Broker Elaine holds a Michigan real estate broker license. She is also a licensed attorney and provides legal advice to clients during real estate transactions. LARA-BPL receives a complaint that Elaine charged a separate legal fee for reviewing a purchase agreement without disclosing this dual role to the real estate client. Under Michigan law, which of the following best describes Elaine's potential exposure?
Correct Answer
D) Elaine may face disciplinary action under the Occupational Code for failing to disclose her dual role and the nature of the additional fee to her real estate client
Under MCL 339.2512 and Act 299 of 1980, a Michigan real estate licensee must fully disclose any dual role or conflict of interest to clients. When a broker who is also an attorney charges separate fees for services rendered in a real estate transaction, failure to clearly disclose this dual capacity and the basis for additional charges can constitute a disciplinary violation under Michigan real estate license law, even if the attorney license independently permits such fees.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
More Practice Of Real Estate Questions
A transaction coordinator in Cary is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
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A closing-file reviewer in Raleigh is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
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Marcus is a Michigan licensed real estate salesperson whose license expired 45 days ago. He has completed all required continuing education. Under Michigan law, what is his most appropriate course of action to resume practicing real estate?
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