How To Become A Real Estate Agent In Michigan

Interested in starting a real estate career in Michigan State? Let’s take a look at the steps required to become a real estate agent within the State of Michigan, some of the costs involved, and how long the entire process will take. Keep on reading!

How To Get Your Real Estate License in the State of Michigan

As we mentioned before, there are several key criteria you have to pass before you can become a real estate agent in the State of Michigan. These criteria were put in place by the Michigan Department of Licensing and Regulatory Affairs (LARA), the government agency in charge of licensing and regulating real estate agents within the state. In a nutshell, they include:

You must be at least 18 years old
You must have a high school diploma or its equivalent
You must either be a Michigan resident or apply for an out-of-state license
Complete 40 hours of Michigan Real Estate pre-licensing classes
Pass the final exams in your pre-licensing real estate courses
Find a broker to sponsor you
Submit a completed exam application
Schedule your Real Estate Sales Associate Examination
Pass the Michigan Real Estate Sales Associate Examination

While all these may seem pretty simple, there are some important aspects that I would like to highlight to make the process as smooth as possible.

Real Estate Pre-License Classes we recommend: Michigan Real Estate Pre-License School

Meet the Minimum Age, Education, Residency, and Citizenship Requirements

The first part is quite straightforward and applies to most states in the country. Any individual interested in applying for a real estate license within the State of Michigan must provide proof that they are at least 18 years of age and have a GED, high school diploma, or its equivalent.

The individual must also be a U.S. citizen with a valid Social Security Number or a lawfully documented resident. You must also be a resident of Michigan or apply for an out-of-state license.

Also, it’s important to note that certain crimes may also prevent you from applying for a real estate license in the State of Michigan. This is part of what is known as moral character specifications. Any felony convictions within the last 10 years or certain misdemeanors within 5 years of application can disqualify you from obtaining a Michigan real estate license. For more information concerning this, you can contact the Michigan Department of Licensing and Regulatory Affairs (LARA) for more details.

Complete 40 Hours of Real Estate Pre-Licensing Courses

The next step is to complete 40 hours of approved real estate pre-licensing courses. The course covers the basic theories and practical concepts you will need to know as a practicing real estate agent in Michigan.

This includes:

Real Estate Fundamentals, Real Estate Law, and Principles and Practices of Real Estate (36 hours)

Civil Rights Law and Equal Opportunity in Housing (4 hours)

Some of the courses include:

Financing
Property ownership
Contracts
Land use regulations
Market analysis along with valuation
Specialty areas
Transfer of title
Property conditions and disclosures
Basic real estate calculations
General principles of a real estate agency

These courses can be taken as physical classes supported by online resources or as online classes depending on your preference. The duration of a solely online pre-licensing program depends on your schedule and how quickly you can grasp the material.

These classes will be anchored by experienced real estate professionals at approved licensure course centers. The tuition for these classes may be between $100-$400. These courses may seem a bit confusing initially since you are learning an entirely new set of languages and concepts. However, with time and dedication, you’ll easily adapt and find yourself gaining a deeper understanding of the Michigan real estate industry.

Pass the Final Exams in Real Estate Courses

Once you have completed the courses, you have to pass the final examination with at least a score of 70%. Once you have passed this you will be presented with a Certificate of Completion for that course. When applying for your license, you must submit a copy of this certificate to be eligible.

Most people rush to finish the material and take the final exams. However, this is not the best way to approach the course. Take your time to ensure that you understand the course material fully and avoid overwhelming yourself with information.

You are allowed two attempts to pass each course. If you fail the exam, you may sit for it again once within a year of registering for the course. If you fail again, you will be required to retake the entire course before being eligible to retake the course final exam.

Find A Michigan Brokerage To Sponsor You

The next step is to apply for sponsorship with a licensed broker. This involves completing a sponsorship request which may take several months. There are several important things to keep in mind when choosing a broker. They include factors such as:

Broker reputation
Mentorship culture
Commission splits
Commission caps
On-going monthly fees, and so on.

Create Your Application

Once you find a broker, create an online account through iCOLA, the website through which LARA handles applications. This will involve creating a unique user ID and password. From here you can fill out your salesperson application and submit it along with the $88 licensing fee.

Have your broker log into their iCOLA account and confirm their affiliation with you. You will also be required to fill in the unique 10-digit identification code of your broker as part of your application. If you have not yet found a broker your application will be marked as “pending”. When you find a broker fill out the Employing Broker Notification form with the Michigan Department of Licensing and Regulatory Affairs. If this is not done within a year, the application will be automatically canceled.

You will be asked to submit some basic documentation and details, including your Certificate go Completion for your pre-licensing course. Once you are done, simply submit the form and wait for approval.

If your application is approved you will be provided with a candidate ID number known as your Michigan Real Estate (or MIRE) number which is required to register for the test. This is usually sent within two days of applying. Your details will also be forwarded to PSI, the testing agency contracted by the LARA to handle the examination. You can now contact them to schedule your exam.

Schedule Your Exam

Once your details have been forwarded to PSI, you will receive an email with further instructions concerning scheduling the exam and how to pay the $79 exam fee. They will also send you an Examination Authorization Form which entitles you to take the exam only one time.

PSI runs several testing centers in Michigan which you can check out here. You can see the testing locations in the Candidate Handbook or by scheduling on PSI’s website. You can also call (855) 579-4644 for registration assistance. They also have several study materials and prep questions for potential candidates as well.

Pass the Michigan Real Estate Licensing Exam

You are expected to present to the examination venue with certain items and identification materials. The identification materials are usually a valid form of photo identification, a valid form of photo ID issued within the past 5 years.

The only acceptable forms of photo identification include a current state-issued driver’s license or DMV identification card, a U.S. passport or a passport issued by a foreign government, and a U.S. Military identification card. You are also allowed to bring along a basic (non-scientific) calculator.

The Michigan State salesperson exam is divided into two sections of multiple-choice questions, a national section, and a state section. The total number of questions is 115 questions (with a state and national section) which are to be answered in 3 hours. A passing score of 70% is required in both sections.

Your score will be displayed immediately after completion of the exams and an official score report with your score and any other diagnostic information will be provided to you. The exam report will also be reported to the Michigan Board of Real Estate Brokers and Salespersons. If you pass the exam, you will immediately be issued a temporary license while your formal license will be provided within two weeks. Remember that your license will not be issued until you have found a sponsoring brokerage.

You must pass both portions of the exam before moving on to the next steps with your license. If you passed one section of the exam and failed the other you can retake only the section you failed. You can retake the exam as many times as you want within one year of your original application. Note that with each attempt you must pay an additional examination fee.

In Conclusion

Getting your real estate license in Michigan is quite easy if you follow all the required steps. The entire process can take several weeks and may cost you between $300-$1000 depending on the pre-licensing center chosen and other factors. However, with hard work and dedication, you’ll be a licensed Michigan real estate agent in no time.

How To Become A Real Estate Agent in Michigan