Sarah is a licensed Michigan salesperson working for Lakeview Realty. She meets a potential buyer, Marcus, at an open house. Marcus asks Sarah several questions about the neighborhood and school district. According to Michigan law, what must Sarah do before answering Marcus's questions about the property?
Correct Answer
B) Disclose to Marcus which party she represents in the transaction
Under MCL 339.2512d, a Michigan licensee must disclose the agency relationship before providing real estate services, including answering questions about a property. Sarah must inform Marcus that she represents the seller (as the listing agent) so Marcus understands her legal obligations run to the seller, not to him.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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