Principles, Property, and Land Use Practice Question
Question
A broker is correcting a new licensee’s misunderstanding for the Michigan Real Estate Salesperson Exam involving life estate and seller disclosure practice. What should the licensee understand? (Item 202)
Answer choices
- A. The requirement matters only when the buyer obtains institutional financing.
- B. Identify ownership measured by a life with future rights held by another party in a way that fits Michigan exam practice.
- C. The affiliated licensee may handle the matter independently without broker responsibility.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Identify ownership measured by a life with future rights held by another party in a way that fits Michigan exam practice.
Explanation
The correct answer is B because life estate requires candidates to identify ownership measured by a life with future rights held by another party. The Michigan reference keeps the scenario tied to state licensing practice, while the other options rely on unsafe assumptions about oral custom, escrow, client preference, independent licensee authority, or ignoring written duties.
Question details
- Difficulty: medium
- Domain: Principles, Property, and Land Use
- Objective: life estate