A Michigan real estate brokerage firm is structured as a corporation. The corporation holds a broker's license. Which of the following statements correctly describes how Michigan law treats this arrangement?
Correct Answer
B) The corporation may hold a broker's license, but at least one officer or member must hold an individual broker's license and be designated as the broker of record
Under MCL 339.2505, a corporation, partnership, or LLC may be licensed as a real estate broker in Michigan, but the entity must designate at least one individual who holds a personal Michigan broker's license as the broker of record. This individual is responsible for the entity's licensed activities and compliance with the Occupational Code.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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