Broker Linda operates a real estate office in Ann Arbor, Michigan. She has signed a buyer representation agreement with the Johnsons, who are looking for a home under $400,000. Linda has a personal ownership interest in a property listed at $385,000 that would meet the Johnsons' needs. What must Linda do before showing them this property under Michigan law?
Correct Answer
B) Disclose her ownership interest in writing to the Johnsons before or at the time of showing the property
Under MCL 339.2512d and Michigan agency law, a licensee who has a personal interest in a property must disclose that interest in writing to the buyer-client before or at the time of showing the property. This written disclosure allows the buyers to make an informed decision knowing their agent has a financial stake in the transaction.
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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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