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Agent Simmons is a Michigan licensee who has been showing buyer Harrington properties for several weeks without a signed buyer agency agreement. Harrington has shared with Simmons that she will pay up to $350,000 for the right house, though she plans to offer $310,000 initially. Harrington then makes an offer on a home listed by Simmons's own brokerage. Under Michigan's written-agency-disclosure framework (MCL 339.2517), which of the following most accurately describes Simmons's legal position?

Correct Answer

B) Without a written buyer agency agreement, Harrington is an unrepresented customer and Simmons—through the listing brokerage—represents the seller; Simmons must provide Harrington the agency disclosure and may owe disclosure of material facts to the seller

Michigan abolished default subagency in 1994 and requires written agency disclosure under MCL 339.2517. Without a written buyer agency agreement, Harrington is an unrepresented customer; Simmons (through the listing brokerage) represents the seller and must deliver the agency disclosure.

Answer Options
A
Simmons is Harrington's buyer's agent by implied agency and must keep her $350,000 maximum confidential from the seller
B
Without a written buyer agency agreement, Harrington is an unrepresented customer and Simmons—through the listing brokerage—represents the seller; Simmons must provide Harrington the agency disclosure and may owe disclosure of material facts to the seller
C
Simmons has automatically created an undisclosed dual agency by showing Harrington any property and must withdraw from the transaction
D
Simmons is a transaction coordinator with no fiduciary duties to either party because no written agreements exist

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Related Topics & Key Terms

Key Terms:

subagencybuyer_agency_agreementfiduciary_dutiesagency_trapconfidentiality

Related Concepts

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.

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

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