What Are the Steps to Become a Real Estate Broker in Michigan?

Becoming a real estate broker in Michigan opens the door to a dynamic and rewarding career in one of the state’s most vibrant industries. Whether you’re drawn by the prospect of helping clients find their dream homes, managing property transactions, or leading your own brokerage, understanding the path to licensure is essential. This journey requires dedication, knowledge, and a clear grasp of the state’s requirements, but the payoff can be substantial for those ready to take the next step in their real estate career.

Navigating the process to become a licensed real estate broker in Michigan involves more than just passion for the market—it demands a commitment to education, experience, and adherence to regulatory standards. Aspiring brokers must build on their foundational skills as real estate agents, gaining the practical expertise and legal understanding necessary to operate independently or oversee other agents. The role of a broker carries greater responsibility, but it also offers increased opportunities for leadership and financial growth.

In this article, we will explore the essential aspects of becoming a real estate broker in Michigan, providing a clear overview of what you need to know before diving into the specifics. From eligibility criteria to the steps involved in obtaining your broker’s license, you’ll gain insight into how to position yourself for success in this competitive field. Whether you’re just starting out

Educational Requirements and Pre-Licensing Courses

In Michigan, aspiring real estate brokers must complete specific educational requirements before applying for a broker’s license. This includes successfully finishing a set number of pre-licensing education hours that provide a comprehensive understanding of real estate principles, laws, and practices.

Candidates are required to complete 90 hours of approved broker pre-licensing education. These hours are divided into courses that cover topics such as real estate law, brokerage management, finance, ethics, and contracts. This coursework ensures that future brokers possess the knowledge needed to navigate the complexities of real estate transactions and brokerage operations.

It is important to enroll in courses offered by Michigan-approved real estate schools or institutions. These programs often offer flexible learning options including in-person classes, online modules, or hybrid formats to accommodate different learning preferences.

Experience Requirements

Before qualifying for the broker license examination, candidates must demonstrate relevant real estate experience. Michigan mandates that applicants have a minimum of 3 years of full-time experience as a licensed real estate salesperson or an equivalent part-time experience that meets the state’s criteria.

This experience requirement ensures that broker candidates have practical exposure to real estate transactions, client interactions, and market dynamics, preparing them for the responsibilities of managing a brokerage.

Applying for the Broker License Examination

Once the educational and experience prerequisites are fulfilled, the next step is to apply for the broker license examination through the Michigan Department of Licensing and Regulatory Affairs (LARA). The application process involves:

Submitting a completed application form
Providing proof of education and experience
Paying the required examination fee
Undergoing a background check, which may include fingerprinting

After the application is reviewed and accepted, candidates will receive details about scheduling their broker exam.

Broker License Examination Overview

The Michigan Real Estate Broker Exam tests knowledge of real estate laws, brokerage management, ethics, and advanced real estate concepts. It is divided into two main sections:

Exam Section	Focus Area	Number of Questions	Time Allowed
National Portion	General real estate principles, laws, and practices	80	2.5 hours
State Portion	Michigan-specific laws, regulations, and brokerage rules	40	1.5 hours

Passing scores require correctly answering at least 75% of the questions on each section. The exam is typically administered at authorized testing centers or via approved online proctoring services.

Post-Examination Steps and License Issuance

After successfully passing the broker exam, candidates must submit additional documentation to receive their broker license. This includes:

Proof of Errors and Omissions (E&O) insurance coverage
Payment of the broker license fee
Completion of any final paperwork required by LARA

Once all requirements are met and approved, the Michigan real estate broker license will be issued, allowing the individual to legally operate as a broker within the state.

Maintaining and Renewing Your Broker License

Licensed brokers in Michigan must adhere to continuing education requirements to maintain their license. Every 3 years, brokers are required to complete 18 hours of approved continuing education courses, which typically cover legal updates, ethics, and professional development.

Failure to meet renewal and education requirements can result in license suspension or revocation. Brokers should also stay informed about changes in real estate laws and regulations to ensure compliance and maintain professional standards.

Summary of Key Steps to Becoming a Broker in Michigan

Step	Requirement	Details
Complete Pre-Licensing Education	90 hours	Approved broker courses covering law, ethics, and brokerage management
Gain Experience	3 years	Licensed salesperson experience or equivalent
Apply for Exam	Submit application	Include proof of education, experience, fees, and background check
Pass Broker Exam	Minimum 75% score	National and Michigan-specific exam sections
Obtain License	Submit E&O insurance and fees	Receive broker license to operate legally
Renew License	Every 3 years	Complete 18 hours of continuing education

Educational and Licensing Requirements for Real Estate Brokers in Michigan

To become a licensed real estate broker in Michigan, candidates must meet specific educational prerequisites and successfully navigate the state’s licensing process. These requirements ensure that brokers possess the necessary knowledge and skills to operate professionally within the real estate market.

Basic Eligibility Criteria:

Must be at least 18 years old
Must have a valid Social Security number or legal presence in the United States
Must complete required education and pass examinations

Education Requirements:

Completion of 90 hours of approved real estate education beyond the salesperson level is required. This typically includes courses in real estate brokerage, law, ethics, and finance.
The education must be obtained through Michigan-approved real estate schools or institutions.
Applicants must have at least 3 years of active experience as a licensed real estate salesperson or equivalent experience approved by the Michigan Department of Licensing and Regulatory Affairs (LARA).

Steps to Obtain a Michigan Real Estate Broker License

The process of becoming a licensed real estate broker in Michigan involves several key steps, each designed to verify the candidate’s qualifications and readiness to act as a broker.

Step	Description	Additional Notes
Complete Required Education	Finish 90 hours of approved broker pre-licensing courses beyond the salesperson level.	Courses must be approved by Michigan LARA.
Gain Experience	Accumulate at least 3 years of active salesperson experience or equivalent.	Document experience through verified transactions.
Apply for Broker Examination	Submit an application to LARA for the broker licensing exam along with required fees.	Ensure all prerequisites are met before applying.
Pass the Broker Exam	Successfully pass the Michigan real estate broker licensing exam.	Exam covers state and national real estate laws and practices.
Submit Broker License Application	After passing the exam, submit a broker license application with supporting documents and fees.	Includes background check and proof of experience.
Obtain Broker License	Upon approval, receive the official Michigan real estate broker license.	License allows operation as a broker or to open a brokerage office.

Maintaining and Renewing Your Michigan Broker License

Once licensed, brokers must adhere to ongoing requirements to maintain their license in good standing and continue practicing legally.

Continuing Education:

Brokers must complete 18 hours of continuing education every three years before license renewal.
Continuing education includes core law, ethics, and elective courses relevant to real estate practice.
Courses must be approved by the Michigan Department of Licensing and Regulatory Affairs (LARA).

License Renewal Process:

Renewal occurs every three years on the broker’s birth month.
Submit renewal application and fee before the license expiration date.
Failure to renew on time may result in late fees or license suspension.

Additional Responsibilities:

Maintain accurate and up-to-date transaction records as required by state law.
Comply with all Michigan real estate laws, rules, and regulations.
Notify LARA promptly of any changes in business address or affiliation.

Expert Perspectives on Becoming a Real Estate Broker in Michigan

Jessica Martinez (Licensed Real Estate Broker & Instructor, Michigan Real Estate Academy). Becoming a real estate broker in Michigan requires a clear understanding of both the educational prerequisites and the practical experience needed. Candidates must complete 90 hours of approved broker pre-licensing education and have at least three years of active salesperson experience within the last five years. This combination ensures brokers are well-prepared to manage transactions and lead teams effectively.

David Chen (Director of Licensing, Michigan Department of Licensing and Regulatory Affairs). The licensing process in Michigan emphasizes integrity and professionalism. Applicants must pass the Michigan broker licensing exam, which tests knowledge of state laws, contracts, and ethical practices. Additionally, maintaining a good standing with no disciplinary actions is crucial for approval. Continuous education after licensure also helps brokers stay current with evolving market regulations.

Linda Reynolds (Managing Broker, Great Lakes Realty Group). Practical experience is invaluable when pursuing a broker license in Michigan. Beyond meeting the formal requirements, aspiring brokers should focus on developing strong negotiation skills, understanding local market trends, and building a reliable network of clients and professionals. These elements are key to long-term success and establishing a reputable brokerage.

Frequently Asked Questions (FAQs)

What are the basic requirements to become a real estate broker in Michigan?
Applicants must be at least 18 years old, have a high school diploma or equivalent, and hold an active Michigan real estate salesperson license for at least three years.

How many hours of education are required before applying for a broker license in Michigan?
Michigan requires completion of 90 hours of approved broker pre-licensure education courses.

Is passing an exam necessary to obtain a real estate broker license in Michigan?
Yes, candidates must pass the Michigan real estate broker licensing examination to qualify for licensure.

What experience is needed before applying for a broker license in Michigan?
Applicants must have at least three years of full-time experience as a licensed real estate salesperson within the past five years.

How do I apply for the real estate broker license in Michigan?
After meeting education and experience requirements and passing the exam, applicants submit a completed application with fees to the Michigan Department of Licensing and Regulatory Affairs (LARA).

Are continuing education requirements mandatory for maintaining a broker license in Michigan?
Yes, licensed brokers must complete continuing education courses every three years to renew their license and stay compliant with state regulations.
Becoming a real estate broker in Michigan requires a clear understanding of the state’s licensing requirements and a commitment to gaining the necessary education and experience. Prospective brokers must first hold an active salesperson license, complete specific pre-licensing education, and accumulate a minimum of three years of full-time experience as a licensed real estate salesperson. Following these prerequisites, candidates must successfully pass the Michigan real estate broker licensing exam to demonstrate their knowledge and competency in the field.

Additionally, applicants must submit a thorough application to the Michigan Department of Licensing and Regulatory Affairs (LARA), including proof of education, experience, and passing exam results. Maintaining the broker license also involves fulfilling continuing education requirements to stay current with industry regulations and best practices. Understanding these steps and adhering to state guidelines is essential for a smooth and successful transition from salesperson to broker.

In summary, aspiring real estate brokers in Michigan should focus on meeting the educational and experiential benchmarks, preparing diligently for the licensing exam, and complying with all regulatory standards. By doing so, they position themselves to advance their careers, gain greater professional autonomy, and expand their opportunities within the competitive Michigan real estate market.

Author Profile

Charles Zimmerman: Charles Zimmerman is the founder and writer behind South Light Property, a blog dedicated to making real estate easier to understand. Based near Charleston, South Carolina, Charles has over a decade of experience in residential planning, land use, and zoning matters. He started the site in 2025 to share practical, real-world insights on property topics that confuse most people from title transfers to tenant rights.

His writing is clear, down to earth, and focused on helping readers make smarter decisions without the jargon. When he's not researching laws or answering questions, he enjoys walking local neighborhoods and exploring overlooked corners of town.