Start Practice Test

Michigan Real Estate Broker Practice Exam

What This Practice Exam Covers

The Michigan Real Estate Broker exam is 40 questions, 75-minute time limit, passing score is 75% — meaning you need 30 correct answers to pass.

Two ways to practice here:

Free practice exam — 10 questions per attempt, drawn from a limited pool. No cost, no account required. Retake it as many times as you want to get comfortable with the format and question style.

Full practice exam (paid) — 40 questions, 75-minute timer, mirrors the real thing exactly. Drawn from a pool of 53+ questions, so each attempt pulls a different mix. You won't see the same exam twice. Questions map directly to the five topic areas and subtopic weightings set by the official test provider.

Start with the free exam. If you're serious about passing, move to the full exam — that's where real prep happens.

What You'll Be Tested On

The exam covers five topic areas. Here's what each one actually demands.

Licensing Requirements — 4 questions

Four items out of 40 doesn't sound like much, but these questions are straightforward if you know the rules cold. You need to know which activities require a Michigan real estate license and which are exempt. Know the difference between a salesperson license and a broker license, and what qualifies someone for each. Eligibility requirements include education hours and experience — the exam will test the specifics, not just the concept.

Renewal and continuing education rules are heavily cited in the question bank. MCL 339.2504a(7) is one you need to know: prelicensure credits and continuing education credits are completely separate — they cannot be swapped or double-counted. Know the cycle length and hour requirements. Know what happens to a license when a salesperson changes brokers — the transfer and change-in-license rules under MCL 339.2503 come up here.

Statutory Requirements Governing Licensee Activities — 15 questions

This is the heaviest section — 15 of 40 questions. Expect detailed, scenario-based questions. You don't just need to know the rules; you need to apply them.

Advertising: Know what a broker's name must include in ads and when a licensee can use their own name. Admin Rules R 339.22131(1) and R 339.22131(2) are citable on this exam — read them carefully.

Commissions and fees: What fees a broker may legally charge, when a commission is earned, and under what conditions it can be split. MCL 339.2505 covers this and has multiple subsections tested.

Disclosure and conflict of interest: When a licensee must disclose a personal interest in a transaction. MCL 339.2512(2) and MCL 339.2513 are on the cite list.

Handling of contracts and documents: Deadlines for delivering copies, what must be in writing, and recordkeeping requirements.

Trust accounts: This is where candidates lose points. Know what goes into a trust account, what doesn't, how quickly funds must be deposited, and what records must be kept. MCL 339.2508(4) and MCL 339.2508(5) both appear in the question bank.

Place of business and branch office requirements: These questions are broker-specific. Know what a broker must post, maintain, and register when operating a branch. Admin Rule R 339.22135 is citable here.

Contractual Relationships — 5 questions

Five questions covering agency law and broker-salesperson relationships. Know all agency types available in Michigan: transaction coordinator, designated agency, and dual agency. Know the disclosure requirements for each and when they must be provided.

The broker-salesperson relationship section tests the independent contractor definition. Under Occupational Code Article 25, Section 339.2501(h)(ii), at least 75% of annual compensation must come from commissions for the relationship to qualify as independent contractor status.

Service provision agreements — listings and buyer-broker agreements — are tested here. Know what must be in them and when they take effect.

Additional State Topics — 13 questions

Thirteen questions. Wide coverage. Study all of it.

Land Division Act (PA 591): Disclosure requirements for private roads. Know what must be disclosed and when.

Michigan fair housing: The Elliott-Larsen Civil Rights Act and the Persons with Disabilities Civil Rights Act both appear. Know the protected classes under each and how Michigan's law compares to federal fair housing law.

Landlord-Tenant Relationship Act and Truth in Renting Act: Security deposit rules, notice requirements, prohibited lease provisions.

Usury laws: Broker-specific. Know the interest rate limits applicable to real estate transactions.

State Transfer Tax: Know who pays it, how it's calculated, and any exemptions.

Michigan Condominium Act: Know the disclosure requirements, buyer's right of rescission, and developer obligations.

Michigan Department and State Board Duties and Powers — 3 questions

Three questions on LARA's authority and the State Board's role. Know general powers under MCL 339.501 and MCL 339.502. Know the investigation and hearing process — specifically, MCL 339.506(2) sets the 30-day window to request a hearing after a cease-and-desist order. Know the penalty structure, including license suspension and revocation authority under MCL 339.514(2).

Worked Sample Questions

Question 1

Under Michigan law, an independent contractor relationship between a broker and a salesperson requires that at least ____% of the salesperson's annual compensation comes from commissions on real estate sales.

• A. 50
• B. 65
• C. 75
• D. 90

Correct answer: C — 75%

The threshold is 75%. Under Occupational Code Article 25, Section 339.2501(h)(ii), the compensation requirement is explicit: at least 75% of annual pay must come from sales commissions for the relationship to qualify as independent contractor. The exam will test this number directly. Don't guess — know it.

Question 2

Under Michigan law, which statement correctly describes the relationship between prelicensure course credits and continuing education credits for real estate licensees?

• A. Prelicensure course credits may be applied toward continuing education requirements if completed within the same license cycle.
• B. Continuing education credits may be applied toward broker prelicensure education requirements if the topics overlap.
• C. Prelicensure course credits cannot be counted toward continuing education requirements, and continuing education credits cannot be counted toward broker prelicensure education requirements.
• D. Credits from either type of course are interchangeable if approved by the department.

Correct answer: C

MCL 339.2504a(7) is unambiguous: the two credit pools don't mix. Prelicensure credits stay prelicensure. Continuing education credits stay continuing education. The exam will offer tempting "if approved" or "if topics overlap" exceptions — those don't exist in Michigan law.

Question 3

If a licensee receives a cease and desist order from the director, within how many days must the licensee file a written request for a hearing to contest that order?

• A. 30 days after the effective date of the order
• B. 15 days after the effective date of the order
• C. 60 days after the effective date of the order
• D. 90 days after the effective date of the order

Correct answer: A — 30 days

MCL 339.506(2) sets the deadline at 30 days from the effective date of the order. Miss that window, the order stands. The exam tests the exact number — 15, 30, 60, and 90 days all appear as answer choices on this type of question.

How to Read Your Score

Passing is 75% — 30 correct out of 40. On practice, treat your first score as a diagnostic, not a verdict.

If you score below 65%, you have significant gaps. Pick the two heaviest topic areas — Statutory Requirements (15 items) and Additional State Topics (13 items) — and work those first. They account for 28 of 40 exam questions.

If you score 65–74%, you're close but not ready. Scoring near the cutoff on practice usually means you're losing points on specific subtopics, not across the board. Use the topic-by-topic breakdown to find where — trust accounts, fair housing, and the condominium act are common weak spots.

If you score 75% or above consistently across multiple attempts, you're in solid shape. The full practice exam's 53+ question pool means different attempts expose different gaps.

One good score isn't enough. Run through the full exam at least twice. Aim for consistent 80%+ before you sit for the real thing.

Where Candidates Lose Points

Trust account questions — The Statutory Requirements section hits trust accounts hard. Candidates mix up deposit deadlines, confuse what funds are commingled versus properly held, and miss recordkeeping requirements. Know MCL 339.2508(4) and MCL 339.2508(5).

Misreading the fair housing question — Elliott-Larsen and the Persons with Disabilities Civil Rights Act have different protected class lists than federal law. The exam exploits that. Don't apply federal fair housing rules to a Michigan-specific question.

Independent contractor percentage — The 75% commission threshold under Occupational Code Article 25, Section 339.2501(h)(ii) gets confused with other percentage figures. Nail that number before test day.

Cease-and-desist hearing deadlines — Candidates confuse 30 days (correct under MCL 339.506(2)) with 15, 60, or 90 days. These are clean knowledge questions — either you know it or you don't.

Branch office requirements — Broker-specific questions on signage, registration, and supervision catch candidates who skimmed this material. Don't skip it.

Running out of time — 75 minutes for 40 questions is about 1 minute 52 seconds per question. The Additional State Topics section (13 questions) is wide — don't stall on one question and burn your buffer.

Exam Quick Facts