In Michigan, which type of agency relationship allows a single licensee to represent both the buyer and the seller in the same transaction, provided both parties give informed written consent?
Correct Answer
A) Dual agency
Dual agency occurs when a single licensee (or a brokerage) represents both the buyer and the seller in the same transaction. Under Michigan law, dual agency is permissible only if both parties provide informed written consent. The dual agent cannot advocate exclusively for either party and must maintain confidentiality of each party's negotiating position.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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