Broker Walsh at Peninsular Realty has obtained written dual-agency consent from both the buyer, Mr. Okafor, and the seller, Ms. Brennan. During the transaction, Mr. Okafor privately asks Broker Walsh: 'Would you recommend I offer $15,000 below the asking price?' Under Michigan dual-agency rules, how should Broker Walsh respond?
Correct Answer
A) Decline to provide a specific price recommendation and instead provide Mr. Okafor with objective market data to help him decide
As a dual agent, Broker Walsh must remain neutral and cannot advocate for either party's financial position. Providing a specific price recommendation — whether to offer below or at asking price — would constitute advocacy for one party over the other. The appropriate response is to remain neutral while still being helpful: Broker Walsh may provide objective market data, comparable sales, and factual information that allows Mr. Okafor to make his own informed decision without the broker taking sides.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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