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Michigan Salesperson's Exam questions with complete solutions graded A+
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Michigan Salesperson's Exam questions with complete solutions graded A+
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Michigan Salesperson's ExamLicense Fee - correct answer ✔✔-$88.00 to obtain a three year license
Continuing Education - correct answer ✔✔-must complete no less than 18 hours of continuing education
to renew for 3 yr cycle, with minimum requirement each year
-no less than 2 hrs of legal updates each yeah and 18 hrs total over 3 year license
Brokers License - correct answer ✔✔-required for purpose of entering into contract w/ consumers
-can only be issues to one legal entity or one person at a time
-must have no less than 3 yrs experience and 90 hrs of education, and 6 sales/12 month period
Associate Brokers License - correct answer ✔✔-only issued to a person
-must meet same requirements as broker
-able to start a company
Principal Associate Broker - correct answer ✔✔-an owner, officer, partner, or member of the legal entity
("the broker")
-license is non-transferable
-PAB can have more than one PAB license at same time
Non-Principal Associate Broker - correct answer ✔✔-employed by broker to carry out sales only
-can only be licensed with one broker at a time and the license is transferable
Salepersons License - correct answer ✔✔-must be 18 or older, 40 hrs of education
-only issues to a person
-everything done in the name and direct supervision of employing broker
-can only receive compensation from their employing broker
,Independent Contractor - correct answer ✔✔-pays own income tax
-files a 1099 tax form,
-sets own hours
Employee - correct answer ✔✔-broker withholds tax and pays social security
-employee files a W-2
Sole Proprieter - correct answer ✔✔-sole ownership, only time brokers license is personally liable
-issues to one person (could have DBA)
-individual name --> legal name
-assumed name --> "doing business as" name (DBA)
Parternship - correct answer ✔✔-broker's license issued to legal entity
-must have at least one principal associate broker to run and create partnership
General Partnership - correct answer ✔✔-broker is the partnership, and all parties are general partners
-liability falls 100% on all parties
-all general partners must be licensed as principal associate brokers
Limited Partnership - correct answer ✔✔-one general partner and one limited partner required
-partnership in the name of the broker (legal entity)
-used for investors
-limited partners should have no license w/ this partnership
-limited partners liability is only the money the invested
Limited Liability Partnership (LLP) - correct answer ✔✔-legal entity is the broker
-partners are called members
-liability of members is based upon their level of participation
,-tax benefits based on participation as well
Corporation - correct answer ✔✔-treated as separate entity by law (files own tax return)
-corp. receives the brokerage license
-comprised of officers (active officer must be principal associate broker, non-active officers need no
license)
-provides veil from liability
Limited Liability Company (LLC) - correct answer ✔✔-receives brokers license
-owners are called members
-able to pay taxes as partnership and provides similar protection for its members
Statute of Frauds (State Law) - correct answer ✔✔-requires that certain contracts be in writing in order
to be enforceable in court
-contracts that convey an interest in real estate must be in writing
-leases for one year or less are not required to be in writing to be enforceable
Parol Evidence Rule - correct answer ✔✔-states that oral testimony cannot be used to add to, subtract
from, or alter a written document, unless sits intent is to prove fraud, or clarify the document
Statute of Limitation - correct answer ✔✔-provides timeframe within which one can pursue legal
recourse against another (differs state by state)
Sherman Anti-Trust Act - correct answer ✔✔-prohibits interference with free flow of trade and
commerce
Agency - correct answer ✔✔-someone empowers another to act in their own best interest
Parties to an Agency - correct answer ✔✔-principal --> person who empowers someone to act in their
best interest
-agent --> person empowered by principal
, -sub-agent --> someone empowered by agent of principal
Creating an Agency - correct answer ✔✔-expressed --> verbal or written and states as fact ("I will help
you")
-implied --> lead someone to believe that you represent them by your actions
-ostensible --> implied agency involving a 3rd party
Obligations of an Agency (Fiduciary Duties) - correct answer ✔✔-CLOTDAD --> confidentiality, loyalty,
obedience, trust, due diligence, accountability, disclosure
Types of Agencies (Range of Authority) - correct answer ✔✔-universal agency --> agent can do almost
anything (not really ever found in real estate)
-general agency --> agent empowered to act in a trade or business (being employed by a broker with
employment contract
-special agency --> agent represents principal in one transaction only (listing contract, buyer-broker
contract)
Duties to 3rd Parties - correct answer ✔✔-obliged honesty and fairness to anyone not under contract
Customer - correct answer ✔✔-3rd party
-someone you work "with" (owe honesty and fairness)
Client - correct answer ✔✔-someone you work "for" (have a contract with them)
Agency Disclosure Law - correct answer ✔✔-requires disclosure of agency relationships on all residential
properties before any confidential information is conveyed
Single Agency - correct answer ✔✔-represents one side of the transaction
Dual Agency - correct answer ✔✔-one agent represents two parties in a transaction (buyer and seller)
-both parties must be informed, or two salesmen can represent buyer and seller under same broker
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