Broker Hoffman's firm lists a Traverse City lakefront property for seller Anderson. Salesperson Patel, who works for Broker Hoffman, has a written buyer agency agreement with buyer Chen. Chen makes an offer on Anderson's property. Broker Hoffman recognizes that his firm now represents both the seller and the buyer in the same transaction. Under Michigan law, which of the following correctly describes Broker Hoffman's options to handle this situation?
Correct Answer
B) Broker Hoffman may proceed only as a dual agent if both Anderson and Chen provide informed written consent, or he may designate separate agents for each party with their consent
Under Michigan law, when a brokerage represents both the seller and the buyer in the same transaction, the broker has two compliant options: (1) proceed as a dual agent with informed written consent from both parties, or (2) designate separate salespersons within the firm to represent each party (designated agency), also with informed written consent. Both options require disclosure and consent; neither is automatic.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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