Under Michigan law, a properly disclosed and consented dual agent owes duties to both the buyer and the seller. Which of the following is NOT a duty that a Michigan dual agent is permitted to fulfill for both parties simultaneously?
Correct Answer
A) Providing undivided loyalty and advocating exclusively for each party's best financial interest
Undivided loyalty — the duty to advocate exclusively for one party's best financial interest — is inherently incompatible with dual agency. A dual agent cannot be fully loyal to both the buyer and the seller at the same time, particularly when their financial interests conflict. Michigan law recognizes this limitation; when parties consent to dual agency under MCL 339.2517, they accept that the broker's loyalty duty is necessarily curtailed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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