Broker Jameson operates a large brokerage in Flint, Michigan. He has established a designated agency policy in his office. Salesperson Keisha represents buyer Donna, and salesperson Liam represents seller Frank, on the same property transaction. Broker Jameson is not personally involved in showing the property or drafting the offer. Which statement BEST describes Jameson's agency status in this transaction under Michigan law?
Correct Answer
B) Jameson is a dual agent at the brokerage level, while Keisha and Liam each serve as designated agents for their respective clients
Under Michigan's designated agency framework, when a broker appoints different salespersons within the same brokerage to represent the buyer and seller separately, the broker operates as a dual agent at the brokerage level. The individual designated agents (Keisha for Donna, Liam for Frank) each owe full fiduciary duties only to their respective clients. The broker, however, occupies a dual agency position because both designated agents work under his license. This is the recognized structure under Michigan agency law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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.
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