Under Michigan's Occupational Code and agency law, which of the following duties does a Michigan licensee acting as a disclosed dual agent continue to owe to BOTH parties, even after dual agency consent has been obtained in writing?
Correct Answer
A) Disclosing known material defects and material facts about the property to both parties
Even in a disclosed dual agency relationship under Michigan law (MCL 339.2517), the licensee retains the duty to disclose known material defects and material facts about the property to both parties. This duty cannot be waived by dual agency consent because concealing material defects from either party would constitute fraud or misrepresentation. The duty of disclosure regarding property condition survives dual agency and continues to apply to both buyer and seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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.
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