MICHIGAN REAL ESTATE EXAM 850
ACTUAL EXAM QUESTIONS AND
DETAILED ANSWERS GUARANTEED
SUCCESS!!!
"Which of the following is TRUE about Michigan transfer tax?
A)Transfer tax is a charge to the buyer at the closing.
B)Transfer tax is calculated on the sale price of the real estate being
conveyed.
C)Transfer tax is collected at the time a mortgage to real property is
recorded.
D)There are two types of transfer tax: county and city." - ANSWER-
"B-Explanation:
The answer is transfer tax is calculated on the sale price of the real
estate being conveyed. The two types of transfer tax are county tax
and state tax. Both are the seller's (transferor's) obligation. The
Register of Deeds office collects the tax at the time a conveyance
(deed) is recorded
"
"A house was sold for $203,250. How much will be paid in transfer tax?
,A) $1,526.25
B) $1,745.80
C) $1,522.50
D) $1,750.10." - ANSWER- "D-Explanation:
The answer is $1,750.10. Transfer tax is paid per $500 of the value,
as determined by the sale price, with any portion of $500 rounded
up. The rate of state transfer tax is $3.75 per $500, whereas county
transfer tax is $0.55 per $500. The sale price of $203,250 is divided
by $500 to yield 406.5, which is rounded up to a factor of 407 taxable
$500 increments of value. Then, 407 multiplied by the state rate of
$3.75 (per $500 increment) equals $1,526.25, 407 multiplied by the
county rate of $0.55 equals $223.85. These two sums added together
result in a total transfer tax of $1,750.10
"
"Under the Elliott-Larson Civil Rights Act, when offering a house for
lease, it is unlawful to discriminate against
A) a person who smokes cigarettes.
B) a family with a pet dog.
C) an adult who drinks socially on the weekends.
D) unmarried adults living together." - ANSWER- "D-Explanation
The answer is unmarried adults living together. The Elliott-Larson
Civil Rights Act protects against discrimination based on marital
status, therefore protecting both married and unmarried individuals
against discrimination in housing
,"
"The maximum commission rate a broker can charge to a client is
established by
A) the Department of Licensing.
B) no one there is no maximum.
C) the brokers in the area.
D) the local board of REALTORS®." - ANSWER- "B-Explanation
The answer is no one there is no maximum. A commission or fee in
any service provision agreement is fully negotiable among the
parties to the agreement. The restriction or setting of a rate of
commission by a group constitutes price-fixing under the Michigan
Antitrust Reform Act
"
"The Michigan Right to Farm Act seeks to protect the state's second-
largest industry by legislating that
A) the U.S. Department of the Interior investigate all nuisance
complaints against Michigan farms.
B) in a nuisance suit brought against a farm, where the farm prevails, the
farmer can recover double damages.
C) a Michigan farm conforming to generally accepted agricultural and
management practices is not a public or private nuisance.
, D) if an investigation reveals that a farm engages in agricultural
practices that are not generally accepted, the farm will be shut down." -
ANSWER- "C-Explanation:
The answer is a Michigan farm conforming to generally accepted
agricultural and management practices is not a public or private
nuisance. The Michigan Department of Agriculture investigates
complaints, and if it finds that uses other than generally accepted
agricultural or management practice caused the problem, the farm
will be advised as to the changes that must be made. Where the farm
prevails in a nuisance suit filed against it, the farmer may recover
the costs of defense and attorney's fees
"
"Which of the following is TRUE regarding the Michigan
Environmental Protection Act (MEPA)?
A) The MEPA has stiff criminal penalties for its violation.
B) The MEPA is a public health, safety, and welfare regulation.
C) The MEPA allows fines of up to $10,000 per day.
D) The MEPA does not allow for the collection of attorney fees.
" - ANSWER- "B-Explanation:
The answer is the MEPA is a public health, safety, and welfare
regulation. The MEPA is designed to protect health by protecting
the air, water, and other natural resources. It allows for court
orders, such as declaratory judgments and injunctions, but does not
allow monetary damages or criminal penalties. A party may collect
reasonable attorney fees
ACTUAL EXAM QUESTIONS AND
DETAILED ANSWERS GUARANTEED
SUCCESS!!!
"Which of the following is TRUE about Michigan transfer tax?
A)Transfer tax is a charge to the buyer at the closing.
B)Transfer tax is calculated on the sale price of the real estate being
conveyed.
C)Transfer tax is collected at the time a mortgage to real property is
recorded.
D)There are two types of transfer tax: county and city." - ANSWER-
"B-Explanation:
The answer is transfer tax is calculated on the sale price of the real
estate being conveyed. The two types of transfer tax are county tax
and state tax. Both are the seller's (transferor's) obligation. The
Register of Deeds office collects the tax at the time a conveyance
(deed) is recorded
"
"A house was sold for $203,250. How much will be paid in transfer tax?
,A) $1,526.25
B) $1,745.80
C) $1,522.50
D) $1,750.10." - ANSWER- "D-Explanation:
The answer is $1,750.10. Transfer tax is paid per $500 of the value,
as determined by the sale price, with any portion of $500 rounded
up. The rate of state transfer tax is $3.75 per $500, whereas county
transfer tax is $0.55 per $500. The sale price of $203,250 is divided
by $500 to yield 406.5, which is rounded up to a factor of 407 taxable
$500 increments of value. Then, 407 multiplied by the state rate of
$3.75 (per $500 increment) equals $1,526.25, 407 multiplied by the
county rate of $0.55 equals $223.85. These two sums added together
result in a total transfer tax of $1,750.10
"
"Under the Elliott-Larson Civil Rights Act, when offering a house for
lease, it is unlawful to discriminate against
A) a person who smokes cigarettes.
B) a family with a pet dog.
C) an adult who drinks socially on the weekends.
D) unmarried adults living together." - ANSWER- "D-Explanation
The answer is unmarried adults living together. The Elliott-Larson
Civil Rights Act protects against discrimination based on marital
status, therefore protecting both married and unmarried individuals
against discrimination in housing
,"
"The maximum commission rate a broker can charge to a client is
established by
A) the Department of Licensing.
B) no one there is no maximum.
C) the brokers in the area.
D) the local board of REALTORS®." - ANSWER- "B-Explanation
The answer is no one there is no maximum. A commission or fee in
any service provision agreement is fully negotiable among the
parties to the agreement. The restriction or setting of a rate of
commission by a group constitutes price-fixing under the Michigan
Antitrust Reform Act
"
"The Michigan Right to Farm Act seeks to protect the state's second-
largest industry by legislating that
A) the U.S. Department of the Interior investigate all nuisance
complaints against Michigan farms.
B) in a nuisance suit brought against a farm, where the farm prevails, the
farmer can recover double damages.
C) a Michigan farm conforming to generally accepted agricultural and
management practices is not a public or private nuisance.
, D) if an investigation reveals that a farm engages in agricultural
practices that are not generally accepted, the farm will be shut down." -
ANSWER- "C-Explanation:
The answer is a Michigan farm conforming to generally accepted
agricultural and management practices is not a public or private
nuisance. The Michigan Department of Agriculture investigates
complaints, and if it finds that uses other than generally accepted
agricultural or management practice caused the problem, the farm
will be advised as to the changes that must be made. Where the farm
prevails in a nuisance suit filed against it, the farmer may recover
the costs of defense and attorney's fees
"
"Which of the following is TRUE regarding the Michigan
Environmental Protection Act (MEPA)?
A) The MEPA has stiff criminal penalties for its violation.
B) The MEPA is a public health, safety, and welfare regulation.
C) The MEPA allows fines of up to $10,000 per day.
D) The MEPA does not allow for the collection of attorney fees.
" - ANSWER- "B-Explanation:
The answer is the MEPA is a public health, safety, and welfare
regulation. The MEPA is designed to protect health by protecting
the air, water, and other natural resources. It allows for court
orders, such as declaratory judgments and injunctions, but does not
allow monetary damages or criminal penalties. A party may collect
reasonable attorney fees
