Michigan License Law Practice Test

What is the main purpose of the Michigan Real Estate Commission?

1. To determine property values

2. To regulate real estate transactions

3. To provide financial assistance to buyers

4. To perform appraisals for lenders

The correct answer is: To regulate real estate transactions

The main purpose of the Michigan Real Estate Commission is to regulate real estate transactions. This regulatory body is responsible for ensuring that real estate professionals adhere to the laws and standards of practice within the state. This includes licensing real estate agents and brokers, enforcing compliance with the Michigan Occupational Code, and protecting the public by overseeing the ethical practice of real estate. By regulating these transactions, the Commission helps maintain a fair and orderly market, ensuring that all parties involved in real estate activities—whether buyers, sellers, or agents—are treated fairly and legally. The other options focus on aspects that are not the primary role of the Commission. For example, determining property values, providing financial assistance to buyers, and performing appraisals are various functions that may fall under the broader real estate sector but are not directly within the Commission's regulatory mandate. These activities are typically conducted by real estate appraisers and lenders, not by the Commission itself.