Broker Maria in Traverse City, Michigan acts as a disclosed dual agent representing both seller Mr. Bauer and buyer Ms. Reyes in the same transaction. Both parties have provided written consent. During negotiations, Ms. Reyes asks Maria to advise her on the lowest price Mr. Bauer would accept. What is Maria's obligation under Michigan law in this dual agency situation?
Correct Answer
A) Decline to advise either party on negotiating strategy or reveal confidential information about the other party
Under Michigan law (MCL 339.2517), a disclosed dual agent may not reveal the seller's minimum acceptable price to the buyer, nor the buyer's maximum willingness to pay to the seller, even with written consent from both parties. Dual agency consent allows the agent to represent both parties in the transaction, but it does not eliminate the duty to protect each party's confidential negotiating information. Maria must remain neutral and cannot provide negotiating strategy to either side.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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