There is a lot of information on this page. You may want to save it as a PDF or print it. it covers all of the issues that a licensee might run into with renewal, relicensure, and requirements for Continuing Education. CAVEAT: Be sure you have not previously taken a class before you sign up for a 6 hour course in which the class is offered. If you cannot figure it out, talk to someone in the office and we will help you. If you duplicate a class the Department will NOT give you credit and we cannot be responsible.
All real estate licenses expire on the same date – October 31, 2015. The LARA licensing unit receives many calls from licensees who “haven’t received a renewal application!” Needless to say, they breathe a sigh of relief when told they have another year before they are required to renew!
Following are the answers to issues commonly addressed to LARA.
(1) Reporting of CE hours to LARA As of January 1, 2015, the real estate schools's are no longer responsibie to report licensee attendance at continuing education classes. Instead, it is now necessary for each licensee to keep track of his/her own hours.
At this itme, the hours you took through 2014 are available at michigan.gov/iCOLA. If you took hours toward earlier years in calendar year 2015 they will not show on LARA’s website. The law now requires that all licensees keep their certificates for 4 years to prove your attedance at these classes. Certificates are required by law to include the name and contact information of the sponsor, the name and time in which the class was available. This includes internet certificates.
(2) What CE courses “count” for renewal? For the current three-year license cycle, only courses that are entitled “L” will be considered when processing your renewal. While the website reflects all CE you have taken (historical record of classes), note that different courses have different course identification. Again, look at the L courses that you HAVE NOT used when calculating your CE for this cycle/renewal. For example, your license lapsed/expired and you became relicensed during this current three-year cycle and you used some of the posted L courses to do so.
(3) What are the inclusive dates of this three-year license cycle? In a non-renewal year, the license year (as opposed to calendar year) begins on November 1. In a renewal year, the license year begins on July 1: First year: 07-01-09 to 10-31-13 Second year: 11-01-10 to 10-31-14 Third year: 11-01-11 to 07-01-15 The cutoff in July is due to LARA’s policy that dictates if a new license is to be issued for a term of less than 120 days (four months) the licensee will receive the next cycle’s expiration date.
(4) Do I get my CE requirements pro-rated if I received my license or got relicensed after the first year of this current three-year cycle? Yes. The following applies and is driven by the year in which you entered the three-year cycle: Year Entered License Cycle Unused “M” Hours Needed to Renew Renewed in 2013 or license issued in 2013 1st year 18 hours required Issued New License or Relicensed (2014)in 2nd year 12 hours required Issued New License or Relicensed (2015) in 3rd year 6 hours required
(5) What happens if I “miss” taking CE in one of the three years of the three-year cycle? One of the most often asked questions is: “what is the impact on the license renewal if one or more ‘years’ or hours of CE are ‘missed’ or not completely fulfilled?” For example, failure to complete any CE hours in that year or completed an insufficient number of CE hours in that year.
Section 2504(4) of the license law (Occupational Code) states that in 2007 and thereafter, two (2) hours of law and rules update must be completed for each year of the 3 years of a licensing period as part of the 18 total hours that will be required to renew.
What LARA will be looking for at renewal is whether or not you meet the 18 hours of unused M courses (taking into consideration the pro-ration for obtaining a license or relicensure in mid-cycle that will apply to some licensees). Remember that you will need to ensure that by the end of the renewal period ALL required hours have been completed. Continuing education is a requirement of license renewal. It is not anticipated that LARA will take action against licensees who “missed” CE at some point during the cycle. Again, the computer will check for total eligible clock hours when it tries to process your renewal. (6) What are the renewal requirements in addition to completing continuing education? Remember that CE is just one of the renewal requirements. Salespersons and associate brokers are also required to renew to an active employing broker. Therefore, until the employing broker’s renewal is processed, the renewal applications submitted by the salespersons or associate brokers will continue to “cycle,” i.e., the licenses will continue to attempt to issue, until the broker has renewed. Once the employing broker’s renewed license is issued, the salesperson, associate broker and branch office licenses can be issued. All license documents (paper wall license and attached pocket card) are mailed to the employing broker at the main office.
(7) What are the renewal deadlines or timelines? What if I renew late? As with any deadline, timely submission is a very important factor. Licenses expire 10-31-15. If you have not met ALL the renewal requirements by that date, you must cease the regulated practice of real estate in Michigan. While a 60-day “late renewal” period does exist, that merely means that licensees can renew during those 60 days, pay an additional $20 late renewal fee, meet the CE requirements and employing broker requirements (if applicable) and recommence practice after receipt of the updated license.
AFTER the 60-day late renewal period ends, if all requirements were not met by that date, you must apply for relicensure by filing a relicensure application form and fee. Fees you paid for the renewal (and late renewal, if applicable) were used by LARA to process your application even though no license was issued. As such, these fees have been “used” to perform these administrative services and if you don’t meet the requirements, they are forfeited; They cannot be applied toward any subsequent relicensure application you may file.
Please be aware that postmarked envelopes have never been the determining factor in determining the receipt date of a renewal payment. If October 31 is on a Saturday, the renewal payment must be received by the LARA office the next business day after the weekend or holiday. The same is true for the 60 day late renewal period, if the 60th day falls on a state holiday. Please govern yourself accordingly and mail o renew early!
(8) What if the Renewal is paid close to or on the deadline date? The only exception regarding deadlines is Rule 213. It provides that licensees can continue to practice IF all the requirements reach LARA before the license expires. Obviously if you mail your renewal application and payment on October 29, LARA will not have sufficient time to process it and get a new license to you before October 31; however, if you have met all the requirements, and LARA receives the renewal payment, you can continue to practice on the expired license. It continues to be the responsibility of each licensee to ensure that all requirements are met before expiration.
(9) What’s my best option for a “painless” renewal? LARA encourages licensees to renew on-line, using the iCola Internet site and paying with a credit card. Renewing online is the quickest, most efficient way to process the renewal transaction and will result in receiving the renewed license the fastest. Please consider using the iCola on-line renewal method if at all possible. Although paper renewal applications will be mailed out (to the license address we have on file for you) around August 1, we encourage you to routinely check LARA’s website and look for the posting or activation of the iCola Internet renewal option. Very Important: Make sure LARA has your most current address on record. Salespersons submit the Salesperson Request for Record Change (BCS/LRE-920) and brokers/associate brokers submit the Name or Address Change for Brokers using form (BCS/LRE-921). This is available at LARA’s URL: Michigan.gov/realestatelicense under Forms and Publications.
(10) Do I have to take CE the first year I’m licensed? YES! EVERY licensee who renews is required to have completed continuing education hours. A common misconception that LARA routinely hears is that there still exists a “first year exemption” for new licensees. Not true. This was eliminated when LARA changed to the three- year license cycle. EVERY licensee who renews will require continuing education hours. Please take note of the proration examples offered previously.
(11) My real estate license is in “escrow” or with a “holding/referral” type broker. Is that different? First of all, the option to place a real estate license in “escrow” or inactive status ended in 1991. However, escrow is still a common term used for licensees who have placed their licenses with a “holding” or “referral” type broker. Since licenses are either active or expired, individuals referring to a license being in inactive because they are not active in the real estate industry or have their license placed with a “holding company” broker will still be required to complete continuing education to renew.
We urge you to check with your employing broker to ensure that you abide by any agreed-upon stipulations. These are issues such as being required to complete CE through a sponsor the broker chooses or paying an additional fee to the broker to retain your license with the broker. LARA has no jurisdiction over these agreements.
Note: Salespersons in a “no employer” status (license returned LARA at some point during the three-year cycle) will NOT receive a renewal notice unless they transfer before the license expires. After the late renewal period ends, those individuals must apply for relicensure.
Another important issue: There will be those who fall into the category of having a pending application on file (e.g., salesperson transfer application to activate the license) that does not get processed before the renewal print process takes place. If it is the intent that a salesperson desires an active license, the renewal fee for the upcoming three-year license cycle would likewise have to be paid and appropriate CE taken. If you have any questions about your license status or what is required, it is ALWAYS suggested that you call LARA to ensure you obtain the correct information.
(12) How do I find a CE course to complete? If you need to find a CE course to complete, check with the schedule offered by Real Estate Continuing Education Connection, LLC at claudiacauley.net. Everyone should be able to find courses that are convenient for them to complete, especially with distance learning via the Internet being an option.
(13) I renewed on time and met all my requirements so why am I still not renewed? A common issue for salespersons and associate brokers is when the employing broker has changed license entity types and received a different license (e.g., the broker was licensed as a corporation broker and now is licensed as an LLC). If you attempt to renew to a broker that is not renewed, it is NOT AUTOMATIC that your license will issue to the new broker entity.
Salespersons desiring to be licensed to the new entity must transfer. Associate brokers must complete a NEW application to become licensed to the new broker entity. If you pay a renewal fee with a previous or non-renewed broker listed on your renewal application, there are no refunds if you subsequently determine that you needed to be licensed to the new entity. Please keep in close contact with your employing broker. Don’t make a mistake that is costly, both financially and that negatively impacts your ability to practice.
You can check your credits online to determine what the Department has you reported as having taken. To do this:
Pick a type of search - e.g. by name or by license number and click Submit If you choose name, use your name as licensed If you choose license number, include the first 4 digits - 650__ (6501=Salesperson; 6502=Assoc. Broker; 6504=Individual Broker)
After adding the appropriate information, click on search A screen will show up. Click on a blue link to Continuing Education This screen will show you exactly what classes you have received credit for.
If you need help, you can call or email our office with this information and we can help you from there. If you call, make sure you keep the window open so we can discuss the class numbers. If you email, you can make a pdf of the page with the class information and attach it to the email you send us.
Six (6) Hours of your 18 hours for the three years must be Legal Update Classes.