Broker Kim at Northshore Realty has a buyer client, Tyler, who wants to purchase a home listed by Northshore Realty. Broker Kim explains dual agency to Tyler and the seller, Ms. Lopez. Ms. Lopez signs the consent form, but Tyler refuses, stating he does not want to share an agent with the seller. Which of the following represents Broker Kim's BEST course of action under Michigan law?
Correct Answer
C) Refer Tyler to another brokerage or assign a designated agent within Northshore Realty to represent Tyler
When a buyer refuses to consent to dual agency, the broker cannot proceed as a dual agent. The broker's options include referring the buyer to another brokerage so the buyer has independent representation, or — if the brokerage uses designated agency — assigning a separate salesperson within the brokerage to represent Tyler exclusively while another salesperson continues to represent Ms. Lopez. Either approach resolves the conflict without violating MCL 339.2517.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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