MIRES - Michigan Real Estate Salesperson Exam

Question 1: A buyer and a seller in Grand Rapids shake hands on the sale of a house and never write anything down, and the seller later refuses to go forward with the deal. Which of the following describes that agreement under the Michigan statute of frauds?

Voidable at the buyer's option

Void, because nothing was signed

Enforceable once the buyer takes possession

Valid, because both parties agreed

Question 2: A landlord and a tenant in Kalamazoo agree orally to a lease of a storefront running for exactly one year, and neither party signs anything at all. Which of the following describes that lease under Michigan's statute of frauds?

Outside the statute, so oral works

Valid only for the first month

Void, since all leases need writing

Void unless the rent is recorded

Question 3: A seller in Traverse City is out of the country and wants a friend to sign the purchase agreement for her home on her behalf. Which of the following describes what Michigan requires before that friend may sign?

Nothing, since agency is implied

Written authority from the seller

Approval from the listing broker

A verbal instruction by telephone

Question 4: A Michigan broker in Lansing helped a seller find a buyer under an oral understanding about her fee, and after closing the seller refuses to pay anything at all. Which of the following describes the broker's ability to enforce that promise?

Enforceable up to a customary rate

Enforceable, since the broker performed

Unenforceable, since commission promises need writing

Enforceable if the buyer confirms it

Question 5: A Michigan salesperson sues a former client for unpaid compensation after a sale in Jackson County, and her complaint says nothing at all about her license. Which of the following describes what Michigan requires her to include in that pleading?

She must allege and prove licensure

She must join her employing broker

She must attach the listing agreement

She must first exhaust department remedies

Question 6: A Michigan broker in Novi has a seller sign a listing agreement that still has several blanks to be completed later, and she promises to mail a copy once the office fills them in. Which of the following describes that practice?

Proper, since the client can request changes

Improper only as to the blank spaces

Proper, since the copy follows promptly

Improper on the blanks and copy

Question 7: A homeowner in Warren signs an agreement with a brokerage promising to list her house with that firm at some point in the future, in exchange for a payment she receives today. Which of the following identifies that Michigan arrangement?

A right-to-list home sale agreement

A net service provision agreement

A service provision agreement

An option to purchase the property

Question 8: A Michigan brokerage offers a homeowner in Dearborn a right-to-list agreement that would bind her for the next four years in exchange for a cash payment made to her today. Which of the following describes that term under Michigan law?

Valid, since the owner accepted payment

Valid, if recorded against the property

Void, since it exceeds two years

Voidable at the brokerage's option

Question 9: An owner in Flint signs a right-to-list agreement and later wants out, and the brokerage points to an early termination clause it drafted. Which of the following describes the maximum the brokerage may charge her under Michigan law?

The payment plus six percent yearly interest

Double the amount originally advanced

Nothing at all, since termination is free

The full commission the firm expected

Question 10: A Michigan brokerage drafts a right-to-list agreement for an owner in Flint and buries the early termination explanation in small print on the fourth page, well after the signature block. Which of the following describes that document under the statute?

Voidable, if the owner objects promptly

Void, since disclosure must be conspicuous

Valid, if the owner initials that page

Valid, since the explanation appears

Question 11: A buyer in Ann Arbor signs an offer to purchase a house, and her agent puts the signed original in his file to deliver to the listing office the next morning. Which of the following describes his obligation to that buyer?

Deliver a copy only if she asks

Deliver a copy at the closing table

Promptly deliver a signed copy to her

Deliver a copy within two business days

Question 12: A listing agent in Sterling Heights receives a signed written offer on a Monday morning and wonders how long she has to get it in front of her seller client. Which of the following states the Michigan deadline?

Within two business days

Before the offer expires

Within twenty-four hours

Within five calendar days

Question 13: A Michigan licensee receives a written offer late on the Friday before a federal holiday weekend and needs to count the two business day delivery period correctly. Which of the following describes how the rules define a business day?

Any calendar day including weekends

Not a weekend or federal holiday

Any day the register is open

Only days the brokerage office is open

Question 14: A seller in Holland accepts an offer on her house, and the listing agent now needs to get the fully signed agreement into the hands of both parties. Which of the following describes the Michigan requirement for those acceptance copies?

Deliver the seller's copy only

Deliver copies once the deposit clears

Promptly deliver true executed copies to both

Deliver copies within two banking days

Question 15: A seller in Portage accepts an offer on Tuesday, and on Wednesday morning a second buyer submits a higher written offer through the very same listing agent. Which of the following describes that agent's obligation regarding the later offer?

None, unless the listing agreement requires it

She must present every offer received

She must present offers that are higher

She must present it to buyers

Question 16: A Michigan salesperson in Livonia receives a five thousand dollar earnest money check from a buyer at the kitchen table on a Saturday evening, with the offer not yet accepted. Which of the following describes what she must do with it?

Return it to the buyer for safekeeping

Hold it until the offer is accepted

Deliver it to her broker on receipt

Deposit it in her own account first

Question 17: A Michigan broker in Saginaw is short of cash one month and moves several thousand dollars of earnest money into the operating account she uses to pay her office rent. Which of the following describes that transfer of funds?

Permitted with the buyer's written consent

Permitted if repaid before closing

Permitted up to two thousand dollars

Prohibited commingling of others' money

Question 18: A Michigan broker wants to keep a small cushion of her own money in each trust account she maintains, so that bank service charges never close one of them. Which of the following states the maximum Michigan allows?

Five hundred dollars in each account

Two thousand dollars across all accounts

Two thousand dollars in each account

Nothing, since broker funds never mix

Question 19: A Michigan broker in Muskegon holds an earnest money check on a pending sale, and on Thursday afternoon she is notified that all parties have now accepted the offer. Which of the following describes her deadline to deposit those funds?

Five banking days after that notice

Two business days after that notice

Two banking days after receiving the check

Two banking days after that notice

Question 20: A purchase agreement signed by both parties in Ann Arbor names a title company rather than the brokerage as the escrowee, and the listing agent is still holding the buyer's deposit. Which of the following describes what Michigan requires of her?

Deliver it to the named escrowee promptly

Return it to the buyer to deliver

Wait until the contingencies are satisfied

Hold it in the brokerage trust account

MIRES Michigan Real Estate Salesperson Exam - Set 3 - Part 1