What is the correct answer to: In Michigan, a disclosed dual agent must:

The correct answer is Obtain written consent from both parties. Michigan's Occupational Code (MCL 339.2517) explicitly requires that a licensee acting as a dual agent must obtain written consent from both the buyer and the seller before proceeding with the dual representation. This written consent must acknowledge that both parties understand the limitations of dual agency, including the agent's reduced ability to negotiate exclusively on their behalf. Without this documented consent, the licensee is in violation of Michigan agency law and could face license discipline.

What background knowledge is needed for this Agency question?

Michigan's regulation of dual agency evolved from broader national concerns about undisclosed conflicts of interest in real estate transactions that became prominent in the 1980s and 1990s. Prior to mandatory disclosure laws, many buyers mistakenly believed the agent showing them homes was representing their interests, when in fact the agent legally represented the seller. Michigan codified agency disclosure requirements in its Occupational Code to align with the national trend toward consumer protection and transparency. The written consent requirement for dual agency was strengthened to ensure that verbal acknowledgments — which are difficult to prove and easy to dispute — would not suffice.

What is a good way to remember the answer to this Agency question?

Remember the phrase 'DOUBLE signature for DOUBLE agency' — just as dual agency involves two clients, it requires two written signatures (one from each party) before it can legally proceed. Visualize two people each signing their own copy of a consent form before shaking hands across a table, with the agent standing in the middle. Remember that for dual agency in Michigan, you need Written Consent from Both parties. The acronym DCWB can help you recall this requirement quickly during the exam.

What exam tip applies to this Agency question?

When you see a question about dual agency requirements, always look for the answer that includes both 'written' and 'both parties' — any answer that omits either element is incomplete under Michigan law. Be careful not to select answers that describe single-agency relationships or that treat dual agency as prohibited.

How does this Agency concept apply in real world practice?

Imagine a Michigan listing agent at ABC Realty who has been marketing a home in Grand Rapids for $350,000 when one of her own buyer clients expresses interest in purchasing it. Before she can show the home to her buyer client or facilitate any negotiations, she must stop and present both the seller and the buyer with a written dual agency consent agreement explaining that she can no longer advocate exclusively for either of them. Only after both parties sign that agreement can she proceed as a disclosed dual agent, facilitating — rather than negotiating — the transaction.

AgencyGeneralMEDIUM

In Michigan, a disclosed dual agent must:

Correct Answer

B) Obtain written consent from both parties

Michigan law requires written consent from both parties before a licensee can act as a disclosed dual agent.

Answer Options

Represent only the seller

Obtain written consent from both parties

Refuse to complete the transaction

Only work with buyers

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Related Concepts

Express Agency

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

Fiduciary Duty

The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.

Gratuitous Agency

An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.

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In Michigan, a disclosed dual agent must:

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