Salesperson Nadia is a designated agent for seller Mrs. Okafor at Brokerage ABC in Pontiac, Michigan. Brokerage ABC also has a designated agent, salesperson Tyler, representing the buyer in the same transaction. Under Michigan's designated agency model, which of the following statements is most accurate regarding Nadia's fiduciary duties?
Correct Answer
A) Nadia owes full fiduciary duties only to Mrs. Okafor, and Tyler owes full fiduciary duties only to the buyer
Michigan's Occupational Code permits designated agency, where each designated agent owes full fiduciary duties exclusively to their respective client. Under this model, Nadia represents only Mrs. Okafor and Tyler represents only the buyer, even though both work for the same brokerage. This is specifically designed to allow full representation of both parties without the conflicts inherent in traditional dual agency.
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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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