1.2 Michigan License Requirements

Salesperson License Requirements

To qualify for a Michigan real estate salesperson license you must satisfy four gates: eligibility, education, examination, and sponsorship.

1. Basic Eligibility

• Be at least 18 years of age.
• Be of good moral character; certain felony or fraud convictions trigger LARA review and possible denial.
• Hold a valid Social Security number or equivalent for the MiPLUS application.

2. Education — 40 Clock Hours

The 4-hour civil rights/fair-housing block is carved out of the 40 hours, not added on top. A school must use a LARA-approved curriculum, and your completion certificate is what unlocks exam eligibility. A very common exam distractor is "44 hours" — reject it; the civil rights hours are inside the 40.

3. The PSI Examination

Michigan contracts with PSI to deliver the licensing exam at testing centers and via online proctoring.

The national and Michigan portions are taken in one sitting and scored together: passing requires 70% of the 115 questions overall (80 correct), not a separate 70% on each portion. A strong national score can offset a weaker state score (and vice versa) as long as the combined total reaches 80. If you fail, PSI reports your sub-scores by portion so you know where to focus on a retake, but those portions are not passed or failed independently. Bring two forms of ID; the score report is delivered immediately at the testing center.

4. Application and Fees

5. Timing Rules

Worked example: Maria finishes a 40-hour course (36 + 4 civil rights), applies in MiPLUS, and sits the PSI exam. She answers 60 of 80 national questions (75%) and 21 of 35 state questions (60%) correctly — 81 of 115 overall, which is 70.4%. Because passing is cumulative at 70% (80 correct out of 115), Maria's combined 81 correct passes, even though her state sub-score alone was under 70%. Michigan does not require a separate 70% on each portion; the strong national score carried the weaker state score.

Broker License Requirements

Becoming a Michigan broker demands more education AND documented experience.

Education — 90 Clock Hours

Trap alert: The broker requirement is a free-standing 90 hours, not "40 + 90." Do not add the salesperson hours to it. The civil-rights carve-out scales up to 9 hours inside the 90.

Experience

Applicants must show 3 years (36 months) of qualifying full-time real estate experience within the preceding 5 years, documented on a point/transaction schedule LARA accepts (listings sold, sales closed, leases, appraisals, etc.).

Broker Application Process

1. Complete 90 hours of approved broker pre-license education.
2. Document 3 years of qualifying experience.
3. Apply for exam eligibility in MiPLUS; LARA authorizes PSI.
4. Pass the broker PSI exam — also 115 questions, but scored on a 120-point scale with a higher 75% cumulative passing standard (a raw score of 90) and 210 minutes allotted, versus the salesperson's 70% / 180 minutes.
5. Submit the broker license application and fee.
6. Decide your structure — individual broker, associate broker, or designated broker of an entity.

Exam Retakes (Salesperson or Broker)

Key Point: A salesperson cannot practice the moment they pass — an employing broker must sponsor and certify the affiliation through LARA first. The license is dormant until that sponsorship is on file.

Good Moral Character and Conviction Review

Michigan's Occupational Code lets LARA weigh an applicant's criminal history, but a conviction is not an automatic bar. Under Michigan's "good moral character" statute, LARA looks at the nature of the offense, its relationship to real estate practice, time elapsed, and evidence of rehabilitation. Fraud, embezzlement, forgery, or other crimes of dishonesty are the most likely to block licensure because they bear directly on handling client funds and disclosures.

Cost Summary — Salesperson Pathway

Common trap: Candidates conflate the $79 exam fee (paid to PSI) with the $88 application fee (paid to LARA). They are separate payments to separate parties at different stages. The exam fee recurs with every retake; the application fee is paid once when you apply for the license after passing.