MIRES - Michigan Real Estate Salesperson Exam

Question 21: A Michigan broker in Battle Creek is opening a new trust account for earnest money and asks her banker which type of account will satisfy the state rules on client funds. Which of the following describes the required account?

An interest-bearing savings account

Any account the broker's bank offers

A certificate of deposit

A non-interest-bearing demand account

Question 22: A Michigan broker is out of town, and her unlicensed office manager offers to sign a refund check drawn on the brokerage trust account so that a terminated deal can be settled. Which of the following describes that signature?

Improper, since only brokers may sign

Proper, if the amount is small

Proper, since a designated employee may sign

Proper, if the broker approves by telephone

Question 23: A Michigan brokerage in Novi is setting up its trust account bookkeeping and wants to know how long those records have to be kept once they have been created. Which of the following states the Michigan retention period?

Until the transaction closes

Seven years, matching federal tax records

Three years from the record's inception

Four years from the record's inception

Question 24: A transaction in Wyandotte falls apart, and the buyer and the seller each demand the earnest money in writing while giving completely different accounts of who breached the agreement. Which of the following describes what the broker must do?

Split the deposit evenly between them

Keep it in trust pending suit

Send it to the department for holding

Release it to whoever demanded first

Question 25: A Michigan broker's trust account records show only running balances, without identifying which transaction each deposit belongs to or which party actually owns it. Which of the following describes what the Michigan rules require those records to show?

Only the broker's own summary ledger

Only records of disputed transactions

Only monthly bank statements

Per-transaction detail and the current balance

Question 26: A developer in Grand Rapids sells a new condominium unit to a couple who receive the required project documents from him on a Tuesday afternoon. Which of the following describes their statutory right to withdraw from that purchase agreement?

Nine business days without cause or penalty

Ten days after the agreement is signed

Three business days without cause

Seventy-two hours after receipt

Question 27: A condominium purchaser in Royal Oak receives the required project documents on a Wednesday morning and asks her agent whether that same day counts toward her withdrawal period. Which of the following describes how the period is counted?

Counting begins the following business day

Counting begins when the agreement is signed

Counting begins when the escrow deposit clears

The receipt day itself counts

Question 28: A buyer withdraws from a new condominium purchase in Sterling Heights within the statutory period, and she now asks her agent how quickly the money she paid must come back to her. Which of the following states that deadline?

When the next unit sells

Nine business days after withdrawal

Three business days after withdrawal

Thirty days after withdrawal

Question 29: A Michigan condominium purchase agreement must give the buyer an exclusive option to require binding arbitration of small claims against the developer through a named national organization. Which of the following states the claim ceiling for that option?

Claims under ten thousand dollars

Claims under two thousand five hundred dollars

Claims under five thousand dollars

Claims of any amount whatever

Question 30: A Michigan developer in Ypsilanti wants to know which documents he must hand a prospective condominium buyer in order to start her nine business day withdrawal period running. Which of the following identifies a document the statute requires?

The recorded master deed

A certificate of occupancy for the building

The seller disclosure statement form

The most recent property tax bill

Question 31: A Michigan developer asks whether a sophisticated commercial buyer may give up the nine business day condominium withdrawal right on a residential unit she is purchasing from him. Which of the following describes when Michigan permits that waiver?

Always, if the price is negotiated

Never, since the right cannot be waived

In exceptional cases, knowingly and in writing

Whenever the buyer is represented by counsel

Question 32: A Michigan developer sells a commercial condominium unit in an office project in Troy and wonders whether the residential purchaser protections in the Condominium Act apply to that particular sale. Which of the following describes the statute's reach?

It applies once construction ends

It applies below four stories

It applies to every condominium unit

It does not apply to business units

Question 33: A buyer in Okemos submits a written offer on a house, and the seller returns it to her with the closing date changed and his own signature added at the bottom. Which of the following best describes what that seller has created?

An option to consider the terms

An acceptance with a minor modification

A counteroffer that rejects the original

A binding contract on the buyer's terms

Question 34: A buyer in Ann Arbor signs a purchase agreement and delivers her deposit, and the parties are now waiting on financing before the deed is delivered at closing. Which of the following best describes the interest she holds?

A leasehold interest in the property

No interest at all until closing

Legal title subject to the seller's lien

Equitable title in the property

Question 35: A seller in Jackson breaches a signed purchase agreement, and the buyer wants the house itself rather than money, because the property is unusual and would be hard to replace. Which of the following remedies is she seeking?

Specific performance

Compensatory damages

Liquidated damages

Rescission of the contract

Question 36: A buyer in Petoskey signs a purchase agreement on a cottage that lets her cancel and recover her deposit if she cannot obtain a loan at a stated rate and term. Which of the following identifies that provision?

A right of first refusal

A financing contingency

An option to purchase

A subordination agreement

Question 37: A landlord in Ferndale hands a new tenant a written lease that contains no statement at all of where notices to the landlord should be sent. Which of the following describes that omission under the Truth in Renting Act?

Proper, if the landlord is locally known

Improper only for multi-unit buildings

Proper, if a management company is named

Improper, since the address is required

Question 38: A Michigan lease drafted for a rental in Ypsilanti includes a clause in which the tenant agrees in advance to a confession of judgment if she ever falls behind on rent. Which of the following describes that clause?

Void only in subsidized housing

Void under the Truth in Renting Act

Enforceable, since the tenant agreed

Enforceable if the rent is discounted

Question 39: A Michigan lease says the landlord may unilaterally change any term of the agreement on written notice to the tenant, and the tenant asks whether Michigan permits that. Which of the following describes the rule on such clauses?

Void, with no exception recognized

Valid for month-to-month tenancies only

Valid, since notice protects the tenant

Void, except narrow noticed adjustments

Question 40: A Michigan salesperson in Southfield closes a difficult transaction, and at the closing table the grateful seller hands her a bonus check made out in her own name. Which of the following describes whether she may accept that money?

Yes, if the amount is modest

Yes, a gift is not compensation

No, only her broker pays her

Yes, if she tells her broker

MIRES Michigan Real Estate Salesperson Exam - Set 3 - Part 2