Real estate license reciprocity is an agreement among states that allows real estate agents to rapidly apply for licensing in their target state, offering huge advantages when moving their business across state lines without having to go back through all the MI-approved pre-licensing courses once more.
States offer three levels of reciprocity. Full reciprocity states allow agents from any state to transfer their license when taking and passing the real estate exam in their target state. Let’s look at the Michigan real estate license reciprocity and what to expect.
Basics of Michigan Real Estate License Reciprocity
There is no formal reciprocity agreement in the state of Michigan. This is not the same as many other states, and Michigan is rather unique. However, this doesn’t mean you cannot bring your real estate license from another state to Michigan and get a real estate license in Michigan.
If you have a license in another state, you will want to contact the Michigan Department of Licensing and Regulatory Affairs. They will evaluate every situation individually to see if your training and experience are “substantially equal” to the training expected in Michigan. The LARA may consider licensed work as a way to make up for training hours.
The board is looking for competency, and you will need to fill out an application and go through a background check. After you submit this, the board will review your license history and experience to make a decision.
How Michigan Handles Outside Real Estate Licenses
If you hold a Michigan real estate license but want to practice in another state, you can, but not in all states. Currently, you can practice in Alabama, Colorado, Maine, Mississippi, Nebraska, and Virginia with your Michigan real estate license.
These states offer reciprocity with all states, and while you may need to pass a state exam or do some training, it will be far less than the training to get a new license in these states.
Michigan Reverse Reciprocity
Michigan Reverse Reciprocity allows licensed real estate professionals to work in other states without being subject to licensure requirements for each new state, helping individuals establish new careers or expand their reach to clients.
Real estate licensees who move to another state and wish to work as real estate agents will require reciprocity in order to continue practicing as agents; however, this process should not be underestimated as it may not always go smoothly.
Most states provide some form of real estate license reciprocity. Reciprocal agreements differ by state but typically involve some sort of expedited application process for individuals holding valid licenses from multiple states.
Alongside reciprocal licenses, many states also allow real estate license portability – this enables those with licenses from one state to practice real estate without meeting all state licensing requirements – without needing to go through all the additional licensing steps again in another. Each state may impose different restrictions when portability can take effect.
Contacting the licensing authority in the new state is the best way to assess eligibility for real estate license reciprocity, they will provide all of the information you require in order to apply for one.
Some states require applicants to pass the state exam and complete real estate pre-licensing education before receiving their real estate license, while others offer simplified application processes or none at all. It’s wise to research each state carefully before applying for one’s real estate license; each has specific rules which should be read carefully prior to beginning this process.
It’s best to check with the state you plan to move to before you try to take your Michigan real estate license with you. Every state is different, and they can also change from year to year.
