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MI RE Broker practice questions

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Question 1Michigan Real Estate License Law, Rules, and Board Regulation

Michigan real estate broker and salesperson licensing is governed primarily by which body of law?

  1. The federal Real Estate Settlement Procedures Act
  2. Article 25 of the Occupational Code Correct answer.
  3. The Michigan Consumer Protection Act
  4. The Michigan Land Division Act

Explanation

Article 25 of the Michigan Occupational Code (MCL 339.2501 et seq.) contains the definitions, licensing requirements, and disciplinary provisions that apply to brokers and salespersons. LARA administers and enforces Article 25 through its licensing bureau.

Question 2Michigan Real Estate License Law, Rules, and Board Regulation

Which state agency issues Michigan real estate broker and salesperson licenses?

  1. The Secretary of State
  2. The Michigan State Housing Development Authority
  3. The Michigan Attorney General
  4. The Department of Licensing and Regulatory Affairs Correct answer.

Explanation

LARA, acting through its bureau that regulates occupations, issues, renews, and disciplines real estate licenses under Article 25. The Attorney General prosecutes cases but does not license practitioners.

Question 3Michigan Real Estate License Law, Rules, and Board Regulation

Which person is required to hold a Michigan real estate license?

  1. An investor who buys duplexes for her own rental portfolio
  2. An owner selling the house she has lived in for ten years
  3. A person who lists a neighbor's house for a commission Correct answer.
  4. A bank loan officer who takes mortgage applications

Explanation

A license is required when a person, for compensation, lists, sells, buys, exchanges, or negotiates a transaction in real estate on behalf of another. Listing another person's property for a commission is brokerage activity.

Question 4Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan salesperson closes a sale, and the buyer offers to pay the salesperson's commission directly. How must the commission be handled?

  1. The employing broker must receive it, then pay the salesperson Correct answer.
  2. The salesperson may accept it if the buyer signs a receipt
  3. The salesperson may accept it if her broker approves in writing
  4. The salesperson may accept it and report it to the department

Explanation

A salesperson may not accept compensation for brokerage services from anyone other than the employing broker. The commission is owed to and collected by the broker, who then compensates the salesperson under their agreement.

Question 5Michigan Real Estate License Law, Rules, and Board Regulation

In addition to education and examination, what experience must a broker license applicant show under Michigan law?

  1. One year of experience managing rental property
  2. Two years of experience as a licensed appraiser
  3. Three years of experience as a licensed salesperson Correct answer.
  4. Five years of experience as a real estate paralegal

Explanation

Michigan requires broker applicants to have prior licensed experience as a salesperson before taking the broker examination and applying. Appraisal, property management, and paralegal work do not substitute for licensed salesperson experience.

Question 6Michigan Real Estate License Law, Rules, and Board Regulation

What is the minimum age for an applicant for a Michigan real estate salesperson license?

  1. 16
  2. 18 Correct answer.
  3. 20
  4. 21

Explanation

An applicant must be at least 18 years old to be licensed as a Michigan salesperson or broker. There is no higher age threshold, and being under 18 is a bar to licensure.

Question 7Michigan Real Estate License Law, Rules, and Board Regulation

How many hours of prelicensure education does Michigan require for a salesperson license?

  1. 24 hours
  2. 30 hours
  3. 40 hours Correct answer.
  4. 90 hours

Explanation

Michigan requires 40 hours of approved prelicensure coursework for a salesperson applicant. The broker applicant must complete 90 hours of approved prelicensure education.

Question 8Michigan Real Estate License Law, Rules, and Board Regulation

How long must a Michigan broker keep records of real estate transactions and trust account records?

  1. Three years Correct answer.
  2. Two years
  3. Five years
  4. One year

Explanation

Michigan requires a broker to retain transaction and trust account records for three years so they are available for inspection by the department. Shorter retention periods do not satisfy the rule.

Question 9Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker wants to represent both the buyer and the seller in the same transaction. What does Michigan law require?

  1. Approval from the local association of REALTORS®
  2. Only the seller's written consent, because the seller pays the commission
  3. Nothing extra, because dual agency is prohibited in Michigan
  4. The informed written consent of both parties Correct answer.

Explanation

Michigan permits a licensee to act for both parties only after full disclosure and the written consent of all parties to the dual representation. Consent from one side alone is insufficient.

Question 10Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan salesperson wants to advertise a listing. What must the advertisement include?

  1. The salesperson's license number
  2. The name of the employing broker Correct answer.
  3. The seller's written approval statement
  4. The listing price and commission rate

Explanation

Advertising placed by a salesperson must identify the employing broker, because the salesperson acts under the broker's authority and license. Ads that omit the broker's name improperly suggest the salesperson is an independent brokerage.

Question 11Michigan Real Estate License Law, Rules, and Board Regulation

How long is a Michigan real estate license term before renewal is required?

  1. Two years
  2. Three years Correct answer.
  3. One year
  4. Four years

Explanation

Michigan issues real estate licenses on a three-year cycle, and renewal with the required continuing education keeps the license active. A licensee who fails to renew may not perform brokerage activity until reinstated.

Question 12Michigan Real Estate License Law, Rules, and Board Regulation

What business location requirement applies to a Michigan real estate broker?

  1. The broker may operate entirely from a motor vehicle
  2. The broker must maintain a definite place of business Correct answer.
  3. The broker may use a post office box as the office address
  4. The broker must own the office building rather than lease it

Explanation

A Michigan broker must maintain a definite office location where brokerage business is conducted and records are kept. A post office box or a vehicle alone does not satisfy this requirement.

Question 13Michigan Real Estate License Law, Rules, and Board Regulation

To be enforceable, a Michigan listing agreement that provides for a commission must be...

  1. in writing and signed by the party to be charged Correct answer.
  2. filed with the county register of deeds
  3. notarized by a licensed notary public
  4. approved by the broker's local association

Explanation

An agreement to pay a commission for the sale of land falls within Michigan's statute of frauds, so it must be in writing and signed by the party to be charged. Notarization and recording are not conditions of enforceability.

Question 14Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan licensee wants to buy a listed property for her own account. What must she do?

  1. Nothing, as long as she pays the full asking price
  2. Disclose her licensed status in writing to all parties Correct answer.
  3. Have another licensee submit the offer on her behalf
  4. Resign her license before submitting the offer

Explanation

A licensee who acts as a principal in a transaction must disclose her licensed status in writing to the other parties so they know they are dealing with a professional. Paying full price or using another licensee does not remove the disclosure duty.

Question 15Michigan Real Estate License Law, Rules, and Board Regulation

Michigan's Elliott-Larsen Civil Rights Act adds which protected class to those covered by the federal Fair Housing Act in real estate transactions?

  1. National origin
  2. Disability
  3. Familial status
  4. Height and weight Correct answer.

Explanation

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability. Michigan's Elliott-Larsen Act goes further and also protects characteristics such as height, weight, age, and marital status.

Question 16Michigan Real Estate License Law, Rules, and Board Regulation

Before a Michigan salesperson license is issued, the applicant must pass...

  1. an appraisal certification examination
  2. a local association membership examination
  3. a national broker examination
  4. the state salesperson licensing examination Correct answer.

Explanation

Michigan requires applicants to pass the state licensing examination for the license category sought. Association membership examinations and appraisal certification are unrelated credentials.

Question 17Michigan Real Estate License Law, Rules, and Board Regulation

Who is responsible for the brokerage activities of a Michigan salesperson?

  1. The salesperson alone
  2. The seller or buyer in the transaction
  3. The department's licensing board
  4. The employing broker Correct answer.

Explanation

The employing broker holds the license under which the salesperson works and is responsible for supervising the salesperson's brokerage activity. A broker may be disciplined for failing to supervise adequately.

Question 18Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker receives a buyer's earnest money deposit. How must the funds be handled?

  1. Spent on marketing costs if the closing is delayed
  2. Deposited into the broker's general operating account
  3. Deposited into a separate trust or escrow account Correct answer.
  4. Held in the salesperson's personal account until closing

Explanation

Money belonging to others must be kept in a separate trust or escrow account and may not be commingled with the broker's own funds. Earnest money must be accounted for and disbursed according to the agreement of the parties.

Question 19Michigan Real Estate License Law, Rules, and Board Regulation

After a Michigan broker's agency relationship with a seller ends, what happens to the seller's confidential information obtained during the agency?

  1. It must be published in the multiple listing service
  2. It becomes public because the agency has ended
  3. It remains confidential and may not be disclosed Correct answer.
  4. It may be shared with any other broker who asks

Explanation

The duty of confidentiality continues after the agency relationship terminates, so information the client intended to keep private stays protected. The duty ends only when the information becomes public or the client releases it.

Question 20Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker opens a second office in another city. What does the law require?

  1. A new broker license for each salesperson at the branch
  2. No action, because one broker license covers all offices
  3. A separate branch office license for the new location Correct answer.
  4. Only a change of address for the main office

Explanation

Each additional office location at which brokerage business is conducted must be separately licensed as a branch office and reported to the department. A single broker license does not cover unlicensed satellite locations.

Question 21Michigan Real Estate License Law, Rules, and Board Regulation

Which task may an unlicensed assistant legally perform for a Michigan broker?

  1. Solicit new listings at an open house
  2. Negotiate the price and terms with a buyer
  3. Schedule appointments and assemble listing paperwork Correct answer.
  4. Explain the terms of a purchase agreement to a buyer

Explanation

An unlicensed assistant may handle clerical and administrative tasks such as scheduling, filing, and assembling documents. Negotiating, interpreting contract terms for consumers, and soliciting listings are brokerage activities that require a license.

Question 22Michigan Real Estate License Law, Rules, and Board Regulation

A homeowner decides to sell her own house without a broker. Under Michigan law, she...

  1. must pay a fee to the department for the exemption
  2. may sell it herself without a real estate license Correct answer.
  3. must obtain a temporary owner's license first
  4. may sell it only through an attorney

Explanation

The licensing law regulates brokerage activity performed for another for compensation; an owner selling her own property is not acting as a broker and needs no license. The owner remains responsible for required disclosures and contract formalities.

Question 23Michigan Real Estate License Law, Rules, and Board Regulation

How many employing brokers may a Michigan salesperson work for at one time?

  1. Two, if both brokers consent in writing
  2. Only one Correct answer.
  3. Three, if the department approves
  4. As many as the salesperson can serve

Explanation

A Michigan salesperson is licensed to work under a single employing broker at any given time. Moving to a new broker requires proper notice to the department rather than adding a second employer.

Question 24Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan salesperson decides to leave Broker A and work for Broker B. What must occur?

  1. Broker A must release the salesperson's pending commissions in writing
  2. The salesperson must pass the state exam again
  3. The salesperson must wait 90 days before associating with Broker B
  4. The salesperson must notify the department of the new employing broker Correct answer.

Explanation

Because a salesperson's authority to practice depends on the employing broker, a change of broker must be reported to the department so the license reflects the new association. No re-examination or waiting period is required.

Question 25Michigan Real Estate License Law, Rules, and Board Regulation

Michigan licensees must complete continuing education during each license cycle. How many hours are required?

  1. 18 hours Correct answer.
  2. 24 hours
  3. 12 hours
  4. 6 hours

Explanation

Michigan requires 18 hours of approved continuing education per three-year license cycle to renew an active license. Completing fewer hours leaves the license ineligible for renewal.

Question 26Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker license applicant generally must document how much full-time experience as a licensed real estate salesperson?

  1. 3 years Correct answer.
  2. 5 years
  3. 2 years
  4. 1 year

Explanation

Michigan requires an applicant for a broker license to have at least three years of full-time experience as a licensed salesperson, or equivalent experience acceptable to the department. The experience requirement is in addition to the required prelicensure education and examination.

Question 27Michigan Real Estate License Law, Rules, and Board Regulation

How many hours of approved prelicensure education does Michigan require for a broker license?

  1. 60 hours
  2. 40 hours
  3. 90 hours Correct answer.
  4. 120 hours

Explanation

Michigan requires 90 clock hours of approved real estate education for broker licensure. This is separate from the 40-hour requirement for an initial salesperson license.

Question 28Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker who is employed by another broker to conduct brokerage activities is known as a(n):

  1. principal broker
  2. managing salesperson
  3. associate broker Correct answer.
  4. designated broker

Explanation

An associate broker is a licensed broker who works under another broker rather than operating an independent brokerage. The associate broker remains individually licensed as a broker but is affiliated with the employing broker.

Question 29Michigan Real Estate License Law, Rules, and Board Regulation

Which body has statutory authority to regulate Michigan real estate licensees?

  1. Board of Real Estate Brokers and Salespersons Correct answer.
  2. Michigan Public Service Commission
  3. Michigan State Housing Development Authority
  4. Michigan Department of Insurance and Financial Services

Explanation

The Michigan Board of Real Estate Brokers and Salespersons, within the department that administers occupational licensing, regulates real estate licensees. The board oversees licensing and disciplinary matters under the real estate license law.

Question 30Michigan Real Estate License Law, Rules, and Board Regulation

Under Michigan law, when must a licensee give a prospective client a written agency disclosure statement?

  1. Only if the client asks for it
  2. Within 10 days after closing
  3. Before an agency agreement is signed Correct answer.
  4. At the first physical showing of the property

Explanation

A Michigan licensee must provide a written agency disclosure before the client enters into a written agency agreement. The disclosure identifies whom the licensee and brokerage represent in the transaction.

Question 31Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan salesperson closes a sale, and the seller wants to pay the salesperson's share of the commission directly. What is correct?

  1. The salesperson must direct the payment to the employing broker. Correct answer.
  2. The salesperson may accept it and deposit it in a trust account.
  3. The salesperson may accept it if the seller signs a receipt.
  4. The salesperson may accept it with the broker's oral approval.

Explanation

A Michigan salesperson may receive compensation for brokerage services only from the employing broker. Any commission or fee from a seller or other party must be routed through the broker.

Question 32Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker wants to pay $500 to an unlicensed friend who referred a buyer. Under the license law, this payment is:

  1. permitted if the friend signs a written referral agreement and discloses the fee
  2. permitted if the amount is less than $1,000
  3. prohibited only if the friend is related to the buyer
  4. prohibited because an unlicensed person may not be paid for brokerage services Correct answer.

Explanation

Michigan law limits payment of compensation for brokerage services to licensed persons. Paying an unlicensed person for a referral connected to brokerage activity is prohibited regardless of the amount or the relationship.

Question 33Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker uses funds from the trust account to pay the brokerage's office rent. This conduct is:

  1. commingling, which violates Michigan trust account rules Correct answer.
  2. acceptable because the broker owns the trust account
  3. acceptable if the broker repays the funds within 30 days
  4. acceptable if the rent is for the brokerage's main office only

Explanation

Trust account funds belong to clients and may not be used for the broker's business expenses. Using trust money for office rent is a prohibited conversion or commingling of client funds.

Question 34Michigan Real Estate License Law, Rules, and Board Regulation

A corporation wants to obtain a Michigan real estate broker license. What must the corporation do?

  1. Name a licensed broker responsible for its brokerage activities Correct answer.
  2. Have every shareholder obtain an individual broker license
  3. Operate under an unlicensed office manager
  4. Obtain a salesperson license for its president

Explanation

A business entity may be licensed as a Michigan broker only if it identifies a licensed broker who is responsible for the entity's brokerage activities. The responsible broker provides the required individual licensure and supervision.

Question 35Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan salesperson wants to manage rental property for an owner for a fee. The salesperson may do so only if:

  1. the salesperson obtains a separate property management license
  2. the salesperson acts under the employing broker's supervision Correct answer.
  3. the owner signs an agreement naming the salesperson personally
  4. the property is in the same county as the broker's office

Explanation

Property management for another for compensation is brokerage activity that a salesperson may perform only under the employing broker. The salesperson may not contract personally with the owner for that service.

Question 36Michigan Real Estate License Law, Rules, and Board Regulation

Which task may a Michigan licensee properly perform for a client?

  1. Complete preprinted offer forms at the parties' direction Correct answer.
  2. Advise the client about the tax consequences of the sale
  3. Prepare a mortgage loan commitment for the buyer
  4. Draft a deed transferring title to the property

Explanation

A licensee may complete standardized or preprinted forms at the direction of the parties, but may not engage in the unauthorized practice of law. Drafting deeds, giving tax advice, and preparing loan commitments exceed the licensee's role.

Question 37Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan salesperson whose license is inactive because she has no employing broker wants to help a friend buy a house for a fee. What is correct?

  1. She may do so after completing continuing education.
  2. She may do so if she discloses the inactive status.
  3. She may not perform brokerage services while unsponsored. Correct answer.
  4. She may do so if the friend, rather than the seller, pays the fee

Explanation

A Michigan salesperson must be associated with a licensed broker to perform brokerage services. An inactive or unsponsored license does not authorize the holder to provide brokerage services for compensation.

Question 38Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker holds a $5,000 earnest money deposit. The sale fails, and buyer and seller both claim the funds. What should the broker do?

  1. Hold the funds in trust until a written agreement or court order Correct answer.
  2. Divide the funds equally between the buyer and the seller
  3. Give the funds to the seller because the deposit was made under the contract
  4. Return the funds to the buyer immediately because the sale did not close

Explanation

When parties dispute earnest money, the broker acts as a stakeholder and must not choose sides. The funds remain in trust until the parties agree in writing or a court orders disbursement.

Question 39Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker's license is suspended. What happens to the licenses of salespersons employed by that broker?

  1. They become inactive until a licensed broker employs them Correct answer.
  2. They are permanently revoked automatically.
  3. They convert to associate broker licenses.
  4. They remain active because each salesperson is separately licensed.

Explanation

A salesperson's authority to practice depends on affiliation with a licensed employing broker. If the broker's license is suspended, the salespersons cannot continue brokerage activity until they associate with another licensed broker.

Question 40Michigan Real Estate License Law, Rules, and Board Regulation

A Michigan broker represents the seller. The broker receives an offer from a buyer whom the broker also represents as a dual agent with written consent. What must the broker do?

  1. Let the buyer decide whether to present the offer
  2. Present the offer only after the buyer signs a waiver
  3. Present the offer to the seller promptly Correct answer.
  4. Withhold the offer because of the conflict of interest

Explanation

A broker representing the seller must promptly transmit all offers to the seller, even in a consented dual agency. The duty to present offers continues despite the conflict inherent in dual representation.

Question 41Agency, Brokerage Relationships, and Fiduciary Duties

Which fiduciary duty requires a licensee to place the principal's interests above the licensee's own interests and above those of any other party?

  1. Accounting
  2. Loyalty Correct answer.
  3. Confidentiality
  4. Reasonable care

Explanation

Loyalty is the duty that puts the client's interests first and bars self-dealing, secret profits, and conflicts of interest. It is the duty most often at issue when an agent's own interest or another party's interest competes with the client's.

Question 42Agency, Brokerage Relationships, and Fiduciary Duties

A listing broker receives a $5,000 earnest money deposit on Tuesday, and the purchase agreement directs the broker to hold the funds until closing. What does the duty of accounting require?

  1. Divide the funds between the two licensees as an advance on commission
  2. Deliver the funds to the seller immediately as a show of good faith
  3. Deposit the funds into the broker's general operating account until closing
  4. Place the funds in the broker's trust account and keep a record of the receipt Correct answer.

Explanation

Client and transaction funds held by a broker must be kept in a trust account and separately accounted for, with records of receipt and disbursement. Using trust money for the broker's own expenses is commingling and is prohibited.

Question 43Agency, Brokerage Relationships, and Fiduciary Duties

A buyer's agent learns that the buyer would pay up to $340,000 for a home listed at $315,000. When the listing agent asks how high the buyer will go, the buyer's agent should:

  1. Give a range that keeps the buyer's true ceiling hidden from the seller
  2. Trade the information in exchange for the seller's bottom-line price
  3. Answer honestly, because a licensee may never withhold information from another licensee
  4. Decline to answer, because the buyer's price ceiling is confidential client information Correct answer.

Explanation

A buyer's maximum price is confidential information belonging to the buyer, and the buyer's agent may not reveal it to the seller's side. Disclosing it would undercut the buyer's negotiating position and breach the duty of loyalty.

Question 44Agency, Brokerage Relationships, and Fiduciary Duties

A seller client instructs the listing licensee to tell buyers that the roof was replaced in 2022, although the licensee knows the roof is original. The licensee should:

  1. Resign the listing without explaining the reason to the seller
  2. Refuse, because the duty of obedience covers only lawful and honest instructions Correct answer.
  3. Follow the instruction, because the seller controls the marketing of the property
  4. Follow the instruction but note the discrepancy in the transaction file

Explanation

Obedience obligates the agent to carry out the client's lawful instructions, but it never requires an agent to make false statements or participate in misrepresentation. The agent should decline and explain the legal exposure to the client.

Question 45Agency, Brokerage Relationships, and Fiduciary Duties

A seller's agent receives three written offers on the same day. Under the duty to keep the client informed, the agent should:

  1. Deliver all offers promptly and let the seller decide Correct answer.
  2. Hold all offers until the listing expires to encourage a bidding war
  3. Present only the highest offer so the seller is not confused
  4. Present offers only after the buyer agents agree on terms

Explanation

The agent must transmit every offer to the seller promptly and completely; the decision to accept, reject, or counter belongs to the seller. Filtering offers deprives the client of information needed to make that decision.

Question 46Agency, Brokerage Relationships, and Fiduciary Duties

Under Michigan law, a broker may act as a dual agent in a transaction only when:

  1. Neither party has signed an exclusive representation agreement
  2. Both the buyer and the seller give informed written consent Correct answer.
  3. The transaction is a residential resale rather than new construction
  4. The broker's managing broker approves the arrangement in writing

Explanation

Dual agency requires the informed written consent of all parties after disclosure of the conflicts it creates. Without that consent, representing both sides is an undisclosed dual agency and a violation of license law.

Question 47Agency, Brokerage Relationships, and Fiduciary Duties

A Michigan brokerage represents both the buyer and the seller in the same transaction. The broker assigns one licensee to the buyer and a different licensee to the seller. This arrangement is proper only if:

  1. The two licensees share all client information so neither party is disadvantaged
  2. The broker personally supervises every showing and every negotiation
  3. Both parties consent in writing and client confidences stay with each designated agent Correct answer.
  4. The broker reduces the total commission by the amount of one side's fee

Explanation

Designated agency lets one brokerage serve both sides through separate licensees, but it requires written informed consent and shielding of each client's confidential information from the other designated agent. Sharing confidences between the two would recreate the dual agency problem the arrangement is meant to avoid.

Question 48Agency, Brokerage Relationships, and Fiduciary Duties

A salesperson negotiates a sale and the closing agent issues the commission check. The commission is legally payable to:

  1. The broker the salesperson is affiliated with Correct answer.
  2. The seller's attorney, who holds it in escrow
  3. The salesperson personally, since she did the work
  4. The title company, which splits it between the licensees

Explanation

A salesperson or associate broker contracts and earns compensation through the employing broker, and the broker then pays the licensee under their independent contractor arrangement. The brokerage, not the individual licensee, is the party to the service provision agreement.

Question 49Agency, Brokerage Relationships, and Fiduciary Duties

In Michigan, an agency relationship between a broker and a client must be created by:

  1. A written service provision agreement signed by the parties Correct answer.
  2. A verbal agreement confirmed by a text message
  3. An MLS listing entry that names the broker as listing agent
  4. A handshake agreement followed by performance of services

Explanation

Michigan requires the broker-client relationship to be documented in a written service provision agreement that sets out the services, the term, and the compensation. Performance alone or an MLS entry does not satisfy that requirement.

Question 50Agency, Brokerage Relationships, and Fiduciary Duties

A licensee wants to pay a $500 referral fee to an unlicensed acquaintance who sent him a seller lead. This payment is:

  1. Impermissible, because an unlicensed person may not be paid for brokerage services Correct answer.
  2. Permissible if the fee is disclosed to the seller on the settlement statement
  3. Permissible, because the acquaintance only supplied a name and performed no brokerage work
  4. Permissible up to $1,000 if the acquaintance signs a referral receipt at closing

Explanation

Michigan license law bars paying compensation for brokerage activity to a person who is not licensed, and soliciting leads for a fee is treated as part of that activity. Disclosure or a receipt does not make the payment lawful.