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HOUSE BILL NO. 6185
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending sections 2501, 2503, and 2603 (MCL 339.2501, 339.2503,
and 339.2603), section 2501 as amended by 2024 PA 122, section 2503
as amended by 2016 PA 502, and section 2603 as amended by 2010 PA
90.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2501. As used in this article: 1
(a) "Associate broker" or "associate real estate broker" means 2
July 03, 2026, Introduced by Reps. Alexander, Tisdel, Kuhn and Frisbie and referred to Committee
on Finance.
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an individual who meets the requirements for licensure as a real 1
estate broker under this article and who is licensed as an 2
associate real estate broker under section 2505 to provide real 3
estate brokerage services as an employee or independent contractor 4
of a real estate broker. 5
(b) "Business entity" means a person described in section 6
105(5)(b) or (c), except a sole proprietorship. 7
(c) "Classroom course" means an educational course of 8
instruction that is provided at either of the following: 9
(i) A physical location where instruction is offered and 10
students and an instructor are present. 11
(ii) A location where a student receives instruction provided 12
by distance learning. 13
(d) "Clock hour" means either of the following: 14
(i) For a classroom course at a location described in 15
subdivision (c)(i), a period of 50 to 60 minutes of actual classroom 16
instruction, not including outside assignments and reading. 17
(ii) For a classroom course at a location described in 18
subdivision (c)(ii), the period required for a student to process 19
the amount of material provided in 50 minutes of distance learning 20
instruction. 21
(e) "Control person" means an individual who is a sole 22
proprietor, is a partner in a partnership or limited partnership, 23
is an officer, director, or shareholder in a corporation, is a 24
member or manager in a limited liability company, or holds a 25
responsible position in any other form of business entity 26
authorized under the laws of this state or the state in which the 27
entity is organized or formed. 28
(f) "Distance learning" means the technology and educational 29
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process used to provide instruction to a student when the student 1
and the instructor are not necessarily physically present at the 2
same time or place. The term Distance learning includes, but is not 3
limited to, instruction provided through an interactive classroom, 4
computer conferencing, or an interactive computer system. 5
(g) "Employ" or "employment" means the relationship between a 6
real estate broker and an associate real estate broker or a real 7
estate salesperson which that may include an independent contractor 8
relationship. The existence of an independent contractor 9
relationship between a real estate broker and an individual 10
licensed to the real estate broker does not relieve the real estate 11
broker of the responsibility to supervise acts of the licensee that 12
are regulated under this article. 13
(h) "Independent contractor relationship" means a relationship 14
between a real estate broker and an associate real estate broker or 15
real estate salesperson that satisfies both of the following 16
conditions: 17
(i) A written agreement exists in which the real estate broker 18
does not consider the associate real estate broker or real estate 19
salesperson as an employee for federal and state income tax 20
purposes. 21
(ii) At least Not less than 75% of the annual compensation paid 22
by the real estate broker to the associate real estate broker or 23
real estate salesperson is from commissions from the sale of real 24
estate. 25
(i) "License cycle" means the term of a license issued under 26
this article. 27
(j) "Limited service agreement" means a written service 28
provision agreement by which a real estate broker and client 29
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establish an agency relationship in which certain enumerated 1
services, as set forth described in section 2512d(3)(b), (c), and 2
(d), are knowingly waived in whole or part by the client. 3
(k) "Negotiate the mortgage of real estate" means engaging in 4
activity in connection with a mortgage that is not regulated under 5
the any of the following: 6
(i) For 6 months after the effective date of the residential 7
mortgage licensing and supervision act, the mortgage brokers, 8
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 9
445.1684. , the 10
(ii) For 6 months after the effective date of the residential 11
mortgage licensing and supervision act, the secondary mortgage loan 12
act, 1981 PA 125, MCL 493.51 to MCL 493.81. , or the 13
(iii) For 6 months after the effective date of the residential 14
mortgage licensing and supervision act, the mortgage loan 15
originator licensing act, 2009 PA 75, MCL 493.131 to 493.171. 16
(iv) Beginning on the effective date of the residential 17
mortgage licensing and supervision act, the residential mortgage 18
licensing and supervision act. 19
(l) A "nonprincipal" "Nonprincipal" of a real estate broker 20
means a control person who is licensed as an associate real estate 21
broker under this article, but is not designated as a principal 22
under section 2505(1). 23
(m) "Place of business" means a physical location that a real 24
estate broker, by advertisement, signage, or otherwise, represents 25
to the public is a place where clients and customers may consult or 26
do business with a licensee. 27
(n) "Pocket card" means the card that contains information 28
about a licensee's license that the department provides under 29
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section 2506 when it the department issues a license under this 1
article. 2
(o) "Prelicensure course" means a course that is represented 3
to the public as fulfilling, in whole or in part, the requirements 4
of section 2504. 5
(p) A "principal" "Principal" of a real estate broker means a 6
control person who is licensed as an associate real estate broker 7
and is designated as a principal under section 2505(1). 8
(q) "Professional designation" means a certification from a 9
real estate professional association that demonstrates that an 10
individual has attained proven skills or education in a real estate 11
occupational area and may include the right to use a title or 12
letters after the licensee's name that represent the designation 13
awarded by the certifying entity. 14
(r) "Property management" means leasing or renting, or 15
offering to lease or rent, real property of others for a fee, 16
commission, compensation, or other valuable consideration pursuant 17
to under a property management employment contract. 18
(s) "Property management account" means an interest-bearing or 19
noninterest-bearing account or instrument used in the operation of 20
property management. 21
(t) "Property management employment contract" means a written 22
agreement that is entered into between a real estate broker and 23
client concerning the real estate broker's employment as a property 24
manager for the client; that describes the real estate broker's 25
duties, responsibilities, and activities as a property manager; and 26
that describes the handling, management, safekeeping, investment, 27
disbursement, and use of property management money, funds, and 28
accounts. 29
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(u) "Real estate broker" means an individual or business 1
entity that, with intent to collect or receive a fee, compensation, 2
or valuable consideration, sells or offers for sale, buys or offers 3
to buy, provides or offers to provide market analyses of, lists or 4
offers or attempts to list, or negotiates the purchase, sale, or 5
exchange of real estate; that negotiates the mortgage of real 6
estate; that negotiates for the construction of a building on real 7
estate; that leases or offers or rents or offers for rent real 8
estate or the improvements on the real estate for others, as a 9
whole or partial vocation; that engages in property management as a 10
whole or partial vocation; that sells or offers for sale, buys or 11
offers to buy, leases or offers to lease, or negotiates the 12
purchase or sale or exchange of a business, business opportunity, 13
or the goodwill of an existing business for others; or that, as 14
owner or otherwise, engages in the sale of real estate as a 15
principal vocation. 16
(v) "Real estate salesperson" means an individual who for 17
compensation or valuable consideration is employed either directly 18
or indirectly by a licensed real estate broker to sell or offer to 19
sell, buy or offer to buy, provide or offer to provide market 20
analyses of, list or offer or attempt to list, or negotiate the 21
purchase, sale, or exchange of real estate; to negotiate the 22
mortgage of real estate; to negotiate for the construction of a 23
building on real estate, or to lease or offer to lease, or rent or 24
offer for rent, real estate; who is employed by a real estate 25
broker to engage in property management; or who sells or offers for 26
sale, buys or offers to buy, leases or offers to lease, or 27
negotiates the purchase or sale or exchange of a business, business 28
opportunity, or the goodwill of an existing business for others, as 29
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a whole or partial vocation. 1
(w) "Right-to-list home sale agreement" means an agreement 2
between an owner of residential real estate and a real estate 3
broker that obligates the owner to list the residential real estate 4
for sale with the real estate broker at a future date in exchange 5
for consideration. Right-to-list home sale agreement does not 6
include a service provision agreement. As used in this subdivision, 7
"residential real estate" means the type of real estate described 8
in section 2517(3). Right-to-list home sale agreement does not 9
include a service provision agreement. 10
(x) "Service provision agreement" means a buyer agency 11
agreement or listing agreement that is executed by a real estate 12
broker and a client and that establishes an agency relationship. 13
(y) "Sponsor" means a person that represents to the public 14
that the courses it the person conducts for purposes of this 15
article fulfill the requirements of section 2504a for continuing 16
education. 17
Sec. 2503. (1) This article does not apply to a person that, 18
as owner, sells or offers for sale a detached, single family 19
dwelling, duplex, triplex, or quadruplex, that has never been 20
occupied and that was built by the person while licensed under 21
article 24. This article does not apply to an owner or lessor, an 22
attorney-in-fact acting under a duly executed and recorded power of 23
attorney from the owner or lessor, or a person appointed by a 24
court, that performs an act as a real estate broker or real estate 25
salesperson with reference to property owned by it, unless 26
performed as a principal vocation not through a licensed real 27
estate broker. 28
(2) This article does not apply to an attorney-at-law who is 29
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rendering services as an attorney-at-law; to a receiver, trustee in 1
bankruptcy, administrator, executor, a person selling real estate 2
under order of a court; or to a trustee selling under a deed of 3
trust, unless the trustee makes repeated or successive sales of 4
real estate not through a licensed real estate broker. 5
(3) This article does not apply to a person that is regulated 6
under the either of the following and that does not perform any 7
other act requiring a license as a real estate broker, associate 8
broker, or real estate salesperson: 9
(a) For 6 months after the effective date of the residential 10
mortgage licensing and supervision act, the mortgage brokers, 11
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 12
445.1684. , and that does not perform any other act requiring a 13
license as a real estate broker, associate broker, or real estate 14
salesperson. 15
(b) Beginning on the effective date of the residential 16
mortgage licensing and supervision act, the residential mortgage 17
licensing and supervision act. 18
Sec. 2603. (1) There is created a board of real estate 19
appraisers. 20
(2) Of those board members who are appraisers, 3 shall must be 21
certified general real estate appraisers, 1 shall must be a 22
certified residential real estate appraiser, and 2 shall must be 23
either state licensed real estate appraisers or additional 24
certified residential real estate appraisers. At least 1 of those 25
appraisers may be employed by a any of the following: 26
(a) A state or nationally chartered bank. , a 27
(b) A state or federally chartered savings and loan or savings 28
bank. , a 29
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(c) A state or federally chartered credit union. , an 1
(d) An entity of the federally chartered farm credit system. , 2
or an 3
(e) An entity regulated under the either of the following: 4
(i) For 6 months after the effective date of the residential 5
mortgage licensing and supervision act, the mortgage brokers, 6
lenders, and servicers licensing act, 1987 PA 173, MCL 445.1651 to 7
445.1684. 8
(ii) Beginning on the effective date of the residential 9
mortgage licensing and supervision act, the residential mortgage 10
licensing and supervision act. 11
Enacting section 1. This amendatory act does not take effect 12
unless House Bill No. 6177 (request no. H05171'25) of the 103rd 13
Legislature is enacted into law. 14