How to Become a Licensed Real Estate Agent in Michigan
Michigan Real Estate License Basic Requirements
To apply for a real estate agent license in Michigan, you need the following basic requirements.
- You need to be at least 18 years of age (if you are about to turn 18, you can sit for the examination)
- You need to have a high school diploma or an equivalent degree
- You need to have Good Moral Character (GMC)
- You need to complete 40 hours of pre-licensing education
- Find a managing broker to sponsor your license
- Clear the Michigan real estate examination
Michigan Real Estate License Costs
- Cost of acquiring Michigan Real Estate license: $167 approximately is the fixed cost, while variable cost may differ depending on the state’s requirements.
STEP 1: Real Estate Pre-licensing Education
When you are looking to apply for a real estate agent license in Michigan, you need to first complete 40 hours of pre-licensing education that is pre approved by the state. You can complete these 40 hours from any institute, college or university that has been approved by the state. There are various online programs and institutes that you can enroll in to complete your pre-licensing education requirements. The CE Shop and Real Estate Express have already been mentioned as good resources to prepare for your pre-licensing education and subsequent examination. Some of the crucial topics that your pre-licensing education will cover include “Forms of Ownership”, “Title and Title Transfer”, “Interests and Estates”, etc.
Once you have completed the 40 hours of your education, you will need to sit for your final exam. The institutes that you have enrolled in to complete this curriculum will hold several practice tests before you sit for the final exam. Most institutes offer unlimited practice tests.
The minimum pass score in this exam is 70%. This exam will be conducted in the presence of a proctor. If you are taking the exam online, arrangements for an online proctor will be made. Once you have cleared the exam, you need to collect your transcripts from the institute. If you are enrolled in an online program, you will be provided with an electronic certificate.
STEP 2: Submit a Completed Application
Once you have taken the pre-licensing requirements, you must begin your application. You can apply for your Michigan real estate license here—this link will take you to the Michigan Department of Licensing and Regulatory Affairs (LARA).
Once you have submitted your application, the licensing department will send you an email with your exam candidate ID number. You will be using this number to register for your exam. The license application fee is $88 and will be valid for a year. You will need to complete the application process within the year or the validity of the fee will lapse.
STEP 3: Pass the State License Test
The next step is to appear for the state test and clear it. The examination fee is $79 and the test will be divided into two parts, general and state specific. There are 115 questions that you will have to answer in 180 minutes. The raw passing score is 80 while the minimum passing percentage is 70%.
You will be notified of your result immediately after the test. However, while several other states will reveal the score immediately, Michigan will only declare whether you have passed and does not provide a numerical score at the site of the examination. If you do not pass, the screen will reflect a diagnostic result that will show your marks for the individual sections. This information is meant to prepare you for the re-examination.
At the site of the examination, you will be given an unofficial score report on paper. You can request for a duplicate score report later by sending an email to firstname.lastname@example.org or calling 800-733-9267.
Topics to Cover
- Property ownership
- Land use controls and regulations
- Valuation and market analysis
- General principles of agency
- Property disclosures
- Leasing and property management
- Transfer of title
- Practice of real estate
- Real estate calculations
- Duties and powers of the department and the state board of real estate
- Licensing requirements
- Statutory requirements governing the activities of licenses contractual relationships
- Additional state topics
What to Bring to the Venue
The following are the essentials you are required to carry to the venue in order to be permitted inside for the examination.
- One government-issued identification that has your current photograph and signature (passport, driver’s license, etc.)
- Another identification that has your signature (it should match the primary identification you are carrying) and your legal name, pre-printed (Social Security card, credit card, etc.)
Note: Identifications that will not be considered valid are student IDs, employment IDs, and other forms of temporary identifications. Also note that all your registrations should have the same legal name and signature as mentioned in the identifications you bring to the examination venue.
STEP 4: Apply and Obtain Your License
Once you pass the Wyoming Real Estate Salesperson Exam, you must submit your original score report and the completed application for your license to the Wyoming Real Estate Commission within 90 days.
Before applying for the Wyoming Real Estate Salesperson license, you must:
- Complete the Salesperson I and II courses and pass.
- Pass the National and State Exam for Salesperson.
- Submit your fingerprints.
If you have an active license from another state, then before applying for the Wyoming Real Estate Salesperson license, you must:
- Submit your fingerprints.
- Complete the Wyoming Law portion
of the Salesperson I course and all courses of the Salesperson II course.
- Pass Salesperson state exam.
Your real estate license application will not
be approved and issued until your fingerprint card has been processed by the
Division of Criminal Investigation of Wyoming and the Commission receives a
You can get your fingerprints taken at any local law enforcement agency. You will need to get two blue fingerprint cards. You must bring an envelope with you in which the fingerprint cards will be put by the official taking the fingerprints and he/she will seal the envelope.
The envelope should have an official stamp of the agency/department taking the fingerprints. You must ensure that you fill in all the information on the fingerprint card completely using black ink only. Incomplete fingerprint cards will not be accepted.
You must mail your fingerprint cards along with your contact information and a fee of $39 to the Commission’s office. The fingerprint report is valid for a period of 90 days after issue. If you don’t complete your license application before the fingerprint report expires, then you will have to go through the entire process again.
If you have a real estate salesperson license from any other U.S. state and are looking to get a license in Wyoming, then you must complete the Wyoming Law section of the Salesperson I course, the Salesman II course and pass the state license examination.
Once you have passed your state exam, you are eligible to receive your license. However, if you have still not enlisted your employer, your application will remain incomplete. Only once the licensing department receives the Employing Broker notification can your license be issued.
STEP 5: Finding a Brokerage
The following are some of the real estate brokerage types you can work with in Michigan.
National Franchise Brokerage
A national franchise brokerage is a large-scale company that has a countrywide presence. This is a company that will sell the franchise name to brokers and independent agents to finalize deals. When a deal is brokered, the company gets a hefty sum of the commission because it allowed a broker to use its name. These are typically well-known companies and have established a name for themselves by expanding operations nationwide.
- If you want to work with a company that has a solid reputation, you cannot go wrong with a national franchise brokerage firm. Your association with the company will automatically bring credibility to your name.
- You will have access to the latest technology while associated with a national franchise brokerage company.
- A national franchise brokerage company will invest a lot of time training its recruits and ensuring they are on the same page as the company’s official line.
- You will be equipped with several official marketing solutions such as the brand logo, design strategies, advertising templates, etc.
- These companies operate on a massive scale and can often not provide individual attention to agents.
- The company tends to take the lion’s share of the commission split.
An independent brokerage or a boutique brokerage operates at the local or regional level, as opposed to the national level. Such companies often have expertise in a specific area and are the best people to work with if you want to specialize in a certain state or region.
- Since the scale of the company is relatively small, you can count on getting individual attention and the space to thrive as an agent.
- There are fewer people to compete with at the firm.
- A smaller brokerage firm may have more personal ways of dealing with business and may not insist you follow an impersonal corporate line.
- These companies do not have budgets as high as national franchise brokerages.
- Latest, more expensive technology may come to you later than competitors.
In the 21st century, a virtual brokerage is the norm of the day. As with everything else, this is a mode of business that has accepted the ways of the internet and its ability to allow innovative business. A virtual brokerage firm will not have a physical office space and agents do not need to be confined to a single area. However, it can be quite difficult to scale up so fast and operate at a wider scale. Therefore, one may often find independent brokers turning to virtual brokerage and offering their services in specific regions or areas, at least to begin with.
- You are likely to get the best commissions from such an operation because it is smaller in scale and commissions are split between fewer people.
- Since resources are not being diverted to maintain an office space, they can be invested in the newest technology.
- These operations start at a very small scale and it can be quite difficult to establish a name.
- You may miss out on the traditional office environment, especially if this is your first job.
STEP 6: Post-learning Requirements
Once you have received your license, there are still commitments you owe to the state. The state of Michigan requires all real estate agents to obtain 18 credit hours as part of continuing education. This is to ensure that all “active” real estate agents remain up to date with all developments in the market and that their education remains relevant to current trends in the market.
The state, therefore, will require you to complete the stipulated number of credit hours every three licensing cycles, with at least two law specific credit hours. Of the 18 hours, 12 credit hours are for elective subjects while there are certain mandatory credits that you must complete. If you fail to complete these 18 credit hours when your license comes up for renewal, the license will be deemed “inactive”.
You will not be able to practice as a real estate agent with an “inactive” license. So once you have become a real estate agent, it is important to keep in mind the requirements you must fulfill to remain a real estate agent. If you’re looking for a continuing education course to help you get a grasp of the various subjects, The CE Shop offers various options—from $45 to $85 for their comprehensive course. Their individual CE courses start at just $9.