The Ultimate Guide to Become a Real Estate Broker in Michigan


notary signing document

(**) Disclosure: This post may contain affiliate links, meaning our website, RealEstateCareerHQ.com, will get a commission if you decide to make a purchase through the links, but at no additional cost to you.

The benefits of upgrading your real estate agent license to a broker in Michigan are plentiful. If you want to grow in your career as a real estate professional, this is the best way to scale your business. Rather than making income solely based on your sales production, being a broker allows you to build a team of real estate agents. You’ll be recruiting, providing training and support to your underlying agents. In return, you would get a share of their commission.

To become a real estate broker in Michigan, you must:

  1. Have at least 3 years of active real estate work experience;
  2. Complete 90 hours of pre-license courses from an approved education provider;
  3. Pass the Michigan Real Estate Broker Exam;
  4. Submit a Broker Application and a $143 fee through MiPLUS;
  5. Complete the 18 hours of CE and license renewal requirement

Depending on your business model, there are different types of broker license you could apply for in Michigan. They are the Individual Broker, Associate Broker, Real Estate Broker Company or Branch Office. Here’s another post I wrote which talks about the different types of real estate broker licenses.

(By the way, if you are just starting the real estate career, but haven’t obtained the salesperson license yet, you should read over this career starter guide first.)

Before we start, I want to give a brief disclaimer. This post is not intended as legal advice or state/federal real estate training. It is for general information only. Please always follow your State laws and best practices.

6 Steps to Become a Real Estate Broker in Michigan

Michigan real estate broker having office meeting

Step 1: Meet the eligibility requirement

You’ll need to be at least 18 years old, have a valid Social Security Number, citizen of the United States or lawfully admitted alien.

Step 2: Fulfill the work experience requirement

You must be actively engaged in real estate related profession for at least three years. They may include:

  • Real estate salesperson or broker
  • Licensed builder
  • Investor
  • Land or condominium developer
  • Loan or trust officer of a federal or state-regulated depository institution
  • Loan or trust officer of a mortgage company
  • Real estate office of a corporation
  • Title insurance company officer engaged in the closing of escrow accounts and real estate closings
  • Staff or real property appraiser

Step 3: Complete the pre-licensing education

Taking Michigan real estate broker pre-license courses

You must complete 90 hours of qualifying courses from an approved education provider. The curriculum must include 9 hours of civil rights law and equal opportunity in housing.

Certain degree courses may also be counted toward part of the pre-license education requirement. For example,

  • A law degree may considered to be 60 hours of real estate education with 6 hours in civil rights and fair housing law
  • A master’s degree in business administration or finance can be counted as 60 hours of real estate education
  • A bachelor’s degree in business or finance can be considered as 30 hours of real estate education

(Related Post: Should I Major in Real Estate?)

Step 4: Pass the Michigan Real Estate Broker Examination

The registration process is similar to the salesperson exam, you will register with the PSI. The exam fee is $79.

The Michigan Real Estate Broker Exam has 115 questions. It is divided into the National Portion and State Portion. The required passing score is 75% and you’ll be given 210 minutes to write it.

I’ll include more details about the exam content later in this post.

Step 5: Submit application to the Michigan Department of Licensing and Regulatory Affairs

Submitting broker application through MiPLUS

You need to submit an online application through the Michigan Professional Licensing User System (MiPLUS). The system is very convenient to use. It allows you apply/renew a license, track the status, receive electronic notifications. The MI Department recommends using a desktop/laptop and Internet Explorer for the registration.

In addition to the general information, you need to provide the specific type of real estate experience you have – for example, the number of periods where you work at least 40 hours per week, 48 weeks per year. Also, the number of real estate transactions/units that you worked at during that time.

The application fee for:

  • Associate Broker is $143
  • Broker Company is $143
  • Branch Office is $70

You may pay them with a credit/debit card.

Step 6: Maintain the Michigan real estate broker license

In Michigan, you need to renew your real estate broker license once every three years. To do so, you’ll have to:

  • Submit the renewal application at MiPLUS
  • Pay the $108 renewal fee (An additional $60 for branch office)
  • Provide proof for completion of continuing education

You also need to take 18 credit hours of continuing education, of which 2 hours of the CE must cover statutes, rules, and court cases in each year of a license cycle.

More info about the Michigan Real Estate Broker Examination

The Michigan Real Estate Broker Exam is to test your knowledge and understanding of real estate law, principle and practices, and mathematics. Each test consists of the national and state portions

Real Estate Broker Exam Summary

Examination# of ItemsTime AllowedRequired Passing Score
Broker115 (120 points)210 minutes75%

National Portion Exam Content

Exam ContentWeighting (Broker)
Property ownership10%
Land use controls and regulations5%
Valuation and market analysis7%
Financing8%
General principles of agency11%
Property disclosures7%
Contracts18%
Leasing and Property Management5%
Transfer of Title7%
Practice of real estate14%
Real estate calculations8%

State Portion Exam Content

 Broker (# of Items)
Duties and Powers of the Department and the State Board of Real Estate3
Licensing Requirements4
Statutory Requirements Governing the Activities of Licenses15
Contractual Relationships5
Additional State Topics13

Sample Broker Exam Questions

To give you a better idea about the real estate exam, below are two sample questions for your reference.

Sample Broker Questions (Scenario-Based)

Scenario: You are hosting an open house. Mr. and Mrs. Charles Martin come into the house. You greet them and show them the house. The Martins tell you the house is exactly what they are looking for and they are very interested in purchasing it. You then give them information showing the various types of financing available with down payment options and projected payments.

Mr. Martin tells you they have been working with Mary Hempstead of XX Realty, a competing real estate company. Before leaving, you thank them for coming and give them your business card.

A. The first thing on Monday morning, Mrs. Martin calls and indicates they have tried to reach Mary and cannot. They indicate they have a written buyer’s agent agreement with Mary’s broker. They are afraid someone else is going to buy the house. Which of the following should you do? Select the best answer.

1. Seek advice from your supervising broker.

2. Tell them to come to your office.

3. Ask them to bring the buyer’s agency agreement to you for your interpretation.

4. Tell them to be patient and continue trying to reach Mary.

5. Tell them to call Mary’s supervising broker or branch manager.

6. Tell them you are really sorry, but there is nothing you can do.

B. The Martins come to your office and explain that neither Mary nor her supervising broker are available. They insist you immediately write an offer for the house. How should you proceed? Select the best answer.

1. Write the offer after entering into a buyer’s broker agreement with them.

2. Write the offer after explaining they may owe Mary’s broker a commission.

3. Write the offer after trying to contact Mary’s broker yourself.

4. Refuse to write an offer and explain that doing so would be unethical.

5. Refuse to write and offer since it would be illegal.

6. Refuse to write the offer and tell the Martins to contact another Salesperson in Mary’s office.

Sample Questions Quoted from Michigan Real Estate Salesperson and Broker Candidate Information Bulletin

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How long does it take to become a real estate broker in Michigan?

It takes at least 3 years to get a real estate broker license in Michigan. That is the required amount of real estate work experience. But it also depends on the time it takes you to complete the pre-license courses, exam, and the application.

You may speed up in getting the Michigan broker license by taking online courses. This way, you’ll have the flexibility to finish the pre-licensing education at a quicker pace.

How much do real estate broker make in Michigan?

Michigan real estate broker figuring out income potential

Real estate brokers in Michigan earn an average yearly income of $80,610. It typically ranges between $47,080 to $103,430. Top earning real estate brokers are making over $110,760. (*)

Your earning depends on many factors. For example, the amount of time per week you are dedicated to run the business and the number of agents in your sales team. Having the skills and vision to delegate tasks to others rather than DIY is another major determining factor.

Here’s another post you could be interested. “Do Brokers Make More than Real Estate Agents? (Facts Revealed)”

Is there a demand for real estate broker in Michigan?

According to the Bureau of Labor Statistics, there are 710 real estate brokers and 1850 sales agent in Michigan. So it works out to be 2.6 sales agents for every broker.

However, some brokers could focus solely on their own sales volume and not doing any team building. So there should be more sales agents per brokerage office. As long as there are sales agents looking for a brokerage firm to place their business, there will be demand for real estate brokers in Michigan.

(*) Source: Bureau of Labor Statistics (May 2019)

Whom should I contact if I have more questions about the real estate license, whom should I contact?

You could contact the Department of Licensing at:

So do you find this guide helpful? If so, please share it!

If you are reading up to this point, I bet you must be interested in becoming a real estate broker. Go through practice questions indeed can help you better prepare for the exam. PrepAgent is the exam prep that I highly recommend. You may click here to check out their package options. (**)

(**) Affiliate Disclosure: Please note that some of the links above are affiliate links, and at no additional cost to you. Our website, RealEstateCareerHQ.com, will earn a commission if you decide to make a purchase after clicking on the link. Please understand that we include them based on our experience or the research on these companies or products, and we recommend them because they are helpful and useful, not because of the small commissions we make if you decide to buy something through the links. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals.

Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. For full and exact details, please contact the Michigan Department of Licensing and Regulatory Affairs (LARA), The Bureau of Professional Licensing (BPL)

Reference:

  • Michigan Department of Licensing and Regulatory Affairs (LARA) (source)
    • Michigan Real Estate Associate Broker Licensing Guide (source)
    • Michigan Real Estate Broker Company and Branch Office Licensing Guide (source)
    • Michigan Real Estate Individual Broker Licensing Guide (source)
    • How to Apply for a Broker Company License in MiPlus (source)
    • How to Apply for a Non-Principal Associate Broker License in MiPlus (source)
    • How to Apply for a Principal Associate Broker License in MiPlus (source)
  • New Administrative Rules for Real Estate Brokers and Salespersons (source)
  • Michigan Real Estate Licensing Salesperson and Broker Examinations Candidate Information Bulletin (source)

Jacob Coleman

Jacob is a content writer and a real estate investor. He has experience working with different real estate professionals throughout the years. (i.e., appraisers, real estate agents, property managers, home inspectors.) In order to build a career you love, Jacob believes not only you need a thorough understanding about the profession, but you also have to find out what type of jobs could match your personality, lifestyle and expectation.

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