How to become a real estate broker in Michigan

To become a real estate broker in Michigan, you must be at least 18 years old, complete 90 hours of state-approved prelicensure education, accumulate 3 years of full-time real estate experience, pass a PSI-administered broker exam, and submit a $143 application through the MiPLUS online portal. The Michigan Department of Licensing and Regulatory Affairs (LARA) oversees broker licensing under Article 25 of the Occupational Code^[1], which sets the education, experience, and examination standards every broker applicant in the state must meet.

The Michigan broker license pathway

The Michigan broker license pathway proceeds through a defined sequence: gain qualifying experience, complete prelicensure education, pass the PSI broker exam, submit an application through MiPLUS, and meet the state's place-of-business requirement. LARA enforces each step under the Occupational Code.

Real estate broker vs salesperson vs real estate agent in Michigan

A real estate broker holds a license that allows independent practice and the authority to employ salespersons. The salesperson license is the entry-level credential in Michigan real estate and requires affiliation with a broker for any licensed activity. Michigan's Occupational Code uses the title "real estate salesperson" for the credential most people call a "real estate agent," and the two terms refer to the same license.

A real estate agent is not a license type. The term REALTOR® is a trademarked designation for members of the National Association of REALTORS®, a trade association that requires adherence to a Code of Ethics and annual dues. A REALTOR® can hold a salesperson license, a broker license, or an associate broker license (the designation reflects association membership, not a license tier).

Michigan does not issue a separate license for commercial real estate. The broker license covers residential and commercial practice under the same credential, so a broker can handle either type of transaction.

Michigan broker license requirements

Michigan sets specific age, education, experience, and examination standards for broker applicants. The Individual Broker Licensing Guide^[2] published by LARA details each requirement.

Michigan does not offer reciprocity with any other state. According to the LARA Real Estate FAQs^[3] (revised February 8, 2024), an applicant for a Michigan broker license must meet all education, experience, and examination requirements as of the date the application is submitted. The Michigan Administrative Code does grant experience credit for out-of-state licensees under Rule 115(a), but this is not reciprocity and does not waive education or examination requirements.

Experience requirement for a Michigan broker license

Broker applicants must document 3 years of qualifying full-time work before applying. The Individual Broker Licensing Guide^[2] lists acceptable experience, which includes work as a real estate salesperson or broker, licensed builder, investor, land or condominium developer, attorney, real estate appraiser, loan or trust officer, real estate officer of a corporation, or title insurance company officer.

A salesperson license is not a prerequisite for a broker license. An attorney, licensed builder, or real estate appraiser, for example, can qualify through experience in their own field without first obtaining a salesperson license. LARA provides a Broker Verification of Experience form that applicants must submit to document qualifying work, available through the LARA real estate licensing page^[4].

Broker pre-licensing education in Michigan

Broker prelicensure education in Michigan includes coursework across multiple real estate topics. The state also grants education credit for certain advanced degrees.

Education requirement and validity

LARA sets specific hour and timing requirements for broker prelicensure education.

Degree credit for advanced degrees

Certain advanced degrees can substitute for a portion of the broker prelicensure requirement. The Individual Broker Licensing Guide^[2] credits a law degree as 60 clock hours (including 6 hours of civil rights and fair housing), an MBA in business administration or finance as 60 clock hours, and a bachelor's degree in business or finance as 30 clock hours.

Course format and delivery

LARA approves prelicensure providers that offer broker coursework through multiple delivery methods. The MiPLUS system publishes an approved courses report listing all authorized schools.

The Michigan broker licensing exam

The Michigan broker exam is administered by PSI Services and costs $79 per attempt, according to the LARA consolidated licensing guide^[5]. The exam allows 210 minutes for completion, as specified in the PSI Real Estate Examination Instructions^[6].

Broker exam applicants do not need pre-approval from LARA to schedule the test. You can register directly with PSI without first submitting a license application, according to the LARA Real Estate FAQs^[3]. This differs from the salesperson exam, which requires LARA to confirm eligibility before PSI sends a registration email.

Exam results are valid for one year from the date of passing. If you do not submit your license application within that year, you must retake the exam.

Applying for your Michigan broker license

Broker license applications are submitted through the MiPLUS online portal^[4]. The application fee is $143, which covers both application processing and the 3-year license, according to the Individual Broker Licensing Guide^[2]. Applications are valid for one year from the date of payment.

Michigan broker license types

Michigan offers three broker license types, each serving a different business structure. The LARA real estate licensing page^[4] provides licensing guides for each.

An individual broker license allows a sole proprietor to operate independently and employ salespersons. This is the foundational broker credential in Michigan.

An associate broker license applies to a broker who works under another broker or broker company rather than operating independently. Associate brokers meet the same education and exam standards as individual brokers but affiliate with an existing brokerage. The Michigan Legislature^[1] outlines associate broker licenses under MCL 339.2508 and 339.2509, which distinguish between principal and nonprincipal associate brokers.

A broker company license is required when a corporation, partnership, or LLC engages in real estate brokerage activity in Michigan. Individual broker and principal associate broker licenses cannot be transferred between individuals.

Keeping your Michigan broker license active

A Michigan broker license runs on a 3-year cycle. The renewal fee is $108 per cycle, according to the LARA license renewal fees page^[7]. Brokers must also meet continuing education requirements to renew.

Continuing education requirements

Brokers must complete continuing education to maintain an active license.

Since November 1, 2018, all CE courses must be certified by CE Marketplace, a platform operated by Michigan REALTORS®^[8]. Licensees must retain CE documentation for at least 4 years.

Lapsed licenses and revocation

If a license lapses, relicensure is available within 3 years of expiration by completing at least 6 hours of CE per year or partial year lapsed. If a license has been expired for 3 or more years, the applicant must retake the exam, complete 90 hours of prelicensure education within 12 months, or complete a CE catch-up. The relicensure fee is $163, per the Individual Broker Licensing Guide^[2].

If the Michigan State Board of Real Estate Brokers and Salespersons revokes a broker license, the individual cannot apply for a new license for at least 3 years after service of the final order, according to the LARA Real Estate FAQs^[3].

Career outlook for Michigan real estate brokers

Real estate brokers earned a median annual wage of $72,280 nationally as of May 2024, compared with $56,320 for real estate sales agents, according to the U.S. Bureau of Labor Statistics^[9]. Employment of brokers and sales agents is projected to grow 3% from 2024 to 2034, about as fast as the average for all occupations, with approximately 46,300 job openings per year over the decade.

Approximately 54% of brokers are self-employed.

Next steps

Confirm you meet the experience requirement and gather documentation of qualifying work. Enroll in a LARA-approved broker prelicensure course through the MiPLUS Approved Courses Report. Register for the broker exam directly with PSI when you are ready. After passing, submit your application through MiPLUS and, if you plan to operate as a broker company, review the entity-specific licensing guides on the LARA real estate page.