Sarah is a licensed Michigan salesperson affiliated with Lakeview Realty. She has been working with a buyer, Marcus, for several weeks. Marcus wants to purchase a home that is listed by another salesperson at Lakeview Realty. Under Michigan law, which type of agency situation has most likely arisen?
Correct Answer
C) In-house dual agency, because the same brokerage represents both the buyer and the seller
Under Michigan law, the broker is the legal agent for all clients of the brokerage. When both the buyer and the seller are represented by salespersons affiliated with the same broker, the brokerage is acting as a dual agent — commonly called in-house or intra-company dual agency. This requires informed written consent from both parties under MCL 339.2517.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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.
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