Free Michigan Agency Practice Test — LicenseIQ

Question 1

In Michigan, if a client has no written designated agency agreement with the brokerage, the client is considered to have an agency relationship with:

Accepted Answer

MCL 339.2517(6) provides that absent a written designated agency agreement, the client has an agency relationship with the broker and all affiliated licensees.

Question 2

The agency disclosure requirement of MCL 339.2517 applies to transactions involving:

Accepted Answer

Section 2517 defines a real estate transaction as the sale or lease of an interest in property with one to four residential units, or a building site for one.

Question 3

When must a Michigan licensee provide the written agency disclosure to a potential buyer or seller?

Accepted Answer

MCL 339.2517 requires the disclosure before the potential buyer or seller discloses confidential information. First contact is not the trigger, and before the purchase agreement is too late.

Question 4

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 5

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 6

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 7

Under Michigan law, a licensee may act as a dual agent only with:

Accepted Answer

MCL 339.2517 permits dual agency only with the knowledge and informed consent, in writing, of both parties. Consent of only one party, or verbal consent, is not enough.

Question 8

A licensee who fails to give the written agency disclosure required by Michigan law is:

Accepted Answer

MCL 339.2512(1)(b) lists failure to provide the written disclosure required by section 2517 as a ground for discipline.

Question 9

A Michigan licensee who assists both parties with a transaction but is not the agent of either is a:

Accepted Answer

MCL 339.2517(11) defines a transaction coordinator as a licensee who is not acting as the agent of either the buyer or the seller; the role is allowed upon proper notice to all parties. A dual agent, by contrast, represents both.

Question 10

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 11

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 12

A material defect that a seller/agent must disclose is one that:

Accepted Answer

Material defects significantly affect value or would influence a buyer's decision and must be disclosed.

Question 13

A seller tells her listing agent not to show the house to unmarried couples. The agent should:

Accepted Answer

Marital status is protected under MCL 37.2502, which also prohibits a broker or salesperson from accepting or retaining a listing with an understanding that the owner will discriminate.

Question 14

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 15

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 16

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 17

A designated agent may share the client's confidential information with:

Accepted Answer

MCL 339.2517(9) allows a designated agent to disclose client confidential information to a supervisory broker for advice, but not to other licensees.

Question 18

A seller wants to change her designated agent partway through the listing. Under Michigan law this is done by:

Accepted Answer

MCL 339.2517(10) permits amending a listing or buyer agency agreement, including to change a designated agent or supervisory broker, by a written addendum signed by the parties.

Question 19

At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

Accepted Answer

Agents must disclose up front whom they represent so customers don't mistakenly share confidential information - anything the agent learns must be shared with the client.

Question 20

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 21

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 22

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 23

Which statement best describes a Michigan dual agent's duties?

Accepted Answer

The statutory form warns that a dual agent will not be able to disclose all known information to either the seller or the buyer. The dual agent still owes duties to both, which distinguishes it from a transaction coordinator.

Question 24

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 25

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Michigan real estate agency practice test

1. In Michigan, if a client has no written designated agency agreement with the brokerage, the client is considered to have an agency relationship with:

2. The agency disclosure requirement of MCL 339.2517 applies to transactions involving:

3. When must a Michigan licensee provide the written agency disclosure to a potential buyer or seller?

4. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

5. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

6. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

7. Under Michigan law, a licensee may act as a dual agent only with:

8. A licensee who fails to give the written agency disclosure required by Michigan law is:

9. A Michigan licensee who assists both parties with a transaction but is not the agent of either is a:

10. The client a broker represents is the:

11. The best way to create an agency relationship is a(n):

12. A material defect that a seller/agent must disclose is one that:

13. A seller tells her listing agent not to show the house to unmarried couples. The agent should:

14. Which fiduciary duty continues even after the agency relationship has ended?

15. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

16. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

17. A designated agent may share the client's confidential information with:

18. A seller wants to change her designated agent partway through the listing. Under Michigan law this is done by:

19. At an open house, a buyer begins telling the listing agent the most he could pay. The agent should first:

20. An agency relationship can be terminated by all of the following EXCEPT:

21. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

22. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

23. Which statement best describes a Michigan dual agent's duties?

24. A property manager owes fiduciary duties primarily to the:

25. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

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