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Michelle completed her Michigan real estate pre-licensure education and passed the licensing exam. She is now submitting her application to LARA-BPL for her salesperson license. She has not yet secured employment with a broker. Under Michigan law, which of the following is true regarding her license application?

Correct Answer

C) LARA-BPL will issue her license in inactive status, which she can activate by notifying LARA-BPL when she affiliates with a broker

Under the Michigan Occupational Code (MCL 339.2507), LARA-BPL may issue a salesperson license in inactive status to an applicant who has met all educational and examination requirements but has not yet affiliated with a licensed broker. The inactive license allows the applicant to be licensed without being able to practice until they affiliate with a broker and activate the license. This is a common pathway for new licensees who are still in the process of selecting a sponsoring broker.

Answer Options
A
LARA-BPL will issue her a provisional salesperson license that she may activate once she finds a sponsoring broker within 180 days
B
LARA-BPL will not issue a salesperson license until she provides proof of affiliation with a licensed Michigan broker
C
LARA-BPL will issue her license in inactive status, which she can activate by notifying LARA-BPL when she affiliates with a broker
D
LARA-BPL will issue her a full active salesperson license, and she has 30 days to affiliate with a broker before the license is suspended

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Related Topics & Key Terms

Key Terms:

inactive_licensebroker_affiliationnew_licenseesalespersonLARA_BPL

Related Concepts

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.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

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