Enforcement and Housing Programs in Michigan
Michigan enforces license law through LARA and supports homeownership through MSHDA. This chapter explains the enforcement process and the housing programs a broker should know.
LARA Enforcement
LARA, working through the relevant board and its enforcement staff under the Occupational Code, investigates complaints and may impose discipline from fines to suspension or revocation of a license. Private trade associations and local police do not license or discipline brokers. Courts become involved only on appeal or in related civil or criminal matters.
Common Grounds for Discipline
Typical violations include failure to supervise affiliated licensees, commingling or converting trust funds, false or misleading advertising, and dishonest dealing. Brokers reduce risk by supervising staff, keeping accurate trust and transaction records, and ensuring required disclosures are delivered. Prompt, honest handling of complaints also matters in an enforcement review.
MSHDA and Homeownership
The Michigan State Housing Development Authority (MSHDA) administers housing programs, including down-payment assistance and financing that support affordable and first-time homeownership. A broker who understands MSHDA programs can help eligible buyers access assistance. MSHDA does not license brokers, set zoning, or hold brokers' escrow accounts.