Meet John Tallarigo. John is the education content developer and is working on expanding PREC coursework into new states and additional courses for our current states. His interest in property law led him to get his real estate license while studying for the bar exam! John is a graduate of NKU Chase College of Law '16 and earned his undergraduate degree from Northern Kentucky University '11. He loves the Cincinnati Bengals!
A Complete Guide to Getting Your Real Estate Broker License in Michigan
You’ve been licensed in Michigan for a few years. You’ve hit your sales goals every year, mastered the 6 traits all great agents have, done countless transactions, and now you’re the expert agent at your broker company. What’s next? Put on your shortest short shorts and try and score 40 points for the Pistons?
Of course not! Unless you’re Joe Dumars, it would be much easier to get your Broker license. Whether you want to start your own broker company and have agents work for your, or whether you want to be a branch broker for one of the big guys, the next step is getting your Michigan Real Estate Broker License! This blog will give you a complete understanding of everything you need to do to get your broker license.
Age
According to the Michigan statutes, you only have to be 18 to qualify for a broker license. The same information is written on the Michigan Board of Real Estate Brokers and Salesperson’s website. However, you need to have at least 3 years of experience in real estate before you can become a broker in Michigan. At a minimum, you would need to be at least 21 years old, and even then, depending on your experience and education, you may be licensed earlier or later.
Experience
The general rule for meeting the experience and education requirements for Michigan is that you have experience of full-time real estate practice for at least 3 years and you must complete 90 classroom hours of real estate courses. That seems like a lot, but it can be very manageable. So, what do these numbers really mean?
The 3-year full-time requirement is simple, you must have worked full time for at least 3 years in a field related to real estate. Being licensed as a salesperson for 3 years would satisfy this requirement but so would being a licensed builder, an investor, land/condo developer, loan or trust officer at a bank or mortgage company, or being a real property appraiser.
The way Michigan calculates credit towards this 3-year requirement is different for each profession related to real estate. Salespersons get 1 year of credit for every 12-month period they have closed 5 or more transactions. Home-builders get 1 year of credit for every 12-month period if they have built and sold at least 5 units, whether they are residential, commercial, or industrial. Real estate investors get 6 months of credit for every 5 transactions on their own accounts but can only earn up to a year of credit. Land/condo developers get 1 year credit for every 2 developments/subdivisions that contain at least 10 units/parcels. Out-of-state licensees get 1 year of credit for each year they closed at least 5 transactions. Attorneys also get 1 year of credit if they acted as an attorney for at least 6 real estate transactions.
Education
The Michigan Board of Real Estate Brokers and Salesperson requires 90 hours of real estate broker education before being licensed. 10% or 9 hours of that education must be in civil rights law and fair housing law. Luckily, we have a 90-hour program that meets that requirement!
The Board also accepts some college degrees as credit for some of the classroom hours. A law degree is considered equivalent to 60 clock hours of real estate education including 6 clock hours of civil rights law and fair housing law. A master's degree in business administration or finance from is considered equivalent to 60 clock hours of real estate education. A bachelor’s degree in business or finance is considered 30 hours of real estate education.
Exam
Michigan offers its real estate licensing exams through PSI Exams. There is a fee of $79 for taking the exam. The format is identical to the salesperson exam; you will take the test in a testing center and there will be a national portion and a state portion. You will have 3.5 hours to answer 115 questions and obtain a score of 75% on both portions of the exam. For more information, make sure you read the candidate booklet and content outlines.
Fees and Forms
You will need to follow the instructions on the Board’s website and apply on application portal, MiPlus. There is also an application fee and a background check fee. You will also need certified transcripts for any academic credits you wish to use towards your education requirement.
Broker Reciprocity
If you are already licensed in another state, your requirements to get a broker license can be a little different. Michigan is a unique state in that it does not have reciprocal licensing agreements with other states. However, a broker from Ohio, Wisconsin, or another state can still apply as a non-resident Broker License. Brokers from other states must still meet the education, experience, and examination requirements. A broker from Kentucky, who is only required to be licensed for 2 years as a KY sales associate, would have to wait another year before applying to be a Michigan real estate broker.
Now stop listening to those podcasts and get started on your broker license! If you have any questions about getting your Michigan license, do not hesitate to call, text, live-chat, or email me at 859-525-0303 and john@perryrealestatecollege.com!
Meet John!
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