Broker Ellis at Shoreline Realty is acting as a dual agent with written consent from both the buyer, Ms. Tanaka, and the seller, Mr. Ford. During the transaction, Mr. Ford asks Broker Ellis to help him draft a counteroffer that includes terms specifically designed to discourage Ms. Tanaka from proceeding with the purchase. Broker Ellis drafts the counteroffer as requested. Under Michigan law, which of the following BEST describes the consequence of Broker Ellis's action?
Correct Answer
D) Broker Ellis violated the dual-agency neutrality obligation by drafting terms designed to disadvantage Ms. Tanaka, breaching the duty owed to her
A dual agent's neutrality obligation under MCL 339.2517 means the broker cannot actively assist one party in structuring a transaction to disadvantage the other party. Drafting counteroffer terms specifically designed to discourage Ms. Tanaka from proceeding goes beyond ministerial assistance — it constitutes active advocacy for Mr. Ford at Ms. Tanaka's expense. This breaches Broker Ellis's duty of fair dealing and neutrality owed to Ms. Tanaka as a dual-agency client, and violates the terms of the dual-agency consent agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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