How to Become a Real Estate Broker in Michigan

A career as a real estate broker in Michigan can lead to a wealth of opportunities in team leadership, property management, and sales. Everything you need to know to get a Michigan real estate broker's license is covered in this article, including the educational requirements, test specifics, and related expenses. You will have a clear strategy for the future and know exactly what to anticipate by the end of this book. 

Let's begin!

Steps to Become a Real Estate Broker in Michigan

Below is a quick look at the basic steps you’ll need to complete in order to become a licensed real estate broker in Michigan:

1. Meet the eligibility requirements.
2. Complete the required pre-licensing broker education hours.
3. Submit your application to the Michigan Department of Licensing and Regulatory Affairs (LARA).
4. Pass the Michigan Real Estate Broker Examination.
5. Keep your license active with continuing education.

We’ll explore each step in more detail below, providing you with the information you need to start your journey toward becoming a licensed real estate broker in Michigan.

1. Meet the Eligibility Requirements

To qualify for a broker license in Michigan, you must:

• Age: Be at least 18 years old.
• Experience: Have at least three years of full-time experience as a licensed real estate salesperson or in a related field.
• Good Moral Character: Demonstrate good moral character; certain criminal convictions may disqualify you.
• Social Security Number: Provide a valid Social Security number.
• Residency: If you're a non-resident, submit a completed Consent to Service of Process form.

Meeting these requirements is the first step toward beginning your real estate brokerage career in Michigan, so make sure to review them carefully before proceeding.

2. Complete the Required Pre-Licensing Broker Education Hours

To become a licensed broker in Michigan, you’ll need to complete 90 hours of real estate education from an accredited provider. These courses will dive into essential topics like:

• Real Estate Law and Regulations
• Brokerage and Agency Management
• Real Estate Finance and Investments
• Contracts, Ethics, and Fair Housing
• Property Management
• Michigan-Specific Real Estate Rules

Most quality programs will include a final exam (either after each course or at the end of the entire 90-hour curriculum) to test your knowledge. Passing this exam is key to earning your course completion certificate, which you'll need to submit with your broker license application.

Pro Tip: Be sure to select an accredited program approved by the Michigan Department of Licensing and Regulatory Affairs (LARA). We highly recommend our partnered real estate broker’s program, which offers expert instruction, practice exams, and a course completion certificate that’s fully recognized by the state.

3. Submit Your Application to the Michigan Department of Licensing and Regulatory Affairs (LARA)

After fulfilling the experience requirements and completing your 90-hour pre-licensing coursework (including passing any necessary final exams), the next step is to submit your application for a real estate broker license to the Michigan Department of Licensing and Regulatory Affairs (LARA).

1. Gather Required Documentation: You will need to provide proof of your completed broker education hours (via your course completion certificate) and verification of your qualifying real estate experience.
2. Submit Your Application Online: Michigan’s licensing system, MiPLUS, is where you’ll apply. Create an account, fill out the application, and pay the associated fees.
3. Wait for Approval to Test: Once your application is submitted, LARA will review it. After approval, you’ll receive authorization to schedule your broker exam.

 Keep an eye on your MiPLUS account and email for any updates from LARA. If additional information or documentation is required, respond as quickly as possible to avoid any delays in the process.

4. Pass the Michigan Real Estate Broker Examination

Once you’ve received approval, it’s time to take the next big step—scheduling and passing the Michigan Real Estate Broker Exam, which is administered by PSI. Here’s everything you need to know to get prepared:

How to Apply for the Exam:

• Register with PSI: Head over to PSI’s website or call to register, using the authorization information you’ll receive from LARA.
• Pay the Exam Fee: The exam costs $79—make sure you’ve got that ready!
• Pick Your Exam Date & Location: Choose from available testing centers and dates that work best with your schedule.

What to Expect on Exam Day:

• The Exam Format: The broker exam consists of 135 multiple-choice questions covering national and Michigan-specific real estate topics.
• Time Limit: You’ll have 4 hours to complete the exam, so pace yourself!
• Passing Score: To pass, you’ll need to correctly answer at least 75% of the questions.

Pro Tips for Exam Day:

• Arrive Early: Make sure you get to your testing center ahead of time and bring valid photo identification.
• Prepare with Practice: Use any approved study materials or practice tests to feel fully confident when you sit down for the exam.
• Retake if Needed: If you don’t pass the first time, don’t worry! You can retake the exam, but be prepared to pay the exam fee again.

5. Keep Your License Active with Continuing Education

In Michigan, all real estate licensees (including brokers) must complete continuing education (CE) to keep their license active:

Standard CE Requirements (3-Year Renewal Cycle):

• Total CE Hours: 18 hours of approved continuing education must be completed every 3-year renewal cycle.​
• Annual Minimums:
  
  • Legal Updates: At least 2 hours each year must focus on laws, rules, and court cases related to real estate.
  • Fair Housing: At least 1 hour each year must cover compliance with local, state, or federal fair housing laws.​
• Additional CE Hours: The remaining hours can be completed in any subject relevant to the management, operation, and practice of real estate or any other subject that contributes to the professional competence of a licensee.​
• Documentation: Licensees are required to retain evidence of completed CE courses for at least 4 years and must produce this evidence upon request by the Department

By staying on top of these requirements, you can ensure that your broker license remains active and compliant. Feel free to reach out if you have any questions or need more guidance on the process!

FAQs about Becoming a Real Estate Broker in Michigan

Below, we’ll address some of the most common questions aspiring brokers have about the licensing process, timeline, costs, and more.

Should You Become a Real Estate Broker in Michigan?

Earning your real estate broker license in Michigan can be a game-changer, offering more freedom, leadership responsibilities, and income potential. As a broker, you can:

• Lead your own team: You’ll have the authority to supervise and mentor licensed agents, allowing you to build and scale a profitable brokerage.
• Earn more per transaction: Brokers often receive higher commission splits and may earn additional income through office fees or a share of their agents’ commissions.
• Boost your professional credibility: A broker’s license signals advanced industry expertise, which can help attract both clients and talented agents.

While the process requires commitment, the long-term benefits—greater independence, increased earnings, and leadership opportunities—make it a smart move for many real estate professionals.

How Fast Can You Get a Broker’s License?

The timeline to become a licensed broker in Michigan depends on your experience and how quickly you complete the requirements. Here's a general breakdown:

• Experience Requirement: You must have at least 3 years of qualifying real estate experience within the past 5 years.
• Education: Completing the required 90 hours of pre-licensing coursework typically takes 3 to 6 months, depending on your schedule and learning pace.
• Application & Exam: Once you apply through the MiPLUS system, it may take 2–4 weeks for processing and to receive exam authorization from LARA.

Overall, you can expect the full process—from meeting prerequisites to passing the exam—to take anywhere from a few months to about a year, depending on your availability and preparation speed.

How Much Do Real Estate Brokers Make?

Real estate broker earnings in Michigan can vary significantly depending on factors like brokerage size, market trends, and experience. According to ZipRecruiter, the average annual income for a Michigan broker is around $86,106, which breaks down to about $41.40 per hour.

Brokers who build a strong client base, market themselves effectively, and run high-performing offices often surpass these averages. Most broker income comes from commissions on property sales, and those who manage a team of agents may also earn a percentage of their agents’ commissions—boosting their overall earnings even further.

How Much Does a Real Estate Broker’s License Cost?

Here's a quick breakdown of the typical costs involved in becoming a broker in Michigan. Keep in mind, costs can vary:

• Pre-Licensing Education: $300 – $700
• Exam Fee: $79
• License Application Fee: $143
• Background Check/Fingerprinting: $50 – $70
• Miscellaneous Expenses: Study materials, membership dues, etc.

By planning ahead and researching providers, you can stay on top of costs and avoid any surprises during the licensing process.

What’s the Difference Between Real Estate Brokers and Agents?

In Michigan, as in many other states, real estate agents (or salespersons) must work under the supervision of a licensed broker. Agents focus on tasks such as assisting clients with buying or selling properties, drafting contracts, and scheduling showings, all under the guidance and oversight of their broker.

Real estate brokers, however, enjoy greater authority and responsibility. As a broker, you can:

• Manage your own brokerage firm and hire real estate agents to work under you.
• Oversee transactions and take full responsibility for ensuring compliance with state regulations.
• Earn higher potential income through commission splits and various brokerage fees charged to your agents.

In short, becoming a broker transitions you into a managerial and leadership role, giving you more control over your business and the opportunity for greater earnings.

Does Michigan Have a Broker’s License Reciprocity Agreement?

Michigan does not have formal reciprocity agreements with other states for real estate broker licenses. This means that out-of-state brokers cannot automatically obtain a Michigan broker’s license based solely on their existing licensure.

Applicants for a Michigan Real Estate Broker license must meet the state’s education, experience, and examination requirements, regardless of licensure in another state.

Out-of-state applicants should contact the Michigan Department of Licensing and Regulatory Affairs (LARA) directly to discuss their specific situation and determine if any credits for education or experience may apply.

It’s important to note that while some states have full reciprocity agreements for real estate licenses, Michigan is not one of them.

Final Thoughts on Becoming a Real Estate Broker in Michigan

Becoming a licensed real estate broker in Michigan isn’t just a career move – it’s the beginning of an incredible journey! Imagine unlocking new earning potential, gaining unmatched credibility, and having the opportunity to build your very own thriving brokerage. By meeting the eligibility requirements, completing your pre-licensing education, and passing the exam, you’ll be setting the stage for a rewarding and dynamic career.

Are you ready to take the leap? Our partnered real estate broker program offers top-notch training to guide you every step of the way. Click the “Enroll” button below and start turning your real estate dreams into reality today!