Can You Get a Michigan Real Estate License with Violations such as Felony, DUI or Misdemeanor?

Getting a real estate license in Michigan with a criminal history requires you to pass a screening process.

This article goes over the rules and requirements for that process and provides insight into the factors influencing the approval decision, plus helpful hints on applying for your license.

Learn how it all works by reading through the in-depth summary below.

Many states require a fingerprint-based background check to obtain a real estate license. Michigan does not.

Instead, the Michigan Department of Licensing and Regulatory Affairs (LARA) relies on voluntary disclosure in the application process.

For one, when applying, you must check a box related to the requirement that you have “good moral character.” LARA may require and procure proof of this before issuing a license.

As an applicant, you are also obligated to acknowledge if you have any criminal convictions. Additionally, you must provide documentation enabling LARA to evaluate each offense.

That information includes court details for each conviction and explanations that show you are rehabilitated, or the offense doesn’t directly relate to the license you’re seeking.

If you’d like to find out if your conviction may prevent you from being licensed before you start the process, you can request a Good Moral Character Preliminary Determination.

You must submit supporting documentation with this request, including court documents. After review, LARA will tell you if your application will likely be approved or denied.

That likelihood boils down to the specific crime you committed, its relevance to real estate, how much time has elapsed, and LARA’s view of your character in the context of state standards.

Even though felonies are the most serious category of crimes, this level of offense doesn’t automatically rule out your chances of getting a real estate license in Michigan, with one exception.

Michigan real estate license law states that LARA shall not issue a broker’s license to a new applicant whose criminal history includes embezzlement or misappropriation of funds.

Otherwise, LARA isn’t allowed to conclude that you can’t serve the public fairly, openly, and honestly just because you have a conviction. Instead, they must evaluate your specific situation.

They can only consider your conviction in determining whether you meet the good moral character standards if any of the following apply to your felony offense:

• The crime has a direct and specific relationship to the duties of a licensee.
• The conviction involves a demonstrable risk to public safety.
• You’re more likely to reoffend with a license than without one.
• Recidivism as a licensee would cause more public harm than if you weren’t licensed.

For felonies that can be considered, when is LARA apt to reach a favorable licensing decision?

The more convinced they are that sufficient time has passed for rehabilitation, and your documentation shows that to be true, the easier it will be for you to obtain a real estate license.

A misdemeanor history is less serious than a felonious one. And, unless you want to be a broker and are guilty of embezzlement or misusing someone else’s money, it isn’t an all-out roadblock.

However, LARA must ensure you meet all standards before issuing a license. So, they will evaluate your application on its individual merits to make that determination.

Misdemeanors they cannot examine are ones that are unrelated to your propensity to serve the public in an honest and fair manner and those for which you can’t be incarcerated.

For others, they may consider factors such as the following in their review:

• Whether you committed the offense in the recent or distant past
• Any evidence of mitigating rehabilitation successfully completed
• Other circumstances specific to your situation

Given those considerations, recent or multiple misdemeanor convictions or failure to show that your red-flag behavior is behind you can make it challenging to become a licensee.

Whether you can get a real estate license if you have a DUI depends on the facts of your case. As each situation is unique, it will be up to LARA to determine if you qualify.

That said, it’s fair to assume that a DUI offense would be seen as having a direct bearing on your capacity to serve clients, as the behavior presents a risk to public safety.

Therefore, a DUI conviction would most likely make the list of offenses LARA would examine in their review.

In doing so, their considerations for deciding whether that DUI will prevent you from getting a real estate license would include whether you’re a recent, repeat, or felony offender.

To obtain a Michigan license despite questionable past behavior, it’s essential to demonstrate good character and show that issuing a license is consistent with LARA’s protection of the public.

Here are five tips to help you prove that’s the case.

• Be fully transparent. You’re self-reporting criminal history. So, it’s up to you to fully disclose. Think of it as one way you demonstrate good moral character.

• Ensure your supporting documentation is accurate and clear, and provides compelling proof that you are honest and trustworthy.

• Submit all required information. That makes it faster and easier for LARA to evaluate your application and shows that your background is an open book.

• Provide a certificate of employability if you have one. LARA can consider this as evidence in determining good moral character.

• Be responsive and compliant. Answer questions in a timely manner. Make sure to expeditiously provide any additional information LARA requests.

You are entitled to ask for reconsideration if the decision on your application isn’t in your favor.

LARA will provide a statement informing you of their determination and the evidence on which that conclusion was based.

They will also give you an opportunity to appeal. You have 30 days to do so.

If you do request a rehearing of the issue, it will be to present your case to the Board of Real Estate Brokers and Salespersons.

That presumes you have evidence of your qualifications that wasn’t previously considered.

Violating Michigan law or occupational code when you’re a licensed Michigan real estate agent can subject you to disciplinary action and potentially endanger your license.

Some of the more common reasons for discipline involving violations include the following:

• Engaging in fraud and deceit in practicing real estate
• Disobeying a rule of conduct of the profession
• Demonstrating a lack of good moral character

So it follows that the same violations that can result in license denial may also lead to penalties like censure, probation, or a fine.

Or, if the infraction is severe, license disqualification could result. That may be a suspension where you can’t do business for a set period or revocation of your license to conduct real estate.

In such instances, you can settle the matter or appear for an informal conference or a hearing.
Should your license be revoked, you have to wait at least three years to apply for a new one.

Then, you’ll need to meet all the requirements in effect at the time of your application.

In Michigan, you have several options for where to study for the real estate exam, making it easier to find a pre-licensing course that fits your preference or learning style.

Those who do better in a traditional environment can attend classes in person. Among the pros are live discussion, relationship connection opportunities, and fewer distractions.

The other classroom option is virtual. Some of the brick-and-mortar schools livestream classes. So, you get a teacher-led course taught in real time with the flexibility to participate from home.

You can also complete your coursework through an internet-based provider. That platform allows you to study anywhere, so your classroom can be whatever works best for you.

Know which method is right for you by comparing the pros and cons of real estate classes online vs classroom courses.

A few Michigan real estate schools also offer home study with printed materials. This choice also lets you ditch the commute and work through your lessons in your favorite study spot.

As for exam prep courses, most are taught online, also allowing for a flexible study space. For optimal productivity, ensure there’s a writing surface, limited noise, and reliable internet access.

Keep these options in mind as you prepare to study and pass the Michigan real estate exam on your first attempt.

You will be required to get sponsored by a licensed broker as part of your license application.

Review our guide on how to pick a broker to work for and then find one from our directory of top real estate brokerage firms in Michigan.

On top of knowing your chances of getting licensed if you have past violations, it will also serve you well to learn the cost of a real estate license in Michigan to be fully prepared for the expenses that licensing entails.

To know the time commitment involved in completing the licensing process, refer to our guide on how long it takes to get a real estate license in Michigan.

Make every effort to know the ins and outs of the real estate business to know what to expect when working as a real estate agent as a career.

You can start by planning your next step after passing the real estate exam, which may include joining a real estate team to be among experienced agents who can help guide your career.

To help you build and grow your real estate career quickly, we at Real Estate Bees created a directory for real estate professionals.

It’s designed to help you get more exposure for your business, including receiving leads. Create a free profile by signing up here.

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About the Author

Kristina Morales is a REALTOR® with over 20 years of professional experience. She actively practices real estate in Ohio but also has practiced real estate in California and Texas. Conducting her real estate business in three states has allowed her to gain unique experiences that make her a well-rounded realtor. She obtained her Bachelor of Arts in Business Management and her MBA with a concentration in Banking and Finance. Prior to real estate, Kristina had an extensive corporate career in banking and treasury. She ended her finance career as an Assistant Treasurer at a publicly traded oil & gas company in Houston, TX.