State Practice Exam
Michigan Real Estate Practice Exam
35 questions covering Michigan real estate licensing topics with detailed explanations.
Question 1 of 35
What is the main purpose of a purchase agreement in a real estate transaction?
Our free practice test prepares you for the 2025 Michigan Real Estate Salesperson exam. This practice test covers a 115-question practice exam, eligibility criteria, exam structure, key state laws and effective preparation strategies - all aligned with the latest PSI and Michigan Real Estate guidelines. Start the practice exam below to improve your pass rate.
Who is eligible to take the Michigan Real Estate Salesperson license exam?
To qualify for the Michigan Salesperson license exam, candidates must meet specific educational and legal requirements:
- Be at least 18 years old.
- Provide proof of completion of 40 hours of pre-license education.
- Apply online through Michigan’s official portal.
- Possess a valid Social Security number.
- Be prepared to pay the license fee upon application.
What’s on the Michigan Real Estate Salesperson exam?
The Michigan Real Estate Salesperson exam features 115 scored multiple-choice questions. The national topics include property ownership, agency, contracts, property disclosures, real estate calculations, and more. The state section assesses your understanding of the duties of the Department, licensing, statutory regulations, contractual relationships, and additional state-specific topics.
Michigan Real Estate exam topics
The table below are major licensing topics you’ll need to study:
National Section
| Topic | Subtopics | % of Questions | Number of Questions* |
| Property Ownership | Estates, types of ownership, legal descriptions | 8% | ~9 |
| Land Use Controls & Regulations | Zoning, eminent domain, private restrictions | 5% | ~6 |
| Valuation & Market Analysis | Appraisals, price vs. value, market data | 7% | ~8 |
| Financing | Types of loans, lending process, government roles | 10% | ~12 |
| General Principles of Agency | Fiduciary duties, agency types, disclosures | 13% | ~15 |
| Property Disclosures | Environmental issues, mandatory disclosures | 6% | ~7 |
| Contracts | Contract law, offer/acceptance, breach | 17% | ~20 |
| Leasing & Property Management | Lease types, landlord/tenant, management basics | 3% | ~3-4 |
| Transfer of Title | Deeds, title insurance, escrow | 8% | ~9 |
| Practice of Real Estate | Fair housing, advertising, antitrust, ethics | 13% | ~15 |
| Real Estate Calculations | Math concepts, proration, commissions, ROI | 10% | ~12 |
State-Specific Section
| Topic | Number of Questions |
| Duties and Powers of the Department and State Board | 3 |
| Licensing Requirements | 5 |
| Statutory Requirements Governing Licensees | 10 |
| Contractual Relationships | 5 |
| Additional State Topics | 12 |
What is the Salesperson exam passing score?
A cumulative score of 70% is required to pass the Michigan Real Estate Salesperson exam. This means you must answer at least 81 out of 115 questions correctly. If you do not pass, your score report will show detailed performance by section to help you focus your study efforts.
What 2025 Michigan Real Estate Laws should you know for the Salesperson exam?
For the 2025 Michigan real estate salesperson exam, focus on recent changes such as the Affordable Housing Reforms (HB 5030–5032), which expand access and raise purchase limits for buyers. Also, monitor the potential removal of the MCPA exemption (SB 134), as it could increase consumer protections and broker liabilities, though it is not law yet. These topics are central to the state portion of the exam, particularly under licensing requirements, agency duties, and consumer protection.
| Law | Brief Description | 2025 Status | Exam Relevance |
| HB 5030–5032 (Affordable Housing Reforms) | Expands eligibility, raises purchase price caps, and aligns state standards for housing programs. | Passed in 2025; new eligibility and higher price limits. | Reflected; Agency/State Law, Fair Housing |
| Senate Bill 134 (MCPA Exemption Removal) | Would remove the exemption for licensees from Michigan Consumer Protection Act liability. | Pending in 2025; not yet enacted. | Not reflected unless enacted; Consumer Protection |
| NAR Code of Ethics Updates | Updates to professional standards and ethics for REALTOR® members. | Updated 2025; applies mainly to REALTOR® members. | Not directly tested; Ethical Practice (optional) |
How to prepare for the exam?
Improving your pass rate depends on understanding exam details, using official preparation resources, and following a targeted study plan.
Understanding Michigan Salesperson exam details
Understanding the Michigan Real Estate exam structure and requirements is essential for effective preparation. Here is information you need to know:
- Time allotted: 180 minutes
- Exam format: Computer-based test
- Exam fee: $85
- Licensing authority: PSI
- Where to take the exam:
- Grand Rapids
- Southfield (Lahser)
- Gaylord
- Marquette
- Dearborn
- Holt
- Southfield (Crossroads)
Learning from prep resources
Use trusted study guides and platforms that align with Alabama’s exam outline. Quality resources include:
Prep books
- Michigan Real Estate License Exam Prep: All-in-One Review and Testing to Pass Michigan’s PSI Exam by Stephen Mettling, David Cusic, and Ryan Mettling: This all-in-one study guide features detailed Michigan-specific law review, updated practice questions.
- Modern Real Estate Practice in Michigan by Fillmore W. Galaty, Wellington J. Allaway, and Robert C. Kyle: A foundational textbook adopted by many Michigan real estate schools, covering state laws, principles, and math, plus helpful review questions
Free practice test platforms
- Realtylicenseprep practice tests: offer national and 50-state exam simulations that mirror real test conditions and question types.
Other resources
- Video tutorials: explain complex topics step-by-step.
- Flashcards: effective for memorizing key terms and legal definitions.
- Joining a study group: provides discussion-based learning.
Follow study strategy
A structured study plan improves content retention and builds confidence under real exam timing. You can begin with core topics, then refine your approach based on past performance. The table below is a sample of 8‑week study plan:
| Week | Focus | Activities |
| 1 - 2 | Ownership & agency | Read outline, watch topic videos, flashcards |
| 3 - 4 | Valuation, financing, contracts | Practice questions + review wrong answers |
| 5 | Disclosures & ethics | Deep dive into cases & laws |
| 6 | Practice exams | Timed mock tests |
| 7 | Review weak areas | Re-study low-scoring sections |
| 8 | Final exam simulation | Full test practice under timed conditions |
Weak area analysis
- Review your score breakdown weekly.
- Focus additional study on areas below 70%.
- Review incorrect answers to understand mistakes deeply.
Mastering Real Estate math
There will be math questions in the national section of the Michigan Real Estate Salesperson exam. Since math questions can affect your result, focused practice is essential after reviewing the main topics. To prepare:
- Review formulas for commission, loan-to-value ratio, and property tax calculations.
- Solve sample problems with our practice tests.
- Use flashcards or guided quizzes to reinforce conversions and amortization steps.
Frequently Asked Questions
What study materials and methods worked best for the Michigan exam?
Use flashcards (like Quizlet) and repeat practice exams until consistently scoring in the 90% range. Accuracy in familiarizing yourself with question styles and repeat content is key.
How many times do people usually take the Michigan real estate exam?
It's not uncommon to retake the exam multiple times, some fail twice, three times, even five. Each retake costs around $85. Focus on reviewing incorrect answers and learning test logic.
How many math questions are on the Michigan exam?
Roughly 10% of the exam covers real estate math, about 11 questions. Strength in this area can boost confidence and your overall score.
How should I pace my exam approach?
Use a two-pass method: quickly answer confident questions, flag the rest, then review flagged items. Take your time to read carefully, eliminate wrong choices, and ensure math accuracy.
How do I overcome test anxiety and second-guessing?
Label questions based on confidence (A – sure, B – unsure, C – math), complete the A group first, skip B and C, then return for review. Look for clues in later questions, you may find hidden answers.