Michigan License Law
In Michigan, which of the following activities is considered 'unlicensed practice' of real estate?
AA licensed attorney representing a buyer in a real estate transaction
BAn unlicensed person advertising properties for sale on behalf of others for compensation✓ Correct
CA licensed appraiser performing a home valuation
DA licensed property inspector performing an inspection
Explanation
Advertising, negotiating, or offering to sell, buy, or lease real estate for others in exchange for compensation without a Michigan real estate license constitutes unlicensed practice, a violation of the Occupational Code.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
1031 ExchangeA tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
State-Specific Concepts
License Law
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