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What are the requirements to obtain a salesperson license?
The requirements to obtain a salesperson license include:
- You must be at least 18 years of age
- You must successfully completing the 40 hour salesperson class, including attending all classes and passing the school examination.
- You must pass the licensing examination
- You must have your license issued to a broker ( i.e., real estate company)
See Broker Program page for class specifics and Broker Schedule page for day and evening class schedules.
- You must be at least 18 years of age
- You must successfully complete the 90 hour broker program, including attending all classes and passing the school examination.
- You must pass the licensing examination
- You must have the license issued to a broker ( i.e., real estate company) unless the license is a broker license
- You must never have been convicted of embezzlement or appropriation of funds
- You must have at least 3 years of real estate experience or the equivalent
Equivalencies include:
- Real Estate Salesperson: three twelve month periods in each of which at least 6 real estate transactions were completed
- Builder: three twelve month periods in each of which at least 6 buildings were constructed and either leased or sold.
- Attorney: three twelve month periods in each of which at least 6 real estate related activities were performed.
- Developer: One year of credit for each 2 developments or subdivisions of at least 10 units or parcels which were bought, subdivided and improved for sale as lots or dwellings.
- Related Occupations: One year of credit for each period equivalent to 40 hours a week, 48 weeks per year that applicant worked in a capacity directly related to acquiring, financing or conveyancing real estate.
What are the requirements to obtain a broker or associate broker license?
The requirements to obtain a broker or associate broker license fall into two categories:
Education requirements which include taking 90 hours of statutorily approved classes. See Broker Program page for class specifics and Broker Schedule page for day and evening class schedules.
Experience requirements which include the following:
- You must be at least 18 years of age
- You must successfully complete the 90 hour broker program, including attending all classes and passing the school examination.
- You must pass the licensing examination
- You must have the license issued to a broker ( i.e., real estate company) unless the license is a broker license
- You must never have been convicted of embezzlement or appropriation of funds
- You must have at least 3 years of real estate experience or the equivalent
Equivalencies include:
- Real Estate Salesperson: three twelve month periods in each of which at least 6 real estate transactions were completed
- Builder: three twelve month periods in each of which at least 6 buildings were constructed and either leased or sold.
- Attorney: three twelve month periods in each of which at least 6 real estate related activities were performed.
- Developer: One year of credit for each 2 developments or subdivisions of at least 10 units or parcels which were bought, subdivided and improved for sale as lots or dwellings.
- Related Occupations: One year of credit for each period equivalent to 40 hours a week, 48 weeks per year that applicant worked in a capacity directly related to acquiring, financing or conveyancing real estate.
See Broker File for information about class locations, costs and scheduling.
How long is a license good and how much does it cost to maintain it??
As of October 1, 2003, two things happened with real estate licenses:
- The license is no longer an annual license. As of the license issued at the end of the 2003 licensing year, real estate licenses will be issued for 3 year cycles.
- The annual cost of a real estate salesperson's license has increased from $13/year to $26/year for salespersons and the cost for a 3 year license will be $78 for a three year renewal. The annual cost of a broker or associate broker license has increased from $18/year to $36/year or $108 for the three year license.
- The first cycle will be a 3 year license issued for 2004 which will expire on October 31, 2006.
- In 2006, a minimum of 4 CE credits must be taken. Be aware that if you only have 12 hours of CE credit going into 2006, you will need to take 6 hours in order to be able to renew your license to obtain the 2009 license.
As of 2007 a minimum of 2 CE credits must be taken.
However, eighteen hours of continuing are still required over the three year period ending October 31, 2009.
Do I need continuing education if I just got my salesperson or broker license?
Just got your license?
As of 2004, all licensees must meet the statutory continuing education requirements in the year you first get your license.
In 2005, you need to take 6 hours of continuing education.
In 2006, you need to take a MINIMUM of 4 hours of continuing education.
In all years after 2006, you need to take a MINIMUM of 2 hours of continuing education.
Over the three year period of the license, you MUST complete 18 hours of continuing education.
NOTE that in the first and second years of the three year license you must complete the requirements by the end of the calendar year.
In the third year of the three year license, you MUST complete the required hours on or before October 31.
What is an Association of REALTORS
If you are planning to work for a residential real estate brokerage, listing and selling houses, you will most likely need to join the Association of REALTORS and pay a fee to access the multilist.
There are several Associations of REALTORS in the area, and the fees for membership in them are roughly between $300 and $400. Some of them have more services available than others. The fee is due for most Associations in January, although some have moved the date to July 1.
An orientation program will be available to you through the Association so you understand the benefits of membership in the Association and understand the importance of the National Association of REALTOR'S Code of Ethics. There will probably be a charge for this.
For more information about the Association of REALTORS, visit
Western Wayne Oakland County Association of REALTORS at
www.wwocar.com
What is the multilist?
The multiple listing service, commonly called the multilist, is made up of a group of brokers (companies) in an area that join together to make their listing inventory available to other companies in the group.
When one company finds a buyer for another company's listing, the compensation earned from the seller is shared by the listing company with the company that found the buyer Such a situation is known as a cooperative sale between cooperating brokers.
Through the multilist, then, a seller can get much more exposure to the buying public than they could if only one company was working to get it sold.
It also enables the real estate licensee to access more property listings, thereby making his/her services more advantageous to the buyers with whom she works.
To be a member of the mulilist, you must be a member of an Association of REALTORS. Thus, membership in the multilist, which has a monthly fee of approximately $35 is coupled with the fee for the Association membership.
Why should I keep my license if I am not working in real estate?
Many people do not realize that having a real estate license enables them to earn referral commissions.
To make a referral, however, you need to have an active license which must be held by an active broker. If your license is with an active company which multilists, you will be faced with the costs of Association and multilist membership.
To avoid these costs, if you are not currently working in real estate, you can place your license under a broker that has a holding or referral company. Such a company is an actively licensed company, but it does not conduct the business of listing or selling property, and, therefore, it does not participate in the Multilist. Instead, its business is limited to making referrals to other companies.
A typical referral commission represents 25% of the amount earned by the licensee who lists or sells a property to the person who was referred.
One referral commission will more than pay for your costs for many years.
A SMALL referral commission could put an additional $500 in your pocket. A LARGE referral commission could put several thousand dollars in your pocket. . . . and this, for just a phone call.
How do I find a holding company?
Many real estate companies have separate companies that will hold the license so the company can benefit from the referrals.
Another entity that operates a referral company is a real estate school. Since many students get their liceneses through these schools, it is a logical fit since the licensee has a previous relationship with the school.
The charges for these holding companies varies, as does the amount that the company pays the referring licensee for the referral. The fee to hold the license can be anywhere from $50/year to $150/year. It is Important to find out what benefits you get from paying the fee to the holding company.
The commission split between the company and the referring agent is also negotiable. It can vary from 25% to 85%. Again, it is Important to find out how the company you choose will split the commission with you once it is earned.
Real Estate Professional Education Group, LLC has a holding company. The charge for 2005 is $60 for the year. The fee is charged annually, at the beginning of the calendar year.
For the membership fee you receive:
- A 6 hour continuing education class
- Ability to refer buyers or sellers you know to earn referral commissions
- Ability to keep an active license without the costs of the Association and the Multi-list
- Office personnel available to help you with your real estate and licensing questions
- 50% Discount on your holding company fee if you refer a student for broker or salesperson classes.
- 85% of any referral fee earned through your referral.
What are the requirements for relicensure?
NOTES:
Starting in 2004, the designation for Continuing Education classes changed. In the past, the class you took was named for the year in which the license would be issued, making it confusing since you took a class in 2003 for 2004. As of 2004, the classes are identified by a letter and a number. The classes recognizred for credit in 2004, 2005 and 2006 are J classes. Therefore, you want to be sure that any class you take this year is identified by a J.
Relicensure:
If you let your licesnse lapse beyond December 31 of the year it expires, you will be required to relicense.
Important change for people doing relicensure - i,e., your license has lapsed or expired. Starting in 2004, if you have a lapsed license, you need to take 6 hours of Continuing Education class for each year you have been without a license in order to get it reissued. As was stated above, make sure any classes you will be taking are approved for the proper licensing year, i.e., J classes.. To be sure what you need, contact the Department: 517-241-9288.
If your license has been lapsed for 2 years, you need 12 hours of J classes to get it issued. If it has been for up to 3 years, you need 18 hours of J classes to get it issued, etc.
Further information is available on the Department Website at: http://www.michigan.gov/cis/0,1607,7-154-10557_12992_14257---,00.html
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