Free MI-RE-BROKER Practice Questions

Question 1

A restaurant tenant installed a walk-in cooler for its business. The cooler is bolted to the floor and connected to utilities, and the lease is silent. Two weeks before expiration, the tenant plans to remove it and repair the floor and utility connections. Which statement is correct?

Accepted Answer

The tenant may remove it as a trade fixture before the lease expires if the tenant repairs the damage

Answer

The cooler became the landlord's property when bolted down and connected to utilities, even if removal damage is repairable

Answer

The tenant may remove it only if the lease expressly reserves that right

Answer

The tenant must wait until after the lease expires and then remove it within a reasonable time

Question 2

Local zoning permits a duplex on a parcel, but a valid recorded subdivision covenant limits each lot to one detached single-family dwelling. The buyer plans to convert the existing house into two units. What should the buyer's broker explain?

Accepted Answer

The lawful covenant remains controlling unless it is released or invalidated, even though zoning permits a duplex

Answer

Public zoning supersedes the private covenant, so the conversion may proceed

Answer

A zoning variance would automatically cancel the recorded covenant

Answer

An owner's title policy would permit the conversion because a recorded covenant is merely an insured title risk rather than an enforceable use restriction

Question 3

A stabilized apartment property has annual scheduled rent of $126,000, vacancy and collection loss of $6,000, laundry income of $4,000, operating expenses of $44,000, and annual mortgage debt service of $18,000. Using an 8% capitalization rate, what is the indicated value?

Accepted Answer

$1,000,000

Answer

$775,000

Answer

$950,000

Answer

$1,550,000

Question 4

A buyer is obtaining a conventional first mortgage. The purchase price is $420,000, the appraisal is $400,000, and the proposed loan is $332,000. Which underwriting interpretation is best?

Accepted Answer

The LTV is 83%, so private mortgage insurance is commonly required unless an exception applies

Answer

The LTV is 79%, so private mortgage insurance is unnecessary because the purchase price controls

Answer

The LTV is 83%, so FHA mortgage insurance automatically applies to this conventional loan

Answer

The LTV is 79%, but private mortgage insurance is required because the appraisal is below the price

Question 5

A buyer offers $515,000 with a June 14 closing. Before the offer expires, the seller signs the form, changes the closing date to June 28, and returns it. The buyer then says, "I accept my original offer." Which statement is correct?

Accepted Answer

The seller made a counteroffer that rejected the original; the buyer may accept the June 28 terms while that counteroffer remains open

Answer

A contract exists for June 14 because the seller accepted the offered price

Answer

The closing-date change is immaterial, so the buyer may disregard it and enforce June 14

Answer

The buyer may revive the June 14 offer by announcing acceptance before its original expiration time, despite the seller's material change

Question 6

A purchase agreement gives the buyer until 6:00 p.m. Monday to deliver written notice of termination based on inspection. It states that failure to deliver notice by the deadline waives the contingency. The buyer emails the notice at 6:12 p.m., and the seller rejects it. Under the stated terms, which conclusion follows?

Accepted Answer

The inspection contingency was waived, so the late notice does not independently terminate the agreement

Answer

The notice was timely because it was sent on the correct calendar day

Answer

The deadline automatically moves to the next business day when an inspection reveals a material condition

Answer

A material inspection finding keeps the contingency open until closing despite the express deadline

Question 7

During a showing, an unrepresented buyer asks the listing broker whether the seller would accept $20,000 less than the asking price. The seller privately told the broker that this might be acceptable and specifically directed the broker not to reveal it. The listing broker should:

Accepted Answer

Keep the seller's bargaining position confidential and invite the buyer to submit an offer

Answer

Reveal the seller's likely minimum because price expectations are material to every buyer

Answer

Tell the buyer the seller definitely will not reduce the price, protecting the seller's position

Answer

End the showing and direct the buyer to obtain an attorney before making any offer

Question 8

A 1966 home has a prior risk-assessment report identifying lead-based paint hazards. Before signing the purchase agreement, the buyer says time is short and verbally waives any lead inspection period. What must occur for federal compliance?

Accepted Answer

Before contract, give the buyer the known-hazard report, pamphlet, and lead warning; any waiver or change to the 10-day opportunity must be written

Answer

The buyer's verbal waiver is sufficient if both brokers witness it and note the decision before the purchase agreement is signed

Answer

The seller may defer the report, pamphlet, and warning until after contract signing if the buyer receives them before closing and retains a rescission right

Answer

The seller must complete lead abatement, obtain a certified clearance report, and deliver that report before allowing any buyer to sign a purchase agreement

Question 9

A rental property has a no-pet policy. An applicant requests an assistance animal for a disability that is not obvious and provides reliable information establishing the disability-related need. There is no individualized evidence that the animal poses a direct threat. The property manager should:

Accepted Answer

Approve the accommodation without a pet fee, while holding the tenant responsible for actual damage

Answer

Deny the request because only task-trained service dogs qualify in housing

Answer

Require the applicant's full medical record, treatment history, and a physician's detailed diagnosis before considering any exception

Answer

Apply the no-pet rule, breed restriction, and standard pet deposit because the disability and related need are not readily visible

Question 10

Two hours before closing, a buyer receives an email from an address that differs by one character from the title company's usual domain. It gives new wiring instructions and says not to call because the closer is in a meeting. What is the best immediate action?

Accepted Answer

Pause the transfer and call the known title or closing contact using an independently verified number

Answer

Send a small test wire first and transmit the balance if the account accepts it

Answer

Reply to the message and ask the sender to confirm the account number a second time

Answer

Cancel the purchase agreement, notify the seller that the buyer will not close, and wait for law enforcement to determine whether the email was fraudulent

Free MI-RE-BROKER Practice Questions

Domain 1: Property Ownership 10% of exam

Question 1

Domain 2: Land Use Controls 5% of exam

Question 2

Domain 3: Valuation 8% of exam

Question 3

Domain 4: Financing 9% of exam

Question 4

Domain 5: Contracts 19% of exam

Question 5

Question 6

Domain 6: Agency 13% of exam

Question 7

Domain 7: Property Disclosures 7% of exam

Question 8

Domain 8: Property Management 5% of exam

Question 9

Domain 9: Transfer of Title 6% of exam

Question 10

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