DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS  
DIRECTOR'S OFFICE  
REAL ESTATE BROKERS AND SALESPERSONS - GENERAL RULES  
Filed with the secretary of state on June 4, 2025  
These rules become effective immediately after filing with the secretary of state  
unless adopted under section 33, 44, or 45a(9) 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 of the Michigan Administrative Code is amended, R 339.22111, R  
339.22115, R 339.22121, R 339.22125, R 339.22131, R 339.22132, R 339.22134, R  
339.22135, R 339.22137, R 339.22139, R 339.22141, R 339.22143, R 339.22145, R  
339.22147, R 339.22149, R 339.22152, R 339.22154, R 339.22155, R 339.22157, R  
339.22158, R 339.22159, R 339.22161, R 339.22163, and R 339.22165 are added, and R  
339.22203, R 339.22217, R 339.22219, R 339.22221, R 339.22305, R 339.22307, R  
339.22313, R 339.22315, R 339.22321, R 339.22333, R 339.22618, R 339.22619, R  
339.22620, R 339.22621, R 339.22622, R 339.22623, R 339.22624, R 339.22625, R  
339.22626, R 339.22627, R 339.22628, R 339.22629, R 339.22630, and R 339.22632 are  
rescinded, as follows:  
PART 1. GENERAL PROVISIONS  
R 339.22101 Definitions.  
Rule 101. (1) As used in these rules:  
(a) “ARELLO” means the association of real estate license law officials.  
(b) “Business day” means a day that is not a Saturday, Sunday, or federal holiday.  
(c) “Code” means the occupational code, 1980 PA 299, MCL 339.101 to 339.2677.  
(d) “Department” means the department of licensing and regulatory affairs.  
(e) “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 their duties under the code.  
(f) “Instructor” means an individual who is approved to teach prelicensure classes  
pursuant to section 2504(4) of the code, MCL 339.2504.  
(g) “Program coordinator” means the individual responsible for supervising the  
administration of approved courses.  
January 7, 2025  
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(h) “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) Unless otherwise defined in these rules, the terms defined in the code have the same  
meaning when used in these rules.  
PART 2. LICENSING  
R 339.22111 Prelicensure education broker license; prelicensure education  
equivalents for broker license; prelicensure education salesperson license.  
Rule 111. (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 is accepted for credit.  
(3) An applicant for a real estate broker license is 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 339.22115 Acceptable related experience for broker and associate broker  
applicants.  
Rule 115. For purposes of calculating the time an applicant for a license as a broker or  
an associate broker has 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) An individual holding a real estate license in another state is given 1 year of credit  
for each year that the individual closed 5 or more real estate transactions.  
(b) An applicant is given 1 year of credit for managing not less than 10 units, located in  
this state, for 3 or more years.  
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PART 3. LAPSE OF BROKER’S LICENSE AND  
BROKER’S DEATH OR DISABILITY  
R 339.22121 Lapse of broker’s license.  
Rule 121. (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 in abeyance 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  
in abeyance under subrule (1) of this rule becomes employed by a different licensed  
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 that the original  
license was issued.  
R 339.22125 Death or disability of broker.  
Rule 125. (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 in abeyance, 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 in  
abeyance under 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 that the original  
license was issued.  
PART 4. PRACTICE AND CONDUCT  
R 339. 22131 Service provision agreement.  
Rule 131. (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 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 on or after the expiration date.  
R 339.22132 Delivery of offer to purchase to buyer; delivery of written offers  
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to seller; delivery of copies of acceptance to buyer and seller; inclusion of terms  
and conditions in offer to purchase.  
Rule 132. (1) A licensee shall promptly deliver to the buyer a signed copy of the offer to  
purchase after it is 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 deliver all signed, written offers to purchase to the seller within 2  
business days after 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 electronic records or digital signatures for any real estate transaction requires the prior  
agreement of the parties.  
(4) On 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 339.22134 Trust or escrow accounts.  
Rule 134. (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 money 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 money received. At a minimum, the record  
must include all of the following information:  
(a) The date that the money was received and the date of deposit.  
(b) The name of the party who provided the money.  
(c) The amount of the money received and deposited and the method of payment.  
(5) A broker shall maintain a record of all money disbursed. At a minimum, the record  
must include all of the following information:  
(a) The name of the party to whom money was 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 be made available to the department on request.  
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(7) The broker’s records must reflect the receipts and disbursements as they affect a  
single, particular transaction between a buyer and seller and contain, at a minimum, all of  
the following information:  
(a) For money 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 money 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.  
(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 after the date of inception of the records.  
(9) A broker or associate broker’s disbursement of an earnest money deposit shall 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 that the buyer and  
seller claimed shall remain in the broker's trust account until a civil action has determined  
to whom the deposit shall 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 339.22135 Prohibition of licensee becoming party to net service provision  
agreement.  
Rule 135. A licensee shall not become a party to a net service provision agreement for  
an owner, seller, or buyer as a means of securing a real estate commission.  
R 339.22137 Licensee commissions for other services; disclosure and consent of  
buyer and seller required.  
Rule 137. (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.  
R 339.22139 Misrepresentation of material facts prohibited; disclosure of material  
facts.  
Rule 139. (1) A licensee shall not, directly or indirectly, misrepresent material facts.  
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(2) A licensee's full disclosure to a buyer or seller of material facts within the licensee’s  
knowledge about the condition of the real estate offered shall not be grounds for  
disciplinary action, despite a claim by the buyer or seller that the disclosure constituted  
disloyalty to the buyer or seller in violation of an agency relationship.  
PART 5. PRELICENSURE EDUCATION  
R 339.22141 Application for approval to offer prelicensure courses; forms;  
required information.  
Rule 141. (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.  
(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) For live and live, synchronous clock hours, a description of the methodology for  
verifying and monitoring attendance.  
(h) For asynchronous clock hours, a sample of the attestation form, which must contain  
a student signature verifying completion of clock hours.  
(i) A description of the makeup policy.  
(j) 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.  
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R 339.22143 Expiration date for prelicensure courses; renewal.  
Rule 143. (1) Approval of prelicensure courses issued by the department to a real estate  
school expires 1 year after 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, shall comply 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 not less than  
60 days before the expiration date of the course approval.  
R 339.22145 Program coordinator.  
Rule 145. 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 339.22147 Instructors.  
Rule 147. (1) The department shall approve each instructor before that individual  
teaches any real estate course. An instructor shall 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:  
(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 not less than 60  
days before the instructor is scheduled to begin instruction.  
R 339.22149 Syllabus.  
Rule 149. An approved real estate school shall provide students with a syllabus that  
contains, at a minimum, all of the following information:  
(a) The course title.  
(b) The times and dates of the course offering.  
(c) The names, addresses, and telephone numbers of the course coordinator and  
instructor.  
(d) A detailed outline of the subject matter to be covered.  
R 339.22152 Student attendance and makeup policy.  
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Rule 152. (1) A student shall attend 100% of a real estate prelicensure course in order to  
obtain credit for the course.  
(2) Credit for a distance-learning course requires completion of the entire course.  
Completion of the entire course means the number of course hours attended equals the  
number of hours that the course is approved.  
(3) A real estate school shall have a makeup policy for students who are absent from or  
late in arriving at regularly scheduled class sessions.  
R 339.22154 Student records; content; inspection; certificate of completion;  
reporting.  
Rule 154. (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 339.22141(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 student or  
licensee 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) Not less than 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 approved by the department, the names of students who have  
successfully completed an approved course.  
R 339.22155 Denial, suspension, or rescission of approval to offer courses; violation  
of code or rules.  
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Rule 155. 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 an  
individual 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 339.22157 Distance learning.  
Rule 157. (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 under R 339.22141 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  
ARELLO are acceptable to the department. Proof of ARELLO certification as a primary  
or secondary provider, including the summary sheet and certificate, shall be provided  
with the application for course approval. When an ARELLO certification expires or is  
withdrawn, 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) A delivery system that meets distance education criteria equivalent to a delivery  
system certified by ARELLO may be used if approved by the department.  
(5) The real estate school shall describe in detail on its application how it remedies  
hardware and software failures.  
R 339.22158 Advertising for approved real estate prelicensure courses.  
Rule 158. All advertising for approved real estate courses that are held out to the public  
as fulfilling the requirements of section 2504 of the code, MCL 339.2504 must include  
the name of the approved school.  
R 339.22159 Solicitations.  
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Rule 159. (1) Organizational membership, employment, business-related solicitations,  
or other non-educational presentations are prohibited during prelicensure courses and are  
not counted as part of the clock hours of the course.  
(2) Students or licensees shall not receive credit for organizational membership,  
employment, business-related, or other non-educational presentations or solicitations  
offered in conjunction with an approved course.  
PART 6. CONTINUING EDUCATION  
R 339.22161 Continuing education requirements for licensees.  
Rule 161. (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 during each year of the license  
cycle involving statutes, rules, and court cases must be completed during each year of a  
license cycle as required under section 2504a(2)(a)(i) of the code, MCL 339.2504a, for a  
total of 6 or more hours of legal education per license cycle.  
(b) A minimum of 1 hour of continuing education during each year of the license cycle  
involving compliance with local, state, or federal fair housing laws as required under  
section 2504a(2)(a)(ii) of the code, MCL 339.2504a, for a total of 3 or more hours of  
legal education per license cycle.  
(c) The remaining 9 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 the applicant has met the continuing education requirements for renewal,  
and on request, produce this evidence to the department pursuant to section 2504a(3) of  
the code, MCL 339.2504a.  
R 339.22163 Waiver of continuing education.  
Rule 163. A request for a waiver of continuing education under section 204(2) of the  
code, MCL 339.204, must be received by the department 30 days before the last board  
meeting before the expiration date of the license.  
R 339.22165 Eligible continuing education program.  
Rule 165. (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.  
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(c) Maintain a list of approved courses and ensure the list is available to licensees.  
(3) A school, institution, program, or other person that is 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, continuing education courses must be approved by the  
board.  
R 339.22203 Rescinded.  
R 339.22217 Rescinded.  
R 339.22219 Rescinded.  
R 339.22221 Rescinded.  
R 339.22305 Rescinded.  
R 339.22307 Rescinded.  
R 339.22313 Rescinded.  
R 339.22315 Rescinded.  
R 339.22321 Rescinded.  
R 339.22333 Rescinded.  
R 339.22618 Rescinded.  
R 339.22619 Rescinded.  
R 339.22620 Rescinded.  
R 339.22621 Rescinded.  
R 339.22622 Rescinded.  
R 339.22623 Rescinded.  
R 339.22624 Rescinded.  
R 339.22625 Rescinded.  
R 339.22626 Rescinded.  
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R 339.22627 Rescinded.  
R 339.22628 Rescinded.  
R 339.22629 Rescinded.  
R 339.22630 Rescinded.  
R 339.22632 Rescinded.  
;