Real Changes for Real Estate

Effective March 29, 2017, Article 25 of the Michigan Occupational Code (Code), 1980 PA 299, has been amended to allow for a series of regulations for Real Estate Brokers and sales personnel. These updated provisions cover a breadth of topics, ranging from allowing prelicensure courses to be completed through distance learning to requiring complaints against licensees for violations to be filed within 18 months of a violation or completed transaction.

College-educated individuals interested in pursuing real-estate as a career should be happy to learn that this amendment will allow the licensing board to consider previous college classes in determining credit for prelicensure classes. Advertising under Article 25 has become more stringent, requiring Real Estate Brokers to attach the following to any advertisement: their name or name of business, a statement identifying that they are a real estate broker, and contact information (phone number or address).

Lastly, this amendment seeks to tackle unlawful business practices which enable a person to circumvent the law and act as a broker despite not holding a proper license. Article 25 requires a person who sells real estate as a principle vocation to be licensed; this will include individuals who engage in more than 5 real estate transactions within a 12-month period or those who devote 15 or more hours a week to real estate sales.  Furthermore, a person who is licensed under the amendment will be required to disclose this licensure during any future real estate transactions.

We have attached the newly amended statute below for your convenience.

Real Estate Amendment

This Article was written by Nezar Habhab, Law Clerk.

No comments yet.

Leave a Reply