RESIDENTIAL BUILDERS SALESPERSON
EXAMPREP PRACTICE QUESTIONS WITH
COMPLETE SOLUTIONS 2026 GRADED A+
⩥Actions Subject to Disciplinary Action
Answer: A salesperson may only be licensed to one builder or M&A
contractor, so serving as a representative for several builders or M&A
contractors is not permitted by law. Contracts secured by a person who is
required to be licensed by the act and is not licensed are not valid.
Salespeople who engage or attempt to engage in contracts without being
licensed are guilty of a misdemeanor, punishable by a fine of not more
than $500.00 or imprisonment for not more than 90 days, or both.
⩥How to Become a Licensed Salesperson
Answer: An individual must pass an examination and have the builder or
M&A contractor submit an application for licensure. The license will be
issued in the name of the salesperson and mailed to the builder or M&A
contractor employing the salesperson. The contractor will display the
wall license and the salesperson will carry the pocket card.
⩥What Happens When Employment is Terminated
Answer: The residential builder or M&A contractor sends the wall
license and pocket card to the department along with a statement, on
company letterhead, stating the salesperson's disassociation date and
signed by the owner/qualifying officer of the employer. The
,salesperson's new employer then requests that the license be transferred,
and a new wall license and pocket card are issued, showing the new
employer.
⩥The Difference Between Builder Salesperson and Real Estate
Licensing
Answer: A real estate salesperson license is issued through the Board of
Real Estate Brokers and Salespersons. A licensed real estate salesperson
works for a real estate broker selling properties listed for sale with that
broker. They do not sell for a residential builder unless the builder has
listed a property with a real estate broker.
⩥Michigan Governor
Answer: Approves all legislation and appoints Directors and Board
Members.
⩥Michigan House and Senate
Answer: Creates, debates, and votes on laws to govern, must approve
(sign off on) all appointments, and reviews operations of the LARA.
⩥Department of Licensing and Regulatory Affairs (LARA)
Answer: Composed of labor and economic development agencies and
commissions that promote job creation and economic growth in
Michigan by centralizing and streamlining the state's job, workforce, and
economic development functions under one department.
,⩥Director of LARA
Answer: Appointed by the Governor and staff. The function is to
investigate complaints and to approve or decline license applications
upon the recommendation of the Board.
⩥Board of Residential and M&A Contractors
Answer: Four individuals who are licensed residential builders.
Two individuals who are licensed maintenance and alteration
contractors. Three individuals representing the general public. One
member of those representing the general public must be a licensed
building inspector.
⩥Functions of the Board of Residential and M&A Contractors
Answer: Create rules to help the Board fulfill duties that do not conflict
with Michigan law. Help the Director interpret the laws. Set minimum
standards for occupations.
Assess penalties for violation of the laws.
⩥Bureau of Commercial Services
Answer: Assures that licensees meet standards for operating in MI, with
more than 309,000 licensees for 30 different commercial occupations.
Maintains public records of 1,250,000 business entities, and issues
licenses and conducts investigations. Fulfills the administrative needs of
the Director and the Board.
, ⩥Licensing Division of LARA
Answer: Determines eligibility for examination and licensure.
Monitors licensees' compliance with continuing education requirements,
provides administrative support to the boards, and oversees
administration of examinations.
⩥State Building Inspector
Answer: Enforces the Michigan Residential Code and investigates
complaints through LARA.
⩥Local Building Inspector
Answer: Enforces state code and local ordinances.
⩥Is the residential builder or M&A contractor salesperson is also
allowed to practice real estate sales under the same license?
Answer: No
⩥The Board of Residential Builders and M&A contractors is comprised
of how many total members?
Answer: Nine
⩥Residential Builder
EXAMPREP PRACTICE QUESTIONS WITH
COMPLETE SOLUTIONS 2026 GRADED A+
⩥Actions Subject to Disciplinary Action
Answer: A salesperson may only be licensed to one builder or M&A
contractor, so serving as a representative for several builders or M&A
contractors is not permitted by law. Contracts secured by a person who is
required to be licensed by the act and is not licensed are not valid.
Salespeople who engage or attempt to engage in contracts without being
licensed are guilty of a misdemeanor, punishable by a fine of not more
than $500.00 or imprisonment for not more than 90 days, or both.
⩥How to Become a Licensed Salesperson
Answer: An individual must pass an examination and have the builder or
M&A contractor submit an application for licensure. The license will be
issued in the name of the salesperson and mailed to the builder or M&A
contractor employing the salesperson. The contractor will display the
wall license and the salesperson will carry the pocket card.
⩥What Happens When Employment is Terminated
Answer: The residential builder or M&A contractor sends the wall
license and pocket card to the department along with a statement, on
company letterhead, stating the salesperson's disassociation date and
signed by the owner/qualifying officer of the employer. The
,salesperson's new employer then requests that the license be transferred,
and a new wall license and pocket card are issued, showing the new
employer.
⩥The Difference Between Builder Salesperson and Real Estate
Licensing
Answer: A real estate salesperson license is issued through the Board of
Real Estate Brokers and Salespersons. A licensed real estate salesperson
works for a real estate broker selling properties listed for sale with that
broker. They do not sell for a residential builder unless the builder has
listed a property with a real estate broker.
⩥Michigan Governor
Answer: Approves all legislation and appoints Directors and Board
Members.
⩥Michigan House and Senate
Answer: Creates, debates, and votes on laws to govern, must approve
(sign off on) all appointments, and reviews operations of the LARA.
⩥Department of Licensing and Regulatory Affairs (LARA)
Answer: Composed of labor and economic development agencies and
commissions that promote job creation and economic growth in
Michigan by centralizing and streamlining the state's job, workforce, and
economic development functions under one department.
,⩥Director of LARA
Answer: Appointed by the Governor and staff. The function is to
investigate complaints and to approve or decline license applications
upon the recommendation of the Board.
⩥Board of Residential and M&A Contractors
Answer: Four individuals who are licensed residential builders.
Two individuals who are licensed maintenance and alteration
contractors. Three individuals representing the general public. One
member of those representing the general public must be a licensed
building inspector.
⩥Functions of the Board of Residential and M&A Contractors
Answer: Create rules to help the Board fulfill duties that do not conflict
with Michigan law. Help the Director interpret the laws. Set minimum
standards for occupations.
Assess penalties for violation of the laws.
⩥Bureau of Commercial Services
Answer: Assures that licensees meet standards for operating in MI, with
more than 309,000 licensees for 30 different commercial occupations.
Maintains public records of 1,250,000 business entities, and issues
licenses and conducts investigations. Fulfills the administrative needs of
the Director and the Board.
, ⩥Licensing Division of LARA
Answer: Determines eligibility for examination and licensure.
Monitors licensees' compliance with continuing education requirements,
provides administrative support to the boards, and oversees
administration of examinations.
⩥State Building Inspector
Answer: Enforces the Michigan Residential Code and investigates
complaints through LARA.
⩥Local Building Inspector
Answer: Enforces state code and local ordinances.
⩥Is the residential builder or M&A contractor salesperson is also
allowed to practice real estate sales under the same license?
Answer: No
⩥The Board of Residential Builders and M&A contractors is comprised
of how many total members?
Answer: Nine
⩥Residential Builder
