Disclosure of the type of representation must be made before disclosing confidential information.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which Michigan state agency is responsible for licensing and regulating real estate salespersons and brokers?
Answer: A. Real estate licensing in Michigan is administered through the Department of Licensing and Regulatory Affairs (LARA), which oversees the Board of Real Estate Brokers and Salespersons. Industry trade groups like the Michigan Association of Realtors are private organizations, not the licensing regulator.
Question 2 of 5
What is the primary purpose of the agency disclosure required of Michigan licensees?
Answer: B. The agency disclosure's purpose is to make sure consumers understand the nature of the agency relationship and whom the licensee represents, so they know whether the licensee is acting for the seller, the buyer, both, or neither. It does not set commissions or warrant the property.
Question 3 of 5
Which state agency is responsible for licensing and regulating real estate salespersons and brokers in Michigan?
Answer: B. Real estate licensing in Michigan is administered by the Department of Licensing and Regulatory Affairs (LARA). The Board of Real Estate Brokers and Salespersons operates within LARA, but the regulating department is LARA itself; the trade association does not license individuals.
Question 4 of 5
Which Michigan agency is responsible for issuing and regulating real estate salesperson and broker licenses?
Answer: A. Real estate licensing in Michigan is administered by the Department of Licensing and Regulatory Affairs (LARA), which oversees the licensure of salespersons and brokers and enforces the Occupational Code. A private trade association such as the Association of Realtors does not issue government licenses.
Question 5 of 5
In Michigan, which state agency is responsible for investigating complaints against real estate licensees and imposing disciplinary sanctions?
Answer: A. LARA, through its Bureau of Professional Licensing, administers Michigan real estate licensing, investigates complaints, and imposes disciplinary action against licensees. The register of deeds records documents and has no disciplinary role, and NAR is a private trade association, not a state regulator.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Agency disclosure to consumers is required in Michigan real-estate transactions.
- Disclosure of the type of representation must be made before disclosing confidential information.
- Common relationships: seller's agent, buyer's agent, dual agent, and designated agent.
- Dual agency requires the informed, written consent of both buyer and seller.
- The salesperson's agency relationship flows through the supervising broker.
- Agents owe fiduciary-style duties (loyalty, confidentiality, disclosure) to their client.
- A licensee assisting the other side may act as a transaction facilitator without full agency, when disclosed.
Michigan Agency Model Cheat Sheet: FAQs
Is Michigan Agency Model Cheat Sheet on the real estate exam?
Yes. State License Law is a scored domain on the Michigan real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Michigan test this differently?
Michigan applies its own license law on top of the national portion. This page covers the Michigan rules specifically, which is what the state section of your exam tests.
