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AgencyDual_agencyEASY

A Michigan broker acting as a dual agent is helping negotiate the sale of a home. The seller wants $320,000 and the buyer's maximum budget is $310,000. The broker knows both figures. Which of the following actions is the broker permitted to take under Michigan's dual agency rules?

Correct Answer

C) Facilitate the negotiation without disclosing either party's confidential price position to the other

A Michigan dual agent must remain neutral and cannot advocate for one party over the other. The broker may not disclose the buyer's maximum price to the seller or the seller's bottom line to the buyer. The broker's role is to facilitate the transaction without revealing confidential information that would disadvantage either party, as required under MCL 339.2517.

Answer Options
A
Advise the seller to hold firm at $320,000 because the broker's fiduciary duty to the seller takes priority
B
Disclose the buyer's maximum budget of $310,000 to the seller to help close the deal faster
C
Facilitate the negotiation without disclosing either party's confidential price position to the other
D
Withdraw from dual agency and represent only the buyer, since the buyer contacted the broker first

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Related Topics & Key Terms

Key Terms:

dual_agencyconfidentialityneutralityfiduciary_dutiesMCL_339_2517

Related Concepts

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.

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.

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