Michigan License Law Practice Test

Which requirement is necessary for an agent to hold a real estate license?

1. Completion of a financial audit

2. Participation in a broker's training program

3. Having a valid and enforceable listing agreement

4. Being a member of a real estate cooperative

The correct answer is: Having a valid and enforceable listing agreement

To hold a real estate license, an agent must have a valid and enforceable listing agreement. This is essential because a listing agreement serves as a formal contract between the agent and their client, typically the property owner. It legally obligates the agent to represent the client's interests in the sale or lease of real estate. Without such an agreement, an agent would lack the necessary agency relationship to act on behalf of the client, which is fundamental to real estate transactions. The other options presented do not constitute requirements for obtaining or holding a real estate license. For instance, completion of a financial audit is not a standard prerequisite for licensing—rather, it pertains to the accountability of financial practices post-licensing. Similarly, participation in a broker's training program, while beneficial for an agent's education and skill development, is not mandated for obtaining a license. Lastly, membership in a real estate cooperative may provide networking benefits but does not impact the eligibility or requirements for licensure in real estate practice.