Exam Cheat Sheet · Quick Reference
Michigan Real Estate Salesperson
Michigan · PSI Services Real Estate
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
195
115 state + 80 national
Passing score
70%
each portion
Exam time
180 min
≈ 3 hr, one sitting
Administered by
PSI Services Real Estate
Format
Closed-book
Michigan State Portion 115 questions
Michigan Department and State Board Duties and Powers
3 Q · 9%
General powersInvestigations, conferences, hearings, and exemptionsPenalties
Michigan Licensing Requirements
5 Q · 14%
Activities requiring a license and exemptionsTypes of licensesEligibility for licensingLicense renewal including continuing educationTransfer or change in license
Michigan Statutory Requirements Governing Licensee Activities
10 Q · 29%
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 requirementsRecord keepingInducementsNo disclosure duty attaches to stigmatized propertyClosing responsibilities
Michigan Contractual Relationships
5 Q · 14%
Agency relationships available in MI (Transaction coordinator, Designated agency, Dual agency, Agency disclosures)Broker/Salesperson relationshipsService Provision Agreements (Listings, Buyer Broker)
Michigan Additional State Topics
12 Q · 34%
Land Division Act - Public Act 591 (Disclosure of Private Road)Michigan Fair Housing (Elliott-Larsen Civil Rights Act, Persons with Disabilities Civil Rights Act)Landlord Tenant Relationship Act, Truth in Renting ActState Transfer TaxMichigan Condominium ActMichigan State Housing Development Authority (MSHDA)Uniform State Anti-trust ActMichigan Right to Farm Act (Seller Disclosure Required)Changes in the Land Contract Laws (Dodd Frank Law)
National Portion 80 questions
Property Ownership
8 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 Controls
4 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
Valuation and Market Analysis
6 Q · 8%
Appraisals: when required, licensed/certified appraiser requirements, appraisal processEstimating value: economic principles affecting valueSales comparison approachCost approachIncome analysis approach (GRM, cap rate)Comparative Market Analysis (CMA), Broker Price Opinion (BPO), Automated Valuation Models (AVM)
Financing
8 Q · 10%
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
Contracts
15 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
Agency
10 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 Disclosures
6 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 Management
2 Q · 3%
Tenant procurement and qualificationFair housing compliance in property management and ADAMarket analysis for establishing rentsLandlord/tenant rights and obligations
Transfer of Title
5 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 Estate
10 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 Calculations
6 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)
Key Distinctions
Joint TenancyvsTenancy in Common
Joint tenancy includes right of survivorship so a deceased owner's interest passes automatically to surviving owners, while tenancy in common has no survivorship right and each owner's interest passes to their heirs.
Easement AppurtenantvsEasement in Gross
An easement appurtenant benefits a specific parcel of land (dominant estate) and runs with the land, while an easement in gross benefits a person or entity (such as a utility company) with no dominant estate.
General Warranty DeedvsSpecial Warranty Deed
A general warranty deed warrants against all title defects throughout the entire chain of title, while a special warranty deed only warrants against defects that arose during the grantor's period of ownership.
Owner's Title Insurance PolicyvsLender's Title Insurance Policy
An owner's policy protects the buyer's equity interest up to the purchase price, while a lender's policy protects the mortgage lender's security interest up to the outstanding loan amount.
CMA (Comparative Market Analysis)vsFormal Appraisal
A CMA is an opinion of value tool prepared by a real estate agent, while a formal appraisal is performed by a licensed or certified appraiser following USPAP standards and can be used for lending purposes.
Promissory NotevsDeed of Trust
A promissory note is the borrower's written promise creating the debt, while a deed of trust is the security instrument that gives the lender a lien on the property as collateral.
Bilateral ContractvsUnilateral Contract
A bilateral contract involves mutual promises from both parties (promise for a promise), while a unilateral contract involves a promise from one party that is accepted only through performance by the other party.
ClientvsCustomer
A client has an agency (fiduciary) relationship with the broker and is owed full fiduciary duties, while a customer has no agency relationship and is owed only honesty, fair dealing, and disclosure of material facts.
Exclusive Agency ListingvsExclusive Right-to-Sell Listing
In an exclusive agency listing the seller may sell the property themselves without owing a commission, while in an exclusive right-to-sell the broker earns a commission regardless of who sells the property.
AddendumvsAmendment
An addendum adds terms to a contract before it is fully executed (signed by all parties), while an amendment modifies an already-signed contract after execution.
Fixed-Rate MortgagevsAdjustable-Rate Mortgage (ARM)
A fixed-rate mortgage keeps the interest rate constant for the entire loan term, while an ARM has an interest rate that can fluctuate during the loan term based on market conditions.
Special AssessmentvsGeneral Property Tax
A special assessment is a one-time charge levied only against properties that benefit from a specific public improvement (e.g., new sidewalks), while general property taxes are ongoing annual charges funding general government services.
Key Terms
Complaint Acknowledgment Period (Michigan) Occupational Code, Section 339.502
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 (Michigan) Occupational Code, Section 339.555
Under Occupational Code Section 339.555, a respondent has 30 days to notify the department in writing whether they accept or contest a citation issued for a violation.
Surety Bond Condition for Revoked License (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.
Prelicensure Education – Salesperson (Michigan) Occupational Code Article 25, Section 2504(2); Admin Rules, Rule 111(4)
Under Occupational Code Section 339.2504(2) and Admin Rule 111(4), a salesperson applicant must complete 40 clock hours of approved prelicensure classroom courses, including at least 4 clock hours on civil rights law and equal opportunity in housing.
Continuing Education Requirement – Per Cycle (Michigan) Admin Rules, Rule 161(1); Occupational Code Article 25, Section 2504a(1)(b)
Under Admin Rules Rule 161(1) and Occupational Code Section 339.2504a(1)(b), a Michigan licensee must complete 18 clock hours of continuing education in each license cycle.
License Transfer – Pocket Card Validity (Michigan) Occupational Code Article 25, Section 2506(5)
Under Occupational Code Section 339.2506(5), when the department receives a completed transfer application and fees, the salesperson's pocket card is valid evidence of licensing for 45 days from the latest date written on its back.
Broker License Revocation – Effect on Salesperson (Michigan) Occupational Code Article 25, Section 2508(5)
Under Occupational Code Section 339.2508(5), if a broker's license is revoked, all salesperson and associate broker licenses employed by that broker are automatically suspended pending a change of employer and issuance of a new license.
Trust Account Deposit Deadline (Michigan) Occupational Code, Section 339.2512(1)(k)(v)
Under Occupational Code Section 339.2512(1)(k)(v), earnest money must be deposited into the broker's separate custodial trust or escrow account not later than 2 banking days after the broker receives notice that the offer is accepted by all parties.
Trust Account Records Retention (Michigan) Admin Rules, R 339.22134(8)
Under Admin Rules Rule 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.
Licensee Disclosure When Purchasing (Michigan) Occupational Code, Section 339.2516(1)
Under Occupational Code Section 339.2516(1), a licensee who buys or acquires an interest in real property must disclose to the owner that they are licensed before the owner is asked to sign the purchase agreement.
Remainderman
The party designated to receive ownership of a property upon termination of a life estate; if the interest goes to a third party (not back to the original grantor), that third party is the remainderman.
Police Power
The government's authority to enact regulations (such as zoning and environmental rules) for public health, safety, or welfare without paying compensation to affected property owners.
Price Fixing (Antitrust)
An illegal agreement among competing brokerages to charge the same commission rate, violating antitrust laws by eliminating market competition on price.
Market Allocation (Antitrust)
An illegal agreement among competing brokerages to divide up geographic areas or customer groups rather than competing freely, violating antitrust laws.
Independent Contractor – Real Estate (IRS Requirements)
Under IRC Section 3508, a salesperson qualifies as an independent contractor if they hold a current real estate license, have a written agreement stating non-employee status, and are paid based on sales production rather than hours worked.
Annual Percentage Rate (APR)
APR includes the stated interest rate plus other loan costs (points, origination fees, etc.) expressed as a yearly rate, giving borrowers a more complete picture of the true cost of a loan than the interest rate alone.
Formulas to Know
Seller's Net Proceeds
Net Proceeds = Sale Price − (Commission + Closing Costs + Mortgage Payoff)Commission Amount
Commission = Sale Price × Commission RateCommission Split (Agent Share)
Agent's Share = Total Commission × Agent's Split PercentageLoan-to-Value Ratio (LTV)
LTV = Loan Amount ÷ Appraised Value (or Sale Price, whichever is lower)Equity
Equity = Property Value − Outstanding Loan Balance(s)Capitalization Rate
Cap Rate = Net Operating Income (NOI) ÷ Property ValueProration (Daily Rate Method)
Daily Rate = Annual Amount ÷ 365 (or 360 for banking method); Prorated Amount = Daily Rate × Number of Days OwedDiscount Points Cost
Points Cost = Loan Amount × (Number of Points ÷ 100)PITI Monthly Payment
PITI = Monthly Principal & Interest + Monthly Property Tax Escrow + Monthly Insurance EscrowArea Conversion
1 Acre = 43,560 sq ft; Acres = Total Sq Ft ÷ 43,560