Michigan salesperson Tara is acting as a designated buyer's agent for client Howard. Which of the following is NOT a duty Tara owes to Howard under Michigan agency law?
Correct Answer
D) Warranty — guaranteeing that the property is free from all defects
A buyer's agent in Michigan owes fiduciary duties including loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting. However, a real estate agent does not owe a warranty that the property is free from defects. Agents are not home inspectors or guarantors of property condition. The duty to disclose known material facts is different from warranting the property's condition. Warranty of property condition is not a recognized fiduciary duty of a real estate agent under Michigan law.
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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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