Michigan Real Estate License Quick Info
Real Estate License Types
- Real Estate Salesperson License: This license allows individuals to engage in real estate transactions under the supervision of a broker. It is the entry-level license for most real estate professionals in Michigan.
- Associate Real Estate Broker License: This is for individuals who meet the qualifications of a real estate broker but choose to work under another broker rather than open their own office.
- Real Estate Broker License: This advanced license enables holders to operate their own real estate business and manage other agents. It requires additional experience and education compared to the salesperson license.
Prerequisites for Real Estate Licensing
- Be at least 18 years old
- Have a valid US Social Security number
- Be of “Good Moral Character”
- Complete 40 hours of approved pre-licensing education
- Pass the real estate licensing examination
- Apply for the license through the Michigan Department of Licensing and Regulatory Affairs
- Sponsored by a Real Estate Broker
The Exam
- 115 questions total
- A passing score of 70% is required
- The examination fee is $79
License Fees
- Application Fee: A salesperson application fee of $88 is required
- Background Check Fee: Fingerprints and a background check $40
Real Estate Schools
Agent Nook occasionally uses vetted affiliates in our links. It costs you nothing and helps to provide more excellent content.
- Aceable Agents Real Estate School: LARA Approved 40-Hour Real Estate Course
Starting Your Michigan Real Estate Career
From Downtown Detroit lofts to the Hamptons-style mansions of New Buffalo, Michigan offers an exciting real estate market with excellent opportunities for new agents.
Michigan also offers a scaled-down licensing process compared to neighboring states—requiring just 40 hours of education versus 90 in many.Â
Navigating the Michigan real estate license can be a breeze with dedication, patience, and attention to detail. This guide will fast-track the process, bringing you closer to that first big commission check.
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Michigan Licensing Requirements
The Michigan Bureau of Professional Licensing has an extensive application process to ensure prospective agents are knowledgeable, trustworthy, and prepared to help Michiganders with their most significant investments: Their homes.
Licensing Prerequisites
- Age: Must be 18 years of age.
- US Work Eligible: Possess a Social Security number.
- Be of Good Moral Character: Applicants must confirm past felonies and some misdemeanors.
- Pre-Licensing Education: Completion of 40 hours of approved real estate education.
- Application Fee: Complete online and pay a $88 application fee.
- Pass the Licensing Exam: Pass the State and National exam covering specific real estate laws and practices.
Good Moral Character
To ensure the integrity of the Michigan real estate market, agents must disclose previous convictions for a felony or certain misdemeanors. This process verifies the good standing character of prospective real estate agents.
If you answer yes, be prepared to provide the offense type, year of incident, court the case was held in, the case number, and additional incarceration, probation, or parole details.
Many US real estate and licensing divisions seek fraud, embezzlement, and financial crimes as reasons to decline an application. However, checking in advance with LARA regarding your concerns may save time and money in the long run.
Pre-Licensing Education
Michigan mandates 40 hours of pre-licensing education offered through approved classes. Classes can be completed 100% online and cover topics from property law to ethics, preparing agents for the challenges and responsibilities of real estate sales.
Aceable Agent offers a 40-hour LARA-approved licensing course starting at $179. The basic plan includes instructor support and exam prep with a pay-over-time option.
Application Process
Once the 40-hour educational requirement is completed, you can file your application. Applications must be completed online.
Applicants will complete the final exam after receiving the application approval.
Documents to have prepared
- Proof of Age: A government-issued ID such as a driver’s license or passport.
- Proof of Completion of Pre-licensing Education: This includes certificates or official transcripts from the institution where you completed a real estate pre-licensing course.
- Social Security Number (SSN): Documentation or information confirming your SSN.
- Payment Information: Credit or debit card details for payment of the application and licensing fees.
- Good Moral Character (GMC) Disclosure: Any required disclosures regarding past criminal convictions or disciplinary actions in other professions, if applicable.
The Michigan Real Estate Exam: What to Expect
After submitting the online real estate salesperson application, the Michigan LARA office sends an email with an Exam Candidate ID number. The identification number allows you to schedule the exam with PSI Exams.
The 115 multiple-choice question exam covers real estate principles and practices and Michigan State laws and rules.
About the Big Test:
- Number of Questions: 115 multiple-choice questions.
- Passing Scores: A minimum score of 70%
- Question Types: multiple-choice, testing your understanding of real estate principles and laws
- Duration: 3 hours.
- Cost: $79
- Real Estate Exam Booklet
The exam is challenging but fair, and passing it is a testament to your readiness to embark on your real estate career.
Find a Sponsor Brokerage
Agents must have a sponsored broker before a real estate license is issued. With the exam behind you, it’s time to make vital career decisions, including finding a brokerage.Â
Choosing Your Specialty
Real Estate is a field with diverse possibilities. Reflect on whether your passion lies in helping families find their dream homes, assisting businesses in securing the perfect commercial space, or managing properties.
Each specialty has its own set of demands and skills:
- Residential Real Estate: Focus on individual or family dwellings, selling single-family homes, condominiums, and townhouses.
- Commercial Real Estate: Specialize in business properties, including leasing and selling office spaces, retail locations, and more.
- Property Management: Manage the leasing of residential, commercial, or industrial properties for investors.
Real estate agents have the added decision of becoming a REALTOR®. Agents are not REALTORS® until joining the National Association of REALTORS®, a membership most prevalent in the residential industry that provides access to the Multiple Listing Service (MLS)® and benefits like discounted healthcare and legal support.
Finding the Right Brokerage Fit
Choosing a brokerage can significantly influence your career direction and growth. New agents should interview several realty firms and speak with local brokers for market intel.
Take advantage of platforms like Agent Nook to delve into the cultures and strengths of different brokerages. Finding a brokerage that complements your chosen specialty and supports your career goals and development will provide a better path to success.
Post-Licensing Education Requirements
A Michigan real estate license is renewed every three years. Before renewing a license, agents must complete 18 hours of continuing education in real estate-related subjects.
Annually, 2 continuing education hours must be in law, rules, or court cases.
Networking for Success
A robust professional network can catapult your career forward. Engage with peers, seek out mentors, and participate in discussions. Forming these connections can lead to referrals, partnerships, and insightful advice.
Joining a real estate team can provide instant mentorship and partnerships, helping new agents get up to speed quicker with a lead flow and helping to keep you financially supported as you begin your career.
Final Thoughts
Real Estate is an exciting industry. Congratulations on taking the first steps.
The hours of education and studying for the big exam seem daunting. Still, all the hard work and dedication will open an exciting new career with unique freedoms and unlimited earning potential.
The first rule in Real Estate is to always be marketing. So post this link on your favorite social media and announce your exciting plans. Take your friends and family along for the journey, and continually remind them who their new real estate agent is.
Welcome to the industry.
Author: Agent Nook Team
Sometimes, it takes a team. Agent Nook always brings an experienced perspective—or several—into each post. This ensures our readers always have the most up-to-date and relevant information.
