Michigan Real Estate Salesperson Exam Overview
The Michigan Real Estate Salesperson Exam is administered by PSI Services LLC on behalf of the Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Professional Licensing. Michigan has one of the lower pre-licensing education requirements in the country at 40 clock hours, but it is the only state that mandates a dedicated 4-hour civil rights module inside that 40 hours.
Passing this exam qualifies you to work as a real estate salesperson in Michigan—the 10th-largest state by population, with diverse markets including Detroit, Grand Rapids, Ann Arbor, Traverse City, and extensive Great Lakes lakefront communities.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Scored Questions | 115 (80 national + 35 state) |
| Pretest Questions | 5–10 unscored (do not count against your score) |
| Time Limit | 180 minutes (3 hours) |
| Passing Score | 70% on EACH section (56/80 national AND 25/35 state) |
| Exam Fee | $79 per attempt (paid to PSI; valid 1 year from payment) |
| Application Fee | $88 (paid to LARA via MiPLUS before exam authorization) |
| Pre-licensing Education | 40 hours including 4 hours civil rights/fair housing |
| Testing Vendor | PSI Services LLC |
| License Term | 3 years |
| Continuing Education | 18 hours per 3-year cycle (new rule eff. June 4, 2025) |
You must pass both the national and state portions independently. Failing either section fails the exam, and you must retake the failed portion (a full $79 fee applies per retake). Passing candidates receive only a PASS result; numeric scores and diagnostic breakdowns are provided only to failing candidates.
Why Get Licensed in Michigan?
- Large market — Over 10 million residents, the 10th-largest U.S. state by population
- Great Lakes properties — Unique waterfront and riparian-rights market unmatched in the U.S.
- Low barrier to entry — Only 40 hours of pre-licensing education required
- Detroit revival — Growing urban and suburban markets
- 3-year license cycle — Longer than most states' 2-year cycles
- Remote proctoring — PSI offers online proctored exams so you can test from home
Start Your FREE Michigan Real Estate Exam Prep
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National Portion Content Outline (80 Questions)
The national portion tests real estate principles and practices that apply across the United States. PSI publishes the official content outline in its Michigan Candidate Information Bulletin. The largest single area is Contracts at 19%.
| Topic Area | % of National Portion |
|---|---|
| Property Ownership | 10% |
| Land Use Controls | 5% |
| Valuation / Market Analysis | 8% |
| Financing | 10% |
| Contracts | 19% |
| Agency | 13% |
| Property Disclosures | 7% |
| Property Management | 3% |
| Transfer of Title | 6% |
| Practice of Real Estate | 12% |
| Real Estate Calculations | 7% |
Key subtopics inside the national portion: types of ownership (severalty, tenancy in common, joint tenancy, tenancy by the entirety, life estate, condos/co-ops/timeshares); encumbrances (liens, easements, adverse possession); federal fair housing and protected classes; RESPA, TILA/Regulation Z, TRID, ECOA; fiduciary duties (loyalty, obedience, disclosure, confidentiality, accounting, reasonable skill and care); types of deeds; title insurance; closing and prorations; and real estate math (commission, LTV, PITI, cap rate, area, seller's net proceeds).
Michigan State Portion Content Outline (35 Questions)
The state portion tests Michigan-specific law under Article 25 of the Michigan Occupational Code (PA 299 of 1980) and related statutes. PSI's official state content outline distributes the 35 questions across five areas:
| State Topic | Approx. Questions |
|---|---|
| Duties & Powers of the Department and the State Board of Real Estate | 3 |
| Licensing Requirements | 5 |
| Statutory Requirements Governing the Activities of Licensees | 10 |
| Contractual Relationships | 5 |
| Additional State Topics | 12 |
The "Additional State Topics" bucket is where Michigan's distinctive statutes live. Expect questions drawn from:
- Elliott-Larsen Civil Rights Act and the Persons with Disabilities Civil Rights Act (Michigan fair housing)
- Land Division Act (disclosure of private road access)
- Michigan Condominium Act
- Landlord-Tenant Relationship Act and Truth in Renting Act
- State Transfer Tax ($8.60 per $1,000 of value: $7.50 state + $1.10 county)
- MSHDA (Michigan State Housing Development Authority)
- Uniform State Antitrust Act
- Michigan Right to Farm Act
- Changes in Land Contract Laws
Michigan-Specific Laws You Must Know
Elliott-Larsen Civil Rights Act
Michigan's fair housing law is broader than the federal Fair Housing Act. The Elliott-Larsen Civil Rights Act adds protected classes including age, marital status, height, and weight on top of the federal classes (race, color, religion, national origin, sex, familial status, disability). Enforcement runs through the Michigan Department of Civil Rights (MDCR), not HUD alone. Four hours of your 40-hour pre-licensing course must cover civil rights and fair housing, and the state portion tests this heavily.
State Equalized Value (SEV)
Michigan's property tax system is unique and consistently tested:
- SEV is 50% of a property's true cash value (assessed value)
- Taxable value is different from SEV — it is capped by Proposal A (1994) and can only rise at the inflation rate or 5%, whichever is less, until the property transfers
- Principal Residence Exemption (PRE) — exempts a portion of the primary residence's taxable value from certain school operating mills
- Uncapping — taxable value jumps to SEV upon a transfer of ownership
Waterfront and Riparian Rights
Michigan has more Great Lakes shoreline than any other state, plus thousands of inland lakes. Riparian rights (the rights of waterfront property owners to use adjacent water) are tested on the state portion. Key concepts: littoral vs. riparian, accretion, reliction, erosion, and shore-land zoning regulations.
Michigan Transfer Tax
When real property transfers in Michigan, a state transfer tax of $7.50 per $1,000 of value and a county transfer tax of $1.10 per $1,000 apply (combined $8.60 per $1,000). This is a frequent state-portion math question.
Trust Accounts
Michigan licensees who handle client funds must maintain trust accounts with no commingling and no conversion. Earnest money deposits must be placed in a trust account promptly and disbursed only per the purchase agreement or a court order.
The Licensing Workflow: Step by Step
The Michigan salesperson licensing process has a specific order. A common mistake is paying for the exam before completing the LARA application — you cannot schedule with PSI until LARA issues your authorization.
- Complete 40-hour pre-licensing education at a LARA-approved school (must include 4 hours civil rights/fair housing). Course must be completed within the 36 months preceding your application.
- Create a MiPLUS account at michigan.gov/miplus (Michigan Professional Licensing User System).
- Submit the salesperson application in MiPLUS and pay the $88 application fee (one-time, non-refundable, by debit/credit card — no American Express).
- Upload your 40-hour course completion certificate to MiPLUS.
- Wait for LARA approval (typically a few business days). LARA emails you a PSI Candidate ID (your MIRE number) once authorized.
- Schedule and pay for the exam ($79) through PSI at psiexams.com or by phone at (855) 579-4635. Choose a PSI testing center (Dearborn, Gaylord, Grand Rapids, Holt, Marquette, or Southfield) or remote online proctoring.
- Pass both portions (70% national AND 70% state).
- Link your employing broker in MiPLUS — enter your broker's 10-digit license number; the broker must approve the request before your license is issued. You cannot activate a license without an employing broker.
- Begin practicing as a licensed Michigan real estate salesperson.
Prelicensing Education and Civil Rights Requirement
Michigan requires 40 clock hours of LARA-approved pre-licensing classroom education in the principles of real estate, including at least 4 hours on civil rights law and equal opportunity in housing. Per MCL 339.2504, acceptable providers include local public school districts, community colleges, degree-granting institutions, and other LARA-approved education providers. The course must be completed within the 36-month period preceding your application date — older coursework will not count.
Michigan's 40-hour requirement is among the lowest in the nation (compare to Texas's 180 hours or California's 135 hours). Do not interpret the low hour count as a low exam difficulty — the state portion tests detailed Michigan statutes that are not covered in a generic national real estate course.
After You Pass: License Activation and Continuing Education
Once you pass both portions and your employing broker approves the linkage in MiPLUS, LARA issues your salesperson license. Your license term is 3 years, with the expiration date tied to the date your first license was issued after the first MiPLUS renewal.
Continuing Education — New Rule Effective June 4, 2025
Michigan updated its CE rule under R 339.22161 (effective June 4, 2025), implementing the statutory changes in MCL 339.2504a (2023 PA 246, effective Feb. 13, 2024). The new requirement is:
| Requirement | Per Year | Per 3-Year Cycle |
|---|---|---|
| Legal education (statutes, rules, court cases) | Min. 2 hours | 6+ hours |
| Fair housing law compliance | Min. 1 hour | 3+ hours |
| Elective hours | Anytime during cycle | 9 hours |
| Total | — | 18 hours |
Licensees must retain CE completion evidence for 4 years and produce it upon request. Renewal application submission constitutes certification of compliance. The old rule (R 339.22629) was rescinded and replaced by this new rule, which adds the annual fair housing requirement.
Retake Policy
If you fail one or both portions, you may retake the exam after a 24-hour waiting period. There is no set limit on attempts, but each retake costs the full $79 exam fee (even if you only failed one portion — though you only retake the failed portion). After three failures, additional education may be required. Your exam fee is valid for 1 year from the date PSI receives payment; if you do not test within that year, you forfeit the fee.
LARA and PSI do not publish an official statewide pass-rate figure. Any specific percentage cited by a third-party prep school is that school's claim, not an official LARA/PSI statistic. Plan to over-prepare rather than rely on a published pass rate.
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | National: Property Ownership, Land Use, Valuation | 10–12 |
| Week 1–2 | National: Financing, Contracts (19% — heaviest) | 12–15 |
| Week 2 | National: Agency, Disclosures, Transfer, Calculations | 10–12 |
| Week 2–3 | Michigan: LARA licensing, Occupational Code Article 25 | 10–12 |
| Week 3 | Michigan: Elliott-Larsen, SEV/Proposal A, transfer tax | 10–12 |
| Week 3–4 | Michigan: Condominium Act, Land Division, Trust Accounts | 8–10 |
| Week 4 | Full-length timed practice exams (both portions) | 10–12 |
Total recommended study time: 60–80 hours on top of the 40-hour pre-licensing course.
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Michigan Real Estate exam.
Key Numbers to Remember
| Topic | Michigan Requirement |
|---|---|
| National portion | 80 questions, 70% to pass (56 correct) |
| State portion | 35 questions, 70% to pass (25 correct) |
| Pre-licensing | 40 hours (including 4 civil rights), within 36 months |
| Exam fee | $79 per attempt (PSI) |
| Application fee | $88 (LARA via MiPLUS) |
| License term | 3 years |
| CE requirement | 18 hours/cycle (2 legal + 1 fair housing per year) |
| SEV | 50% of true cash value |
| State transfer tax | $8.60 per $1,000 ($7.50 state + $1.10 county) |
| Minimum age | 18 years |
Common Mistakes to Avoid
- Paying PSI before applying in MiPLUS — You cannot schedule until LARA authorizes you.
- Skipping the civil rights module — The 4-hour civil rights training is mandatory and tested.
- Confusing SEV with taxable value — SEV is 50% of true cash value; taxable value is Proposal-A-capped.
- Underestimating Elliott-Larsen — Broader than federal Fair Housing (adds age, marital status, height, weight).
- Not knowing the Michigan transfer tax — $8.60 per $1,000 is a common state-portion math question.
- Ignoring waterfront issues — Riparian rights are heavily tested given Michigan's Great Lakes shoreline.
- Using stale CE rules — The June 4, 2025 rule adds a 1-hour/year fair housing requirement.
2026 Michigan Updates
For 2026 candidates, the most important recent change is the new CE rule R 339.22161 effective June 4, 2025, which added a mandatory 1 hour of fair housing per year (3+ hours per 3-year cycle) on top of the existing 2 hours of legal education per year. If you are licensed in 2026, your CE plan must include both tracks.
Other current notes for 2026:
- MiPLUS is the official LARA application portal; all salesperson applications and the $88 fee go through it.
- Remote online proctoring through PSI is available as an alternative to in-person testing centers — verify the technical and environmental requirements (no scratch paper, no breaks, must remain visible on camera, launch within 15 minutes of appointment) before choosing this option.
- The PSI Candidate Information Bulletin for Michigan real estate is the authoritative source for the current content outline, testing center list, and ID rules — verify you have the latest version before scheduling.
Start Your Michigan Real Estate Career Today
The Michigan Real Estate Salesperson license opens doors to diverse markets across the Great Lakes State. With lakefront properties, urban revival in Detroit, and growing suburbs, Michigan offers unique opportunities. With proper preparation, you can pass both exam sections on your first attempt.
Our free study materials include:
- Complete topic coverage aligned to the PSI content outline
- Practice questions with explanations
- Elliott-Larsen Civil Rights specifics
- Waterfront and riparian property guide
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.
How to Use This Michigan Guide Without Wasting Study Time
Treat the facts above as your control sheet, not as a one-time read. The most common mistake candidates make is reading a licensing overview, feeling familiar with the vocabulary, and then taking mixed practice questions before they can explain why each answer is right or wrong. For the Michigan real estate exam, build your prep around three passes: first learn the licensing workflow, then master the national real estate concepts, and finally drill the Michigan-specific rules until they feel separate from generic national law.
Start by copying the eligibility, education, sponsoring broker, application, fingerprint or background-check, testing vendor, passing score, and renewal facts from this article into one page. Leave a blank column next to each item titled "proof." In that proof column, write where the requirement appears in your course, candidate bulletin, state agency page, or school materials. This exercise is not busywork. It forces you to separate official licensing requirements from school marketing language, and it prevents exam-day confusion when a question asks what happens before licensure versus what happens after a license is issued.
When you study national topics, organize them by transaction stage. Property ownership, estates, encumbrances, land use, valuation, finance, agency, contracts, transfer, closing, and math are not isolated chapters in real practice. They appear in sequence as a client moves from representation to offer, financing, inspection, title, closing, and post-closing duties. If you can place a rule in the transaction timeline, you are less likely to confuse similar terms such as lien versus encumbrance, option versus right of first refusal, void versus voidable, or material fact versus ordinary sales puffery.
Michigan Licensing Workflow to Verify Before You Schedule
Before you schedule the exam, verify every step in the Michigan licensing workflow against the current state agency or testing vendor instructions. Use the article above for orientation, then confirm the current version of the candidate handbook, application portal, education certificate process, identification rules, and score-report policy. State real estate programs change forms and portal steps more often than they change core property law, so do not rely on an old school handout for the last administrative details.
A practical workflow looks like this. First, finish the required pre-license education and keep your completion documentation where you can find it. Second, confirm whether your exam authorization is automatic or requires a separate application step. Third, check whether the testing vendor requires a legal name match with your government ID. Fourth, decide whether you are testing both portions in one sitting or retesting a failed portion. Fifth, confirm what happens after passing: license application, broker sponsorship, background review, fee payment, and any post-license or continuing education deadlines.
That order matters because candidates often prepare for the content but lose days to process errors. A mismatched name, expired authorization, missing education certificate, or misunderstanding about broker sponsorship can delay a license even after a passing score. Add a calendar reminder for every expiration date mentioned in your candidate materials. If your passed score, education certificate, or application window expires, you may have to repeat work that was already finished.
Split Your Prep Between National Concepts and Michigan Rules
Most real estate exams reward candidates who can move back and forth between national principles and state-specific administration. Your national prep should answer questions such as: What kind of ownership interest exists? Which party owes which fiduciary duty? What makes a contract enforceable? How is title transferred? What financing rule applies? What calculation is needed? Your Michigan prep should answer a different set of questions: Who regulates the license? What must be disclosed? What conduct can trigger discipline? What forms or notices are required? What deadlines, fees, or renewal duties apply?
Do not blend those two tracks too early. Spend part of each study session on national concepts and part on Michigan rules, but review mistakes in separate lists. A missed agency question because you forgot obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care is different from a missed state-law question because you confused the regulator, renewal period, or required disclosure. Separate error logs make your next study block much more precise.
For math, keep a compact formula page and practice under time. Real estate math is often more predictable than legal scenario questions, but it punishes sloppy reading. Circle what the question is asking for before calculating: commission amount, broker split, property tax, proration, loan-to-value, interest, area, or capitalization. Then write the units next to the answer. Many wrong choices are built from a correct formula applied to the wrong time period, percentage, or party.
Exam-Day Strategy for Michigan Candidates
On test day, read each question as if one word was placed there to change the answer. Words such as except, first, best, most likely, must, may, before, after, seller, buyer, broker, salesperson, and licensee are common traps. If a question gives a long fact pattern, identify the legal issue before looking at the answers. If you read the answers first, a familiar phrase can pull you toward a rule that does not match the facts.
Use a three-pass timing system. On the first pass, answer questions you can resolve confidently. On the second pass, return to marked questions that require calculation, close reading, or comparison between two plausible answers. On the final pass, make sure no item is blank and revisit only the questions where you have a specific reason to change an answer. Changing answers because of anxiety usually hurts more than it helps; changing an answer because you found a missed word in the stem is different.
If your exam has separate national and state portions, mentally reset between them. A state portion may test rules that override your general instincts from national law. A national portion may ask broad principles without using Michigan terminology. Treat each portion as its own scoring event and keep your pace aligned to the number of questions and time allowed for that section.
What to Do If Your Practice Scores Stall
If your practice scores stay below passing, stop taking full-length exams for a few days and audit your misses. Label each wrong answer as vocabulary, rule, application, math, state-specific detail, or reading error. Vocabulary misses need flashcards. Rule misses need a short outline. Application misses need scenario practice. Math misses need repeated setup drills. Reading errors need slower question review, not more content.
A strong final week is not about seeing the most questions. It is about seeing your weak patterns until they stop repeating. Rework every missed question without looking at the explanation, then write one sentence explaining why the correct answer is better than the tempting wrong answer. That sentence is where learning happens. If you cannot write it, return to the underlying rule before moving on.
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