Michigan License Law Practice Test

Which task is a real estate licensee NOT permitted to perform under Michigan law?

1. Negotiate sales contracts

2. Show listed properties

3. Appraise property

4. Assist clients with paperwork

The correct answer is: Appraise property

In Michigan, real estate licensees are permitted to handle various tasks related to real estate transactions, including negotiating sales contracts, showing listed properties, and assisting clients with the necessary paperwork. However, appraising property is a distinct activity that requires a separate certification and licensure. Appraisers must meet specific educational and experience requirements distinct from those required for a real estate license. They must also adhere to regulations established by the Michigan Department of Licensing and Regulatory Affairs (LARA) and comply with federal appraisal regulations. This separation of real estate agents and appraisers ensures that property appraisals are conducted by qualified professionals who can provide an unbiased and accurate assessment of property values. Thus, while a real estate licensee can manage many aspects of property transactions, conducting appraisals is outside their legal scope of practice unless they also hold the appropriate appraisal license.