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State Laws and Rules
Term | Definition |
---|---|
The department of licensing and Regulatory Affairs | Headed by director who is appointed by Governor. Department can issue or renew license. Consumer Protection. Michigan Occupation code. |
Real Estate Board | 9 members appointed by governor. 6 are real estate license. 3 represents public. May promulgate rules and setting and adjustment min standards . |
Complaints against Licensees | Filed with department. Subpoena, formal complaint, formal hearing. |
Violation | Acting for more than one party without consent. Failure to account for money. |
Commingling Funds | The act of placing money received from buyers to purchase real estate with the brokers personal money, or vise versa. |
Activities requiring Licensing | A person who engages in one or more activities, real estate or business opportunity for another, with intent to collect a fee, compensation. |
Non-Licensed person | A person or entity is considered to be in the practice of real estate as a principal vocation. 5 real estate sale in 12 months. Engage in real estate. |
Exemption | A licensed builder, an attorney in fact, Trustee selling under deed of trust. A tenant receiving up to one half months rent for referral. |
Real Estate Broker | Must pass exam. 90 hrs of class room time. |
Real Estate Associate Broker | How has met brokers license requirements but is employed by a real estate broker under and associate broker license. |
Real Estate Salesperson | 40 hr pre licenseing course. Pass the licensing exam. |
Non living Entity | A brokers license may be granted to an entity such as a corporation, LLC, partnership,association, joint venture or trust. |
License Issuance and Content | Licensees name, address, permanent ID #, expiration date, and employing broker. |
Non Resident License | May become a real estate broker or sales agent by conforming to the requirements of the law. |
Real Estate renewal | Three yr renewal cycle, must attend 6 hrs of cont ed approved by department. |
Relicensure | Granting a license to a person who license has lapsed for failure to renew. |
Transfer or change in license | Giving oral or written notice. Employing broker shalll forward license within 5days. Get dated signature of new broker on pocket card. |
Transfer Application | Proper fees, department will consider pocket card requirements as evidence of licensing for 45 days. |
Dual Agency | Licensee becomes agent of opposite parties in the same transaction. Legal proper written consent from all parties. |
Title Insurance | Policy be submitted by the seller to the buyer. |
Listing Agreement | Definite expiration date. Must have anti-discrimination clause. Tenant listing is prohibited. |
Closings | Salesperson May have other persons conduct closing. Broker / associate broker . |
Amendment | Must be prepared and signed by alll parties. Final responsibilities lies with the listing broker/ associate broker. |
Deposit | All monies received from others must be deposited in brokers Trust Escrow Account. Two banking days. |
Trust Account | A broker may maintain more than one account, and may have up to $500 of his own money in each account. |
Place of Operation | Actual physical location, available to supervise, duplicate license in each branch, more than 25 miles away must be supervised by associate broker. |
Lottery Games and Contest | May not promote the sale of real estate using a plan involving lottery,contests, games, prize, or a drawing. |
Land Division Act | Land is properly laid out in order to make land suitable to build on or use for public improvement. Surveys, legal description, size. |
Percolation Test | Performed to measure how well land absorbs water in order to determine design of septic. |
Splits in Creating Subdivision | Property 10 acres or less can be divided into 4 parcels. Two bonus splits if new road is built to accommodate 60% of original parcel is maintained. |