Which of the following individuals is exempt from obtaining a real estate license to sell real estate?

In Michigan, licensed builders are generally exempt from needing a real estate license when they are selling properties that they have constructed or are building. This exemption is in place because builders are often involved in the selling of their own properties as part of their business model, allowing them to deal directly with buyers without needing a separate real estate salesperson license.

The rationale for this exemption stems from the understanding that licensed builders already possess knowledge of the construction, features, and values of the properties they sell, making them equipped to handle transactions in a competent manner without requiring additional licensing that is typically geared toward real estate sales practices.

In contrast, real estate investors, property managers, and mortgage brokers are typically not exempt from licensing requirements as their roles involve facilitating transactions, managing properties on behalf of others, or providing financing services, which would necessitate specific training and adherence to the regulations set forth for real estate professionals. Thus, they are required to obtain the appropriate licenses to operate in their respective fields.