Broker Patel at Grand River Realty has been representing seller Mr. Huang. A buyer, Ms. Collins, approaches Broker Patel directly and asks him to help her purchase Mr. Huang's property. Broker Patel explains dual agency and both parties sign the written consent form. The transaction closes successfully. Under Michigan law, how may Broker Patel be compensated?
Correct Answer
C) Patel may collect commission from both parties, provided both parties agreed to the compensation arrangement
Michigan law does not prohibit a dual agent from receiving compensation from both parties. A broker acting as a dual agent may collect commission from one or both parties, provided that both parties are informed of and agree to the compensation arrangement. This is consistent with MCL 339.2517, which permits dual agency with full disclosure and written consent, including disclosure of how the broker will be compensated.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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