be considered confidential." "Which of the following entities administers the real estate license law in Michigan?
- 1 Michigan Association of Realtors
- 2 Michigan Board of Real Estate Brokers and Salespersons
- 3 Michigan Department of Civil Rights
- 4 Department of Housing and Urban Development (HUD) - CORRECT ANSWER • 2 Michigan Board of Real Estate Brokers and Salespersons The Michigan Board of Real Estate Brokers and Salespersons administers the license law while the Department of Civil Rights deals with fair housing complaints and HUD (federal agency) oversees housing issues. The state associate of Realtors is a trade association." "Who selects the members of the Michigan Board of Real Estate Brokers?
- 1 Real estate licensees
- 2 Michigan Association of Realtors
- 3 The Governor
- 4 The Michigan House of Representatives - CORRECT ANSWER • 3 The Governor The Governor appoints members to the Michigan Board of Real Estate Brokers and Salespersons with the advice and consent of the Senate." "Which of the following is required under Michigan law?
- 1 Sellers must divulge all known material defects that might affect the sale.
- 2 Brokers must reveal any material defects that might affect the sale even if the seller has already done so in the seller's disclosure statement.
- 3 The broker must keep all information shared by the seller confidential.
- 4 The broker must share all relevant information provided by the seller. - CORRECT
ANSWER • 1 Sellers must divulge all known material defects that might affect the sale.
The state of Michigan requires sellers to reveal any known material defects that might affect the sale." "Which of the following actions is under the authority of the Michigan Board of Real Estate Brokers and Salespersons?
- 1 Writing rules and regulations for real estate licensees to follow
- 2 Administering licensing exams at the testing sites
- 3 Enacting the laws that real estate licensees must follow
- 4 Composing examination questions for the state licensing exam - CORRECT ANSWER • 1 Writing rules and regulations for real estate licensees to follow The Michigan Board of Real Estate Brokers and Salespersons has the authority to write the rules and regulations that have the force of law while the legislature is charged with enacting law. An independent testing service writes test questions and administers the exams for state licensure." "In the following situations, which is NOT grounds for the Michigan Board of Real Estate Brokers and Salespersons to initiate an investigation of a licensee?
- 1 The Board votes to investigate a random selection of licensees on an annual basis in an attempt to uncover illegal practices.
- 2 A consumer has written a letter to the Board complaining about a brokerage's failure to appropriately represent her interests. Based on the letter the Board decides to investigate the supervising broker.
- 3 By its own initiative the Board decides to investigate a licensee rumored to be in violation of license laws requiring disclosure statements.
- 4 Based on rumors of unfair and illegal practices, a member of the Board makes a motion to
investigate a licensee suspected of corrupt practice. - CORRECT ANSWER • 1 The Board votes
to investigate a random selection of licensees on an annual basis in an attempt to uncover illegal practices. The Board may investigate for any legitimate reason based on a motion passed by members, their own initiative, or a written complaint from a customer but not based on random selection."
"A non-licensed office manager performs the following activities; coordinating the flow of paperwork, preparing advertising copy, and hiring and supervising clerical support staff. Is she in violation of the license law?
- 1 Yes, because she is performing duties that require a real estate license.
- 2 Yes, because all people working in a broker's office in direct contact with confidential information are required to hold a salesperson's license.
- 3 No, she is not in violation of the license law because she is performing non-real estate activities that do not require licensure.
- 4 Yes, because an office manager is required to hold a valid real estate license, regardless of her
duties. - CORRECT ANSWER • 3 No, she is not in violation of the license law because she is
performing non-real estate activities that do not require licensure. The office manager is NOT in violation of the license law because all of the activities specified are non-real estate activities which do not require licensure." "Which of the following is NOT a requirement for obtaining a broker's license in Michigan?
- 1 Upstanding moral character
- 2 Active employment as a licensed salesperson for at least 3 years (or equivalent)
- 3 Completion of 90 hours of approved post-license real estate education coursework
- 4 Minimum age of 23 - CORRECT ANSWER • 4 Minimum age of 23 The minimum age for a broker candidate is 18 years of age. Broker candidates must show evidence of completion of 90 hours of approved real estate courses, active status as a licensed salesperson for at least 3 years and good moral character." "For what period of time will a passing score on a licensing examination be valid?
- 1 90 days
- 2 6 months
- 3 1 year
- 4 2 years - CORRECT ANSWER • 3 1 year A passing examination score is valid for a period of 1 year from the date of examination." "Which of the following transactions requires a real estate license?
- 1 The daughter of a couple living abroad has written authorization to sell her parents' home.
- 2 An entrepreneur negotiates the sales of businesses, including equipment and buildings, for a fee.
- 3 An apartment superintendent shows units to prospective tenants as part of his general duties.
- 4 An individual owns and personally manages a 6-unit apartment building including collecting
rents, showing available units, and providing maintenance. - CORRECT ANSWER • 2 An
entrepreneur negotiates the sales of businesses, including equipment and buildings, for a fee. A real estate license IS required to sell a building, although it is not required to negotiate a sale for which written authorization is given, or to manage one's own building. Superintendents who show units in the course of normal work are specifically exempt from the requirement to hold a license."
"Which of the following is an applicant for a real estate license in Michigan NOT required to do?
- 1 Be pre-approved to join the National Association of Realtors
- 2 Show proof of passing the license examination
- 3 Be at least 18 years old
4 Complete 40 hours of the real estate pre-licensure course - CORRECT ANSWER • 1 Be pre-
approved to join the National Association of Realtors All applicants must be 18 years old, have completed 40 hours of pre-licensing education, and have passed the license examination before they can qualify for a license. Licensees do not have to become Realtors." "What penalty may an unlicensed individual who engages in activities deemed to constitute real estate business face for a first-time offense?
- 1 A fine not to exceed $
- 2 Imprisonment of not more than 30 days
- 3 A fine not to exceed $500, imprisonment not to exceed 90 days, or both.
- 4 Community service of 90 hours - CORRECT ANSWER • 3 A fine not to exceed $500, imprisonment not to exceed 90 days, or both. An unlicensed individual charged with a first-time misdemeanor of performing activities requiring a license may be subject to a penalty of a fine not to exceed $500, imprisonment not to exceed 90 days, or both."
"On what date do real estate salespersons' licenses expire in Michigan? - CORRECT ANSWER
- 2 October 31st every 3 years Real estate salespersons' licenses expire every 3 years on October 31st." "Which of the following is NOT a requirement to renew a salesperson's license?
- 1 Complete 6 hours of continuing education per year of every license-cycle with a minimum of 2 hours of real estate rules/law per year.
- 2 Pay the renewal fee applicable to the year of license-cycle.
- 3 Provide documentation from the employing broker.
- 4 Hold a valid Michigan driving license. - CORRECT ANSWER • 4 Hold a valid Michigan driving license. All salespersons renewing their license must have completed the necessary continuing education, pay the applicable renewal fee and provide documentation for the employing broker." "What is the deadline to renew an expired license without financial penalty?
- 1 There is no grace period without financial penalty after the expiration date.
- 2 30 days
- 3 60 days
"Which of the following activities may an unlicensed real estate assistant NOT perform?
- 1 Assemble and collate legal documents for a closing
- 2 Prepare and distribute promotional flyers and materials
- 3 Compute commission checks for active agents
- 4 Clarify the details of simple contract documents for prospective buyers - CORRECT
ANSWER • 4 Clarify the details of simple contract documents for prospective buyers
An unlicensed real estate assistant may NOT explain simple contract documents to a buyer but may perform a range of secretarial duties under the supervision and approval of the licensee for whom they work." "A broker wishes to open a branch office in a neighboring town 12 miles from the main office. Which of the following criteria does the branch office NOT have to fulfill?
- 1 Have a branch office license issued by the Department.
- 2 Under the direct supervision of an associate broker.
- 3 Have an actual physical location and not be a "virtual office".
- 4 Have a business name that is the same as the name to which the license was issued. -
CORRECT ANSWER • 2 Under the direct supervision of an associate broker.
Only a branch office located MORE than 25 miles from the city limits in which the broker maintains his or her main office must be under the personal, direct supervision of an associate broker." "An Indiana resident wishes to obtain a Michigan real estate broker's license. What must he do?
- 1 Establish a principal place of business in Michigan or be licensed under a resident Michigan broker
- 2 File an irrevocable consent agreement in Indiana
- 3 Be a licensed salesperson or broker in any state
- 4 Complete all education course requirements in Indiana - CORRECT ANSWER • 1 Establish a principal place of business in Michigan or be licensed under a resident Michigan broker A nonresident who wishes to be licensed in Michigan must establish a principal place of business in Michigan or be licensed under a resident Michigan broker. He must also file an irrevocable consent agreement in Michigan." "Which of the following MUST a licensee do if they change the address of their business location?
- 1 The licensee MUST give written notice to the BBB.
- 2 The licensee MUST change all letterheads on business stationary.
- 3 The licensee MUST give written notice to the Michigan Association of Realtors.
- 4 The licensee MUST give written notice to the Department. - CORRECT ANSWER • 4 The licensee MUST give written notice to the Department. If a licensee changes the address of either a principal or branch business location, he or she must give written notice to the Department."
"Records of transactions, including bank accounts or deposits referred to in these regulations, shall be
- 1 destroyed once the transaction has closed.
- 2 sent to the Department to maintain.
- 3 available during usual business hours for inspection by the Department.
- 4 kept only in digital formats. - CORRECT ANSWER • 3 available during usual business hours for inspection by the Department. The records of transactions, including bank accounts or deposits referred to in these regulations, shall be available during usual business hours for inspection by the Department." "A seller listed his house for sale with a broker and signed a listing agreement for 5 months. 2 months later he decided the house was no longer for sale. Which of the following statements is TRUE?
- 1 The seller is required by law to leave his house on the market for the full 5 months.
- 2 The seller has canceled the agreement and there are no penalties.
- 3 The Department will decide if the seller's action was justified.
- 4 The seller has withdrawn the broker's authority to sell the property and may be subject to a
penalty. - CORRECT ANSWER • 4 The seller has withdrawn the broker's authority to sell the
property and may be subject to a penalty. The seller may cancel the listing agreement at any time but he may be responsible for some penalties or expenses. There is no involvement from the Department." "An owner wants to list his single-family home for sale. Which of the following statements is TRUE?
- 1 If he is a licensed attorney, he may list his property himself without engaging the services of a real estate licensee.
- 2 He does not need a real estate license to sell his house on his own.
- 3 He must first obtain a real estate license to be eligible to sell real estate, including his own home.
- 4 He must apply for and receive a temporary license from the Michigan Board of Real Estate
Brokers and Salespersons to legally sell his house. - CORRECT ANSWER • 2 He does not need
a real estate license to sell his house on his own. In Michigan, ANY property owner may sell or rent his or her own house without obtaining a real estate license." "Which of the following steps is required of an applicant for a real estate salesperson's license in Michigan?
- 1 Demonstrate United States citizenship
- 2 Provide evidence of an associate degree or equivalent in real estate from an approved school
- 3 Complete a 40 hour course in the general principles of real estate
