Under Michigan's Proposal A and the Principal Residence Exemption (PRE) system, which of the following statements is NOT accurate?
Correct Answer
D) The PRE is automatically applied to any residential property purchased by a Michigan resident
Option D is NOT accurate. The PRE is never automatic — a homeowner must affirmatively file a PRE affidavit with the local assessor by June 1 or November 1 to receive the exemption. Simply purchasing a home in Michigan or being a Michigan resident does not trigger the PRE. Buyers who fail to file the affidavit will not receive the school tax exemption until they do so.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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