DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS  
DIRECTOR'S OFFICE  
REAL ESTATE BROKERS AND SALESPERSONS - GENERAL RULES  
Filed with the secretary of state on March 31, 2021  
These rules take effect immediately upon filing with the secretary of state unless  
adopted under section 33, 44, or 45a(6) of the administrative procedures act of 1969,  
1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections  
become effective 7 days after filing with the secretary of state.  
(By authority conferred on the director of the department of licensing and regulatory  
affairs by sections 205, 308, 2504, 2504a, 2505, 2512, and 2516a, of the occupational  
code, 1980 PA 299, MCL 339.205, 339.308, 339.2504, 339.2504a, 339.2505, 339.2512,  
and 339.2516a and Executive Reorganization Order Nos. 1991-9, 1996-2, 2003-1, and  
2011-4, MCL 338.3501, 445.2001, 445.2011, and 445.2030)  
R 339.22101, R 339.22203, R 339.22217, R 339.22219, R 339.22221, R 339.22305, R  
339.22307, R 339.22313, 339.22321, R 339.22618, R 339.22619, R 339.22620, R  
339.22621, R 339.22624, R 339.22625, R 339.22626, R 339.22629, R 339.22630, and R  
339.22632 of the Michigan Administrative Code are amended as follows:  
PART 1. GENERAL PROVISIONS  
R 339.22101 Definitions.  
Rule 101. (1) As used in these rules:  
(a) “Code” means the occupational code, 1980 PA 299, MCL 339.101 to 339.2677.  
(b) “Department” means the department of licensing and regulatory affairs.  
(c) “Disability” means a determinable physical or mental characteristic, which may  
result from disease, injury, congenital condition of birth, or functional disorder, that  
prevents a broker from performing his or her duties under the code.  
(d) “Instructor” means an individual who is approved to teach prelicensure classes  
pursuant to section 2504(4) of the code, MCL 339.2504.  
(e) “Program coordinator” means the individual responsible for supervising the  
administration of approved courses.  
(f) “Real estate school” means an approved entity that represents to the public that any  
of its courses fulfill, in whole or in part, the requirements of section 2504(l) and (2) of  
the code, MCL 339.2504, for prelicensure education.  
(2) A term defined in the code has the same meaning when used in these rules.  
PART 2. LICENSING  
R 339.22203 Prelicensure education broker license; prelicensure education equivalents  
for broker license; prelicensure education salesperson license.  
November 4, 2020  
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Rule 203. (1) An applicant for a real estate broker’s license shall satisfy all requirements  
of the code including completing 90 hours of approved prelicensure classroom courses in  
real estate of which 9 clock hours must be on civil rights and fair housing law. The  
broker prelicensure education must be completed not more than 36 months before the  
date of application, unless the applicant held an active real estate salesperson license  
during that period.  
(2) Approved prelicensure education for a real estate broker license must meet the  
criteria established by the department but may be reviewed and preapproved by a  
statewide real estate trade association for subject matter relevant to the practice of real  
estate. Not more than 1 broker course on the same subject will be accepted for credit.  
(3) An applicant for a real estate broker license shall be given prelicensure classroom  
course credit for the following:  
(a) Possession of a law degree is considered equivalent to 60 clock hours of real estate  
education including 6 clock hours of instruction on civil rights law and fair housing law.  
(b) Possession of a master's degree in business administration or finance from a  
degree or certificate granting public or independent nonprofit college or university, junior  
college, or community college is considered equivalent to 60 clock hours of real estate  
education.  
(c) Possession of a bachelor’s degree in business or finance from a degree or  
certificate granting public or independent nonprofit college or university, junior college,  
or community college is considered equivalent to 30 clock hours of real estate education.  
(4) An applicant for a salesperson license shall have completed 40 clock hours of  
qualifying prelicensure classroom courses of which 4 clock hours must be on civil rights  
law and fair housing law. The salesperson prelicensure education must be completed not  
more than 36 months before the date of application.  
R 339.22217 Acceptable related experience for broker and associate broker applicants.  
Rule 217. For purposes of calculating the time an applicant for a license as a broker or  
an associate broker has been engaged in the real estate business, as required by section  
2505(7)(b)(viii) of the code, MCL 339.2505, both of the following apply:  
(a) A person holding a real estate license in another state shall be given 1 year of credit  
for each year in which he or she closed 5 or more real estate transactions.  
(b) An applicant shall be given 1 year of credit for managing at least 10 units, located in  
the state of Michigan, for 3 or more years.  
PART 3. LAPSE OF BROKER’S LICENSE AND  
BROKER’S DEATH OR DISABILITY  
R 339.22219 Lapse of broker’s license.  
Rule 219. (1) If a broker’s license is lapsed, the licenses of all real estate salespersons  
and all affiliated associate real estate brokers employed by that real estate broker are  
automatically suspended until that real estate broker is relicensed pursuant to section  
2502a(3) of the code, MCL 339.2502a, or until there is a change of employer and the  
issuance of a new license.  
(2) If a real estate salesperson or affiliated associate real estate broker whose license was  
suspended pursuant to subrule (1) of this rule becomes employed by a different licensed  
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broker, the department shall issue a new license to the salesperson or associate real estate  
broker without charge if the license is issued during the same term in which the original  
license was issued.  
R 339.22221 Death or disability of broker.  
Rule 221. (1) If a broker’s sole principal associate broker dies or becomes disabled, the  
department shall allow all affiliated real estate licensees a reasonable time, not to exceed  
1 year, to either wind up the business of the real estate broker or designate a new sole  
principal associate broker.  
(2) The license of the deceased or disabled sole principal associate broker must not be  
used to enter into new business transactions.  
(3) One year after the date of death or disability of a broker’s sole associate principal  
broker, the licenses of all affiliated real estate salespersons and associate real estate  
brokers who are employed by the broker are automatically suspended, pending a  
replacement of the sole principal associate broker or change of employer and the issuance  
of a new license.  
(4) If a real estate salesperson or affiliated real estate broker whose license was  
suspended pursuant to subrule (3) of this rule becomes employed by a different licensed  
broker, the department shall issue a new license to the real estate salesperson or associate  
real estate broker without charge if the license is issued during the same term in which  
the original license was issued.  
PART 4. PRACTICE AND CONDUCT  
R 339.22305 Service provision agreement.  
Rule 305. (1) In addition to complying with the provisions of the code, a broker or a  
licensee acting on behalf of the employing broker who enters into a service provision  
agreement with a party or parties shall provide, at the time of signing, a true executed  
copy of the agreement to the party or parties signing the agreement. Every agreement  
must be fully completed by the licensee before the party or parties sign it.  
(2) A service provision agreement must include a definite expiration date and must not  
contain a provision requiring the party signing the agreement to notify the broker of the  
party's intention to cancel the agreement upon or after the expiration date.  
R 339.22307 Delivery of offer to purchase to buyer; delivery of written offers to seller;  
delivery of copies of acceptance to buyer and seller; inclusion of terms and conditions in  
offer to purchase.  
Rule 307. (1) A licensee shall promptly deliver to the buyer a signed copy of the offer  
to purchase after it has been signed by the buyer.  
(2) A licensee shall make certain that all terms and conditions of the real estate  
transaction are included in the offer to purchase.  
(3) A licensee shall promptly deliver all written offers to purchase to the seller upon  
receipt. Delivery may be made through any method acceptable to the parties including in  
person, by mail, or through an electronic communication pursuant to the uniform  
electronic transactions act, 2000 PA 305, MCL 450.831 to 450.849. The use of  
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electronic records or digital signatures for any real estate transaction requires the prior  
agreement of the parties.  
(4) Upon obtaining a proper acceptance of the offer to purchase, signed by the seller, the  
licensee shall promptly deliver true executed copies of the acceptance to the purchaser  
and seller.  
(5) A licensee is not subject to disciplinary action for failing to submit to the seller any  
additional offers to purchase that are received after the seller has accepted an offer and  
the sales agreement is fully executed, unless a service provision agreement requires that  
subsequent offers be presented.  
R 339.22313 Trust or escrow accounts.  
Rule 313. (1) In addition to complying with the provisions of the code, a trust or escrow  
account must comply with all of the requirements of this rule.  
(2) A trust or escrow account must be maintained in a demand account only. Checks  
drawn on a trust or escrow account must be signed by a broker or an associate broker.  
Cosignatories may be used; however, the signature of a broker or associate broker must  
accompany this signature.  
(3) A broker shall deposit all funds received in a fiduciary capacity, including escrow  
funds and earnest money, in a non-interest-bearing demand trust account. The account  
must be maintained pursuant to the requirements of section 2512(1)(k) of the code, MCL  
339.2512.  
(4) A broker shall maintain a record of all funds received. At a minimum, the record  
must include all of the following information:  
(a) The date that the funds were received and the date of deposit.  
(b) The name of the party who provided the funds.  
(c) The amount of the funds received and deposited and the method of payment.  
(5) A broker shall maintain a record of all funds disbursed. At a minimum, the record  
must include all of the following information:  
(a) The name of the party to whom funds were disbursed.  
(b) The date of the disbursement.  
(c) The check number.  
(d) The purpose of the disbursement.  
(e) The amount of the disbursement.  
(6) The broker’s records must reflect the current account balance of each account  
maintained and must be made available to the department upon request.  
(7) The broker’s records must reflect the receipts and disbursements as they affect a  
single, particular transaction between a buyer and seller and must contain, at a minimum,  
all of the following information:  
(a) For funds received, the record must include all of the following information:  
(i) The names of both parties to a transaction.  
(ii) The property address or brief legal description.  
(iii) The dates and amounts received.  
(b) For funds disbursed, the record must include all of the following information:  
(i) The date of the disbursement.  
(ii) The name of the payee.  
(iii) The check number.  
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(iv) The amount of the disbursement.  
(8) All trust or escrow account records must be maintained for a period of not less than  
3 years from the date of inception of the records.  
(9) A broker or associate broker’s disbursement of an earnest money deposit must be  
made at consummation or termination of the agreement pursuant to the agreement signed  
by the parties. However, any deposit in the trust account of the broker for which the  
buyer and seller have made claim must remain in the broker's trust account until a civil  
action has determined to whom the deposit must be paid, or until the buyer and seller  
have agreed, in writing, to the disposition of the deposit. The broker may also commence  
a civil action to interplead the deposit with the proper court.  
R 339.22321 Licensee commissions for other services; disclosure and consent of buyer  
and seller required.  
Rule 321. (1) A licensee who is entitled to receive, either directly or indirectly, a real  
estate commission as a result of the sale of property, may not also receive a referral fee or  
other valuable consideration for placing a loan in connection with that transaction unless  
the licensee obtains the prior written consent of the buyer and seller in that transaction  
and the fee is not otherwise prohibited by the real estate settlement procedures act of  
1974, 12 USC 2601 to 2617, or other applicable law.  
(2) A licensee who is entitled to receive, either directly or indirectly, a real estate  
commission as a result of the sale of property, may not also receive a referral fee or other  
valuable consideration from an abstract, home warranty, title insurance, or other  
settlement service provider in connection with that transaction unless the licensee obtains  
the prior written consent of the party or parties with whom the licensee has an agency  
relationship and the fee is not otherwise prohibited by the real estate settlement  
procedures act of 1974, 12 USC 2601 to 2617, or other applicable law.  
PART 5. REAL ESTATE EDUCATION  
SUBPART 1. PRELICENSURE EDUCATION  
R 339.22618 Application for approval to offer prelicensure courses; forms; required  
information.  
Rule 618. (1) A real estate school shall submit a prelicensure course approval  
application on the form approved by the department. The application must include, but is  
not limited to, all of the following information:  
(a) The school name, business address, telephone number, facsimile number, website  
address, and e-mail address, if applicable.  
(b) The course title.  
(c) The names, addresses, telephone numbers, and qualifications of instructors.  
(d) The name of the program coordinator.  
(e) A summary of topics completed for each prelicensure course to be taught, including  
the number of hours allocated to each topic.  
(f) A sample certificate of completion that contains all of the following information:  
(i) The date of course completion.  
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(ii) Identification of the course including the name of the course as approved by the  
department.  
(iii) The name and approval number of the school.  
(iv) The name of the student.  
(v) The number of clock hours completed by the student.  
(g) Methodology for verifying and monitoring attendance and the make-up policy.  
(h) An enrollment application to be completed by prospective students that contains a  
statement disclosing the percentage of students who successfully completed the program  
in the past calendar year. The enrollment application must be updated no later than  
February 1 of each calendar year.  
(2) A real estate school shall report to the department any change in the information on  
the application form within 30 days. The department shall accept or reject a change  
within 60 days of notification of the change.  
(3) A real estate school shall apply for and obtain approval as determined by the  
department for real estate education courses before the courses are offered to the public.  
(4) The department shall issue a certificate or letter of course approval or a notice of  
denial to the school within 60 days after the application is received. Denials must be  
based on substantive deficiencies and specify the reasons for the denial.  
(5) The department shall accept courses for approval that meet the criteria established  
by these rules and section 2504 of the code, MCL 339.2504.  
R 339.22619 Expiration date for prelicensure courses; renewal.  
Rule 619. (1) Approval of prelicensure courses issued by the department to a real estate  
school expires 1 year from the date the course was approved.  
(2) A proprietary real estate school licensed under the proprietary schools act, 1943 PA  
148, MCL 395.101 to 395.103, must remain compliant with the act to maintain approval  
as a real estate prelicensure school under this subpart.  
(3) To maintain course approval, a proprietary real estate school shall submit to the  
department a renewal application on the form approved by the department at least 60  
days before the expiration date of the course approval.  
R 339.22620 Program coordinator.  
Rule 620. Each real estate school shall designate at least 1 individual as program  
coordinator. The program coordinator is responsible for supervising the program of  
courses and ensuring compliance with the code and these rules.  
R 339.22621 Instructors.  
Rule 621. (1) The department shall approve each instructor before he or she teaches any  
real estate course. An instructor must possess at least 1 of the following minimum  
qualifications:  
(a) Teaches or has taught real estate courses at an accredited institution of higher  
learning.  
(b) Is licensed or certified by the department or other governmental agency to engage  
in the real estate aspects of appraising, financing, marketing, brokerage management, real  
property management, real estate counseling, real property law, or other related subjects.  
(2) An instructor is responsible for all of the following:  
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(a) Complying with all laws and rules relating to real estate education.  
(b) Providing students with current and accurate information.  
(c) Maintaining an environment conducive to learning.  
(d) Assuring and certifying accurate attendance of students enrolled in courses.  
(e) Providing assistance to students and responding to questions relating to course  
materials.  
(3) The real estate school shall submit to the department the qualifications of each  
instructor teaching an approved course with the prelicensure course approval application.  
The real estate school shall submit the qualifications to the department at least 60 days  
before the instructor is scheduled to begin instruction.  
R 339.22624 Student records; content; inspection; certificate of completion;  
reporting.  
Rule 624. (1) A real estate school shall establish and permanently maintain a record for  
each student.  
(2) Student records must contain all of the following information:  
(a) The student's name and address.  
(b) The number of clock hours attended.  
(c) The student's grade, if an examination is required to determine successful  
completion of the course.  
(d) The date of course completion.  
(e) The last 4 digits of the student's social security number.  
(f) The student's date of birth.  
(g) The student’s real estate license identification number, if applicable.  
(3) All records must be available for inspection during normal business hours by an  
authorized representative of the department.  
(4) A real estate school shall issue a certificate of completion to a student who  
successfully completes an approved real estate course. The certificate must include all of  
the criteria set forth in R 339.22618(1)(f).  
(5) A student completing a prelicensure course shall present a state-issued photo  
identification or acceptable alternative form of photo identification to the school before  
receiving the certificate of completion. Both of the following apply:  
(a) For courses conducted in a traditional classroom setting, a student or a licensee  
shall present a state-issued photo identification or other acceptable alternative form of  
identification that verifies, to the satisfaction of the school, the identification of the  
student or licensee.  
(b) For courses conducted through distance learning, the school shall ensure that the  
student or licensee whose attendance is reported to the department is the same person  
who completed the distance learning course. The school shall take appropriate measures  
to ensure accurate verification of the identity of each student or licensee before reporting  
course completion to the department.  
(6) At least 30 days before courses are held, a real estate school shall submit to the  
department a schedule and geographic location for each course.  
(7) Within 5 business days of the conclusion of the last course, a real estate school shall  
submit, in a format required by the department, the names of students who have  
successfully completed an approved course.  
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R 339.22625 Denial, suspension, or rescission of approval to offer courses; violation of  
code or rules.  
Rule 625. A real estate school or instructor may be subject to the penalties of section  
602 of the code, MCL 339.602, for any of the following reasons:  
(a) Failure to comply with the provisions of the code or these rules.  
(b) Revealing or attempting to discover, or soliciting, encouraging, or inducing a person  
to reveal, the questions on a real estate license examination administered by or on behalf  
of the department.  
(c) Making a substantial misrepresentation or inducement regarding a real estate school  
or course of study.  
(d) Pursuing a continued and flagrant course of misrepresentation or the making of false  
promises through agents, salespersons, advertising, or otherwise.  
R 339.22626 Distance learning.  
Rule 626. (1) Real estate education courses represented as fulfilling the requirements of  
section 2504 of the code, MCL 339.2504, and delivered through distance learning shall  
be approved by the department before being offered to the public.  
(2) A distance learning course must contain all of the following:  
(a) All requirements listed R 339.22618 for approval of a prelicensure course.  
(b) The individual modules of instruction offered on a computer or other interactive  
program.  
(c) A list of at least 1 learning objective for each module of instruction. The learning  
objective must ensure that if all the objectives are met, the entire content of the course is  
understood.  
(d) A structured learning method to enable the student to attain each learning objective.  
(e) A method of assessment of the student's performance during each module of  
instruction.  
(f) A remediation for any student who is deficient in the assessment to repeat the  
module until the student understands the course content material.  
(3) Delivery systems that meet the distance education criteria for current certification by  
the Association of Real Estate License Law Officials (ARELLO) are acceptable to the  
department, as follows:  
(a) Proof of ARELLO certification as a primary or secondary provider, including the  
summary sheet and certificate, are provided with the application for course approval.  
(b) Upon withdrawal or expiration of ARELLO certification, the approval to offer  
distance learning courses is suspended until ARELLO certification is reinstated or the  
real estate school has applied for and received approval from the department according  
to subrule (4) of this rule.  
(4) Equivalent delivery systems may be used if they are approved by the department.  
(5) The real estate school shall describe in detail on its application how it will remedy  
hardware and software failures.  
SUBPART 2. CONTINUING EDUCATION  
R 339.22629 Continuing education requirements for licensees.  
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Rule 629. (1) A licensee shall complete 18 hours of continuing education in each  
license cycle as follows:  
(a) A minimum of 2 hours of legal education courses involving statutes, rules, and court  
cases must be completed during each year of a license cycle pursuant to section  
2504a(2)(a) of the code, MCL 339.2504a, for a total of 6 or more hours of legal  
education per license cycle.  
(b) The remaining 12 hours of continuing education required for renewal may be  
completed at any time during the license cycle.  
(2) Submission of an application for renewal constitutes the applicant’s certification of  
compliance with the requirements of this rule.  
(3) An applicant shall retain for a minimum of 4 years evidence acceptable to the  
department that he or she has met the continuing education requirements for renewal, and  
upon request, produce this evidence to the department pursuant to section 2504a(3) of the  
code, MCL 339.2504a.  
R 339.22630 Waiver of continuing education.  
Rule 630. A request for a waiver of continuing education pursuant to section 204(2) of  
the code, MCL 339.204, must be received by the department before the expiration date of  
the license.  
R 339.22632 Eligible continuing education program.  
Rule 632 (1) As used in this rule, “eligible continuing education course” means a  
course that is reviewed and certified by a statewide real estate association that has a  
membership representing more than 18,000 licensees.  
(2) An association that reviews continuing education courses pursuant to subrule (1) of  
this rule shall comply with all of the following:  
(a) Ensure that all continuing education courses that are offered to licensees are  
compliant with section 2504a of the code, MCL 339.2504a, and involve subjects that are  
relevant to the management, operation and practice of real estate or otherwise contribute  
to the professional competence of the licensee.  
(b) Provide a system for monitoring a licensee’s compliance with section 2504a of the  
code, MCL 339.2504a.  
(c) Maintain a list of approved courses and ensure the list is available to licensees.  
(3) A school, institution, program, or other person that has been denied certification as  
an eligible continuing education course by a statewide real estate association that has a  
membership representing more than 18,000 licensees may petition the department to  
review the association’s decision pursuant to sections 520 and 521 of the code, MCL  
339.520 and 339.521.  
(4) If a statewide real estate association that has a membership representing more than  
18,000 licensees does not exist, then continuing education courses must be approved by  
the board.  
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