1
PSI Real Estate Practice Exam - Michigan (Chapter 1) Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary purpose of the Michigan Real Estate License Law?✔✔To regulate real estate practices and protect the public by ensuring professionalism and ethical conduct in the real estate industry
What is required for someone to obtain a real estate license in Michigan?✔✔The individual must complete the required education and pass the state exam
What is the term for a real estate professional who acts as a liaison between the buyer and the seller in Michigan?✔✔A real estate agent
What does “fiduciary duty” mean in real estate?✔✔The obligation to act in the best interests of the client, including loyalty, confidentiality, and full disclosure
- / 4
2
What is the purpose of the Michigan Department of Licensing and Regulatory Affairs (LARA) in real estate?✔✔To oversee the regulation and licensing of real estate professionals and ensure compliance with state laws
What is the maximum term for a real estate salesperson’s license in Michigan?✔✔Three years
What is the role of the Michigan Real Estate Commission?✔✔To establish rules and regulations for real estate practice and enforce the real estate licensing laws in Michigan
What must a real estate salesperson do to maintain their license in Michigan?✔✔Complete continuing education courses and renew their license before the expiration date
What is the term “real property” defined as in Michigan law?✔✔Land and anything permanently attached to it, including buildings and improvements
- / 4
3
What is an example of “personal property” in a real estate transaction?✔✔Furniture or appliances that can be removed from the property
What is a “listing agreement” in Michigan real estate?✔✔A contract between a property owner and a real estate agent authorizing the agent to sell the property
What is a “dual agency” situation in real estate?✔✔When a real estate agent represents both the buyer and the seller in the same transaction, with consent from both parties
What is the legal term for a person who has the legal right to represent another in real estate transactions?✔✔A real estate agent or broker
What does it mean to “disclose” in real estate transactions?✔✔To provide relevant information about the property, including defects or issues, to all parties involved
- / 4
4
What is the “Code of Ethics” for real estate professionals in Michigan?✔✔A set of guidelines and principles to ensure fairness, honesty, and transparency in real estate practices
What is the Michigan statute of limitations for filing a complaint against a real estate licensee for misconduct?✔✔Two years from the alleged act of misconduct
What is the significance of a “buyer’s agent” in a real estate transaction?✔✔The agent represents the buyer’s interests and assists with negotiating and completing the purchase of a property
What does the term “broker” refer to in Michigan real estate?✔✔A licensed individual or firm that oversees real estate transactions and agents
What is the definition of “material fact” in a real estate transaction in Michigan?✔✔A fact that could influence the decision of a buyer or seller, such as structural issues or legal disputes
- / 4