Under Michigan's approach to dual agency, a broker who has obtained proper written consent from both parties to act as a dual agent is BEST described as having which of the following obligations?
Correct Answer
D) Limited agency duties to both parties, maintaining neutrality and confidentiality for each
When a Michigan broker acts as a properly disclosed and consented dual agent, the broker's fiduciary duties are necessarily limited. The broker cannot provide undivided loyalty to either party because those duties would conflict. Instead, the broker owes both parties limited agency duties: the duty to treat each party honestly, to maintain each party's confidential information, and to facilitate the transaction neutrally, as recognized under MCL 339.2517 and Michigan agency law.
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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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