February 28, 2006, Introduced by Rep. Meyer and referred to the Committee on Regulatory Reform.
A bill to amend 1980 PA 299, entitled
"Occupational code,"
by amending section 2505 (MCL 339.2505), as amended by 2003 PA 196.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2505. (1) An applicant for a real estate broker's license
shall file an application setting forth the applicant's present
address, both of business and residence; the complete address of
each former place where the applicant has resided or been engaged
in business, or acted as a real estate salesperson, for a period of
60 days or more, during the 5 years immediately preceding the date
of application. An applicant for a real estate broker's license
shall state the name of the individual, sole proprietorship,
partnership, association, corporation, limited liability company,
common law trust, or a combination of those entities and the
location of the place for which the license is desired, and set
forth the period of time which the applicant has been engaged in
the business. The application shall be executed by the person, or
by an officer or member of the applicant. An applicant for a real
estate broker's license which is a partnership, association,
corporation, limited liability company, common law trust, or a
combination of those entities shall designate which individuals who
are officers or members of the partnership, association, limited
liability company, or corporation will be performing acts regulated
by this article as principals.
(2) The department shall not issue a real estate broker's
license to a new applicant who has been convicted of embezzlement
or misappropriation of funds.
(3) A real estate broker shall maintain a place of business in
this state. If a real estate broker maintains more than 1 place of
business within the state, a branch office license shall be secured
by the real estate broker for each branch office maintained. A
branch
office maintained in excess of 25 120
miles from the city
limits in which the broker maintains a main office shall be under
the personal, direct supervision of an associate broker.
(4) An applicant for a salesperson's license shall set forth
the period of time during which the individual has been engaged in
the business, stating the name of the applicant's last employer and
the name and the place of business of the individual, partnership,
association, limited liability company, corporation, common law
trust, or combination of those entities then employing the
applicant or in whose employ the applicant is to enter. The
application shall be signed by the real estate broker in whose
employ the applicant is to enter.
(5) Before issuing a license, the department may require and
procure satisfactory proof of the business experience, competence,
and good moral character of an applicant for a real estate broker's
or salesperson's license or of an officer or member of an
applicant. The department shall require an applicant for a broker's
or salesperson's license to pass an examination developed by the
department or contracted for with a recognized outside testing
agency establishing, in a manner satisfactory to the department,
that the applicant has a fair knowledge of the English language,
including reading, writing, spelling, and elementary arithmetic; a
satisfactory understanding of the fundamentals of real estate
practice and of the laws and principles of real estate
conveyancing, deeds, mortgages, land contracts, and leases; the
obligations of a broker to the public and a principal; and the law
defining, regulating, and licensing real estate brokers and
salespersons. The department may require written examination or
written reexamination of a broker or salesperson, and in that case
a passing score satisfactory to the department is required as a
condition precedent to relicensure of a broker or salesperson. The
department shall require proof that each applicant for a real
estate broker's license has the equivalent of 3 years of full-time
experience in the business of real estate or in a field that is
determined by the department to be relevant and related to the
business of real estate.