PSI Real Estate Practice Exam - Michigan Chapter 1 Flashcards

PSI Real Estate Practice Exam - Michigan (Chapter 1) Flashcards 1.) Discuss the financing options for the property.2.) Take his name and have a licensee call him. (Answer)3.) Say that they are the agent for the property.4.) Give him whatever information he wants since he's a member of the real estate community.An unlicensed assistant in a real estate office receives a call from Salesperson Jones, who works for another company. He wants information about a property. What can the assistant do?

1.) as a blind ad.2.) using the broker's name as listed on his or her license. (Answer)3.) using the salesperson's name as listed on his or her license.4.) with a post office box owned by the broker.Any advertising done by a salesperson must be done 1.) obligates the consumer to a relationship with the licensee.2.) obligates the licensee to the consumer.3.) sets forth the commission rate.4.) acknowledges the licensee has discussed agency options with the consumer. (Answer) The agency disclosure 1.) the prosecution of licensees found to be in violation of the Occupational Code.2.) the operation of programs related to the educational requirements of licensees and applicants.3.) the enforcement of the NAR code of ethics.4.) the enforcement of Article 25 of the Occupational Code regarding unlicensed activity. (Answer) Funds deposited into the Real Estate Enforcement fund are used for 1.) is strictly prohibited.2.) can only be done on the internet.3.) must be supervised by and in the name of his or her broker. (Answer)4.) must be done as a blind ad.All advertising done by a salesperson or associate broker 1.) Each office must have its own license.2.) There is no limit to the number of licensees who can work in a branch office.3.) Each office must be directly supervised by an associate broker working for the main office principal broker. (Answer)4.) There is no limit to the number of branch offices a broker may open.Which of the following statements is NOT true in regard to branch office locations?

1.) Someone who negotiates the rental or lease of a property for a consumer (Answer)2.) An executor handling a decedent's estate3.) A licensed builder selling a new triplex he built4.) An attorney performing a real estate transaction as part of his legal duties Which of the following would need a real estate license?

1.) placing ads on the internet.2.) selling a personal residence. (Answer)3.) selling a family member's residence.4.) working as a subagent.A salesperson may advertise under his or her own name when 1.) ministerial acts.2.) specific assistance. (Answer)3.) dual agency.4.) confidentiality.Communication beyond casual conversation which leads to the discovery of confidential information is 1.) has completed a six month apprenticeship under an established broker.2.) has a Master's Degree in Business Administration. (Answer)3.) has a Bachelor's Degree in

Communications.4.) has an Associate's Degree in Property Management.A licensee can get 60 hours credited towards a broker's license if he or she

1.) Tori helps her former neighbor find a renter for his house. (Answer)2.) Tori sells her father's home as executor of his estate.3.) Tori sells the new luxury home that she and her husband's building company built.4.) Tori is an auctioneer who has been contracted to auction the personal belongings, home and outbuildings of a local farmer.In which of the following scenarios would Tori need a real estate license?

1.) call the Department.2.) complete the change of address form on the Department's website.3.) give written notice to the Department. (Answer)4.) update the address section when renewing his or her license.To change the address of a main or branch office, a broker must 1.) he must pay the regular renewal fee.2.) he must pay a late fee.3.) he may still do a limited amount of licensed real estate transactions. (Answer)4.) he must complete the continuing education requirements if they were not already complete.If a licensee missed his license expiration date of October 31 and then tried to renew his license on December 15 of the same year, all of the following are true EXCEPT 1.) automatically suspends all the licenses under that broker's authority. (Answer)2.) does not affect the licenses under that broker's authority.3.) changes the status of the longest-licensed salesperson at that brokerage to that of a broker associate.4.) charges the Department with appointing an interim broker until a new broker can be appointed.If a broker's license is revoked, it 1.) is a silent partner.2.) could be one of the owners of a real estate company. (Answer)3.) could be the spouse of one of the real estate company's partners.4.) has the same responsibilities as a salesperson.A principal associate broker 1.) specific assistance. (Answer)2.) general duties.3.) breach of confidentiality.4.) ministerial acts.Any communication beyond casual conversation that would divulge confidential information is known as 1.) to develop salesperson and broker examinations.(Answer)2.) to issue and renew licenses.3.) to interpret license requirements.4.) only when there is a crisis.The Department of Licensing and Regulatory Affairs and the Michigan Board of Real Estate Brokers and Salespersons work together 1.) A trustee selling under a deed of trust2.) A Michigan-licensed builder who sells the custom homes he builds3.) A property manager who oversees a 50-unit apartment complex (Answer)4.) An attorney at law Which of the following would be required to have a real estate license to perform his or her job duties?Designated AgentA person authorized by the broker to act as the agent of a specific principal - common in dual agency relationships, two salespersons from the same company can represent opposite sides of the sale.

1.) No charge (Answer)2.) $53.) $104.) $15 If a licensee reports a change of home address as part of the renewal process, what is the fee for recording that change?

1.) they are exempt from continuing education requirements.2.) they may earn continuing education credit

for teaching a course. (Answer)3.) they can continuing education courses free of charge.4.) they are exempt from relicensing fees.One benefit the Department gives to real estate instructors is