About This Book
These statutes and administrative rules are the "content outline" for the Michigan portion of the real estate salesperson license exam (as opposed to the national portion, which covers general real estate principles/practices). Michigan, like every state, requires candidates to know the specific state laws that govern how real estate is licensed, practiced, and regulated within its borders. Here's why each category matters:
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Licensing & Practice FoundationOccupational Code, Articles 1–6 & Article 25 (MCL 339.101–339.606; 339.2501–339.2518) — This is the core law. Article 25 defines what a "broker" and "salesperson" are, sets license qualifications, education/CE requirements, escrow/trust account duties, and prohibited acts. This is the single most heavily tested source.Michigan Administrative Code R 339.22101–339.22667 (General Rules) — These are the detailed implementing rules for Article 25 (advertising rules, trust account handling, license renewal procedures, etc.). The exam tests the specifics found here.
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Discipline & Licensing EligibilityR 339.1701–339.1771 (Disciplinary Proceedings) — Explains how complaints, investigations, and license sanctions work — tested because agents must know consequences of violations.Occupational License for Former Offenders (1974 PA 381) — Governs whether/how a criminal record affects eligibility for licensure — relevant to "who can be licensed" questions.
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Consumer Protection & DisclosureSeller Disclosure Act (1993 PA 92) — Requires sellers to complete a statutory disclosure statement; heavily tested because it's a document agents handle in nearly every transaction.Persons with Disabilities Civil Rights Act & Elliott-Larsen Civil Rights Act — Michigan's fair housing/anti-discrimination laws — critical because agents must avoid discriminatory practices in listing, showing, and selling property.
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Landlord-Tenant & Rental LawLandlord and Tenant Relationships Act (1972 PA 348) & Truth in Renting Act (1978 PA 454) — Needed because salespersons often handle rentals/property management and must know tenant rights, security deposit rules, and lease disclosure requirements.
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Financing & Transfer TaxesCriminal Usury Act (1968 PA 259) — Sets interest-rate limits, relevant to land contracts/seller financing.Real Estate Transfer Tax (1966 PA 134) & State Real Estate Transfer Tax Act (1993 PA 330) — Governs the transfer taxes paid at closing (and common exemptions) — a frequently tested closing-cost topic.
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Specialized Property TypesCondominium Act (1978 PA 59) — Condos have unique ownership/disclosure rules distinct from single-family property.State Housing Development Authority Act (1966 PA 346) — Covers MSHDA affordable housing/financing programs.Land Division Act (1967 PA 288) — Governs how land can legally be split/subdivided — important for vacant land transactions.
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Rural, Environmental & Recorded-Document IssuesNREPA Part 21 (Subparts 4, 8, 11) — Covers state-owned land records, easements, and conservation/historic preservation easements — relevant for rural, waterfront, or historic property sales.Michigan Right to Farm Act (1981 PA 93) — Protects farms from nuisance suits; agents must disclose proximity to farm operations.Recording Affidavits Affecting Real Property (1915 PA 123) — Governs how affidavits (e.g., correcting title issues) get recorded — relevant to title/chain-of-title questions.
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Business Practice & Fair CompetitionMichigan Antitrust Reform Act (1984 PA 274) — Prohibits brokers from colluding to fix commission rates — an ethics/legal-compliance topic commonly tested.
Practice Tests Using This Book
This book is required or recommended for 2 licensing exams. We've written 229 practice questions directly from this material, each one citing the chapter and section it comes from.