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How To Become A Real Estate Agent in Michigan

By Colleen Colkitt

Each state has different requirements for becoming a real estate agent. The amount of licensed hours or when to take examinations may vary, but the basic knowledge of real estate is universal. The requirements for becoming a real estate agent in Michigan must be met to the state's standards, as there is no reciprocity between Michigan and any other state. There are several steps involved in becoming an agent, and there is also a distinction between a real estate agent and real estate broker. It is important to know the difference between the two, because it will help while working a future career in real estate!

Michigan Real Estate Agents

Agents become licensed through the Michigan Department of Energy, Labor & Economic Growth, which oversees the Michigan Board of Real Estate Brokers and Salespersons. A person looking to obtain a real estate agent salesperson license needs to be at least 18 years of age, and complete 40 hours of approved pre-license courses at a school for real estate, which teaches real estate fundamentals, before an applicant may take the exam.

The real estate test can be taken online through PSI Exams, and the results are viewable 2 weeks after taking the exam. After passing the exam, the agent or salesperson must complete 6 hours of education each year. The renewal period is three years, so at least 18 hours of additional education must be completed during this time.

In addition to the continuing education, a real estate salesperson in Michigan must be of "good moral character" and also submit a letter of good standing from any state that the applicant may have held another real estate license in.

Becoming a Broker

What sets brokers and agents apart is the education level and licensing requirements. An agent must work for a broker, and the broker also has the ability to deal directly with clients, whether they are home-buyers or sellers, or they can choose to delegate these tasks to agents within their business.

A real estate broker, however, must complete more hours of real estate courses than hours required for agents or salespersons. In the state of Michigan, a broker must be at least 18 years of age and also have at least 3 years of full time experience as a real estate salesperson.

To obtain a broker license, an applicant in Michigan must complete 90 hours of approved education in real estate courses within 36 months of applying for the license. After obtaining the license, brokers must complete at least 6 hours of additional education each year.

Costs and Renewal Fees

The real estate examination for salespersons and also brokers in Michigan is $72. There is an $88 fee for the real estate salesperson license, and $143 for the broker or associate broker license. To renew a salesperson or agent's license, it is a cost of $108, and for a broker or associate broker the charge is $163.

Licenses for agents and brokers are valid for 3 years, and expire on October 31. They can be renewed for a late penalty fee between November 1 and December 30. Make sure to renew your license before it expires to avoid annoying late renewal fees!

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