PSI Real Estate Practice Exam - Michigan (Chapter 1) CORRECT ANSWERS

A person authorized by the broker to act as the agent of a specific principal - common in dual agency relationships, two salespersons from the same company can represent opposite sides of the sale. - Answer- Designated Agent What approach does an appraiser take primarily for an investment property? - Answer- Income Approach Charlie is the personal assistant for the top producer in the office, and he would like to have his own business cards. What can Charlie list as his title? - Answer- 1.) "Personal Assistant" (Answer) 2.) "Agent-Assistant" 3.) "Proxy-Agent" 4.) "Broker-Assignee" Which of the following is NOT true regarding the Administrative Rules in Michigan? - Answer- 1.) They have the same force and effect as the Code. 2.) They provide additional detail for the administration of the law. 3.) They provide guidelines for the real estate licensee. 4.) They have less force and effect than the Code. (Answer) The primary purpose of Michigan License Law is to: - Answer- 1.) adopt regulations for real estate standards. 2.) protect the public. (Answer) 3.) prosecute unethical brokers. 4.) investigate commission disputes between associates. In the state of Michigan, you do not need a real estate license to - Answer- 1.) sell a home you built as part of your business. 2.) sell your own property. (Answer) 3.) be a property manager. 4.) auction a home and handle the closing. For real estate sales to be considered a principal vocation, a licensee must - Answer- 1.) engage in a minimum of five real estate transactions in a 12 month period. (Answer) 2.)perform a minimum of 40 hours per month on floor time. 3.) file $40,000 or more in commissions on their income tax return. 4.) become a broker within two years of getting a salesperson's license. The law regulating the licensing of occupations in Michigan is known as - Answer- 1.) Occupational Code PA 299 of 1980. (Answer) 2.) Michigan License Act 152 of 1979. 3.) Administrative Rules for Michigan Licensing. 4.) Michigan Code of Ethics. Which of the following persons would NOT need a real estate license? - Answer- 1.) A person who lists real estate 2.) Someone negotiating the exchange of real estate for a consumer 3.) A person assisting a landlord with real estate activities