Michigan
Michigan Real Estate Exam: Complete 2026 Prep Guide
Michigan's real estate salesperson exam covers national content plus Michigan-specific topics under LARA (Department of Licensing and Regulatory Affairs). The first-time pass rate is around 65%. Michigan's pre-licensing requirement is one of the shortest in the country at 40 hours.
Michigan Exam Requirements at a Glance
Pre-licensing education: 40 hours
Exam provider: PSI Services
Exam format: 115 questions — 80 national + 35 Michigan state-specific
Time limit: 3 hours
Passing score: 70% on each portion (must pass both)
Exam fee: approximately $79
License title: salesperson
Age requirement: 18 years old
Confirm current rules with the Michigan Department of Licensing and Regulatory Affairs (LARA).
What Makes Michigan Different
Michigan's 40-hour pre-licensing requirement is among the shortest in the U.S. — but the exam still tests substantial content. Michigan is a non-judicial foreclosure state (foreclosure by advertisement), and the state has detailed disclosure rules around well water, septic systems, and lakefront properties.
Michigan-Specific Topics You Must Know
These appear on the state portion and are not covered by generic national prep materials.
Michigan Department of Licensing and Regulatory Affairs (LARA) — Bureau of Construction Codes / Real Estate Section.
Michigan Occupational Code — Article 25 covers real estate licensing.
Seller's Disclosure Statement — required for most residential resales (with exemptions).
Lead-based paint, well water, and septic disclosures — Michigan-specific requirements.
Foreclosure by advertisement — Michigan's non-judicial foreclosure process.
Mortgage law — Michigan uses both mortgages and land contracts. Land contract sales are common.
Property tax — Michigan uses 'taxable value' (separate from assessed value) under Proposal A limits.
Continuing education — 18 hours per 3-year cycle.
Study Plan for the Michigan Exam
Week 1: Diagnostic + national content. Get strong on contracts, finance, and agency.
Week 2: National continued — property ownership, fair housing, valuation, math. Full-length national practice. Target 70%+.
Week 3: MI-specific — LARA rules, Occupational Code, Seller's Disclosure, foreclosure by advertisement, land contracts. 35+ MI-specific practice questions.
Week 4: Full-length timed practice exams. Review missed questions. Target 75%+.
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Michigan Resources
Michigan Exam FAQ
Why is Michigan's pre-licensing only 40 hours?
Michigan has historically maintained a shorter pre-licensing requirement than most states. The compressed timeline doesn't change the breadth of content tested — candidates must still cover the same topics.
Is Michigan a non-judicial foreclosure state?
Yes. Michigan allows foreclosure by advertisement, a non-judicial process that's faster than judicial foreclosure.
What is a land contract in Michigan?
A seller-financed installment sale where the seller retains legal title until the buyer completes payments. Land contracts are common in Michigan, especially in rural areas.
What's Proposal A?
A 1994 Michigan constitutional amendment limiting annual taxable value increases on owner-occupied homes to 5% or the rate of inflation (whichever is less). Reassessment occurs on transfer of ownership.
Does Michigan require well/septic disclosure?
Yes. Sellers must disclose the type and condition of well water and septic systems in residential transactions where applicable.