Real estate chapter 2

The following licenses are available in Michigan. Broker Associate Broker Salesperson Branch Office

A broker's license may be issued to an individual, sole proprietorship, partnership, association, common law trust or a combination of those entities. Associate broker and salesperson licenses are issued only to individuals.

The requirements for obtaining a broker or associate broker license are the same. There is only one type of associate broker's license. However, there are two categories of responsibility within an associate broker license. A principal associate broker A nonprincipal associate broker

A principal may be issued more than one (1) associate real estate broker's license. A nonprincipal will not be issued more than one (1) associate real estate broker's license as a nonprincipal, but may hold one (1) or more associate real estate broker's licenses as a principal.

Michigan Law provides for two funds related to license fees. 1). Real Estate Education Fund The Department will deposit fifteen dollars ($15) of each license fee into this fund. The money will be used only for the operation of programs related to the educational requirements of all licensees or license applicants. 2). Real Estate Enforcement Fund The Department will deposit fifteen dollars ($15) of each license fee into this fund. The money will be used only for the enforcement of Article 25 and to reimburse the attorney general for expenses incurred in conducting prosecutions of unlicensed practices.

Any unexpended balance in either of these funds at the end of a fiscal year will carry forward to the next fiscal year.

t is the role of the Michigan Board of Real Estate Brokers and Salespersons to assist the Department of Licensing and Regulatory Affairs in the implementation of the Code.

Licensing duties are divided between the Department and the Board.

Public Act 299 of 1980, known as the _____________ Code, regulates the licensing of various occupations in Michigan.

Occupational code

To meet the broker education requirement, credit will be given for either of the following situations: Having a law degree will automatically earn 60 clock hours and six (6) hours of civil rights law and equal opportunity in housing. Having a Master's Degree in Business Administration from an accredited institution of higher learning will automatically earn 60 clock hours of real estate education.

Proof of education must be in the form of completion certificates, transcripts or other official verification from the course provider. The 90 hours is in addition to any hours required to obtain a salesperson license.

The Department requires that brokers have written operating policies and procedures for their office. The broker must specify in these policies the type of agency relationships practiced in his or her office.

Single Agency In a single agency, the agent represents either the buyer or the seller, but never both, in a single transaction. Any third party to the transaction is a customer who is not represented by the agent, but for whom the agent may perform ministerial acts. A seller's agent singularly represents the seller and is often referred to as the listing agent. An agent singularly representing the buyer in a transaction is often referred to simply as the buyer's agent. Subagency A subagency occurs when both brokers in a single cooperative transaction represent the seller. A subagent is one agent working for another agent who has the listing contract with the principal. A subagent who is lawfully appointed represents the principal in like manner with the listing agent. Therefore, just as with a seller's agent, a subagent will disclose to the seller any known information about the buyer which the seller may use to his or her benefit. Dual Agency A dual agency is created when one agent represents both parties in a single transaction, both seller and buyer. Michigan law allows for dual agency with informed, written consent. This means that the broker must fully disclosure the arrangement and obtain consent, in writing, from both the buyer and the seller. In this agency arrangement, the licensee will not be able to disclose all known information to either the buyer or the seller. Designated Agency In a designated agency arrangement, a broker designates or appoints a salesperson or associate broker to act as the single agent for a client to the exclusion of all other licensees in the firm. The designated agency agreement must name all the associate brokers who are authorized to act as supervisory brokers. A client with a designated agency agreement is not considered to have an agency relationship with any affiliated licensees of the designated agent. The designated agent must not impart knowledge of his or her client's confidential information to any affiliated licensee not having an agency relationship with that client.