Real Estate Licensing and Regulations, Exams of Nursing

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Real Estate Practice Exam - Michigan

Rules and Regulations

Which of the following is not a purpose of the land division act? - correct answer ✔✔So that the price of the sold lots would not inflate beyond the cpi. Purpose DOES include so that the size of the divided parcels of land will not be too large to be served with enough streets, roads, and adequate drainage and sewers; So that when the land is bought and sold, people could accurately and upon the proper service, tell the boundaries of their land and be able to use accurate legal description; so that the land may be properly divided and laid out Under the land division act, property up to the size of 10 acres can be divided into four parcels. How many splits are allowed for each additional 10 acres? - correct answer ✔✔ 1 If the monthly rent is $600 a month, what is the most amount of money a landlord can charge the tenant to move in? - correct answer ✔✔$ A landlord charging a deposit must inform the tenant of his obligation to notify the landlord of a forwarding address within _______ days after vacating. - correct answer ✔✔ 4 In regards to construction of new condominiums, I purchase agreement is not binding until nine business days after developer delivers condominium documents to purchaser. Which of the following is not required? - correct answer ✔✔Evidence of a two year warranty on construction. IS required: condominium buyers handbook; copy of purchase and escrow agreements; recorded master deed with attached bylaws and subdivision plans Interval ownership of property is reflected in which of the following? - correct answer ✔✔timeshare A licensee is selling vacant home site in an area that does not have municipal sewer's. Which of the following is true? - correct answer ✔✔The sale should be made contingent on a percolation test that would be acceptable to the health department

Which of the following is true with regards to the Michigan condominium act? - correct answer ✔✔Recorded master deed, bylaws, purchase and escrow agreement, condominium buyers handbook and disclosure statement are all documents that must be delivered by the developer to the purchaser All of the following are true with regards to MSHDA: - correct answer ✔✔Provide financing for low and moderate income households; borrowers must occupy property as principal residence; money is available for existing homes or new construction Which of the following statements are acceptable under the antitrust act? - correct answer ✔✔Our company pays a 25% referral fee if you send us business A licensee happens to be in a meeting with other agents from other companies who appear to be discussing fixing their commissions. In order for the licensee to be in compliance with antitrust laws what must she do? - correct answer ✔✔Expressed disagreement with what is going on and immediately leave the meeting The best indication as to whether a sales person is working as an independent contractor or not it is? - correct answer ✔✔Do you mount of control the broker has over the agent as far as working hours Under the Michigan right to farm act, all of the following are true: - correct answer ✔✔A farm operation shall not be found to be a public nuisance if the farm operates under general accepted practice is; a farm operation shall not be found to be a public nuisance if it existed before a change in land use within 1 mile of the boundaries of the farm land; a seller of property located in the vicinity of a farm operation must disclose that fact on the sellers disclosure statement With regards to condominium conversions, which of the following is inapplicable? - correct answer ✔✔law requires any person living on the premises to purchase the unit; These ARE applicable: lease extensions must be offered the occupants over age of 65 years; lease extensions must be offered the occupants with specific disability recognized by state income tax law; law covers conversion of any building, residential use only, from rental to condominium ownership if it has six or more rental units What is the total amount of transfer tax due to the state and county is the purchase price was $45,750 - correct answer ✔✔$395.

Which of the following is not true about the brokers trust fund? - correct answer ✔✔salespeople may never be allowed to sign checks on the trust fund; IS true: cosignatories maybe used, an individual who is not a broker or associate broker may be authorized to sign checks drawn against the trust account only if his/her signature is accompanied by the signature of a broker or an associate broker; the trust account must be held with a financial institution in the non-interest bearing demand account; a broker may maintain more than one trust account and may have up to $2000 of his own money in each trust account All the following are true about a brokers place of business - correct answer ✔✔A broker may not change an address of a place of business without first notifying the department; a branch office that is more than 25 miles from the city limit where the brokers main office is maintained must be under the direct supervision of an associate broker; a broker must maintain an actual physical location where the business is conducted and records are kept Which of the following violates the rules with regards to licensees responsibility in handling offers to purchase? - correct answer ✔✔Failing to properly present an offer to purchase because another offer may be coming in a day or two And offer to purchase is signed by all parties and a second offer comes on that property. The licensees duty in presenting the second offer must comply with the following: - correct answer ✔✔If an offer is already signed by all parties, the licensee does not have a duty to present more offers unless instructed by the seller With regards to a service provision agreement which of the following is true? - correct answer ✔✔The agreement shall not require the client to send a written cancellation notice upon expiration of service term With regards to closing, licensee shall have which of the following duties? - correct answer ✔✔Any last- minute changes at the time of closing must be reflected in a written amendment signed by all parties With regards to deposits which of the following is applicable? - correct answer ✔✔A broker must deposit the earnest money in a trust fund no more than two banking days after receiving notice that in the offer to purchase is excepted by all parties And offer to purchase is signed by the buyer on Monday and except it on Tuesday, the broker must deposit the earnest money into his trust fun no later than: - correct answer ✔✔Thursday

All the following are true with regards to handling deposits: - correct answer ✔✔All money received from others in connection with the real estate activity must be deposited in the brokers trust account. Rental income as well as security deposits from tenants must be deposited in a separate management account; hey sales person receiving money must turn it over to her employing broker immediately; a sales person shall not accept a deposit check made out to the sales person. All checks must be written to the order of the broker With regards to trust accounts all the following are true: - correct answer ✔✔They are also known as escrow accounts and it must be maintained at a financial institution in a non-interest-bearing demand account; a broker may maintain more than one trust account and may have up to $2000 of his own money in each account; checks drawn must be signed by a broker or associate broker Under what circumstances can a broker not be responsible for an earnest money deposit associated with the sale of the property? - correct answer ✔✔If the parties agree that the deposit will be held by a third- party such as a title company and both sign an agreement to that effect With regards to place of operation which of the following is applicable? - correct answer ✔✔Branch offices must be licensed by the department and the broker may not change an address of a place of business without first notifying the department With regards to record keeping all the following are true: - correct answer ✔✔The broker must maintain a system that consolidate all money coming into possession of the broker as well as money paid out; the broker must have a system that segregate one transaction from the other; the brokers bookkeeping system must show the amounts, dates, purpose, and the names of the parties paying or receiving funds A licensee is subject to disciplinary action if he commits any of the following violations: - correct answer ✔✔Changing the business location by the broker without notifying the department, failure to account for money coming into the licensees possession which belongs to others, acting for more than one party in a transaction, dual agency, without the knowledge and written consent of the parties Which of the following is a violation of trust fund requirements? - correct answer ✔✔A broker keeping track of the amount of money received into the fund but not the amount paid

Which of the following is true with regards to investigations that are conducted by the department - correct answer ✔✔The department may seek a subpoena from the department of attorney general to force an uncooperating broker to produce box Which of the following penalties can be assessed against an individual who is selling real estate without a license? - correct answer ✔✔Up to one year incarceration Which of the following is true with regards to the hearings that are conducted by the department? - correct answer ✔✔a licensee may settle a complaint at an informal hearing or may choose to have her case heard by an administrative law judge at a formal hearing Upon receiving notice of investigation the licensee must: - correct answer ✔✔Make his books and records available as an investigator requests them All the following can result from an initial investigation of the licensee: - correct answer ✔✔Considering the complaint to be unfounded; in order to summarily suspend the license; in order to cease-and-desist from a violation Which of the following is considered to be a violation - correct answer ✔✔A broker failing to deposit funds into the trust account within two banking days after the signing of the purchase agreement by all parties With regards to the handling of money which of the following is considered to be a violation? - correct answer ✔✔A broker depositing earnest money into a personal account but maintaining accurate records of the funds belonging to the public Which of the following is considered to be a penalty that would be assessed against a sales person - correct answer ✔✔Suspending the license of a sales person who cannot afford to pay restitution