Agency
Disclosure in Michigan
The
law in Michigan requires real estate brokers and agents to
disclose their agency status.
Before
you disclose confidential information to a real estate licensee
regarding a real estate transaction, you should understand
what type of agency relationship you have with that licensee.
A real estate transaction is a transaction involving the sale
or lease of any legal or equitable interest in real estate
consisting of not less than 1 or not more than 4 residential
dwelling units or consisting of a building site for a residential
unit on either a lot as defined in section 102 of the land
division act, 1967 PA 288, MCL 560.102, or a condominium unit
as defined in section 4 of the condominium act, 1978 PA 59,
MCL 559.104.
Seller's
Agency
A
seller's agent, under a listing agreement with the seller,
acts solely on behalf of the seller. A seller can authorize
a seller's agent to work with subagents, buyer's agents and/or
transaction coordinators. A subagent of the seller is one
who has agreed to work with the listing agent, and who, like
the listing agent, acts solely on behalf of the seller. Seller's
agents and their subagents will disclose to the seller known
information about the buyer which may be used to the benefit
of the seller.
The
duties that a seller's agent and subagent owes to the seller
include:
 |
Promoting
the best interest of the seller. |
|
Fully
disclosing to the seller all facts that might affect or
influence the seller's decision to accept an offer to
purchase. |
|
Presenting
all offers to the seller. |
|
Disclosing
to seller all information known to the seller's agent
about the identity of all buyers and the willingness of
the seller to complete the sale or to accept a lower price. |
Buyer's
Agency
A
buyer's agent, under a buyer's agency agreement with the buyer,
acts solely on behalf of the buyer. A subagent of the buyer
is one who has agreed to work with the buyer's agent and who,
like the buyer's agent, acts solely on behalf of the buyer.
Buyer's agents and their subagents will disclose to the buyer
known information about the seller which may be used to benefit
the buyer.
The
duties a buyer's agent and subagent owe to the buyer include:
|
Promoting
the best interest of the buyer. |
|
Fully
disclosing to the buyer all facts that might affect or
influence the buyer's decision to tender an offer to purchase. |
|
Keeping
confidential the buyer's motivations for buying. |
|
Presenting
all offers on behalf of the buyer. |
|
Disclosing
to the buyer all information known to the buyer's agent
about the willingness of the seller to complete the sale
or to accept a lower price. |
Dual
Agents
A
real estate licensee can be the agent of both the seller and
the buyer in a transaction, but only with the knowledge and
informed consent, in writing, of both the seller and the buyer.
In
such a dual agency situation, the licensee will not be able
to disclose all known information to either the seller or
the buyer. As a dual agent, the licensee will not be able
to provide the full range of fiduciary duties to the seller
or the buyer.
The
obligations of a dual agent are subject to any specific provisions
set forth in any agreement between the dual agent, the seller
and the buyer.
