Michigan License Law Practice Test

Which of the following statements is true regarding Michigan real estate licenses?

1. They expire every year

2. They require continuing education every two years

3. They are valid for three years

4. They are lifetime licenses once obtained

The correct answer is: They are valid for three years

The statement that Michigan real estate licenses are valid for three years is accurate. In Michigan, upon obtaining a real estate license, it remains active for a period of three years from the date it is issued. This time frame is significant as it allows licensed individuals to operate within the real estate market without the need for annual renewals. Licenses require renewal after three years, during which licensed agents or brokers must satisfy the continuing education requirements set by the Michigan Department of Licensing and Regulatory Affairs (LARA). This renewal process ensures that licensed professionals remain informed about current laws, practices, and ethical standards in the industry. The other options describe different aspects of licensing that do not accurately reflect the regulations in Michigan. For example, while continuing education is indeed required for license renewal, it's specified every three years rather than annually. Therefore, understanding the duration of the license validity is crucial for real estate professionals operating in Michigan, as it impacts their responsibilities and opportunities in the field.