Getting Started in Real Estate

Gwyn Besner | Acme Institute | Public Classes | Getting Started In Real Estate

Informative | Memorable | Entertaining

The Acme Institute offers a variety of approved classes designed to qualify you for a career in the real estate, construction, or auction professions, and to enable you to keep your licenses up to date. This page is always being updated when new rules, regs, laws, and ideas come to light. Please feel free to contact Gwyn if you have an idea for an addition to this page.

Here is the latest addition to this page of information!
Gwyn has prepared a series of flash cards to help you refresh and study for your test!
 Flash Cards

For an audio chapter by chapter review of the Fundamentals Course materials
Review of Fundamentals Course Material

Practice Exam for You!
Practice Exam
NOTE: If you find any typos, or have any questions regarding the answers on the exam as being correct or incorrect, please email us at
info@theacmeinstitute.com

Here’s What You Need If You’re Getting Started in Real Estate

View the Candidate Information Bulletin

View the Michigan Requirements for Salespersons licensure

View the Michigan Requirements for Brokers licensure

 

REAL ESTATE LICENSING EXAMS:

The Michigan real estate examinations are administered by PSI Services, LLC (PSI). The Real Estate Broker and Salesperson Candidate Information Bulletins (CIB) have been posted to PSI’s website. Follow the prompts to select “Michigan” as the state and the type of exam. The CIB details examination registration procedures and exam content.

Salesperson candidates will be required to apply for their license on-line at www.michigan.gov/iCOLA. This system (iCOLA) will allow applicants who have completed the application process on-line, and have had a broker verify their employment relationship, to receive their license immediately upon passing the licensing examination.

This system requires brokers to go on-line to verify that an applicant is approved for employment by their office (this would be the same as signing the bottom of a salesperson’s paper application in the past). Brokers must register at www.michigan.gov/iCOLA.

Real estate salesperson candidates will access the Department’s new internet database system to apply for a license at www.michigan.gov/iCOLA. Applicants will enter their information, answer questions and pay electronically. Once the applicant completes the process, employing brokers will be required to access iCOLA using their user ID and password to confirm that the broker desires to have this new salesperson licensed to work for them. A salesperson applicant does not have to have an employing broker at the time of application; however, they will not be eligible to receive a license at the examination site. After the salesperson applies for a license on iCOLA, the Department will supply this information to our exam administrators, PSI, electronically. The applicant will then need to register and pay for the exam at candidate.psiexams.com. All salesperson applicants who take the exam will have their picture taken at the exam site. Once the salesperson applicant passes the exam, they will receive their photo pocket license at the exam site, enabling them to begin their new careers immediately! The wall license and paper pocket card will be sent in the mail to the employing broker’s main office in approximately two weeks. Salespersons who pass the exam but who did not enter employing broker information in the beginning of the process can, within one year of applying on-line, must have their broker submit to the Department, the Employing Broker Notification (LRE-050) form. Once the broker confirms employment and the Department processes the new information, PSI will mail the photo pocket license to the applicant, and the department will mail the traditional wall and pocket license to the employing broker. The requirements to obtain a salesperson license remain the same: a 40-hour fundamentals class, passing the exam, possessing good moral character and a valid employing broker.

Broker applicants may go to candidate.psiexams.com and pay and schedule their exam. Ideally, the exam should be scheduled immediately upon completion of Broker Preparation.

NOTE: SALESPERSON CANDIDATES, YOU MUST COMPLETE THE FUNDAMENTALS COURSE BEFORE YOU TAKE THE TEST. BROKER CANDIDATES, YOU MAY SIGN UP FOR YOUR TEST WHENEVER YOU ARE READY. THE BROKER LICENSE WILL NOT; HOWEVER, BE ISSUED UNTIL ALL THE REQUIREMENTS ARE MET
 
REVISIONS TO BROKER REQUIREMENTS IN MICHIGAN “RED BOOK”:


The department shall require proof that each applicant for a real estate broker’s license, if the applicant is an individual, or each principal if the applicant is a business entity, has the equivalent of 3 years of full-time experience in the business of real estate. All of the following apply in determining whether an individual meets this experience requirement:

    (b) For purposes of calculating whether an individual has the equivalent of 3 years of experience, the department shall grant the following credit or credits toward that 3-year requirement:

      (i) If the individual is a real estate salesperson, 1 year of credit for each 12-month period of licensure in which he or she closed 5 or more real estate transactions.
      (ii) If the individual is a builder, 1 year of credit for each 12-month period in which he or she built and personally sold or leased at least 5 residential units, commercial units, or industrial units or a combination of those types of units.
      (iii) If the individual is a real estate investor, 6 months of credit for each 5 real property transactions personally negotiated for a purchase or sale by the individual for his or her own account, with a maximum of 1 year of credit allowed. However, an individual shall not receive credit under this subdivision if he or she engaged in more than 5 sales in any 12-month period in violation of section 2502b.
      (iv) If the individual is a land or condominium developer, 1 year of credit for each 2 developments or subdivisions that contain at least 10 units or parcels that he or she bought, subdivided, and improved for sale as lots or dwellings.
      (v) If the individual is an attorney, 1 year of credit for each year in which he or she acted as the attorney for at least 6 real estate transactions.
      (vi) If the individual is a real estate appraiser who is licensed under article 26, 1 year of credit for each period equivalent to at least 40 hours per week, and at least 48 weeks per year, in which he or she acted as a real estate appraiser.
      (vii) One year of credit for each period equivalent to at least 40 hours per week, and at least 48 weeks per year, in which the individual worked in a capacity directly related to the acquisition, financing, or conveyance of real estate, or in a position in which the individual was directly involved in a real estate business, including serving as the decision-making authority in any of the following positions:

        (A) A loan or trust officer of a federal or state-regulated depository institution.
        (B) A loan or trust officer of a mortgage company.
        (C) A real estate officer of a corporation, and who is not a licensed real estate broker.
        (D) A title insurance company officer engaged in the closing of escrow accounts and real estate closings.

      (viii) Credit for any other experience that is approved by the department by rule, in consultation with the board, as equivalent to the experience described in this subsection.

HOW TO ACCESS PRACTICE EXAMS:

The state of Michigan has an awesome electronic library that contains a free sample exam. Go to MEL.ORG and register for a username and password. Log in and select Practice Tests, then click on Adult Learning Center. Then Other Centers and select Career Center Click on Prepare for an Occupation Exam and select Real Estate and then chose between Salesperson and Broker. Select PSI. Yes, it is complicated to get there, but I believe it to be worthwhile. Warning, I have heard it is way more difficult than the real test so no worries if you do not do well the first time.

License Information for Other States

Licensing Applications & Forms for Real Estate Brokers & Salespersons in the State of Michigan 

Broker Candidates, you may click on the above link for your experience forms and complete your education and then make application. You are NOT a Broker until the license comes in the mail!

I know, it is hard to wait and you are eager to get going, so. . .a couple of weeks after you have applied you should be able to go online and find your name. That means that in short time your license will come in the mail. They will try to get it to you in less than a month. Don’t get over-eager and begin “brokering” before it comes. Click Here to Check on Your Status!

 

FOR BROKERS ONLY. . .Setting up Your Office

You will need a Fair Housing Poster. The logo doesn’t have to be on your business card. HUD says it should be, but it is still optional. Click Here to Get the HUD Logo!

The Traverse Area Association of REALTORS® has the posters. If you are not a member of TAAR, check with your Association office to see if they have them as well. HUD has three (3) offices in Michigan:

  • The Trade Center Building
    50 Louis Street NW
    Grand Rapids, MI 49503
    Phone: 616-456-2100
    Mi_Webmanager@HUD.gov

 

  • HUD Phoenix Building
    4th Floor
    801 S. Saginaw Street
    Flint, MI 48502
    Phone: 810-766-5112

 

  • McNamara Federal Building
    477 Michigan Avenue
    Detroit, MI 48226
    Phone: 313-226-7900

 

You will need to write a Policy and Procedure Manual. For guidance you may use mine as a guide. I do not intend for you to copy it. Your manual is personal to your office. One of the more difficult portions of writing a Policy and Procedure Manualmay be the language for defining the style of agency that will be practiced in your office.

You will need an Independent Contract Agreement.

What style of business shall you become? Sole Proprietorship? Partnership? Corporation? LLC? Check out the Michigan Entrepreneur’s Guide.

There is also a NEW interactive website posted by the State of Michigan on setting up a business. This site will take you all the way from establishing a name through getting additional licenses, such as a sales tax license. Click Here to Access this Site!

Here is where you can determine if your corporate or LLC name has already been registered in the state of Michigan.

Need more information? Have more information to add to this site? Send an email to Gwyn