Under the Michigan Occupational Code, how are real estate commissions in Michigan established between a broker and a client?
Correct Answer
B) Commissions are freely negotiated between the broker and the client and must be agreed upon in a written listing or buyer representation agreement
Under Michigan law and consistent with federal antitrust principles, real estate commissions are freely negotiable between the broker and the client. There is no government-set rate, no trade association mandate, and no MLS-imposed range. The agreed commission must be reflected in a written agreement such as a listing agreement or buyer representation agreement to be enforceable under the Michigan Occupational Code.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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