Michigan · Real estate exam prep
20 free Michigan practice questions with no signup required. When you're ready for more, the full RealReady bank has 1,036 questions for the 2026 exam that cover both national principles and Michigan law.
Practice
Use this like a free Michigan real estate practice test: read the question, commit to an answer, then tap to reveal the correct answer and a plain-English explanation. The ones you miss tell you where to focus next.
Correct: D It advises LARA on the regulation
The Board of Real Estate Brokers and Salespersons serves in an advisory capacity to LARA. It does not independently enact, veto, or enforce regulations.
Correct: C Yes, he received compensation for the activity
Receiving compensation for activities like listing, selling, buying, or renting real estate requires a license in Michigan. The neighbor relationship does not create an exemption.
Correct: B Commingling client funds with personal funds
Commingling client funds with personal accounts is a serious violation and grounds for discipline. Declining listings, making referrals, and advertising open houses are normal business activities.
Correct: B The broker's licensed name must appear
Michigan requires all real estate advertisements to include the broker's name as licensed. An ad showing only the salesperson's name without the broker is a blind ad, which is prohibited.
Correct: D Within 2 banking days after notice that the offer was accepted by all parties
Michigan requires a broker to deposit earnest money into a trust or escrow account within 2 banking days after the broker receives notice that the offer to purchase was accepted by all parties (MCL 339.2512(1)(k)). The clock runs from notice of acceptance, not from when the check is received.
Correct: D Commissions are freely negotiable by the parties
In Michigan, real estate commissions are freely negotiable between the parties. No law, board, or association sets or controls commission rates. Any price-fixing agreement would violate antitrust laws.
Correct: A A written buyer representation agreement must be signed
Under the National Association of Realtors settlement, effective August 17, 2024, agents participating in the MLS must have a signed written buyer representation agreement before touring properties with a buyer. This is an industry practice change under MLS policy — not a Michigan statute — but it applies to most Michigan brokerages in practice.
Correct: C Informed written consent from both parties
Michigan dual agency requires informed written consent from BOTH the buyer and seller before the agent can represent both parties. Neither verbal consent nor one-sided consent is sufficient.
Correct: C Broker A still earns the commission
Under an exclusive right to sell listing, the broker earns the commission regardless of who procures the buyer, even if the seller finds the buyer independently.
Correct: C Present the offer to the seller
Michigan law requires agents to present all offers to the seller unless the seller has given written instructions otherwise. The agent cannot screen or reject offers based on personal judgment.
Correct: A Before the offer is accepted
Michigan's Seller Disclosure Act requires the written Seller's Disclosure Statement be provided to the buyer before the purchase offer is accepted.
Correct: D Age, marital status, and sexual orientation
The Elliott-Larsen Civil Rights Act goes beyond the classes enumerated in the federal Fair Housing Act by protecting age, marital status, sexual orientation, and gender identity or expression in housing (MCL 37.2502). Effective April 2, 2025, it also protects source of income in rental housing (2024 PA 180). None of these classes is enumerated in federal fair housing law.
Correct: C $3,600
Michigan law limits security deposits to 1.5 times the monthly rent. For $2,400/month rent, the maximum deposit is $2,400 x 1.5 = $3,600.
Correct: C $1.10 per $1,000 of sale price
Michigan's county transfer tax rate is $0.55 per $500, which equals $1.10 per $1,000 of the sale price.
Correct: D A master deed
Under the Michigan Condominium Act, a developer must record a master deed that includes the bylaws, subdivision plan, and descriptions of units and common elements to create a condominium.
Correct: C 7 parcels
Michigan's Land Division Act (MCL 560.108(2)) scales the limit with acreage: 4 parcels for the first 10 acres plus 1 for each additional whole 10 acres, so 40 acres yields 4 + 3 = 7 parcels. The flat figure of 4 covers only the first 10 acres. Note that 2025 PA 58 raises the first-10-acres allowance from 4 to 10 beginning March 24, 2027, and a local ordinance under MCL 560.108(6) may authorize additional divisions.
Correct: C Yes, it may investigate without a complaint
LARA has the authority to initiate investigations on its own without receiving a formal complaint. This power helps protect the public from licensee misconduct.
Correct: B No, owners may rent their own property
Property owners are exempt from licensing when managing or renting their own property. The exemption applies regardless of advertising method or rental amount.
Correct: D Misrepresentation of a material fact
Knowingly providing false information about a property's condition is misrepresentation, which is a specific ground for disciplinary action under Michigan law.
Correct: B An ad that omits the broker's identity
A blind ad is one that does not include the broker's licensed name, making it impossible for consumers to identify the responsible brokerage. Blind ads are prohibited in Michigan.
The RealReady app has all 1,036 questions covering both national real estate principles and Michigan-specific law. The full app also includes:
Unlike other real estate prep apps, we don't cut off access or charge a monthly subscription fee. It's a one-time $17.99, and it's yours forever.
About the exam
Most Michigan candidates who fail leaned too hard on national material and underprepared for the 35 Michigan-law questions folded into the exam. The state's Department of Licensing and Regulatory Affairs, known as LARA, licenses agents through its Board of Real Estate Brokers and Salespersons. Michigan rolls the national and state questions into one combined score rather than grading the halves separately, so a thin grasp of Michigan law will quietly drag down an otherwise strong national score.
Michigan leans on its own rules in ways a national course never covers, from the land contract that is still a common way to sell property here, to the seller's disclosure statement required under the Seller Disclosure Act, the agency relationships the state recognizes such as the transaction coordinator and designated agency, fair housing under the Elliott-Larsen Civil Rights Act, the State Real Estate Transfer Tax, and private-road disclosure under the Land Division Act. None of that looks like the material a candidate in a neighboring state studies. A generic real estate practice test won't cut it. You need Michigan-specific practice questions.
FAQ
The Michigan Real Estate Salesperson Examination has 115 scored multiple-choice questions, 80 drawn from national real estate principles and 35 covering Michigan law. PSI delivers all of them in one computer-based session at a test center or through live online proctoring, and a handful of unscored experimental questions may be mixed in that do not count toward your result. You have three hours for the whole exam.
70%. Michigan scores the salesperson exam as one combined result rather than grading the national and state portions separately, so you need 80 correct answers out of the 115 to pass. There's no curve and no partial credit, which is why steady practice on the questions you tend to miss pays off.
PSI charges $79 per attempt to sit the salesperson exam, and you pay that fee again for each retake. The salesperson license application — $88 through LARA's MiPLUS system — actually comes first: LARA must authorize you before you can register with PSI, and the license issues through MiPLUS after you pass. The exam fee is not refundable and expires one year after you register if you have not tested.
Three hours, or 180 minutes, for all 115 questions in a single sitting. PSI administers it by computer at test centers around the state, including sites in the Detroit area, Lansing, Grand Rapids, Gaylord, and Marquette, as well as by live online proctoring, and your score report is available to print from your PSI online account.
The Michigan Real Estate Salesperson Examination is administered by PSI for the Michigan Department of Licensing and Regulatory Affairs (LARA). You register and schedule your exam date through PSI.
It's a serious test, and the part that trips people up is the 35-question Michigan section. The national half covers the same principles taught in every state, but the state questions reward candidates who actually studied Michigan agency rules, the Seller Disclosure Act, land contracts, and the Occupational Code provisions that govern licensees. Most people who fail leaned too heavily on national material and underprepared on Michigan law. Honest reps on Michigan-specific practice questions are the difference between a first-time pass and a $79 retake.
The 80 national questions span eleven areas, with the heaviest weights on Contracts (about 15 questions), Agency (about 10), and Practice of Real Estate (about 10), followed by Property Ownership and Financing (about 8 each), then Valuation, Property Disclosures, Real Estate Calculations, Transfer of Title, Land Use Controls, and a small Property Management group. The 35 Michigan questions lean hardest on the statutory requirements that govern licensees, covering advertising, commissions, handling of monies and trust accounts, record keeping, and disclosure duties, plus the Department and Board's powers, the agency relationships Michigan recognizes, and a set of state laws that includes the Land Division Act, the Elliott-Larsen and Persons with Disabilities civil rights acts, the Truth in Renting Act, the State Real Estate Transfer Tax, the Michigan Condominium Act, and Right to Farm seller disclosures.
After you finish your 40-hour pre-license course, the highest-leverage move is grinding Michigan-specific practice questions with honest feedback on every miss. National principles you can pick up from any course, but the 35-question state section rewards repetition on Michigan agency rules, the Seller Disclosure Act, land contracts, the transfer tax, and the Occupational Code. The RealReady app gives you the full Michigan question bank, detailed explanations, a missed-question drill mode, and per-category progress tracking so you can see exactly where you are weak. Most users study 30 to 60 minutes a day for a few weeks before sitting the PSI exam.
The 20 Michigan practice questions on this page are free, no account or signup needed. Unlocking the rest of the Michigan bank is a single in-app purchase you pay once and own, with no recurring charge and no time limit on access.
Yes. RealReady has a dedicated Michigan question bank built for the Michigan real estate exam, covering the national principles every candidate sees plus the Michigan law that trips people up, like the land contract, the seller's disclosure statement under the Seller Disclosure Act, and fair housing under the Elliott-Larsen Civil Rights Act.
No. RealReady is exam practice, not a pre-license course, so it doesn't count toward Michigan's required pre-license education hours. Use it after or alongside your coursework to drill realistic practice questions and find your weak spots before exam day.
