MI STATE EXAM WITH 100% CORRECT
ANSWERS 2026
Regarding an investigation against a licensee based on a complaint, the
Department may:
A. may request the attorney general petition the circuit court to issue a subpoena
requiring a person to appear before the Department
B. revoke the license during the term of the investigation
C. on their own subpoena records relating to the investigation
D. subpoena personal records of the licensee if those personal records might have
some bearing on the complaint correct answer A. May request the attorney
general petition the circuit court to issue a subpoena requiring a person to appear
before the Department
If you were selling mortgage notes to the public for a profit, you might have to
comply with all the following EXCEPT:
A. Michigan Consumer Protection Act
B. Michigan Uniform Securities Act
C. Michigan Due On Sale Clause Act
D. Mortgage Brokers, Lenders, and Servicers Licensing Act correct answer C.
Michigan Due On Sale Clause Act
An office that is maintained in excess of 25 miles from the city limits of the main
office shall:
,A. use a different name as the main office.
B. not have an individual license.
C. have the broker reasonably available to supervise during regular business
hours.
D. be under the direct supervision of an associate broker. correct answer D. be
under the direct supervision of an associate broker.
Michigan's County Transfer Tax would be charged on which of the following
transfers of real estate?
A. A real estate gift for consideration of $100.
B. Someone quit claiming their interest in a joint tenancy to one of the parties of
the joint tenancy.
C. A wife quit claiming her interest to herself and her husband as tenants by the
entireties.
D. A home valued at $130,000 sold in Florida. correct answer A. A real estate gift
for consideration of $100.
The Board may assess penalties for all the following EXCEPT:
A. false advertising
B. representing more than one party in a transaction with the knowledge and
consent of the parties
C. violate a rule of conduct of an occupation
D. lacking good moral character correct answer B. representing more than one
party in a transaction with the knowledge and consent of the parties
Can a Michigan salesperson work for more than one broker at a time?
,A. Not relevant, salespersons are independent contractors who work for
themselves.
B. No, a salesperson can only work for one employing broker at a time.
C. Yes, this is up to the salesperson.
D. Yes, with consent of both brokers. correct answer B. No, a salesperson can
only work for one employing broker at a time.
Penalties for a person who violates one or more of the provisions of an article
which regulates an occupation would include all of the following EXCEPT:
A. imprisonment up to 90 days
B. a requirement that restitution be made
C. a criminal fine to be paid to the Department not to exceed $10,000 D. a fine of
up to $500 correct answer C. a criminal fine to be paid to the Department not to
exceed $10,000
Michigan Environmental Protection Act provides for:
A. limited penalties on persons who impair or destroy our environment
B. a very strict avenue to prosecute offenders who abuse our environment
C. private lawsuits and "public rights" actionable in court
D. an informal conciliation to settle disputes correct answer C. private lawsuits
and "public rights" actionable in court
The best definition of a voidable contract would be which of the following?
A. Valid unless an action is taken to make it void.
B. Invalid and cannot be enforced.
, C. Cannot become valid.
D. Unenforceable by either party. correct answer A. Valid unless an action is
taken to make it void.
Which of the following would be considered a usurious contract in Michigan?
A. Seller requiring 26% earnest money deposit
B. Seller requiring a 30% down payment
C. Land contract at 12%
D. Broker charging a 26% commission rate correct answer C. Land contract at
12%
A land contract has an 11% maximum interest that can be charged under
Michigan usury laws. (2) Commission rates, (3) earnest money and (4) down
payment money do not fall under usury laws. Usury laws apply to maximum
interest rates on certain types of loans.
Which of the following would be a violation of the Michigan License Law Act (also
known as the Occupational Code or Act 299)?
A. A broker holding earnest money in a trust or escrow account
B. A licensee disclosing in writing on a purchase agreement that the licensee will
have an ownership interest in the property
C. A licensee entering into a net service provision agreement for a real estate
commission
D. Providing written disclosure of agency relationships in a purchase agreement
correct answer C. A licensee entering into a net service provision agreement for a
real estate commission
ANSWERS 2026
Regarding an investigation against a licensee based on a complaint, the
Department may:
A. may request the attorney general petition the circuit court to issue a subpoena
requiring a person to appear before the Department
B. revoke the license during the term of the investigation
C. on their own subpoena records relating to the investigation
D. subpoena personal records of the licensee if those personal records might have
some bearing on the complaint correct answer A. May request the attorney
general petition the circuit court to issue a subpoena requiring a person to appear
before the Department
If you were selling mortgage notes to the public for a profit, you might have to
comply with all the following EXCEPT:
A. Michigan Consumer Protection Act
B. Michigan Uniform Securities Act
C. Michigan Due On Sale Clause Act
D. Mortgage Brokers, Lenders, and Servicers Licensing Act correct answer C.
Michigan Due On Sale Clause Act
An office that is maintained in excess of 25 miles from the city limits of the main
office shall:
,A. use a different name as the main office.
B. not have an individual license.
C. have the broker reasonably available to supervise during regular business
hours.
D. be under the direct supervision of an associate broker. correct answer D. be
under the direct supervision of an associate broker.
Michigan's County Transfer Tax would be charged on which of the following
transfers of real estate?
A. A real estate gift for consideration of $100.
B. Someone quit claiming their interest in a joint tenancy to one of the parties of
the joint tenancy.
C. A wife quit claiming her interest to herself and her husband as tenants by the
entireties.
D. A home valued at $130,000 sold in Florida. correct answer A. A real estate gift
for consideration of $100.
The Board may assess penalties for all the following EXCEPT:
A. false advertising
B. representing more than one party in a transaction with the knowledge and
consent of the parties
C. violate a rule of conduct of an occupation
D. lacking good moral character correct answer B. representing more than one
party in a transaction with the knowledge and consent of the parties
Can a Michigan salesperson work for more than one broker at a time?
,A. Not relevant, salespersons are independent contractors who work for
themselves.
B. No, a salesperson can only work for one employing broker at a time.
C. Yes, this is up to the salesperson.
D. Yes, with consent of both brokers. correct answer B. No, a salesperson can
only work for one employing broker at a time.
Penalties for a person who violates one or more of the provisions of an article
which regulates an occupation would include all of the following EXCEPT:
A. imprisonment up to 90 days
B. a requirement that restitution be made
C. a criminal fine to be paid to the Department not to exceed $10,000 D. a fine of
up to $500 correct answer C. a criminal fine to be paid to the Department not to
exceed $10,000
Michigan Environmental Protection Act provides for:
A. limited penalties on persons who impair or destroy our environment
B. a very strict avenue to prosecute offenders who abuse our environment
C. private lawsuits and "public rights" actionable in court
D. an informal conciliation to settle disputes correct answer C. private lawsuits
and "public rights" actionable in court
The best definition of a voidable contract would be which of the following?
A. Valid unless an action is taken to make it void.
B. Invalid and cannot be enforced.
, C. Cannot become valid.
D. Unenforceable by either party. correct answer A. Valid unless an action is
taken to make it void.
Which of the following would be considered a usurious contract in Michigan?
A. Seller requiring 26% earnest money deposit
B. Seller requiring a 30% down payment
C. Land contract at 12%
D. Broker charging a 26% commission rate correct answer C. Land contract at
12%
A land contract has an 11% maximum interest that can be charged under
Michigan usury laws. (2) Commission rates, (3) earnest money and (4) down
payment money do not fall under usury laws. Usury laws apply to maximum
interest rates on certain types of loans.
Which of the following would be a violation of the Michigan License Law Act (also
known as the Occupational Code or Act 299)?
A. A broker holding earnest money in a trust or escrow account
B. A licensee disclosing in writing on a purchase agreement that the licensee will
have an ownership interest in the property
C. A licensee entering into a net service provision agreement for a real estate
commission
D. Providing written disclosure of agency relationships in a purchase agreement
correct answer C. A licensee entering into a net service provision agreement for a
real estate commission
