Who must possess a license to perform real estate services and receive compensation?

To understand why possessing a license is essential for persons negotiating for the sale of a business opportunity, it's important to recognize the regulations governing real estate transactions. In Michigan and many other jurisdictions, engaging in the business of real estate—whether it's residential, commercial, or business opportunities—typically requires a valid real estate license. This ensures that individuals conducting these transactions are knowledgeable about the laws, ethical considerations, and market conditions affecting real estate.

When negotiating for the sale of a business opportunity, the transaction falls under the umbrella of real estate services as it often involves the transfer of commercial property and may relate directly to the sale of the business's assets, which includes property. This necessitates licensed expertise to protect both the buyer and the seller and to ensure compliance with relevant laws.

On the other hand, those working in an office might not directly participate in negotiations or transactions, which is why a license may not be required for every position in an office. Similarly, brokers working independently must have licenses, but this option is more specific to their role rather than encompassing those involved in negotiating business opportunities. Lastly, restricting licensing requirements only to those selling residential properties overlooks the broader range of real estate services that also require licensure, including business opportunities.