Michigan Board of Real Estate Brokers & Salespersons: Role & Powers

Instructor: Tara Schofield

Tara has a PhD in Marketing & Management

The Michigan Board of Real Estate Brokers and Salespersons will be important in your career. They are here to help you and hold you accountable, should there be a problem. Learn what some of their roles include.

General Powers of the Michigan Board of Real Estate Brokers and Salespersons

You are eager to get started in your career as a real estate agent. But before you get started, it's important to understand how the Michigan Board of Real Estate Brokers and Salespersons may affect your work. They can revoke your license if you do not follow laws and regulations, so take some time to understand their role.


You've heard that investigations can be conducted but are not sure what that means. An investigation is the process of responding to a complaint or problem, gathering data and evidence, and more fully understanding a situation. For instance, if one of your colleagues is accused of inappropriately representing their clients, the Michigan Board of Real Estate Brokers and Salespersons will review the situation, gather more information, and investigate the claim.


On occasion, various real estate conferences will be held. There may be times that members of the Michigan Board of Real Estate Brokers and Salespersons must attend these conferences to understand the industry, challenges facing agents, challenges facing buyers and sellers, and changes within the market.


If the board determines that there is a serious action that must be reviewed, the Michigan Board of Real Estate Brokers and Salespersons will determine if further action is needed. If there is evidence of a license or professional violation, a formal or informal hearing may be scheduled.

A formal hearing is a serious evaluation of serious accusations of misconduct by a real estate agent, especially if there is an imminent threat to the public. Once the board has reached a decision in a formal hearing, the agent has the right to appeal the decision in circuit court.

An informal hearing is a less grievous act that may exist between an agent and a client. This hearing allows the parties to resolve issues or share their side of the story. If a resolution is not reached, a formal hearing is planned.


The Michigan Board of Real Estate Brokers and Salespersons manages exemptions. To participate in real estate in Michigan, a person must hold a real estate license. There are some exemptions, conditions that allow a person to participate in real estate without having a license. These exemptions include:

  • Licensed builders.
  • Attorneys.
  • A trustee in bankruptcy or a person selling under an order from the court.
  • A trustee selling because of a deed of trust.
  • A tenant referring another tenant in the same building.
  • A licensed agent in another state who refers a sale in Michigan who may receive a commission.

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