The Board updated the code chapters relating to real estate applications and education to reflect changes due to 2013 Acts 133 and 288 and the recommendations by the Council on Real Estate Curriculum and Examinations. The Board updated the application licensure process to reflect the current practices and the recent statutory changes. In addition, the Board updated the education chapter to reflect current educational requirements. Section 1 renumbers the paragraphs to subsections.
Section 2 moves these two sections to the general application sections.
Section 3 creates the procedures for the Board to do a criminal conviction predetermination prior to the individual applying for an license. A person would need to submit the police report, criminal complaint, judgment of conviction and sentencing and a personal statement. The Board will review the information and make a determination whether the conviction would disqualify the individual from obtaining a license or certificate. The determination would be binding.
Sections 4, 5, 6 and 7 repeal the current application and exam requirements and create new sections designating the requirements for salesperson and broker licenses. An applicant for salesperson is required to complete education and pass an examination. An applicant for broker is required to complete education, pass an examination and have real estate experience.
Sections 8, 9, 10, 11, and 12 changes the title to examinations and addresses the passing score for an examination as set by the board, the process for review, and consequences for cheating on the exam.
Section 13 repeals the time for completing the licensure requirements.
Sections 14, 15, 16, 17 and 18 address renewal and reinstatement. Renewal less than 5 years after license expiration requires a renewal fee, a late renewal fee if applicable, and proof of completion of continuing education. Renewal more than 5 years after the license expiration requires an applicant to complete education and pass an examination. There is a provision which would recognize practice in another state. If renewing a broker’s license, the experience would have to demonstrated. A person reinstating a license is required to meet the renewal requirements, any disciplinary requirements and provide evidence of rehabilitation or change in circumstances warranting a reinstatement of the license.
Sections 19, 20 and 22 repeal definitions no longer used in the rule.
Section 21 changes the term being defined to “evidence of completion” rather than attendance.
Section 23 repeals the education requirements for broker’s license.
Section 24 specifies the requirements for prelicensure broker business management program curriculum.
Section 25 repeals the out-of-state broker education requirements.
Section 26 creates the requirements for the nonresident broker education equivalency.
Section 27 repeals the education requirements for salesperson license.
Section 28 specifies the requirements for prelicensure salesperson curriculum.
Section 29 repeals the out-of-state salesperson requirements.
Section 30 creates the requirements for the nonresident salesperson education equivalency.
Section 31 and 33 repeal the requirements for approval of courses taken for academic credit and the noncredit programs.
Section 32 creates the approval process for pre-licensure education programs or courses. The school or organization is required to obtain approval at least 30 days prior to offering the course and provide specified information about the program or course as well as documentation that the instructor meets specified qualifications. Any substantive changes made after approval has been obtained would require notification to the board. A school or organization is required to provide a certificate of completion to the student and maintain records for at least 5 years.
Section 34 removes the outdated reference to continuing education examination.
Section 35 repeals a note which is no longer necessary due to this rule change.
Section 36 specifies a person is required to satisfy the continuing education requirement during the biennium in which the license is received unless the person receives an original salesperson’s license after October 1 in an even year.
Section 37 is repealed due to being obsolete provisions.
Section 38 is amended to clarify the sentence relating to receiving credit for teaching a course.
Section 39 removes the provision relating to the obsolete continuing education examination.
Section 40 creates a provision for a licensee to maintain continuing education records.
Section 41 repeals the requirements for approval of continuing education schools, courses and instructors.
Section 42 creates the approval process of continuing education programs or courses. The school or organization is required to obtain approval at least 30 days prior to offering the course and provide specified information about the program or course as well as documentation that the instructor meets specified qualifications. Any substantive changes made after approval has been obtained would require notification to the board. A school or organization is required to provide a certificate of completion to the student and maintain records for at least 5 years.
Section 43 repeals the sections relating to certification of attendance at pre-licensure and continuing education programs, continuing education examination and investigation and review of programs.
Section 44 creates a section indicating the board may deny or withdraw approval of a program or course.
Section 45 has an initial applicability of January 1, 2016 for the education content and approval requirements.
Section 46 has an effective date of the first day of the month following publication.
Summary of, and comparison with, existing or proposed federal regulation: None
Comparison with rules in adjacent states:
Illinois: Illinois requires an applicant for a broker’s license to be at least 21 years of age, graduated from high school or equivalent, complete 120 credit hours of specified education or be admitted to practice law in Illinois and pass an examination. An applicant for a managing broker’s license is required to be at least 21 years of age, graduated from high school or equivalent, complete 165 credit hours of specified education or be admitted to practice law in Illinois, be actively licensed for 2 of the last 3 years and pass an examination. An out of state applicant who holds a license in a state with standards substantially equivalent to Illinois is required to take a Illinois specific real estate brokerage laws exam. Illinois brokers are required to complete 12 hours of continuing education and managing brokers are required to complete 6 hours of continuing education and a 12 hours broker management continuing education course. Illinois approves school with curriculum which conforms to the requirements, have instructors with a valid instructor’s license, administer a final course exam and maintain student records for a period of 5 years.
Iowa: Iowa requires an applicant for a salesperson’s license to complete 96 hours of specified education and pass an examination. An applicant for a broker’s license is required to complete 72 hours of education in addition to the required salesperson’s education, have engaged in real estate practice for a period of at least 24 months and pass an examination. An application may be denied for convictions. Iowa licensees shall complete 36 hours of continuing education approved programs, courses or activities. A licensee who fails to renew expired license within 3 years must start over in the licensing process. Iowa approves schools, courses and instructors. The school is required to provide course outlines at least 30 days prior to the first offering, have no more than 8 hours of instruction per day, maintain records for a period of five years and issue certificates of attendance. Instructors must demonstrate ability to teach by meeting specific requirements and demonstrate in-depth knowledge of subject matter by meeting specific requirements.
Michigan: Michigan requires an applicant for a salesperson’s license to complete 40 hours of education and pass an examination. An applicant for a broker’s license must complete 90 hours of education (a law degree counts towards 60 hours of education and a master’s degree in business administration counts as 60 hours of education), have real estate experience and pass an examination. Schools or sponsors of education shall obtain pre-approval. Instructors are approved as determined by the department.
Minnesota: Minnesota requires an applicant for salesperson to complete 30 hours of instruction prior to passing an examination and then additional 60 hours of education after passing the examination. An applicant for a broker’s license is required to complete 30 hours of education and 3 years of experience as a licensed salesperson. Minnesota requires schools to be approved and specify required curriculum content.
Summary of factual data and analytical methodologies:
The Council on Real Estate Curriculum and Examinations made curriculum revision recommendations to the Board based on current law and practices. The Board updated the rules based on 2013 Acts 133 and 288 as well as changes in the profession. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
This rule was posted for 14 days for economic comments and none were received. The Board determines that the modification of existing rules relating to applications and education does not create an effect on small business nor have an economic impact.
Fiscal Estimate and Economic Impact Analysis:
The Fiscal Estimate and Economic Impact Analysis is attached.
