In Michigan, agent Paul is working with buyer Lisa to find a home. Paul has not signed a buyer agency agreement with Lisa, but he has been showing her properties and advising her on offers for three weeks. The seller of a property Lisa likes is represented by a different broker. Under Michigan law, without a written buyer agency agreement, Paul most likely owes fiduciary duties to which party?
Correct Answer
A) The seller, because without a written buyer agency agreement, Paul defaults to subagency representing the seller
Under Michigan law and the traditional subagency framework, a cooperating licensee who has not established a written buyer agency agreement with the buyer is presumed to be a subagent of the listing broker, and therefore represents the seller's interests. This is a critical distinction in Michigan: without a written buyer agency agreement, Paul's fiduciary duties run to the seller, not to Lisa. Paul must disclose this to Lisa.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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