Licensing and Regulatory Affairs
June 17, 2014 - A new law which becomes effective January 1, 2015, impacts real estate brokers and salespersons, and real estate education sponsors by removing continuing education preapproval and reporting requirements. Gov. Rick Snyder signed Senate Bill 641 into law on April 7, 2014, which became Public Act 106 of 2014. All continuing education courses must be preapproved through the end of 2014 and reported to the Department of Licensing and Regulatory Affairs (LARA) by the sponsor.
Beginning January 1, 2015, continuing education courses will no longer require preapproval by LARA and schools will not be required to report the hours as a condition of renewal of a real estate broker or sales-person license. Licensees will continue to be required to complete at least 18 clock hours of continuing education per 3-year license cycle, with 2 hours per calendar year involving law, rules, and court cases regarding real estate.
Section 2405a of the Occupational Code provides the requirements for continuing education effective January 1, 2015:
(1) Within each 3-year license cycle, a licensee shall successfully complete at least 18 clock hours of continuing education courses that involve any subjects that are relevant to the management, operation, and practice of real estate or any other subject that contributes to the professional competence of a licensee or applicant. All of the following apply to this continuing education requirement:
(2) An applicant for license renewal under section 2502a shall certify compliance with subsection (1) to the department. A licensee shall retain evidence acceptable to the department that demonstrates he or she has met the continuing education requirements under this section, for at least 4 years after the date of that certification, and shall produce the record that contains that evidence at the request of the department. The department shall consider the following as acceptable evidence under this subsection:
(3) An applicant for license renewal under section 2502a is subject to audit by the department for compliance with subsection (1) or (6) and may be required to submit the documentation described in subsection (2) to the department on request.
(4) If the department finds as the result of an audit under subsection (3) that an applicant for license renewal under section 2502a has not completed sufficient hours of continuing education to renew his or her license, the department may allow the applicant to renew his or her license by completing both of the following, if applicable:
(5) Hours of additional continuing education required under subsection (4)(b) do not apply toward continuing education required in the next 3-year license cycle. The department may waive the requirement for additional hours under subsection (4)(b) if the applicant demonstrates to the department that the additional hours would present an undue hardship on the applicant.
(6) A real estate broker, associate broker, or salesperson who receives a license issued in the second or third year of a 3-year license cycle is required to comply with the continuing education requirements under subsection (1), except as follows:
(7) Course credits used to meet continuing education requirements under this section do not apply toward the real estate broker's license prelicensure education requirements under section 2504, and course credits successfully completed under real estate broker's license prelicensure education requirements under section 2504 do not apply toward the continuing education requirements of this section.