Agent Maria is a licensed salesperson in Michigan affiliated with broker James. Maria has been working exclusively with buyer couple the Johnsons under a written buyer agency agreement. The Johnsons make an offer on a home listed by a completely separate brokerage. After the sale closes, the Johnsons ask Maria if they can pay her directly with a bonus check as a thank-you. Under Michigan law, how should Maria respond?
Correct Answer
A) Maria must decline and explain that Michigan law requires all compensation to flow through her employing broker
Under the Michigan Occupational Code (MCL 339.2512), a licensed salesperson may not receive compensation directly from a buyer, seller, or any party to a transaction. All compensation—including bonuses, gifts of money, or other remuneration—must be paid to the salesperson through the employing broker. Accepting direct payment from a client is a disciplinary violation regardless of how it is characterized.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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.
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