How to Get Your Real Estate License in Michigan 2024: All Requirements for Taking the Exam

Obtaining a real estate license in Michigan need not be a hit-or-miss thing. We have all the details you will ever need to get licensed and start your real estate career in the state.

Get all your questions answered in one central location – from how to qualify for a license and the classes you need to take, to how to register for the real estate license test.

Keep reading to learn more about getting your real estate license in Michigan.

To become a real estate salesperson in Michigan, you need to be at least 18 years old.

You’re not required to have a high school diploma or GED, but you must get sponsored by a licensed individual broker or broker company.

To ensure you find the right sponsoring broker, check out our detailed guide to choosing the right broker to work for as a new agent.

Once familiar with the qualities you’re looking for in a broker, utilize our directory of the best real estate brokerage firms in Michigan to make the selection process easier.

After meeting these eligibility requirements, you’ll need to fill out a salesperson application, which is now done completely online for a more convenient process.

The application cost is $88 for a three year cycle. When it’s time to renew, you’ll only pay $78.

Once complete, you’ll get an email with your Exam Candidate ID number.

You’ll need this for the final licensing exam, which you can take after completing the pre-licensing education.

To receive your real estate salesperson license in Michigan, you must take 40 hours of approved education courses.

At least four of these hours must be in civil rights law and equal opportunity in housing.

From there, you can contact PSI Services to schedule your real estate license exam.

You must schedule your exam through PSI by calling 800-733-9267 or going online. The cost for the exam is $79.

PSI is a leading private administrator of state licensing exams and typically offers testing facilities throughout the state for your convenience.

Once you complete the exam, your last step is to work with your sponsoring broker to complete the licensing process online.

Professional real estate agents in Michigan must have three years of full-time experience before they can apply for a broker license in the state.

Experience includes time in real estate or another area the Michigan Department of Licensing and Regulatory Affairs determines is relevant and related.

In addition to this requirement, a licensee must be 18 years or older and fill out the online application.

If any supporting documentation is asked for, you must provide that as well. The application cost is $143 for a new broker and $108 to renew an existing license.

If you have been convicted of embezzlement or misappropriation of funds, you cannot become a real estate broker in Michigan.

Along with experience, the age requirement, and the application, those interested in obtaining a real estate broker license in Michigan must also complete 90 hours of pre-licensure education.

Nine of these hours must be in civil rights law and equal opportunity in housing.

You may not have to complete the total number of pre-licensure education hours if you have an advanced degree or a college degree within specific areas of study.

This includes:

• A BA in business or finance counts toward 30 hours of pre-licensing real estate education.
• A masters degree in business administration or finance counts toward 60 hours of pre-licensing real estate education.
• A law degree counts toward 60 hours of pre-licensing real estate education with six hours toward civil rights and fair housing law.

If you have any of these degrees, the time it will take you to complete the educational component of the broker license will be considerably less.

Once you’re ready to take the exam, you can schedule it through PSI Services. The fee is $79.

What Is Real Estate License Reciprocity?

When one state recognizes the real estate license of another, it’s known as reciprocity.

It typically occurs when the two states have similar standards and/or requirements for licensure.

However, not every state has reciprocity with each other.

In some states, you’ll still have some requirements to complete alongside your existing license in order to get a new one in your new home.

Michigan has no formal reciprocity agreements.

Everyone coming into the state, wishing to get their real estate license, must follow the same process as those applying for the first time.

However, just because there’s no formal agreement doesn’t mean your real estate license can’t help you through the process in Michigan.

The Michigan Department of Licensing and Regulatory Affairs will evaluate situations on an individual basis.

If training and experience is substantially equal to Michigan’s training requirements, you could get a license without any additional coursework or the need to take the exam.

US States Having a Reciprocal Agreement with Michigan

Although it’s not guaranteed a state will always have reciprocity with another, for now, there are quite a few states willing to accept a Michigan real estate license.

These states specifically mention Michigan in their reciprocity agreements:

• Colorado
• Mississippi
• Virginia

Additionally, these states accept any state’s real estate license but may have additional requirements to complete:

• Alaska
• Alabama
• Colorado
• Georgia
• Indiana
• Kansas
• Kentucky
• Maine
• Nebraska
• North Carolina
• Rhode Island
• South Dakota
• Tennessee
• Vermont
• Washington

Pre-Licensing Classroom Courses

In Michigan, the number of educational hours you’re required to complete is dependent on the type of license you’re interested in getting.

For real estate salespeople, the number of hours is 40 hours. For a broker license, the total number of hours is 90.

Within each set of pre-licensing coursework, there are a required set of hours that must cover civil rights law and equal opportunity in housing.

For a real estate salesperson, it’s four of their 40 hours, and for brokers, it’s nine. The rest of the hours must be taken within approved topics.

You can refer to our list of the top real estate schools in Michigan to choose where you want to take your course.

While some schools may offer online options, there are many advantages to completing your pre-licensing coursework in person.

The top perk is the people. You can not only network in person with future colleagues, but get to know your instructors as well.

They may have their own connections into the industry that can prove helpful.

You’re also able to rely on a set class schedule for consistency, which is beneficial if you’re also working and managing responsibilities at home.

Pre-Licensing Online Courses

For those with a little more time to devote to their coursework, switching to an online format may prove the best option.

With online courses, you can often work at your own pace, enabling you to move faster through the curriculum.

You can do more work one day than another, or complete assignments at odd hours. It’s extremely flexible.

To learn more about each format, and pick the one that’s right for you, check out our video guide — Real Estate Courses Online vs. Classroom.

When it’s time to schedule your real estate exam, you’ll need to go through PSI by calling 800-733-9267 or scheduling the test online.

You can also select from testing centers in these cities:

• Dearborn
• Gaylord
• Grand Rapids
• Holt
• Marquette
• Southfield

The exam is broken down into two parts — a national portion and one with Michigan-specific questions.

Based on the type of exam you’re taking, you’ll have a different amount of time. The salesperson exam is 180 minutes long, and consists of 115 questions.

Math is included on the exam with up to eight questions covering real estate calculations. You must get at least 70% to pass.

The broker exam also has 115 questions and you get 210 minutes to complete it. You must get at least 75% to pass.

The cost for both exams is $79, and you receive your score immediately upon completion.

Make sure you are completely prepared before scheduling your test. We have compiled useful tips to help you pass the Michigan real estate exam the first time.

Additionally, read my article with helpful pointers for studying for the real estate exam.

Completing the real estate license exam allows you to finish your license application online and submit it for final review.

Make sure your sponsoring broker confirms your employment online at least 48 hours before you take the exam to expedite the confirmation process.

As you file for your license, it is also important to contemplate on the next steps you should take after passing your real estate exam.

At this stage, you may want to delve deeper on the type of agent you want to be, the kinds of properties you want to sell, and any other relevant information that will build your real estate career.

If your application is complete once you pass the real estate license exam, you may receive a photo pocket license at the PSI testing center immediately after you pass.

Additionally, your sponsoring broker will receive a state-issued paper license for your wall and a pocket card through the mail.

Now that you are a full-fledged agent, you may want to learn how to join a real estate team.

Becoming a member of one perfectly positions you right in the middle of great opportunities, as you meet and network with colleagues who can help you learn the ropes and all the tricks of the trade.

Be sure to read our article on the pros and cons of being a real estate agent, which shares insight from industry experts on what makes this job worthy as a career.

The time varies, but plan for a few months in total.

You need to factor in time to complete the pre-licensing education, find a sponsoring broker, go through the application process, and take the exam itself.

As online learning is often self-paced, you may be able to get through the entire licensing process faster than if you were studying in class.

What may take a few months may only take a month or two.

Read our guide on how long it takes to get a real estate license in Michigan for an estimated timeline to complete the licensing process.

Michigan doesn’t require a background check when obtaining a real estate license. However, you are required to be straightforward and disclose any prior convictions during your application.

When submitting your application, there is a provision for “good moral character” and you are expected to answer this portion honestly.

Should you have past convictions, the Department of Licensing and Regulatory Affairs will review your case and decide if you meet good moral character standards.

While the overall cost will vary, based on the price tag for the pre-licensing coursework, all other costs associated with a real estate license in Michigan total $253.50 for salespeople and $308.50 for brokers.

For a complete breakdown of licensing fees, refer to our article on the cost of a real estate license in Michigan.

If you receive a failing grade on the exam, for one or both parts, you can retake the test as soon as PSI has availability.

Often, this is no sooner than 24 hours after you’ve received your current test results.

Should you fail the exam, your initial application and the application fee are good for one year.

If you don’t pass the real estate license exam in Michigan by then, you’ll need to reapply and repay the application fee.

You may take the Michigan real estate exam as many times as needed until you pass. If you fail the exam, all you have to do is schedule another attempt through PSI.

Yes, you must pay each time you retake the real estate exam in Michigan.

The cost each time is $79.

You can get a real estate license in Michigan with a felony, but you must submit your criminal record for review.

The Michigan Licensing and Regulatory Affairs group will take everything under consideration and approve your application for a license.

Read our tips for applying for a Michigan real estate license with criminal record to know what to do next should you have a past conviction.

By submitting your past criminal record for review, you’ll enable the Department of Licensing and Regulatory Affairs to determine if you meet their requirement for “good moral character.”

This will decide if you can get a real estate license in the state even with a misdemeanor.

Ultimately, it’s up to this group whether or not you’re able to get your license, so make sure to disclose everything.

Eligibility is determined on a case-by-case basis by the Michigan Department of Licensing and Regulatory Affairs.

While it’s still possible to get a real estate license if you have a DUI, there’s no guarantee the review will go favorably.

Many factors contribute to being labeled as having “good moral character.” This is the only way to get the ‘all clear’ to apply for a real estate license with a prior conviction.

Yes. A diploma or GED is not required to become a real estate agent in Michigan.

Keep this article handy for when you have decided to finally take that leap to becoming a real estate agent in Michigan.

You have an exciting career ahead of you, so make sure you are fully equipped to handle the job well.

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.