Michigan License Law Practice Test

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Prepare for the Michigan License Law Test. Master key concepts with flashcards and multiple-choice questions, each offering hints and explanations. Ace your exam!

Practice this question and more.

Which of the following actions does NOT involve engaging in the real estate business?

Renting out properties
Acting as a property manager
Building and selling homes
Conducting market research for properties

The correct answer is: Building and selling homes

The action that does not involve engaging in the real estate business is conducting market research for properties. This activity is typically related to analyzing data and trends in the real estate market to make informed decisions or assessments but does not involve directly buying, selling, renting, or managing real estate. In contrast, renting out properties, acting as a property manager, and building and selling homes are all activities that directly pertain to the core functions of the real estate business. Renting involves leasing properties to tenants, property management includes overseeing residential or commercial properties on behalf of owners, and building and selling homes involves a hands-on approach to the real estate market that includes development and transaction processes. Therefore, conducting market research is more of a strategic or analytical function that supports the real estate business rather than actively engaging in it.