Michigan License Law Practice Test

What is the consequence of a broker failing to provide written policies to their agents?

1. It is an enhancement of agent performance

2. It will result in a license suspension

3. It violates Michigan license law

4. Nothing occurs, as it is optional

The correct answer is: It violates Michigan license law

The consequence of a broker failing to provide written policies to their agents is that it violates Michigan license law. According to the regulations governing real estate brokers and agents in Michigan, brokers are required to establish and maintain written policies regarding the operation of their brokerage firm. This requirement ensures that all agents are aware of the procedures and expectations within the brokerage, which helps to ensure professionalism, consistency, and compliance with legal standards. By not providing these written policies, brokers not only risk managerial inefficiencies but also expose themselves and their agents to potential legal issues arising from misunderstandings or a lack of guidance. Such violations can lead to disciplinary actions from the Michigan Department of Licensing and Regulatory Affairs, as maintaining written policies is crucial for the legal operation of a real estate brokerage under state law.