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AgencyFiduciary_dutiesHARD

Under Michigan's Occupational Code, a real estate licensee acting as a seller's agent owes fiduciary duties to the seller-client. Which of the following actions would NOT constitute a breach of fiduciary duty to the seller?

Correct Answer

B) Presenting the seller with a written offer that is $40,000 below the asking price without comment

Presenting a written offer to the seller without editorial comment is not a breach of fiduciary duty — in fact, it is required under MCL 339.2512. The agent fulfills the duty to present all offers promptly. The agent may provide market context if asked, but simply delivering the offer is a proper, neutral act that respects both the duty to present offers and the seller's right to make their own decision.

Answer Options
A
Informing a prospective buyer that the seller's home has been on the market for over 200 days without disclosing the seller's willingness to accept a lower price
B
Presenting the seller with a written offer that is $40,000 below the asking price without comment
C
Recommending that the seller accept a lower offer because the agent is eager to close the transaction before month-end
D
Telling the buyer's agent that the seller has already purchased another home and must close within 45 days

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Related Topics & Key Terms

Key Terms:

fiduciary_dutiesseller_agencyreverse_questionoffer_presentation

Related Concepts

A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.

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