Michigan Real Estate Licensing 
FAQs & Requirements

1. Meet the Michigan prelicensure requirements:
   • Complete an approved 40hr MI Salesperson Pre-Licensure Course by clicking here.

2. Log In to MiPLUS.

1. • Click on Apply for License
   • Accept disclaimer
   • Click continue to application
   • Choose Real Estate from the List
   • Select which application you want
   • Continue Application

3. Check your email for a notice from PSI with your "Candidate ID#" inside.
4. Go to www.psiexams.com or call PSI at: 855-579-4635 to sign up for your Exam.
   • Once you PASS your exam PSI will send your results to the State of Michigan.
   • Your Broker will receive your wall License within 5-10 business days.

5. Employing Broker Notification – You are required to have a licensed individual broker or broker company sponsor for you to become licensed. (This can be entered into the application after your exam)
   • After passing the Real Estate Salesperson exam, you will need to provide your employing broker information to complete the licensure process. This can be completed online by visiting www.michigan.gov/miplus, select MiPlus Login, select "Modification" next to your application number and enter your employing broker's 10-digit license number. After the selected employing broker approves your request, your license will issue and you will be notified via email.

Education Requirement –

• Complete 90 hours of approved real estate coursework within 36 months of application.
  (See Exceptions Below)
  • Possession of a law degree is considered equivalent to 60 clock hours of real estate education with 6 hours in civil rights and fair housing law.
    • You will still need the 30hr Broker Prep Course and to sit for your exam.
  • Possession of a master's degree in business administration or finance is considered equivalent to 60 clock hours of real estate education.
    • You will still need the 30hr Broker Prep Course, the 6hr Civil Rights course, and to sit for your exam.
  • Possession of a bachelor's degree in business or finance is considered equivalent to 30 clock hours of real estate education.
    • You will still need the 30hr Broker Prep Course, the 30hr Law 101 course, and to sit for your exam.

Experience Requirement –

• Have at least 3 years full-time experience (5 transactions/year over a 3yr period) as a real estate salesperson, or equivalent experience such as:
  • a real estate salesperson or broker;
  • a licensed builder;
  • an investor;
  • a land or condominium developer;
  • a loan or trust officer of a federal or state-regulated depository institution;
  • a loan or trust officer of a mortgage company;
  • a real estate officer of a corporation;
  • a title insurance company officer engaged in the closing of escrow accounts and real estate closings; a staff or real property appraiser.

BROKERS do not apply to the state before testing -

• Register directly with PSI at psiexams.com or by phone at: 855-579-4635
  • The cost of the Broker exam is $79 and the test is timed (210 minutes).

In meeting the broker prelicensure education requirements, the department shall give credit for the following:Possession of a law degree is considered equivalent to 60 clock hours of real estate education, with 6 hours in civil rights and fair housing law.

You must use this form to apply for a broker license.

Possession of a master's degree in business administration or finance from a degree or certificate-granting public or independent nonprofit college or university, junior college, or community college is considered equivalent to 60 clock hours of real estate education. Possession of a bachelor's degree in business or finance from a degree or certificate-granting public or independent nonprofit college or university, junior college, or community college is considered equivalent to 30 clock hours of real estate education

You must use this form to apply for a broker license.

Property ownership (Salesperson 8%; Broker 10%)

1. Real versus personal property; conveyances
2. Land characteristics and legal descriptions
   1. Types of legal descriptions; Metes and bounds, Lot and block, a government survey
   2. Measuring structures
   3. Livable, rentable, and usable area
   4. Land Measurement
   5. Mineral, air, and water rights
3. Encumbrances and effects on property ownership
   1. Liens
   2. Easements and licenses
   3. Encroachments
   4. Other potential encumbrances of title
4. Types of ownership
   1. Tenants in common
   2. Joint tenancy
   3. Common- interest ownership Timeshares
   4. Condominiums & Co-ops
   5. Ownership in severalty/sole ownership Life Estate ownership
   6. Property ownership held in trust
      (BROKER ONLY)

Land use controls and regulations (Salesperson 5%; Broker 5%)

1. Government rights in land
   1. Property taxes and special assessments
   2. Eminent domain, condemnation, escheat
2. Government controls
   1. Zoning and master plans
   2. Building codes
   3. Regulation of special land types
      1. Flood Zones
      2. Wetlands
   4. Regulation of environmental hazards
      1. Types of hazards
      2. Abatement and mitigation
      3. Restrictions on contaminated
3. Private controls
   1. Deed conditions or restrictions
   2. Covenants, conditions, and restrictions (CC&Rs)
   3. Homeowners association regulations

Valuation and market analysis (Salesperson 7%; Broker 7%)

1. Appraisals
   1. Purpose and use of appraisals for valuation
   2. General steps in the appraisal process
   3. Situations requiring an appraisal by certified appraiser
2. Estimating Value
   1. Effect of economic principles and property characteristics
   2. Sales or market comparison approach
   3. Cost approach
   4. Income analysis approach
3. Competitive/Comparative Market Analysis
   1. Selecting comparables
   2. Adjusting comparables

Financing (Salesperson 10%; Broker 8%)

1. Basic concepts and terminology
   1. Points
   2. LTV
   3. PMI
   4. Interest
   5. PITI
   6. Financing instruments (mortgage, promissory note, etc.)
2. Types of loans
   1. Conventional loans
   2. FHA Insured loans
   3. VA guaranteed loans
   4. USDA/rural loan programs
   5. Amortized loans
   6. Adjustable-rate mortgage loans
   7. Bridge loans
   8. Owner financing (installment and land contract/contract for deed)
3. Financing and lending
   1. Lending process application through closing
   2. Financing and credit laws and rules
      1. Truth in lending
      2. RESPA
      3. Equal Credit Opportunity
      4. CFPB/TRID rules on financing and risky loan features
   3. Underwriting
      1. Debt ratios
      2. Credit scoring
      3. Credit history

General principles of agency (Salesperson 13%; Broker 11%)

1. Agency and non-agency relationships
   1. Types of agents and agencies
   2. Other brokerage relationships (nonagents)
      1. Transactional
      2. Facilitators
2. Agent's duties to clients
   1. Fiduciary responsibilities
   2. Traditional agency duties (COALD)
   3. Powers of attorney and other delegation of authority
3. Creation of agency and non-agency agreements; disclosure of conflict of interest
   1. Agency and agency agreements
      1. Key elements of different types of listing contracts
      2. Key elements of buyer brokerage/tenant representation contracts
   2. Disclosure when acting as principal or other conflicts of interest
4. Responsibilities of agent to customers and third parties, including disclosure, honesty, integrity, accounting for money
5. Termination of agency
   1. Expiration
   2. Completion/performance
   3. Termination by force of law
   4. Destruction of property/death of principal
   5. Mutual agreement

Property disclosures (Salesperson 6%; Broker 7%)

1. Property condition
   1. Property condition that may warrant inspections and surveys
   2. Proposed uses or changes in uses that should trigger inquiry about public or private land use controls
2. Environmental issues requiring disclosure
3. Government disclosure requirements (LEAD)
4. Material facts and defect disclosure

Contracts (Salesperson 17%; Broker 18%)

1. General knowledge of contract law
   1. Requirements for validity
   2. Factors affecting enforceability of contracts
   3. Void, voidable, unenforceable contracts
   4. Rights and obligations of parties to a contract
   5. Executory and executed contracts
   6. Notice, delivery and acceptance of contracts
   7. Breach of contract and remedies for breach
   8. Termination, rescission and cancellation of contracts
   9. Electronic signature and paperless transactions
   10. Bilateral vs. unilateral contracts (option agreements)
2. Contract Clauses, including amendments and addenda
3. Offers/purchase agreements
   1. General requirements
   2. When offer becomes binding
   3. Contingencies
   4. Time is of the essence
4. Counteroffers/multiple offers
   1. Counteroffers
   2. Multiple offers

Leasing and Property Management (Salesperson 3%; Broker 5%)

1. Basic concepts/duties of property management
2. Lease Agreements
   1. Types of leases, e.g., percentage, gross, net, ground
   2. Key elements and provisions of lease agreements
3. Landlord and tenant rights and obligations
4. Property manager's fiduciary responsibilities
5. ADA and Fair Housing compliance in property management
6. Setting rents and lease rates (BROKER ONLY)

Transfer of Title (Salesperson 8%; Broker 7%)

1. Title Insurance
   1. What is insured against
   2. Title searches, title abstracts, chain of title
   3. Marketable vs insurable title
   4. Potential title problems and resolution
   5. Cloud on title, suit to quiet title
      (BROKER ONLY)
2. Deeds
   1. Purpose of deed, when title passes
   2. Types of deeds and when used
   3. Essential elements of deeds
   4. Importance of recording
3. Escrow or closing; tax aspects of transferring title to real property
   1. Responsibilities of escrow agent
   2. Prorated items
   3. Closing statements/TRID disclosures
   4. Estimating closing costs
   5. Property and income taxes
4. Special processes
   1. Foreclosure
   2. Short sale
5. Warranties
   1. Purpose of home or construction warranty programs
   2. Scope of home or construction warranty programs

Practice of real estate (Salesperson 13%; Broker 14%)

1. Trust/escrow accounts
   1. Purpose and definition of trust accounts, including monies held in trust accounts
   2. Responsibility for trust monies, including commingling/conversion
2. Federal fair housing laws and the ADA
   1. Protected classes
   2. Prohibited conduct (red-lining, blockbusting, steering)
   3. Americans with Disabilities (ADA)
   4. Exemptions
3. Advertising and technology
   1. Advertising practices
      1. Truth in advertising
      2. Fair housing issues in advertising
   2. Use of technology
      1. Requirements for confidential information
      2. Do-Not-Call List
4. Licensee and responsibilities
   1. Employee
   2. Independent Contractor
   3. Due diligence for real estate transactions
   4. Supervisory responsibilities (BROKER ONLY)
      1. Licensees
      2. Unlicensed personnel
5. Antitrust laws
   1. Antitrust laws and purpose
   2. Antitrust violations in real estate

Real estate calculations (Salesperson 10%; Broker 8%)

1. Basic math concepts
   1. Loan-to-value ratios
   2. Discount points
   3. Equity
   4. Down payment/amount to be financed
2. Calculations for transactions
   1. Property tax calculations
   2. Prorations
   3. Commission and commission splits
   4. Seller's proceeds of sale
   5. Buyer funds needed at closing
   6. Transfer fee/conveyance tax/revenue stamps
   7. PITI (Principal, Interest, Taxes and Insurance) payments
3. Calculations for valuation, rate of return (BROKER ONLY)
   1. Net operating income
   2. Depreciation
   3. Capitalization rate
   4. Gross Rent and gross income multipliers

(MICHIGAN SPECIFIC PORTION) MICHIGAN STATE LAWS AND RULES
[NOTE: On examination questions dealing with Michigan Laws and Rules, "Department" refers to the Department of Licensing and Regulatory Affairs; "Board" refers to the Board of Real Estate Brokers and Salespersons]

Duties and Powers of the Department and the State Board of Real Estate (Salesperson-3 Items, Broker-3 Items)

1. General powers
2. Investigations, conferences, hearings, and exemptions
3. Penalties

Licensing Requirements (Salesperson-5 Items, Broker-4 Items)

1. Activities requiring a license and exemptions
2. Types of licenses
3. Eligibility for licensing
4. License renewal, including continuing education
5. Transfer or change in license

Statutory Requirements Governing the Activities of Licenses (Salesperson-10 Items, Broker-15 Items)

1. Advertising
2. Commissions and Specific Services for Which Fees may be charged
3. Disclosure/conflict of interest
4. Handling of contracts, documents, listing and recommendations
5. Handling of monies and trust accounts
6. Place of business/branch office requirements (Broker Only)
7. Record keeping
8. Inducements
9. Alternative Dispute Resolution vs. Arbitration (Broker only)
10. No disclosure duty attaches to stigmatized property
11. Closing responsibilities

Contractual Relationships (Salesperson – 5 Items, Broker – 5 Items)

1. Agency relationships available in MI
   1. Transaction coordinator
   2. Designated agency
   3. Dual agency
   4. Agency disclosures
2. Broker/Salesperson relationships
3. Service Provision Agreements (Listings, Buyer Broker

Additional State Topics (Salesperson-12 Items, Broker-13 Items)

1. Land Division Act - Public Act 591 (Disclosure of Private Road)
2. Michigan fair housing
   1. Elliott-Larsen Civil Rights Act
   2. Persons with Disabilities Civil Rights Act
3. Landlord Tenant Relationship Act, Truth in Renting Act
4. Usury laws (Broker only)
5. State Transfer Tax
6. Michigan Condominium Act
7. Michigan State Housing Development Authority (MSHDA)
8. Uniform State Anti-trust Act
9. Michigan Right to Farm Act (Seller's Disclosure Required)
10. Changes in the Land Contract Laws (Dodd Frank Lawfederal)

You must use a desktop or laptop computer to complete the registration and renewal process.

• Login to MiPLUS.
• Click on the "Licenses" tab.
• Find your License Number under the "Record Number" column. Click on the "Renew License" link located under the "Action" column.

This Frequently Asked Questions (FAQ) document provides answers to questions regarding the conversion to the new system. If you have additional questions or concerns regarding the transition, please do not hesitate to contact us at 517-241-0199 or email BPLHELP@michigan.gov.

Michigan real estate salespersons and brokers must complete 18 hours of continuing education each 3-year renewal cycle.

• 6 hours of approved continuing education for each year of the licensing cycle including:
• 2 hours of legal updates per year
• 1 hour of fair housing per year
• 3 hours of management, operation, and practice of real estate per year

The renewal cycle for Salesperson and Broker licenses is every three years. Newly issued licenses will expire 3 years from the date of issuance.

• With the 2021 renewals open, a licensee will renew their license and the expiration date will change to 3 years from the original day/month of license issuance.
• Most licensees may receive a license for more than 3 years until all licenses have been changed to a 3-year expiration date.
• For example, if a license was originally issued on 4/1/2002 and the licensee renews that license in 2021, the new expiration date will be 4/1/2025.

No.

Salesperson Application Fee + 3 year license fee:

• New Application: $88.00
• Renewal Application: $78.00
• Relicensure Application (expired license): $108.

Individual Broker Application Fee + 3 year license fee:

• Individual Broker New Application: $143.00
• Relicensure Application: $163.00
• Renewal Fee - $108.00

Branch Office Application Fee + 3 year license fee:

• Branch Office New Application: $70.00
• Relicensure Application: $90.00
• Renewal Fee - $60

There is a 60-day grace period for realtors who do not renew by the deadline. The grace period ends 60 days after your expiration date. Realtors renewing during this period must pay a $20 late fee. Realtors can renew by paper application with a check or online with a credit/ debit card.

Michigan salespeople and brokers must complete reinstatement forms in order to renew their licensing. You will have to complete a salesperson reinstatement form or a broker reinstatement form in order to renew.

SALESPERSON:

Applicants whose license has been expired for LESS than 3 years:

• Complete six (6) hours of real estate continuing education for each year and partial year missed. At least 2 hours per year must involve laws, rules, and court cases regarding real estate. Do not submit completion certificates. The licensee shall produce the record that contains that evidence at the request of the department.

Applicants whose license has been expired for MORE than 3 years:

(choose one of the following):

• Pass Exam: Submit online application to receive approval.
• Submit a copy of an approved 40-hour prelicensure course completion certificate that was completed within the last 12 months.
• Submit proof of completion of six (6) hours of real estate continuing education for each year and partial year missed. At least 2 hours per year must involve laws, rules, and court cases regarding real

BROKER:

Applicants whose license has been expired for LESS than 3 years:

• Complete six (6) hours of real estate continuing education for each year and partial year missed. At least 2 hours per year must involve laws, rules, and court cases regarding real estate. Do not submit completion certificates. The licensee shall produce the record that contains that evidence at the request of the department

Applicants whose license has been expired for MORE than 3 years:

(choose one of the following):

• Exam: Take and pass the Real Estate Broker examination administered by PSI Services.
• Complete 90 hours of approved prelicensure education courses which includes 9 hours of civil rights law and equal opportunity in housing within 12 months immediately preceding the date of application.
• Complete six (6) hours of real estate continuing education for each year and partial year missed. At least 2 hours per year must involve laws, rules, and court cases regarding real estate.

Contact the Department of Professional Licensing with questions: 517-241-9288