Designated agency is sometimes used in Michigan brokerages as an alternative to dual agency when both a buyer and a seller are clients of the same brokerage. Which of the following BEST describes how designated agency differs from dual agency under Michigan law?
Correct Answer
A) In designated agency, the broker assigns separate salespersons to each party so each client has an advocate, while in dual agency, one agent represents both parties
Under Michigan law, designated agency allows a broker to assign separate salespersons (designated agents) within the same brokerage to represent each party individually. Each designated agent can provide full advocacy to their respective client. This differs from dual agency, where a single agent or the broker represents both parties and must remain neutral. Designated agency reduces the conflict inherent in dual agency by giving each party their own advocate within the brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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