Michigan law imposes specific requirements before a broker may lawfully act as a dual agent. Which of the following is NOT required under Michigan law for a valid dual-agency arrangement?
Correct Answer
C) The broker must obtain approval from LARA-BPL before acting as a dual agent in any transaction
LARA-BPL approval is not required before a broker may act as a dual agent. Michigan law under MCL 339.2517 requires disclosure to both parties, informed written consent from both parties, and communication of the limitations on the broker's duties — but the broker does not need to seek or obtain governmental approval for each dual-agency transaction. LARA-BPL's role is licensing and discipline, not pre-approving individual transaction arrangements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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.
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