Do you have a Michigan real estate license and want to operate in another state? Or do you operate in another state and want to do business in Michigan? You need to understand how Michigan handles real estate license reciprocity. In short, Michigan has no reciprocity agreements with other states. But that does not mean you can’t get a license in Michigan. Here’s what you need to know.
Michigan Reciprocity Basics
As we said, Michigan does not have formal reciprocity agreements. That’s contrary to states like Georgia and Virginia, which have full reciprocity with all states. Some states may have partial reciprocity. Pennsylvania, for example, has agreements with six states, and Florida has eight state agreements. Vermont, like Michigan, is another state that has no reciprocity agreements.
These agreements acknowledge similarities in two state’s real estate education practices. Because of that, a license or courses taken in one state can often be honored in another. In most cases, you don’t need to take classes to get a license in a reciprocal state. You can simply complete an application. Or in some cases, you may need to take a portion of the state exam. Either way, your licensing process is much shorter and easier.
Michigan’s Unique Approach to Outside Licenses
Not having a formal agreement doesn’t mean you can’t get a license in Michigan. There is still a possibility you could be licensed without further education or an exam.
If you have a license in another state, the Michigan Department of Licensing and Regulatory Affairs (LARA) must evaluate your situation. Training and experience must be “substantially equal” to Michigan training, according to the LARA website. The state also considers licensed work as a substitute for training hours.
The LARA board wants to know if you can successfully demonstrate competencies. To start, you need to fill out an application and a background check form. Your experience and license history will be reviewed to see if you have what it takes to be a Michigan real estate agent.
Michigan Licenses Outside the State
If you get your Michigan real estate license, you may also wonder if you can practice in another state. The answer is “yes.” But just as Michigan’s LARA board can decide your fate, other states can do the same to you. Right now, there are five states that accept a Michigan real estate license:
Those states who have reciprocity with all states may be more lenient and only make you take an exam or fill out an application. But it’s a case-by-case situation. Your best bet is to keep your Michigan license in good standing and be ready to prove your case, if asked.
Michigan’s Education Requirements
If you want to get a Michigan real estate license, you need 40 hours of pre-licensing training. Some of the subjects covered include:
- Property ownership
- Land-use controls
- Valuation/Market analysis
- Laws of agency
- Contracts and disclosures
- Real estate practice
When finished, you show your proof of completion to the testing agency. After passing the test, you can apply for your license.
Are You Ready to Start?
Once you have your Michigan license don’t forget to stay on top of continuing education. If you operate in two states, you will likely need to take continuing education in Michigan as well as the other state where you are licensed. Michigan requires 18 hours of continuing education every two years.
Your Michigan real estate career can start soon, even if you need to take pre-licensing classes again. And brushing up on some of the basics can only make you a better agent.