Michigan License Law Practice Test

Which action would be a violation of license law for broker Rhonda?

1. Completing a standard real estate agreement

2. Correcting a title defect document

3. Providing market analysis to clients

4. Conducting open houses for listed properties

The correct answer is: Correcting a title defect document

The action of correcting a title defect document would indeed be a violation of license law for broker Rhonda. In Michigan, handling title defects involves legal practices that fall under the realm of law, which requires a specific legal license. Real estate brokers are not authorized to engage in legal work such as correcting title defects unless they also hold a valid attorney's license. This ensures that transactions involving property titles are handled by qualified individuals who are trained in the complexities of real estate law, thus protecting the interests of all parties involved. In contrast, completing a standard real estate agreement, providing market analysis to clients, and conducting open houses for listed properties are all permissible activities for a licensed broker. These actions are standard practices within the real estate profession and do not require legal credentials beyond a real estate broker's license. They are essential components of a broker's duties and contribute to the effective management of real estate transactions.