Steps to obtain your real estate license in michigan

Michigan, the land of the Great Lakes. Birthplace of Motown and the American automobile, Michigan is also the largest state by area east of the Mississippi and hosts the most light houses of any state! Thank you, Wikipedia and Mr. May’s A.P. U.S. History class. 

But enough history class! You don’t need to be a history teacher to become a real estate agent in Michigan, although teachers can make great agents. You don’t even need a college degree to get your real estate license, although it might help if you study real estate.

This blog will cover how to get a Michigan Real Estate Salesperson’s and Broker’s license and getting a license through reciprocity. 

Qualifications & Steps

To qualify to become a real estate salesperson is not terribly difficult on paper. You must be 18 years of age and have a good moral character. The harder part is the pre-license education and knowledge check.

Michigan requires that all new applicants must complete a 40-hour pre-license that includes a heavy emphasis on real estate law. “What other kind of law would it cover?” That’s a good question. You’ll learn about contract and property law, as well as licensing law and how a real estate company must operate in Michigan. You will also take a course final exam and pass with a score of at least 70% for salespersons and 75% for brokers.

After completing the pre-license course, you will then take the state licensing exam and then apply to the Department of Licensing and Regulatory Affairs (LARA).  The state licensing exam covers a national portion and a state law specific portion.

You will take the licensing exam through PSI Exams.  Candidates must apply first through the BPOA for licensure and then  apply to take the licensing exam through PSI. 

Board or Department of Licensing and Regulatory Affairs?

It can be pretty confusing on how to apply to get your real estate license. The Michigan Board of Real Estate Brokers & Salespersons is most often referenced because they are the regulatory body for real estate professionals. However, you will apply through the LARA’s portal, the Michigan Licensing System or MiPlus, for your real estate license. Here is a brief breakdown:

When it comes to applying for a new license, renewing your license, or changing your license status, you will most likely go through MiPlus to file the appropriate application. 

Getting an Michigan Brokers License

Getting the next level of real estate license is a similar process to getting your initial salesperson license. 

The process to become a broker is virtually the same as a salesperson. You will complete the pre-license education, apply to LARA, then pass the state licensing exam. There are 2 slight differences to get your broker license: the broker pre-license education is 90 hours, not 40. The 90 hours comes in multiple courses approved by the Commission, including a mandatory 30-hour broker management course.  You also must have 3 years of full time experience in the business of real estate, which can include being licensed as a salesperson or another similar field approved by the Board.

Michigan Reciprocity

Michigan has one of the more unique licensing processes for people who are already licensed in other states. Michigan does not have any formal reciprocity agreements with other states. You can still apply through MiPlus for a Michigan license and the Board may waive some education or examination requirements for those that can demonstrate substantial experience as a real estate professional. 

The Board will examine each application on a case by case basis.

Exemptions and Other Considerations

If you are applying for a salesperson license, you may be exempt from the pre-license education requirements. If you have a law degree, a bachelor’s or master’s degree in finance or business, or any other educational credit the Board determines is sufficient, the Board may grant you an exemption and you won’t have to take the salesperson 40-hour pre-license education.

Further, broker license applicants will receive 30 hours of education credit if they have a bachelor’s degree in business or finance. Broker License applications may receive 60 hours of education credit if they have a masters degree in business or finance or they have a law degree.

If you have any questions about getting licensed in Michigan or other states, do not hesitate to contact our License Law specialists.