Michigan Real Estate License Exam Questions With Complete Solutions (Verified Answers) A landlord must place security deposits into a regulated financial institution unless the CORRECT ANSWERS a. landlord deposits a bond with the Secretary of State.
REASONING: The security deposit must be deposited in a regulated financial
institution. A landlord may use the security deposit if the landlord posts a cash or surety bond with the secretary of state.A broker has inherited a one-tenth interest in her father's house. If the heirs agree to sell the property as for sale by owner, the broker must CORRECT ANSWERS disclose her ownership interest and licensure to a buyer before an offer is signed. REASONING: In selling property in which a licensee has any interest, the licensee must reveal her interest and her licensure to the purchaser, in writing, before the offer to purchase is signed.A residential tenant who signs a lease containing a provision waiving his right to a jury trial CORRECT ANSWERS may terminate the lease if the landlord refuses to cure the lease by removing the clause from all existing leases. REASONING: A lessor may cure a violation of the Truth in Renting Act by giving written notice to all current tenants stating that the provision is void or by altering the provision to bring it into compliance.Who can be authorized to sign checks drawn against a property management account?CORRECT ANSWERS The broker's bookkeeper, A salesperson licensed to the broker REASONING: A real estate broker or any designated employee of the real estate broker engaged in property management may be a signatory on checks drawn on property management accounts.Who may NOT be authorized to act as a supervisory broker? CORRECT ANSWERS
The office manager who holds a salesperson's license REASONING: A supervisory
broker is the associate broker designated in a written agency agreement to act in a supervisory role in a designated agency relationship.A defendant will prevail on an action brought under the Michigan Environmental
Protection Act (MEPA) by showing that: CORRECT ANSWERS there is no feasible and
prudent alternative to the defendant's conduct. REASONING: The defendant may show that there is no feasible and prudent alternative to the defendant's conduct and that the defendant's conduct is consistent with the promotion of the public health, safety, and welfare in light of the state's paramount concern for the protection of its natural resources from pollution, impairment, or destruction. 1 / 2
What is the hearing examiner's next step after determining at a contested case hearing that the respondent is in violation of the law? CORRECT ANSWERS The hearing examiner will submit a report to the Department, the Board, and the attorney general.REASONING: At the conclusion of a hearing, the administrative law hearings examiner must submit a determination of findings of fact and conclusions of law to the Department, the attorney general, and the Board in a hearing report. The submitted hearing report may recommend the penalties to be assessed A resident of Florida wants to sell real estate in Michigan. The Florida resident must CORRECT ANSWERS file an irrevocable consent to allow legal actions to be filed against the person in Michigan. REASONING: A nonresident license applicant must file an irrevocable consent that an action may be commenced against the applicant in a Michigan court and that service of process on the Department shall be held to be binding A buyer wants to make an offer on a house but tells the licensee that he will not have the cash needed to close for another six months. The licensee should CORRECT
ANSWERS a. include the statement in the buyer's offer to purchase. REASONING: A
licensee must make certain that all terms and conditions of the real estate transaction are included in the offer to purchase.Where the investigation discloses evidence of a license violation, what action may the attorney general take? CORRECT ANSWERS The attorney general may issue a formal complaint. REASONING: If the report of the investigative unit discloses evidence of a violation, the Department or the attorney general may take action against the respondent, which may include a formal complaint.The proper place to file an antitrust lawsuit is with the CORRECT ANSWERS circuit court. REASONING: Antitrust actions may be brought in a circuit court without regard to the amount of controversy.The Michigan State Housing Development Authority (MSHDA) lacks the authority to
CORRECT ANSWERS engage in slum clearance and urban renewal. REASONING:
MSHDA may purchase and make loans, investigate housing conditions and needs, and provide educational services to assist organizations and persons to more effectively provide authority-assisted housing.What is the hearing examiner's next step after determining at a contested case hearing that the respondent is in violation of the law? CORRECT ANSWERS purchase and make loans, investigate housing conditions and needs, and provide educational services to assist organizations and persons to more effectively provide authority- assisted housing.A broker whose license has been revoked continues to represent a seller by selling the previously listed property and closing the transaction. The broker is guilty of CORRECT ANSWERS a misdemeanor because he is unlicensed. REASONING: A person whose
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