State License Law (Michigan)
Michigan real estate practice is regulated under Article 25 of the Occupational Code and administered by the Department of Licensing and Regulatory Affairs (LARA). This topic covers who must be licensed, how brokers supervise salespersons, and the rules that govern conduct.
Regulatory Structure and License Types
Michigan licenses real estate salespersons and brokers under Article 25 of the Occupational Code (Public Act 299 of 1980). LARA, through its licensing bureau, issues licenses, sets rules, and disciplines licensees. A salesperson must be associated with and supervised by a licensed broker. An associate broker holds a broker license but works under another broker. Licensees must act within the authority granted by the broker and the law.
Compensation and Supervision
A Michigan salesperson may accept compensation for real estate services only through the employing broker, not directly from a buyer, seller, or another licensee. The broker is responsible for supervising associated licensees, maintaining records, and handling trust funds properly. Violations of the Occupational Code, such as misrepresentation, commingling, or acting without a license, can lead to fines, suspension, or revocation.