Michigan salesperson Derek works for broker Sandra at Metro Realty. Derek shows an unrepresented buyer, Fiona, a home listed by a different brokerage. Fiona asks Derek to write an offer on her behalf. If Derek agrees to represent Fiona as a buyer's agent, which of the following disclosures is MOST critical at this moment under Michigan law?
Correct Answer
A) Disclosing to Fiona that Derek now represents her interests and the nature of that agency relationship
Under MCL 339.2512d, before providing real estate services (including writing an offer), Derek must disclose the agency relationship to Fiona. Since Derek is now agreeing to represent Fiona as a buyer's agent, the most critical disclosure is informing Fiona of the nature of that representation — whom he represents, what duties he owes her, and the existence of any potential conflicts. This agency disclosure is a legal requirement under Michigan law.
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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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