Free Michigan Real Estate Practice Exam Questions 2024

Michigan is a diverse state. It is home to busy metropolitan areas like Detroit and Grand Rapids. You can also find areas that are slower-paced and offer an almost country-living vibe. 

Michigan’s healthy real estate market makes it a great state to launch a real estate career. But before you get started, you will need a license. Before getting a license, you must pass the real estate exam. 

Michigan practice exam

The real estate exam is a difficult test. But the more familiar you are with the topics and format, the greater your chances of passing. This article will provide general guidelines on the test that will get you headed in the right direction. 

Michigan real estate laws and regulations

The Michigan State Board of Real Estate Brokers & Salespersons oversees real estate laws in the state. The organization controls all aspects of Michigan real estate. They mandate laws that are covered on the test and are reviewed on the real estate exam. 

Here are a few you should become familiar with. 

  • Homestead Laws: Homestead laws allow people who are threatened with foreclosure eviction to stay in their homes if certain circumstances apply. Michigan homeowners may claim up to forty acres of rural land or an average-sized urban lot, worth up to $3500, as a homestead. 
  • Adverse Possession Laws: Also called squatter’s rights, adverse possession laws allow a person to claim a title to a property if they possess it and care for it transparently for 15 years. 
  • Lease and Rental Laws: Lease and rental laws are a major factor in tenant-landlord relationships. They cover lease terms, deposits, and discrimination policies. They ensure the landlord cares for the property. 
  • Downtown,Grand,Rapids,Michigan,View,From,The,Grand,RiverStatute of Limitations: Statute of limitations refers to how long people have to file a claim after a crime is committed. Michigan’s statute of limitation for injury to personal property is three years. That statute for fraud, trespassing, contract violations, debt collection, and rent collection is up to six years. 
  • Property Line and Fence Laws: Property lines and fence laws help settle disputes between neighbors. They include boundary fence rules which determine which neighbor pays for fencing, spite fences, which are built for malicious intent, and tree trimming rules which affect how far tree branches can grow into a neighbor’s property. 
  • Advertisement Laws: Advertisement laws affect how an agent can advertise a property. It mandates that the agent uses their broker’s name when they sell property and it sets guidelines for how the broker should be represented. The only circumstance that allows an agent to sell a property without using the broker’s name is if they are selling their personal property. 
  • Deed Transfers: Deeds are legal documents that are used to transfer property from one person to another. They must meet certain requirements to be valid. Requirements vary among jurisdictions, but they must be written, witnessed, notarized, and recorded in the county where the real estate is located. 
  • Title Review: A title review must take place before a property is sold. The title review tells you whether there are any mortgages or liens on the property and whether anyone else can claim an interest in the property. If any issues are found, they must be resolved before the transaction is completed. 
  • Disclosure Laws: Disclosure laws mean sellers must disclose details about the property to buyers including damage and defects. If they fail to disclose these details, they can be fined. The transaction can also fall through. 

What’s on the Michigan real estate exam?

Applicants must be familiar with the topics covered in the real estate exam to pass the test. The Michigan exam is divided into two sections. The national section covers general real estate rules. The state section covers real estate processes specific to Michigan. 

Here’s an example of what you can expect. 


  • Contracts: There are several contracts involved in real estate transactions. Purchase agreements, lease agreements, and real estate assignment contracts are some of the most common. Agents must be familiar with these contracts. They should know their purpose and the information they should contain. 
  • Leasing and Property Management: Leasing and property management refers to the tenant-landlord relationship. It covers lease agreements and laws, and the responsibilities of the landlord to maintain the property
  • Property Disclosures: Property disclosures mandate that a seller discloses property information to the buyer including any damage to the property. If the seller hides information from the buyer, they may be fined. The buyer can also walk away from the deal. 
  • Land Use Controls and Regulations: Land use controls include zoning ordinances, building codes, environmental regulations, development plans, and government regulations that control how land can be used. 
  • Real Estate Calculations: Agents must be familiar with real estate calculations like capitalization rate, loan-to-debt ratio, and potential gross income. There are typically a few calculations on the real estate exam. 
  • Property Ownership: Property ownership recognizes one or more person’s ownership of a particular property. A document is typically used to define their rights and responsibilities. 
  • Financing: Properties are typically financed. The buyer will make a down payment and pay off the loan balance over the next few decades. An agent must understand how the lending and financing process works. 
  • Transfer of Title: In a real estate transaction, the seller must transfer the property title to the buyer. An agent must understand how the transfer process works. 
  • Valuation and Market Analysis: The state of the market affects a property’s valuation. An agent should have some idea of how the market affects home valuation and what’s involved in the appraisal process. 
  • General Principles of Agency: Principles of agency refer to how the agent can represent the seller. 
  • The Practice of Real Estate: The practice of real estate refers to an agent’s, person’s, or business’s activities during a real estate transaction. 


  • Duties and Powers of the State Department and the State Board of Real Estate: Agents must understand the duties and powers of the State Department and State Board of Real Estate.
  • Additional State Topics: These questions cover general topics that pertain to Michigan real estate.
  • Contractual Relationships: Contractual relationships refer to real estate relationships that are created by contract. Examples include the relationship between the agent and the seller or buyer. 
  • Licensing Requirements: License requirements refer to the requirements an agent needs to obtain and maintain their license. 

Michigan real estate exam FAQs?

Now you have some useful information about real estate exam laws and topics. However, you may still have questions regarding the test-taking process. This section will address those concerns. 

1. How many hours of pre-license coursework do I need before I can take the real estate exam?

You must complete 40 hours of coursework before taking the real estate exam. 

2. How many questions are on the real estate exam?

There are 115 questions on the real estate exam. 35 questions are state-specific. 

3. How much time do I have to complete the real estate exam?

You must complete the real estate exam within three hours. 

4. What is the fee for taking the real estate exam?

You must pay a $79 fee to take the real estate exam. 

5. What score do I need to pass the exam?

You need to score at least 70% to pass the exam. 

6. How many people pass the Michigan real estate exam?

Approximately 70% of applicants pass the real estate exam on their first attempt. These statistics are better than most states. 

7. What format is the real estate exam? 

The real estate exam is a multiple-choice test administered on a computer. However, you cannot take the test online. You must go to a testing center to take the exam. There are testing facilities in Detroit, Grand Rapids, Marquette, Dearborn, Holt, and Southfield. 

8. How soon will I get my results?

You will receive your exam results immediately after taking the exam. If you get a passing grade, the system will simply say ‘pass’. It will not give you a score or review how you did on each section. 

If you fail the exam, you will get a breakdown of the sections you did well and poorly on so you can focus on the topics that need work. 

9. What should I bring to the exam?

Applicants must bring two forms of ID to the real estate exam. The first is a state-issued photo ID such as a driver’s license or passport. The second is an ID that supports the information on the first ID such as a social security card or credit card. 

You may also bring a battery-operated, silent calculator that does not have alphabet keys. 

10. How do I schedule the real estate exam?

You can schedule the real estate exam on the PSI website. However, before you do, you must register with LARA, the Michigan Department of Licensing and Regulation. You must also complete your prelicensing course. 

After the course is complete, you must submit your application along with an $88 licensing fee. 

11. What if I fail? 

If you fail the Michigan real estate exam, you can take it again as often as you’d like. However, you must pay the exam fee for each attempt. If you don’t pass the exam within three years of completing your coursework, you must take the courses again. 

If you passed one section of the exam but failed the other, you will only need to retake the section you failed. However, you must pay the full retake fee for each attempt. 

12. I passed the exam. Now what?

After you pass your exam, the test administrator will take your photo and issue your license. However, your license will be inactive until you find a sponsoring broker. When you start practicing under the broker, your license will be active. 

13. How do I prepare for the real estate exam?

There are several things you can do to increase your chances of passing the exam. Here are some useful preparation and study tips:

  • Create a Study Group: Meet with your peers outside of class time to review study materials. Focus on others’ strengths to improve weak areas. The group will provide an engaging experience that makes studying fun. 
  • Use Test Prep Materials: Many courses offer test prep materials that will get you better prepared for the testing experience. 
  • Incorporate Flashcards into Your Study Routine: Flashcards may seem like an outdated study method, but they are effective in testing your skills. 
  • Make a Study Plan: Plan when you will study and what materials you will focus on to ensure you don’t overstudy or understudy. 
  • Write Notes: Writing notes will embed the test materials in your mind. Typing can be helpful as well. It will also put your notes in a central location so you can review important information. 

14. How do I choose the right real estate school?

Your real estate school will play a crucial role in whether you fail or pass the test. Here are some factors to consider when choosing the school that’s right for you. 

  • Reviews: Look at online reviews to determine what type of learning experience the school offers. 
  • Online or in-person: Most modern real estate schools offer online classes. They are convenient for many students. However, an in-person course can be more engaging. Choose the format that’s right for you. 
  • Courses Offered: Some schools offer the bare-bones while others provide more extensive courses like exam prep and others that will enhance your real estate career. 
  • Cost: Cost is always a consideration. Students should not necessarily take the cheapest course they can find. They should purchase a course that provides the best value for the money. 
  • Credentials: The school must be approved by the Michigan Real Estate Commission to qualify you to take the exam. Other accreditations will ensure the school offers a quality education. The classes should be taught by licensed brokers and agents. 

Michigan’s diverse real estate landscape ensures there’s a market for everyone. You can launch a lucrative career in Michigan real estate, but first, you must take the exam. 

This article provides an outline of the exam so you know what to expect.  Courses and firsthand experience will help you attain the knowledge you need to start in the industry. Good luck reaching your career goals. 

Chris Heller Headshot

About the Author

Chris Heller brings 27 years of experience in real estate. Chris serves on the AgentAdvice Editorial Board and is the Chief Real Estate Officer at OJO Labs. Chris brings deep expertise having held influential industry positions including CEO of mellohome and former CEO of Keller Williams Realty International.

Last Updated: 6/11/2024