Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
115
40 state + 75 national
Passing score
75%
each portion
Exam time
210 min
≈ 3.5 hr, one sitting
Administered by
PSI Services Real Estate
Format
Closed-book
Michigan State Portion
40 questions
Licensing Requirements (Michigan State Laws and Rules)4 Q · 10%
Activities requiring a license and exemptionsTypes of licensesEligibility for licensingLicense renewal, including continuing educationTransfer or change in license
Statutory Requirements Governing the Activities of Licenses (Michigan State Laws and Rules)15 Q · 38%
AdvertisingCommissions and Specific Services for Which Fees may be chargedDisclosure/conflict of interestHandling of contracts, documents, listing and recommendationsHandling of monies and trust accountsPlace of business/branch office requirements (Broker Only)Record keepingInducementsAlternative Dispute Resolution vs. Arbitration (Broker only)No disclosure duty attaches to stigmatized propertyClosing responsibilities
Contractual Relationships (Michigan State Laws and Rules)5 Q · 12%
Agency relationships available in MI - Transaction coordinator, Designated agency, Dual agency, Agency disclosuresBroker/Salesperson relationshipsService Provision Agreements (Listings, Buyer Broker)
Additional State Topics (Michigan State Laws and Rules)13 Q · 32%
Land Division Act - Public Act 591 (Disclosure of Private Road)Michigan fair housing - Elliott-Larsen Civil Rights Act, Persons with Disabilities Civil Rights ActLandlord Tenant Relationship Act, Truth in Renting ActUsury laws (Broker only)State Transfer TaxMichigan Condominium ActMichigan State Housing Development Authority (MSHDA)Uniform State Anti-trust ActMichigan Right to Farm Act (Seller's Disclosure Required)Changes in the Land Contract Laws (Dodd Frank Law-federal)
Michigan Department and State Board Duties and Powers3 Q · 8%
General powersInvestigations, conferences, hearings, and exemptionsPenalties
National Portion
75 questions
Property Ownership8 Q · 10%
Real vs personal propertyLand characteristics and legal descriptions (metes & bounds, lot & block, government survey)Measuring structures and land measurementEncumbrances: liens, easements, encroachments, subsurface/air/water rightsTypes of ownership: severalty, tenants in common, joint tenancy, common-interest, trusts, business entities, life estate
Land Use Controls4 Q · 5%
Government rights in land: taxes, special assessments, eminent domain, escheatGovernment controls on land use: zoning, building codes, environmental regulationsPrivate controls: deed conditions, CC&Rs, HOA/condo bylaws
Loan terminology: points, LTV, PMI, PITI, underwriting criteriaMortgage clauses, promissory notes, deeds of trustLoan types: conventional, amortized, ARM, FHA, VA, USDA, owner financing, reverse mortgage, HELOC, construction, bridgeLending legislation: RESPA, Truth in Lending (Reg Z), TRID, Equal Credit Opportunity ActSecondary mortgage market: Fannie Mae, Freddie Mac, Ginnie Mae
Contracts15 Q · 19%
General contract law: valid elements, Statute of Frauds, offer and acceptanceContract enforceability: void, voidable, unenforceable contractsBilateral vs unilateral contracts, option contractsElectronic signatures and digital transactionsRights, obligations, and breach remediesPurchase agreements: addenda, amendments, contingenciesLease contracts: types of leases, lease-purchase agreementsMultiple offers and counteroffers
Agency10 Q · 13%
Agency vs non-agency relationshipsListing contracts: exclusive right-to-sell, exclusive agency, open listing, net listingBuyer brokerage and buyer representation agreementsTransaction brokers and facilitatorsPower of attorney, termination of agencyFiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, reasonable care (OLD CAR)Duties to customers and non-clientsAgency disclosure requirements and conflict of interest
Property Disclosures6 Q · 7%
Property condition disclosures: seller disclosure requirements, inspections, surveysRed flags and material defectsEnvironmental disclosures: lead-based paint, asbestos, radon, mold, underground storage tanksGovernment disclosures: flood zones, wetlands, endangered speciesMaterial facts and duty to disclose
Property Management2 Q · 3%
Tenant procurement and qualificationFair housing compliance in property management and ADAMarket analysis for establishing rentsLandlord/tenant rights and obligations
Transfer of Title5 Q · 6%
Types of deeds: general warranty, special warranty, quitclaim, bargain and saleTitle insurance: owners vs lenders policies, title searches, title problemsClosing process: recordation, settlement statements, warrantiesSpecial processes: foreclosure, short sale, deed in lieu, probate
Practice of Real Estate10 Q · 12%
Federal Fair Housing Act: protected classes, prohibited conduct, exemptionsAmericans with Disabilities Act (ADA) requirementsAntitrust laws: price fixing, group boycotts, market allocation, tie-in agreementsDo-Not-Call Registry and telemarketing rulesSocial media and internet advertising regulationsHandling earnest money and trust fundsDue diligence and fiduciary responsibilitiesIndependent contractor vs employee status
Real Estate Calculations6 Q · 7%
Seller net proceeds calculationsBuyer funds required at closingProrations: taxes, insurance, rent, HOA duesTransfer tax and recording fee calculationsPITI (Principal, Interest, Taxes, Insurance) calculationsCommission calculations and splitsEquity, capitalization rate, and LTV calculationsDiscount points and origination feesArea and volume conversions (sq ft, acres)
An exclusive right-to-sell guarantees the broker a commission no matter who finds the buyer—even the seller—while an exclusive agency lets the seller find their own buyer without owing a commission.
Void ContractvsVoidable Contract
A void contract has no legal effect from inception (e.g., illegal purpose or court-adjudicated incompetent party), while a voidable contract is valid until the injured party—such as a minor or a party under duress—elects to disaffirm it.
Void/Voidable ContractvsUnenforceable Contract
A void or voidable contract has substantive legal defects (illegal purpose, incapacity, duress), whereas an unenforceable contract has all valid elements but fails a procedural requirement—such as the Statute of Frauds writing rule—making it impossible to enforce in court.
AddendumvsAmendment
An addendum adds new terms to a purchase agreement at or before execution, while an amendment modifies terms of an already-executed contract; both require all parties' signatures.
Bilateral ContractvsUnilateral Contract
A bilateral contract binds both parties through an exchange of promises, while a unilateral contract obligates only the offeror, whose duty to perform arises only upon the offeree's complete performance of the requested act.
General Warranty DeedvsSpecial Warranty Deed
A general warranty deed warrants title against all defects regardless of when they arose, while a special warranty deed limits the grantor's warranty only to defects that arose during the grantor's period of ownership.
Bargain and Sale DeedvsQuitclaim Deed
A bargain and sale deed implies the grantor holds title and possession but makes no express warranties against encumbrances, while a quitclaim deed conveys only whatever interest the grantor may have—if any—with no implication of ownership whatsoever.
Ginnie Mae (GNMA)vsFreddie Mac (FHLMC)
Ginnie Mae is a wholly owned government corporation that guarantees mortgage-backed securities composed exclusively of FHA, VA, and USDA loans, while Freddie Mac is a government-sponsored enterprise that purchases conventional loans from lenders and packages them into securities.
Promissory NotevsMortgage
The promissory note is the borrower's personal promise to repay the debt, while the mortgage is the security instrument that pledges the real property as collateral and creates the lien against it.
Single Agent (Client Relationship)vsTransaction Broker (Customer Relationship)
A single agent owes full fiduciary duties—loyalty, obedience, and advocacy—to a represented client, while a transaction broker facilitates the deal for both parties and owes only honesty, fair dealing, and confidentiality, with no fiduciary advocacy for either side.
Freehold EstatevsLeasehold Estate
A freehold estate (fee simple or life estate) is of indefinite or uncertain duration and constitutes real property ownership, while a leasehold estate lasts for a determinable period and is classified as personal property (a chattel real).
SubleasevsAssignment
In a sublease the tenant transfers possession for only part of the remaining lease term and retains a reversionary interest, while in an assignment the tenant transfers the entire remaining lease interest with nothing retained.
A CMA is an informal estimate of market value prepared by a licensed real estate agent or broker to assist in pricing, while a formal appraisal is prepared by a licensed/certified appraiser following USPAP standards and is required for federally related transactions.
Ad Valorem (General) TaxvsSpecial Assessment
An ad valorem tax is levied on all properties within a taxing jurisdiction based on value to fund general government services, while a special assessment is charged only against specific properties that directly benefit from a particular public improvement.
Under Occupational Code Section 339.502, the department must provide written acknowledgment of a complaint to the complainant within 15 days after receipt.
Citation Contest Period — 30 Days (Michigan) Occupational Code, Section 339.555
Under Occupational Code Section 339.555, a respondent has 30 days to notify the department in writing that they accept or contest a citation issued for a violation.
Surety Bond Requirement After Revocation (Michigan) Occupational Code, Section 339.2513
Under Occupational Code Section 339.2513, the department may require an applicant whose license was previously denied, suspended, or revoked to file a surety bond for a period not to exceed 5 years.
Under Occupational Code Section 339.2512(1)(k)(v), earnest money must be deposited into the broker's separate trust account not later than 2 banking days after the broker receives notice that all parties have accepted the offer.
Trust Account Records Retention (Michigan) Admin Rules, R 339.22134(8)
Under Admin Rules R 339.22134(8), a broker must maintain all trust or escrow account records for not less than 3 years after the date of inception of the records.
Under Occupational Code Section 339.2512e(3), a salesperson must advertise under the employing broker's business name in equal or greater type size than the salesperson's name, and must include the broker's telephone number or street address.
Under Occupational Code Section 339.2518(b), no action may be brought against a licensee for failing to disclose that a property was or was suspected to have been the site of a homicide, suicide, or other occurrence that had no material effect on the property's physical condition.
Broker's Own Funds in Trust Account Cap (Michigan) Occupational Code, Section 339.2512(1)(k)(iv)
Under Occupational Code Section 339.2512(1)(k)(iv), a broker may deposit no more than $2,000 of the broker's own money into each trust account to cover bank service charges and minimum balance requirements.
Latent Defect
A hidden property defect that is not discoverable through ordinary inspection; sellers and brokers have a duty to disclose known latent defects because buyers cannot reasonably be expected to find them on their own.
Hypothecation
The act of pledging real property as collateral for a loan while the borrower retains possession of the property, distinguishing it from a pawn-style pledge where the lender takes physical possession.
Specific Performance
An equitable court remedy compelling the breaching party to fulfill contract terms as agreed; commonly sought in real estate because each parcel is unique and monetary damages may be inadequate.
Redlining
The illegal practice of denying or restricting loans, insurance, or other financial services based solely on the geographic location of a property rather than on the individual applicant's creditworthiness.
Capitalization Rate (Cap Rate)
The rate used to convert a property's net operating income into an indicated value (Value = NOI ÷ Cap Rate); a higher cap rate produces a lower indicated value for the same income stream.
Constructive Eviction
A legal claim available to a tenant when the landlord's act or failure to act makes the premises substantially uninhabitable and the tenant actually vacates; the tenant must vacate to preserve the claim.
Formulas to Know
Seller's Net ProceedsNet Proceeds = Sale Price − (Broker Commission + Loan Payoff + Closing Costs + Prorated Expenses Owed by Seller)
Buyer's Cash Required at ClosingCash to Close = Purchase Price − Loan Amount − Credits (Earnest Money, Seller Concessions) + Buyer Closing Costs + Prepaid Items
Proration (General — 365-Day or 360-Day Method)Daily Rate = Annual Amount ÷ Days in Year; Proration = Daily Rate × Number of Days Owed by Party
Commission and SplitTotal Commission = Sale Price × Commission Rate; Agent Share = Total Commission × Agent Split %
Capitalization Rate / Value / NOIValue = NOI ÷ Cap Rate; NOI = Value × Cap Rate; Cap Rate = NOI ÷ Value
