Broker Chen's firm is representing seller Nguyen in listing a Detroit condominium. Buyer Rodriguez contacts the listing salesperson, Agent Kim, who works for Broker Chen. Rodriguez wants Kim to represent him in purchasing Nguyen's condo. Broker Chen agrees to a dual agency arrangement. Which of the following statements correctly describes Kim's obligations in this dual agency?
Correct Answer
B) Kim must maintain confidentiality of each party's negotiating position and cannot advocate exclusively for either party
In a dual agency relationship under Michigan law, the licensee cannot advocate exclusively for either party and must maintain strict confidentiality of each party's negotiating position, including the seller's minimum acceptable price and the buyer's maximum willingness to pay. The dual agent owes limited fiduciary duties to both parties simultaneously and must treat both fairly.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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