100+ Free MI RE Broker Practice Questions

Pass your Michigan Real Estate Broker Exam exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

~55% Pass Rate

100+ Questions

100% Free

1 / 100

Question 1

Score: 0/0

What is the Michigan state transfer tax rate applied to the selling price of real property?

$3.75 per $500 of the selling price

$1.10 per $1,000 of the selling price

$8.60 per $1,000 of the selling price

$4.30 per $500 of the selling price

to track

Same family resources

Explore More Real Estate Broker

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

More From This Family

Videos and articles for deeper review.

ArticleFree Real Estate Broker Practice Test by State 2026: 1,500+ Questions24 min read

2026 Statistics

Key Facts: MI RE Broker Exam

~55%

First-Time Pass Rate

PSI

115

Exam Questions

National + State portions

70%

Passing Score

Each portion separately

90 hrs

Pre-License Education

LARA requirement

3 yrs

Salesperson Experience

Active within last 6 years

$79

Exam Fee

PSI

Michigan's broker exam requires 90 hours of broker-specific pre-license education and 3 years of active salesperson experience. The exam has both national and state portions, testing brokerage operations, trust account management, Michigan Occupational Code Article 25, and LARA regulations. Michigan is notable for requiring brokers to maintain a physical office location and testing extensively on the state's seller disclosure requirements and environmental hazards like lead paint and radon.

Sample MI RE Broker Practice Questions

Try these sample questions to test your MI RE Broker exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Michigan's Occupational Code Article 25, what is the maximum period a broker may hold an expired license before it is considered lapsed and requires re-examination?

A.1 year

B.3 years

C.5 years

D.There is no grace period; the license lapses immediately

Explanation: Under Michigan's Occupational Code, a broker has up to 3 years after license expiration to renew without re-examination, provided all continuing education requirements are met and applicable late fees are paid. After 3 years, the license is considered lapsed and the individual must retake and pass the licensing exam. The 1-year and 5-year options are incorrect timeframes, and licenses do not lapse immediately upon expiration.

2A Michigan real estate broker discovers that a salesperson under their supervision deposited a client's earnest money into the salesperson's personal checking account. What violation has occurred?

A.Commingling

B.Conversion

C.Embezzlement

D.Misappropriation

Explanation: Commingling occurs when trust funds are mixed with personal or business funds. The salesperson deposited client trust funds into a personal account, which is the definition of commingling. Conversion would involve using the funds for a purpose other than the intended one. While this could potentially escalate to embezzlement or misappropriation, the specific act of mixing funds is classified as commingling under Michigan real estate law.

3How often must a Michigan broker reconcile their trust account records with the bank statement?

A.Weekly

B.Monthly

C.Quarterly

D.Annually

Explanation: Michigan requires brokers to reconcile their trust account records with the bank statement on a monthly basis. This reconciliation must be completed within a reasonable time after receiving the bank statement and ensures that the broker's internal records match the bank's records. Weekly is too frequent for the statutory requirement, and quarterly or annual reconciliation would be insufficient to detect errors or discrepancies in a timely manner.

4A Michigan broker operates three branch offices in addition to the main office. What is the broker's primary obligation regarding supervision of these branch offices?

A.Visit each branch office at least once per quarter

B.Appoint a licensed associate broker to manage each branch office

C.Ensure adequate supervision of all licensees at each branch office location

D.File separate trust account reports for each branch office

Explanation: Under Michigan law, the designated broker is responsible for ensuring adequate supervision of all licensees at every office location, including branch offices. While appointing an associate broker to manage a branch is a common practice, the legal obligation is on the designated broker to ensure adequate supervision occurs regardless of the method used. There is no specific quarterly visit requirement, and trust account requirements relate to the firm's accounts, not individual branch reporting.

5Under the Michigan Seller Disclosure Act, which of the following conditions must a seller disclose to a prospective buyer?

A.The amount of the seller's remaining mortgage balance

B.Known defects in the foundation, basement, or structural components

C.The names of all previous owners of the property

D.The current market value as appraised by a licensed appraiser

Explanation: The Michigan Seller Disclosure Act requires sellers to disclose known material defects including issues with the foundation, basement, and structural components. This is part of the comprehensive seller disclosure statement that covers the physical condition of the property. The seller's mortgage balance is confidential financial information, previous owner names are not required disclosures, and the seller is not required to provide a professional appraisal.

6What is the Michigan state transfer tax rate applied to the selling price of real property?

A.$3.75 per $500 of the selling price

B.$8.60 per $1,000 of the selling price

C.$1.10 per $1,000 of the selling price

D.$4.30 per $500 of the selling price

Explanation: Michigan imposes a state transfer tax of $8.60 per $1,000 of the total selling price (or $3.75 per $500). This is split between the state ($7.50 per $1,000) and county ($1.10 per $1,000) portions. The $3.75 per $500 option represents a common calculation method but $8.60 per $1,000 is the standard expression of the combined state and county transfer tax rate.

7A Michigan broker receives two competing offers on a listed property. What is the broker's legal obligation?

A.Present only the highest offer to the seller

B.Present all offers to the seller in a timely manner

C.Present the first offer received and hold the second until the seller responds

D.Advise the seller which offer to accept based on the broker's expertise

Explanation: Under Michigan law, a broker has a fiduciary duty to present all offers to the seller in a timely manner, regardless of the offer amounts or terms. The seller has the right to evaluate and choose among all offers. Presenting only the highest offer, holding back offers, or recommending which offer to accept would breach the broker's fiduciary duty to the seller. The broker may provide factual analysis but the decision rests with the seller.

8Under Michigan law, which type of agency relationship requires written disclosure to all parties in the transaction?

A.Single agency only

B.Dual agency only

C.All agency relationships

D.Transaction coordination only

Explanation: Michigan requires written agency disclosure for all agency relationships in a real estate transaction. The Michigan Agency Disclosure form must be provided at the first substantive contact with any party. This includes single agency (representing buyer or seller), dual agency, and any other agency arrangement. The law does not limit disclosure requirements to just dual agency or single agency situations.

9A Michigan broker wants to advertise a property listing on social media. Which of the following is REQUIRED in the advertisement?

A.The broker's personal cell phone number

B.The name of the brokerage firm as licensed with LARA

C.The MLS number of the listing

D.The broker's license number

Explanation: Michigan advertising rules require that all real estate advertisements include the name of the brokerage firm as it is licensed with LARA. This applies to all forms of advertising including social media, print, online, and signage. The broker's personal phone number, MLS number, and license number are not specifically required by Michigan advertising regulations, though they may be included voluntarily or required by MLS rules.

10What is the minimum amount a Michigan broker must maintain in their trust account to keep the account open, even when no client funds are held?

A.$0 — the account may have a zero balance

B.$100

C.$500

D.$1,000

Explanation: Michigan does not require brokers to maintain a minimum balance in their trust account. The account may have a zero balance when no client funds are being held. However, brokers must be careful not to use personal funds in the trust account (commingling), and they may deposit a small amount of personal funds only to cover bank service charges if necessary. The trust account must remain open and available for deposits as needed.

About the MI RE Broker Exam

The Michigan real estate broker exam is administered by PSI on behalf of the Michigan Department of Licensing and Regulatory Affairs (LARA). It consists of a national portion and a state-specific portion covering Michigan real estate law, brokerage management, trust accounts, and the Michigan Occupational Code. Candidates must complete 90 hours of approved pre-license education and have 3 years of active salesperson experience.

Questions

115 scored questions

Time Limit

3 hours

Passing Score

70%

Exam Fee

$79 (PSI (for Michigan LARA))

MI RE Broker Exam Content Outline

20%

Brokerage Management & Operations

Office management, branch offices, broker-salesperson relationships, independent contractor agreements, advertising compliance, record retention

18%

Trust Accounts & Fund Handling

Trust account requirements, earnest money deposits, commingling, conversion, reconciliation, LARA audit procedures

20%

Michigan Real Estate Law

Occupational Code Article 25, LARA regulations, seller disclosure requirements, land contract provisions, Michigan environmental laws

15%

Contracts & Transactions

Purchase agreements, listing agreements, land contracts, closing procedures, title insurance, Michigan-specific contract provisions

15%

Finance & Property Valuation

Mortgage types, Michigan transfer tax, appraisal methods, property tax calculations, economic principles

12%

Agency, Ethics & Fair Housing

Michigan agency disclosure, dual agency, fiduciary duties, Elliott-Larsen Civil Rights Act, federal fair housing

How to Pass the MI RE Broker Exam

What You Need to Know

Passing score: 70%
Exam length: 115 questions
Time limit: 3 hours
Exam fee: $79

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

MI RE Broker Study Tips from Top Performers

1Master trust account rules: know commingling vs conversion, reconciliation deadlines, and LARA audit requirements

2Study Michigan Occupational Code Article 25 thoroughly — it governs all licensing, violations, and disciplinary actions

3Understand Michigan seller disclosure requirements and the specific items that must be disclosed (lead paint, radon, environmental hazards)

4Learn Michigan transfer tax calculations: $8.60 per $1,000 of selling price (state) + county transfer tax

5Know the differences between broker supervision responsibilities for salespersons vs associate brokers

Frequently Asked Questions

How hard is the Michigan real estate broker exam?

The MI broker exam is moderately difficult with a ~55% first-time pass rate. It requires 90 hours of broker pre-license education, 3 years of salesperson experience, and covers both national real estate concepts and Michigan-specific law including the Occupational Code Article 25. Trust account management and brokerage operations are heavily tested.

How many questions are on the Michigan broker exam?

The Michigan real estate broker exam has approximately 115 multiple-choice questions split between a national portion and a state-specific portion. You have 3 hours to complete both portions and need 70% on each portion to pass. The exam is administered by PSI at testing centers throughout Michigan.

What are the prerequisites for a Michigan broker license?

You need 90 hours of approved broker pre-license education (including courses in broker management, real estate law, and electives), 3 years of active salesperson experience within the previous 6 years, and must pass both the national and state portions of the broker exam with 70% or higher.

What topics are most tested on the Michigan broker exam?

The most heavily tested broker-level topics include trust account management (commingling, conversion, reconciliation), brokerage operations (supervision, advertising, record keeping), Michigan Occupational Code Article 25, seller disclosure requirements, and the Elliott-Larsen Civil Rights Act. Land contracts are also a Michigan-specific focus area.

100+ Free MI RE Broker Practice Questions

Michigan Real Estate Broker

Explore More Real Estate Broker

California Real Estate Broker

Florida Real Estate Broker

New York Real Estate Broker

Ohio Real Estate Broker

Texas Real Estate Broker

Arizona Real Estate Broker