Michigan Real Estate Salesperson Exam Overview
The Michigan Real Estate Salesperson Exam is administered by PSI Services on behalf of the Department of Licensing and Regulatory Affairs (LARA). Michigan has one of the lower pre-licensing requirements at 40 hours but includes mandatory civil rights training.
Passing this exam qualifies you to work as a real estate salesperson in Michigan—the 10th largest state with over 10 million residents and diverse markets including Detroit, Grand Rapids, and numerous lakefront communities.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 115 scored + 5-10 pretest |
| Time Limit | 3 hours |
| Passing Score | 70% on each section |
| Exam Fee | $79 |
| Pre-licensing Education | 40 hours (including 4 civil rights) |
| Testing Vendor | PSI Services |
| License Term | 3 years |
Why Get Licensed in Michigan?
- Large population — Over 10 million residents
- Great Lakes properties — Unique waterfront market
- Affordable education — Only 40 hours required
- Detroit revival — Growing urban market
- 3-year license — Longer than most states
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Key Topics Covered on the Exam
1. LARA & Licensing (20%)
Regulatory Authority:
- Department of Licensing and Regulatory Affairs
- Bureau of Professional Licensing
- Rule-making powers
- Disciplinary procedures
- License law enforcement
License Requirements:
- 18 years old minimum
- 40 hours pre-license education
- 4 hours civil rights training included
- Pass both exam portions
- Employing broker required
License Types:
- Salesperson license
- Associate broker license
- Broker license
- Builder salesperson
- Property management
Continuing Education:
- 18 hours per 3-year cycle
- 2 hours legal updates required
- Approved provider courses
- Renewal procedures
- Late renewal penalties
2. Agency Law (25%)
Agency Relationships:
- Seller agency
- Buyer agency
- Dual agency
- Transaction coordination
- Designated agency
Agency Disclosure:
- Required at first contact
- Written acknowledgment
- Explanation of relationships
- Timing requirements
- Documentation standards
Fiduciary Duties:
- Loyalty
- Obedience
- Disclosure
- Confidentiality
- Accounting
- Reasonable skill and care
Dual Agency:
- Written consent required
- Both parties informed
- Limited representation
- Confidentiality restrictions
- In-company transactions
3. Contracts & Disclosures (30%)
Seller Disclosure Statement:
- Michigan Seller Disclosure Act
- Material defects
- Known conditions
- Environmental hazards
- Transfer disclosure
Purchase Agreements:
- Offer and acceptance
- Essential terms
- Contingencies
- Financing provisions
- Closing timeline
Trust Accounts:
- Escrow requirements
- Deposit handling
- Interest-bearing options
- Disbursement rules
- Record keeping
Additional Disclosures:
- Lead-based paint
- Underground storage tanks
- Farm proximity disclosure
- Airport noise disclosure
- Wetlands disclosure
4. Property Law & Fair Housing (25%)
Elliott-Larsen Civil Rights Act:
- Michigan fair housing law
- Protected classes (broader than federal)
- Religion, race, color, national origin
- Age, sex, familial status, disability
- Marital status included
Types of Ownership:
- Fee simple absolute
- Life estates
- Tenancy in common
- Joint tenancy
- Tenancy by the entirety
Property Taxes:
- State Equalized Value (SEV)
- Taxable value limitations
- Principal residence exemption
- Tax liens
- Payment procedures
Environmental Issues:
- Lead-based paint
- Underground storage tanks
- Wetlands (extensive in Michigan)
- Floodplains
- Shore land protection
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1 | LARA regulations and licensing | 10-12 |
| Week 1-2 | Agency law and disclosure | 12-15 |
| Week 2-3 | Contracts and seller disclosure | 15-18 |
| Week 3-4 | Property law and fair housing | 12-15 |
| Week 4 | Practice exams and review | 10-12 |
Total recommended study time: 60-80 hours (plus 40-hour pre-licensing)
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Michigan Real Estate exam.
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Michigan-Specific Exam Tips
1. Master Elliott-Larsen
Michigan's civil rights law is comprehensive:
- Broader than federal Fair Housing Act
- Includes marital status protection
- 4 hours required in pre-licensing
- State enforcement through MDCR
- Heavily tested on state portion
2. Understand Waterfront Property
Michigan has extensive water features:
- Great Lakes shoreline
- Inland lakes regulations
- Riparian rights
- Shore land zoning
- Dock and pier regulations
3. Know State Equalized Value
Michigan's property tax system:
- SEV is 50% of true cash value
- Taxable value different from SEV
- Proposition A limitations
- Principal residence exemption
- Uncapping upon transfer
4. Key Numbers to Remember
| Topic | Michigan Requirement |
|---|---|
| Passing score | 70% each section |
| Pre-licensing | 40 hours (4 civil rights) |
| License term | 3 years |
| CE requirement | 18 hours/3 years |
| SEV | 50% of true cash value |
| Exam questions | 115 scored |
Common Mistakes to Avoid
- Skipping civil rights — Required and tested
- Ignoring waterfront issues — Significant in Michigan
- Confusing SEV with taxable value — Different concepts
- Underestimating Elliott-Larsen — Broader than federal
- Missing disclosure requirements — Seller Disclosure Act
- Not pacing the exam — 3 hours for 115+ questions
After Passing Your Exam
- Submit license application to LARA
- Pay application fee ($88)
- Obtain employing broker before activation
- Complete fingerprinting if required
- Complete 18 hours CE every 3 years
- Begin your real estate career in Michigan
2026 Michigan Updates
For 2026, be aware of:
- Updated LARA regulations
- Disclosure form revisions
- Digital transaction standards
- Civil rights training updates
- Continuing education changes
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.
→ Begin FREE Michigan Real Estate Exam Prep Now
Our free study materials include:
- Complete topic coverage
- Practice questions with explanations
- Elliott-Larsen Civil Rights specifics
- Waterfront property guide
- AI-powered study assistance
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