Broker Westfield has a large office in Detroit with 12 salespersons. Salesperson Kim represents buyer Nadia, and salesperson Marco represents seller Pete, on the same property. Broker Westfield wants to allow this transaction to proceed without creating a dual agency situation. Which Michigan agency arrangement would allow this?
Correct Answer
D) Designated agency, where Westfield appoints Kim and Marco as designated agents for their respective clients
Michigan law permits designated agency as an alternative to dual agency. Under a designated agency arrangement, the broker (Westfield) appoints different licensees within the same brokerage to represent the buyer and seller separately. Each designated agent owes full fiduciary duties to their own client, and the broker acts as a dual agent at the brokerage level while the individual agents avoid the conflict. This is specifically recognized under Michigan's agency disclosure framework.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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