Which of the following persons must have a license to perform real estate services and receive compensation?

• A. A property manager employed by the owner
• B. A licensed attorney not performing real estate duties
• C. A mortgage loan officer not selling real estate
• D. Person negotiating for the sale of a business opportunity

Answer: (D)

In Michigan, you must have a real estate license to perform real estate services for others and receive compensation. Real estate services include activities that facilitate a real estate transaction, such as negotiating, listing, or procuring a buyer or seller.

Negotiating for the sale of a business opportunity fits this scope because it involves brokering a deal that is typically tied to real estate or to the transfer of real property interests as part of the business opportunity. If someone performs that kind of negotiation for compensation, they’re effectively acting as a real estate broker and must be licensed unless an exemption applies.

Exemptions apply to the other scenarios: a property manager employed by the property owner is acting on behalf of the owner and not offering services to the public, so licensing isn’t required; a licensed attorney acting within the practice of law isn’t engaging in real estate services; and a mortgage loan officer who isn’t selling real estate isn’t performing real estate services either.