Becoming a Michigan real estate broker is a strong step forward in your career. Not only does this advanced license look great on a resume, it also allows you to work independently, open real estate brokerage firms, and manage other agents within these firms.
Getting the Michigan Real Estate Broker License is a fairly simple process, but it does require you to complete four steps, and have a few prerequisites before applying or taking the broker’s exam.
This guide covers all of these requirements in a simple, easy to understand way that will make it easier for you throughout this process.
Michigan Real Estate Agent vs Real Estate Broker
Michigan offers two different types of real estate license: Sales and Broker.
A sales agent’s license is the initial license that real estate agents get in order to sell real estate.
A broker’s license is an advanced license that allows the license holder to operate at a higher level within real estate businesses in Michigan.
People often confuse sales agents and brokers. A simple way to look at the difference is that holders of the sales agent’s license are called real estate agents, while holders of the broker’s license are called real estate brokers.
Michigan Real Estate Broker License Requirements
First, to be eligible for a real estate broker’s license, you must meet the prerequisites to become a real estate broker in Michigan.
These prerequisites are:
- Must have three years of full-time experience in the business of real estate or in a field that is determined by the department to be relevant and related to the business of real estate
- Experience can be as a salesperson, broker, associate broker, licensed builder, investor, or developer
How to Become a Real Estate Broker in Michigan
Once you meet all the requirements listed above, you can follow these four steps to easily help you get your real estate broker license in Michigan.
Step 1: Complete a Michigan Broker Pre-Licensing Course
The first step to getting your real estate broker license in Michigan is to take 90 classroom hours of qualifying real estate courses.
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These real estate courses mostly cover the fundamentals of working in real estate and must be completed within one year of your broker’s license application. This requirement is divided into two sections:
The required 90 classroom hours of qualifying real estate courses, including the following mandatory courses are:
- Real estate law
- Broker management
- Broker basics
- Real estate fundamentals
- Property management
- Fundamentals of financing
- Civil rights
- Market analysis highest and best use
- Appraisal principles
- Intro to analyzing commercial real estate
- Mortgage loan officer pre-registration
- Senior real estate specialist
- Accredited buyer representative
As part of the 90-hour classroom requirement, you must also take the following subjects:
- GRI one Broker prep (30 credit hours)
- GRI two Broker prep (30 credit hours)
Your broker pre-license courses don’t end here. To fully satisfy your course requirements, you must take additional six credit hours in related qualifying education courses acceptable to the Michigan Licensing and Regulatory Affairs (LARA) or approved continuing education (CE) courses.
Note:These approved CE courses that you take as an agent during your agent license renewal build towards that six hour requirement. At least two hours per year must involve:
- Real estate laws
- Real estate rules
- Real estate court cases
While Michigan offers no reciprocity, the state allows certain education to take the place of traditional pre-license education. The exceptions are as follows:
- Possession of a law degree is considered equivalent to 60 hours of real estate education with six hours in civil rights and fair housing law
- Possession of a master’s degree in business administration or finance is considered equivalent to 60 clock hours of real estate education
- Possession of a bachelor’s degree in business or finance is considered equivalent to 30 clock hours of real estate education
After completing the courses, you must also pass the final broker course exam. The minimum passing grade is 75%. The final pre-license exam is to be supervised by a proctor, whether on-site or online. This is not the same as the state broker exam.
After passing your broker course exam, your pre-license education provider will provide you with your course completion documents. Michigan’s Licensing and Regulatory Affairs (LARA) recommends submitting your completion documents via the MiPlus system or filling out an online assistance form.
Step 2: Submit a Michigan Broker License Application
Once you meet the broker pre-licensing education requirements and pass the course exam, you can now apply for your license.
The application fee is $143.
To submit your broker license application, you must use the Michigan LARA MiPLUS system. Use your registered username and input your full name and click “Register now” for a new account.
Michigan is no longer accepting in-person application forms, so you must use their online option to file for renewal, a new application, and to answer any questions about your experience.
Step 3: Pass the Michigan Real Estate Broker Exam
After completing the steps above, you must take the real estate broker licensing exam via PSI.
The fee for the broker exam is $79.
In Michigan, brokers take an exam which consists of 115 scored questions. You must complete the Michigan real estate broker exam within 210 minutes.
The passing rate is 75% for the Michigan Real Estate Broker Exam.
If you happen to fail the exam, you can request that your exam be rescored or retake the test and schedule a new testing date through PSI.
For more information on the exam, PSI provides a Candidate Handbook containing the Michigan Real Estate Broker Exam content outline.
Taking an exam prep course provides you helpful tools and materials, such as quizzes and specific state-only practice exams, to increase your chances of passing your broker license exam the first time.
Step 4: Application Review
After passing your broker exam, you will only need to wait for Michigan LARA to review your application and then notify you. Remember that everything happens online, as the LARA no longer accepts paper applications. You can check the MiPLUS system so you can check the status of your application.
Now that you’ve successfully passed the broker licensing exam and obtained your license, there are a few things you need to do to keep your broker license active and updated.
Michigan Real Estate Broker License Renewal and CE
In Michigan, you must renew your real estate broker license every three years. LARA will send you a renewal notice within 60 days before your expiration date. The renewal process is not the same for the broker license and sales agent license.
To renew your license, you must use the Michigan LARA MiPLUS system. The renewal fee is $108 for an individual broker or $60 for a branch office.
As part of renewing your broker license, you must also complete the CE requirements that include 18 hours of Michigan LARA-approved courses related to the management, operation, and practice of real estate, as well as real estate laws, rules, and court cases.
Michigan Real Estate Broker License FAQ
How much does it cost to get a real estate broker license in Michigan?
The costs of getting a real estate broker license in Michigan can range between $431 and $621.
The cost breakdown is as follows:
Pre-license education courses: $209-$399
Application fee: $143
Broker exam fee: $79
How long does it take to get a real estate broker license?
The steps that typically take the most time when getting a broker license include taking pre-license education courses and exams. The average amount of time to get a broker license is generally three to six months.
What is the difference between a real estate agent and a real estate broker?
Real estate agents focus on working with clients on individual real estate transactions, while real estate brokers have more experience with the added responsibility of managing a team of real estate agents or brokerage business.
See our Real Estate Agent vs Broker vs Realtor page for more information.
How much does a real estate broker make?
Real estate brokers get paid just like real estate agents by earning commissions on their agents’ sales. Brokers can also charge the real estate agents they manage with a fixed monthly fee or have the option to earn money on commission sales by helping their own clients buy and sell property. According to Payscale data, brokers earn $61,314 per year in base salary, with anywhere between $10,000 and $147,000 in commissions. The Bureau of Labor Statistics (BLS) indicates that the median broker salary is $62,010.
How do I get a job as a real estate broker in Michigan?
Browse through available real estate broker jobs in your area using our StateRequirement Job Board!
MIDLARA – Michigan Department of Licensing and Regulatory Affairs
Michigan Bureau of Professional Licensing
P.O. Box 30243
Lansing, MI 48909
Hours: Monday to Friday, 8:00 am-5:00 pm
Phone: (517) 241-9288
Information on this page has been gathered by a multitude of sources and was most recently updated in October 2022.
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