Before you read
Test yourself first: 5 questions
Question 1 of 5
A Michigan licensee functions only to facilitate a transaction without representing either party as a client. This service relationship is generally referred to as a:
Answer: B. When a licensee assists the parties to complete a transaction without acting as the agent (client representative) of either, Michigan's agency disclosure describes this as a transaction coordinator or facilitator role. Designated agency, subagency, and buyer agency all involve actual client representation.
Question 2 of 5
Designated agency in a Michigan brokerage allows the broker to:
Answer: B. Under designated agency, the broker designates separate licensees within the same firm to represent the buyer and the seller, so each client gets dedicated representation rather than the firm acting as a dual agent.
Question 3 of 5
The Michigan Board of Real Estate Brokers and Salespersons is composed of:
Answer: A. The Board is made up of a mix of licensed real estate professionals (brokers and salespersons) and public members, providing both industry expertise and consumer representation in regulatory matters.
Question 4 of 5
Which of the following actions would most likely be considered prohibited conduct under Michigan license law?
Answer: A. Substantial misrepresentation is a classic prohibited act and grounds for discipline. Disclosing material defects, properly handling trust funds, and promptly presenting offers are all required, proper behaviors, not violations.
Question 5 of 5
In Michigan, a person who is represented by an agent and to whom fiduciary duties are owed is best described as the licensee's:
Answer: C. A client is the party the licensee represents and to whom fiduciary duties (loyalty, confidentiality, obedience, etc.) are owed. A customer is a party the licensee deals with but does not represent. A subagent is another agent who assists, and a third party is simply someone involved in the transaction without representation.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Before disclosing confidential information, a licensee must provide the consumer with a written agency disclosure explaining who the licensee represents. Dual agency is permitted in Michigan only with the informed written consent of both the buyer and the seller, since the licensee then owes limited duties to each party.
Michigan's Agency and Representation Model: FAQs
Is Michigan's Agency and Representation Model 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.
