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Exam Review

Key Facts: MI RE Broker Exam

210 min

Exam Time

PSI

115

Exam Questions

National + State portions

75%

Passing Score

PSI (raw score 90 of 120 points)

90 hrs

Pre-License Education

LARA requirement

3 yrs

Real Estate Experience

LARA (full-time, real estate or related field)

$79

Exam Fee

PSI

Michigan's broker exam has 115 questions (120 points) and a 210-minute limit; a score of 75% (raw score 90) passes. Candidates need 90 hours of broker prelicensure education, including 9 hours on civil rights and fair housing, and 3 years of full-time real estate or related experience. Brokers must keep a place of business in Michigan.

Sample MI RE Broker Practice Questions

Try these sample questions to review concepts for the MI RE Broker exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 152+ 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's state real estate transfer tax is $3.75 for each $500 (or fraction thereof) of total value under MCL 207.525 (State Real Estate Transfer Tax Act). Separately, counties collect $0.55 per $500 under MCL 207.505. Combined, the common total is $4.30 per $500 or $8.60 per $1,000, but the question asks for the state rate alone. The $8.60/$1,000 figure is the combined state-plus-county rate, not the state-only 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 a minimum trust-account balance when no client funds are held. Under MCL 339.2512(1)(k)(iv), a broker may deposit not more than $2,000 of its own money in each trust account to cover bank service charges or minimum-balance requirements and must account for those broker funds in the trust records. Brokers must not otherwise commingle personal or operating funds with client trust money.

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 has 115 multiple-choice questions (120 points) in 210 minutes: a national portion led by contracts, agency and real estate practice, and a 40-item Michigan portion on the Occupational Code, licensing, licensee conduct such as trust accounts and branch offices, agency relationships and other state laws. Candidates need 90 hours of approved prelicensure education and 3 years of full-time real estate or related experience.

Exam sponsor: PSI (for Michigan LARA). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

115 questions

Time Limit

210 minutes

Passing Score

75%

Exam / Certification Fees

$79

Exam sponsor website

Reported exam pass rate: Not published. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

10%

Property Ownership

Real and personal property, legal descriptions, encumbrances, types of ownership including condominiums, co-ops and life estates

5%

Land Use Controls

Government rights in land, government controls on land use, private controls such as deed restrictions and CC&Rs

8%

Valuation

Appraisals, sales comparison, cost and income approaches, CMA, BPO and AVM

9%

Financing

Loan terms (points, LTV, PMI), loan types, land contracts, financing regulations

19%

Contracts

Contract law, purchase agreements, contingencies, leases and lease-purchase agreements, multiple offers and counteroffers

13%

Agency

Agency relationships, listing and buyer brokerage contracts, fiduciary duties, agency disclosures

7%

Property Disclosures

Property condition, environmental and government disclosures, material facts and defects

5%

Property Management

Tenant selection, rent analysis, landlord and tenant rights, trust accounts and management contracts (broker only)

6%

Transfer of Title

Types of deeds, title insurance and searches, closing and recordation, foreclosure, short sale and probate transfers

12%

Practice of Real Estate

Fair housing, antitrust and Do-Not-Call rules, advertising, handling others' funds, broker supervision

6%

Real Estate Calculations

Seller's net proceeds, buyer funds at closing, prorations, transfer fees, PITI, loan-to-value, points

3 items

Michigan: Department and Board Powers

General powers, investigations, conferences, hearings, penalties

4 items

Michigan: Licensing Requirements

Activities requiring a license, license types, eligibility, renewal and continuing education, transfers

15 items

Michigan: Statutory Requirements for Licensees

Advertising, commissions, disclosure, contracts and documents, trust accounts, place of business and branch offices, record keeping, closing

5 items

Michigan: Contractual Relationships

Agency relationships available in Michigan (dual and designated agency, transaction coordinator), agency disclosures, broker/salesperson relationships

13 items

Michigan: Additional State Topics

Land Division Act, Elliott-Larsen and disability civil rights acts, landlord-tenant law, usury laws, state transfer tax, Condominium Act, Right to Farm Act, land contract law

Preparing for the MI RE Broker Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 115 questions
  • Time limit: 210 minutes
  • Exam / certification fees: $79 Official sources

Using Our Practice Resources

  • Work through all 152 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

MI RE Broker: Suggested Study Strategy

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: the state tax is $3.75 per $500 ($7.50 per $1,000) of value, and most counties add 55 cents per $500
5Know the differences between broker supervision responsibilities for salespersons vs associate brokers

Frequently Asked Questions

How hard is the Michigan real estate broker exam?

No official pass rate is published. The exam has 115 questions (120 points, because some national broker questions are worth two points) and needs 75% to pass. It covers national real estate topics, led by contracts (19%), agency (13%) and real estate practice (12%), plus a 40-item Michigan portion in which licensee conduct rules such as trust accounts and branch offices are the largest section (15 items).

How many questions are on the Michigan broker exam?

The Michigan real estate broker exam has 115 multiple-choice questions worth 120 points, split between a national portion and a 40-item Michigan portion. You have 210 minutes and need a combined score of 75% (raw score 90) to pass. PSI administers the exam.

What are the prerequisites for a Michigan broker license?

You need to be at least 18, complete 90 hours of approved broker prelicensure education (including at least 9 hours of civil rights law and equal opportunity in housing), have 3 years of full-time experience in real estate or a related field, pass the PSI broker exam with 75% or higher, and maintain a place of business in Michigan.

What topics are most tested on the Michigan broker exam?

In the national portion, contracts (19%), agency (13%) and practice of real estate (12%) carry the most weight. In the Michigan portion, statutory requirements governing licensee activities (15 items), such as advertising, trust accounts, branch offices and record keeping, and additional state topics (13 items), such as the Elliott-Larsen Civil Rights Act, usury laws, the state transfer tax and land contracts, are the largest sections.