Michigan FAQ

What is the examination like?

The sales examination currently is comprised of two parts, the uniform portion, and a state-specific portion. The exam has 115 questions. You will be given three hours to complete this. You must correctly answer at least 70% of the questions before you can apply for a license. Examination questions are multiple-choice, with one correct answer and three incorrect responses. Each examination includes five unscored “pre-test” questions sprinkled throughout the test. Answers given to pre-test questions will not affect the score results. There is no penalty for guessing.

Where and how often is the state sales examination given?

The examination is offered weekly at various locations throughout the state.

How does one apply for the exam?

All testing will be done on a reservation basis. Testing reservations may be made by submitting an application form, along with the required papers (i.e. school transcripts, photo ID, broker sponsor slip) and $62 license application fee to the Ohio Division of Real Estate. The cost for the exam is $76 and is payable upon scheduling of the test.

Would my Michigan courses or license be honored in other states?

Each state sets its own criteria for licensing and required education. One must contact the Real Estate Commission in a particular state to determine current standing. A call to your Howard Hanna office will assist you in obtaining specific answers.

How long does it take to become licensed?

Individual circumstances and processing procedures make a definite answer impossible. Most applicants can be licensed in three months. This time frame would permit one month for examination, license application and receipt.

What do I need to do to keep my license current once I have it?

Within one year of receiving your license, you must complete 20 hours of post-licensing. Post-licensing is available online and through the Howard Hanna Education department. You will also be required to complete 6 hours of continuing education, which must include 2 hours of a Legal Update, every three years.

How long is my license valid?

The state renewal period is every three years on your birthday. All Ohio licenses are renewed in your first year of licensing on your birthday.

What happens to my license if I do not renew it?

If a licensee fails to submit their continuing education by the required due date, their license is automatically suspended. The licensee will then have 12 months to reactivate their license or it will be revoked.

What is broker sponsorship?

You cannot apply for the state exam without a broker sponsorship. This means that a real estate company must sign your application to the Ohio Division of Real Estate indicating that you will be affiliated with that company upon passing your exam and receiving your license. The process of sponsorship will vary from company to company.

Would I be an employee of Howard Hanna?

No, you would be considered an independent contractor. Your income will be commission only and there would be no company-paid benefits. There are, however, group benefit programs available for your participation, if needed.

What is an independent contractor?

In real estate, independent contractor status means that for tax purposes, you would be considered an entrepreneur in business for yourself. There will be no taxes taken from your commission income and you will be responsible for filing your own quarterly taxes. Actually, you will be operating as a “business within a business.” As an associate of a broker, the responsibility for your conduct lies with that broker. Therefore, in your interaction with customers and clients, you will not be acting independently of the broker.