Michigan Residential Builders License Practice Test

What must a salesperson do when changing employment from one residential builder to another?

1. The license must be returned to the department

2. An application for a new license is not required

3. The license can be kept with the previous employer

4. No notification is needed

The correct answer is: The license must be returned to the department

When a salesperson changes employment from one residential builder to another in Michigan, there is a requirement to return the license to the department. This step is necessary because the license is tied to a specific employer, and it ensures that the records are accurate and up-to-date regarding the individual's current employment status in the residential building industry. Returning the license allows the department to manage and track licenses effectively, ensuring compliance with the licensing laws and regulations. It also prevents any confusion that might arise if a salesperson continues to use a license associated with an employer from whom they have parted ways. By notifying the department and following this procedure, the salesperson can then apply for a new license that reflects their current employment, maintaining the integrity of the licensing system.