EstatePass
AgencyFiduciary_dutiesMEDIUM

Agent Dana represents seller Mr. Kowalski in the sale of his Detroit home listed at $210,000. A buyer submits an offer of $195,000. Mr. Kowalski verbally instructs Dana not to present any offers below $205,000. The following week, a second buyer submits an offer of $200,000. What must Dana do under Michigan law?

Correct Answer

A) Present the $200,000 offer immediately, because Michigan law requires all written offers to be presented regardless of client instructions

Under Michigan's Occupational Code (MCL 339.2512), a licensee is required to present all written purchase offers to the seller promptly. While a seller may instruct an agent not to present low offers, this instruction does not override the statutory duty to present all written offers. Dana must present the $200,000 offer and may note the seller's stated preference, but cannot withhold a written offer based on price alone.

Answer Options
A
Present the $200,000 offer immediately, because Michigan law requires all written offers to be presented regardless of client instructions
B
Discard the $200,000 offer without telling Mr. Kowalski, following his instructions precisely
C
Present the $200,000 offer only if the buyer agrees to raise it to at least $205,000 first
D
Inform Mr. Kowalski that an offer below his threshold was received and let him decide whether to review it

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Agency Question

Sign up free to unlock full analysis

Background Knowledge for Agency

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Agency

Sign up free to unlock full analysis

Common Mistakes to Avoid on Agency Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

fiduciary_dutiesoffer_presentationseller_agencymco_act_299

Related Concepts

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

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.

Was this explanation helpful?

More Agency Questions

People Also Study

Related Articles

Agency Questions

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing