New Administrative Rules for Real Estate Brokers and Salespersons

The Bureau of Professional Licensing (BPL) within the Department of Licensing and Regulatory Affairs (LARA) would like to inform you that changes to the Real Estate Broker and Salesperson Rules were promulgated effective May 18, 2018.

Below is a summary of the significant changes to the rules:

General Provisions – Most of the definitions in this section have been added to state law, so they were removed from the rules.  Definitions for disability and program coordinator were added, and the definition for instructor was amended.

Licensing – The rule regarding application was rescinded because it has been added to state law.  Information has also been removed from the rule addressing the validity of broker and salesperson education.  That rule was also amended to specify the amount of prelicensure course hours that will be granted for applicants with a bachelor’s or master’s degree in business administration or finance, and additional educational degrees to count toward prelicensure requirements were added.  A new rule was added to allow an applicant for a license as a broker or associate broker to receive credits for experience gained by holding a real estate license in another state and closing real estate transactions and for managing at least 10 units located in the state of Michigan for 3 or more years.  New rules were also added that require a salesperson’s or affiliated broker’s license to be suspended when the supervising broker’s license lapses or the supervising broker dies.

Practice and Conduct – The rules were modified to remove information already found in state law and for clarity.

Prelicensure Education – Many rules were rescinded, revised, consolidated, and reorganized into a logical order.  New rules were promulgated as required by statute to establish the requirements for real estate schools and sponsors.

Continuing Education – The rules in this subpart are required by statute and pertain to the amount of continuing education (CE) required for renewal.  The rules specify that the legal education required must be obtained in each year of the licensing cycle.  A rule is added to advise a licensee that he or she may petition for waiver of the CE requirements.  The rules also establish that, to be eligible to satisfy the CE requirements, the program must be reviewed and certified by a statewide real estate association with a membership of more than 18,000 licensees.  CE Marketplace, a division of Michigan Realtors, offers a list of approved courses on their website, as well as the ability for you to monitor your compliance with the CE requirements.  For additional information you may visit their website or call (844) 642-6633.

The complete Real Estate Broker and Salesperson Rule Set is available on our website here.

Our office is diligently working on updating forms and relative information on our website to reflect the changes of the revised rules.

If you have any questions about the rule changes, please contact our office at (517) 241-9288 or by email to

Licensing Division
Bureau of Professional Licensing

Posted Under: CBOR News