I have been a real estate broker (or salesperson) for eight years in another state.  I am moving to Michigan .  Will that real estate license transfer to Michigan ?

  No.  There is no reciprocity between Michigan and any other state.  That means that you will need to meet the Michigan requirements for real estate licensure.  To recap, they are:

Broker License & Requirements

Salesperson License & Requirements

  If I am a real estate licensee, can I also be a mortgage broker?

  Your real estate license will not qualify you to be licensed as a residential mortgage broker.  While the definition section of Article 25 of the Occupational Code (MCL 339.2501) regarding brokers and salespersons includes " . . . negotiates the purchase or sale or exchange or mortgage of real estate, . . ." these activities are performed under your real estate license in conjunction with transactions performed as a real estate licensee. 

Acting as a mortgage broker on residential properties of four units or less (or land which is being developed for such use), requires a license under the Mortgage Brokers, Lenders and Servicers Licensing Act.  That regulation falls under the jurisdiction of the Office of Financial and Insurance Regulation (OFIR), Consumer Finance Division, P.O. Box 30224, Lansing, MI  48909 (517) 373-3470; www.michigan.gov/OFIR.  If you are brokering mortgages on property, such as commercial property or residential properties of more than four units, you must be licensed as a real estate broker (or perform these activities under a broker as a salesperson).  Please also see Rule 321 (R 339.22321) about accepting fees for mortgage brokering activities if you also obtain a mortgage broker license or work for a mortgage company.

  I'm applying for a salesperson license.  Will I be able to have my license issued to a corporation that I form?

  Rule 201(3) (R 339.22201) states that associate broker and salesperson licenses shall only be issued to individuals.  Further, since a broker cannot pay a commission to an unlicensed entity, your employing broker could not make payment to your unlicensed corporation.

  How can I get directly connected to staff in the Department who handle real estate license questions?

  The Bureau of Commercial Services, Licensing Division, is composed of four units that are comprised of various licensed and registered occupations and professions.  If you dial the main number (517-241-9288) you will first be connected with a message giving you options to receive certain information that is standard by choosing the appropriate number to press.  However, if you wish to bypass this option, you may call 517-373-7353 and that will connect you with staff who should be able to assist you with questions about real estate license-specific issues.  Having your license i.d. number ready and having already looked on this website before calling can greatly assist you in getting faster service. 

Since telephone lines are busier in the summer and fall of a renewal year (2006, 2009, 2012), you can always e-mail your question to staff and will receive a prompt response via e-mail message.  Use the address:  bcslic@michigan.gov   and make sure you include your license i.d. number and sufficient detail so that staff can research your question.

  What are the licensing requirements to work as a salesperson for a residential builder?

  A residential builder's salesperson, or a residential maintenance and alteration (M&A) contractor's salesperson is not the same license as a real estate salesperson licensed to an employing broker. The builder licenses are issued through DELEG under the Residential Builder and Maintenance & Alteration Contractors Board, pursuant to Article 24 of the Occupational Code.  A licensed real estate salesperson sells "for" the residential builder if it is a property listed with the real estate salesperson's employing broker.

You can read about Residential Builder and Residential Maintenance & Alteration Contractor licensing by going to their website , or by calling 517-373-8376.

  What activities can my assistant, who is not a licensed real estate salesperson, perform?

  The Department receives many telephone calls requesting information about real estate-related activities that an unlicensed individual may perform. The following guidelines are presented in an attempt to reduce a broker's exposure to potential risk in the utilization of unlicensed assistants.  This information is modeled after an article by Thomas Kotzian JD, former Chairperson of the Michigan Board of Real Estate Brokers and Salespersons, educator and broker, and approved by Ann Millben, Licensing Administrator for Real Estate.

Unlicensed Assistants MAY :
-assist licensees during an open house, performing the following functions as a "host" or "hostess"
-open the door and greet prospects as they arrive at the open house
-hand out prepared printed material
-have prospects sign a register (guest book) to record names, addresses and phone numbers for the listing
-accompany prospects through the home for security purposes (only the licensee should answer any questions pertaining to the material aspects of the house or its price and terms)
-perform strictly clerical tasks
-function as a courier in picking up or delivering documents on behalf of the employing licensee [Note: Keys should not be given to unlicensed persons for the purpose of showing a listed property. Brokers are responsible for the properties in their listing inventory and should only give a key to a licensee who is able to show proper I.D. (e.g., valid pocket card and driver's license with photo)]

Unlicensed Assistants MAY NOT :
-independently show or demonstrate property to prospective buyers
-make cold calls by telephone or in person to potential listers, purchasers, tenants or landlords
-answer any questions on title insurance, financing or closings
-independently hold open houses for brokers, or staff booths in home shows or fairs
-solicit business through telephone prospecting
-give additional information not included in prepared written promotional material that has been distributed to the public (e.g., newspaper ads, flyers, brochures)
-represent themselves as an agent for a real estate broker or the owner/seller of property
-have their name printed on business cards or stationery that would imply they are an agent for the real estate broker
-conduct telephone solicitation calls. If John Doe, an unlicensed assistant, calls and indicates he represents ABC Realty, one is led to believe the purpose of the call is to engage in real estate activities. The definition of broker and salesperson in the Code includes one who "lists or attempts to list". Therefore, a call by an unlicensed assistant identifying him or herself as a "representative" of a real estate company is an attempt to list even if specific terms are not discussed at that time.
-Perform any of the acts for which a license is required under Michigan Real Estate License Law. (MCL 339.2501 et seq.)

Licensees who violate state license law and/or rules by allowing unlicensed assistants to practice real estate on their behalf subject themselves to one or more of the following penalties:

• Placement of a limitation on the license
• Suspension of license
• Denial of license renewal
• Revocation of license
• A civil fine not to exceed $10,000 per offense
• Censure
• Probation
• Restitution. (MCL 339.602)

Brokers and managers must also be aware of their liability in allowing licensees to employ unlicensed assistants. Factors such as worker's compensation laws, agency law, income tax reporting and withholding requirements, sexual harassment, employment discrimination and a myriad of state and federal employment statutes must be carefully reviewed when allowing licensees to hire unlicensed assistants.

Brokers are responsible for the acts of their licensed salespersons and associate brokers and "shall not contract with an individual who is licensed to the broker so as to lose the authority to supervise the licensee." (MCL 339.22325) It is therefore the broker's responsibility to supervise all personnel acting under the scope of the broker's authority.

Brokers are advised to consider these issues when writing independent contractor agreements with their salespersons and associate brokers. An attorney who is knowledgeable concerning employment discrimination and related employment laws should be consulted prior to drafting any independent contract section on this subject. Good research and preparation will avoid many of the problems addressed.

  Can citizens or licensees call the Department requesting legal assistance or interpretations concerning real estate or real property law matters?

  Real estate licensing unit staff receives many telephone calls from licensees and the public requesting legal advice on real estate matters.  The licensing unit does not have in-house legal counsel, nor can legal advice be provided to either licensees or the public.  Circumstances that involve the license law and/or rules' statutory provisions or regulations can be discussed.  Staff is often asked if an experience someone has with a licensee is in accordance with the statute.  Callers are always encouraged to file a complaint if the caller feels that the licensees' actions have resulted in causing them harm.  However, staff cannot determine ultimate legal conclusions or give any direction in areas outside the scope of the Occupational Code and Administrative Rules.

  Broker's trust account books and records can become a large storage problem.  Does the Department see any violation if these books and records are maintained in a medium other than paper?   How long must the records be kept?

  Rule 313(3), effective 9-1-03, requires that "all trust or escrow account records shall be maintained for a period of not less than 3 years from the date of inception of the records." 

Further, the Occupational Code and Administrative Rules are silent regarding scanning of those files on to a hard drive, backed up by CD, for future reference, or being stored on microfilm or some other method.  Audit Supervisor, Tim Teague, recently confirmed that as long as the records are kept for three years in a manner that can be retrieved, that is acceptable.  He further clarified that as long as the scanned images contain all the information that is required (See Rule Section 2512 and Rule 313(4) for a detailed description) the fact that the records are scanned rather than hard-copy or paper makes no difference and would be found acceptable.

Licensees who have questions regarding interpretation of contracts, rental agreements, commission disputes and closings are advised to consult with their employing broker.  If legal advice is needed, they should consult an attorney for appropriate advice and action.

Revised 8/2009