|From the Michigan Department of Labor and Economic
Before you disclose confidential information to a real
estate licensee regarding a real estate transaction you
should understand what type of agency relationship you
have with that licensee.
Michigan law requires real estate licensees who are
acting as agents of sellers or buyers of real property
to disclose the potential sellers or buyers with whom
they work of the nature of their agency relationship.
A broker or salesperson may function in any of the
Represent the seller as an authorized Seller's agent
Represent the buyer as an authorized Buyer's agent
Represent both the Seller and Buyer as a disclosed
dual agent authorized by both the Seller and Buyer.
Represent neither the Seller or Buyer as an agent,
but provide services authorized by the Seller or
Buyer to complete a transaction as a transaction
A Sellers agent, under a listing agreement with the
Seller, acts solely on behalf of the Seller. A Seller
can authorize a Seller's agent to work with subagents,
Buyer's agents, and/or transaction coordinators. A
subagent of the Seller is one who has agreed to work
with the listing agent, and who, like the listing agent,
acts solely on behalf of the Seller. Seller's agents and
their subagents will disclose to the Seller known
information about the Buyer which may be used to the
benefit of the Seller.
The duties that a Seller's agent and subagent owe to the
Promoting the best interests at the Seller.
Fully disclosing to the Seller all facts that might
affect or influence the Seller's decision to accept
an offer to purchase.
Keeping confidential the sellers motivations for
Presenting all offers to the Seller
Disclosing the identities of all Buyers and all
Information about the willingness of those Buyers to
complete the sale or to offer a higher price.
Buyer's agent, under a Buyer's agency agreement with the
Buyer, acts solely on behalf of the Buyer. A subagent of
the Buyer is one who has agreed to work with the Buyer's
agent and who, like the Buyer's agent, acts solely on
behalf of the Buyer. Buyer's agents and their subagents
will disclose to the Buyer known information about the
Seller which may be used to benefit the Buyer. The
duties a Buyer's agent and subagent owe to the Buyer
Promoting the best Interests of the Buyer.
Fully disclosing to the Buyer all facts that might
affect or influence the Buyer's decision to tender
an offer to purchase.
Keeping confidential the Buyer's motivations for
Presenting all offers on behalf of the Buyer.
Disclosing to the Buyer all information about the
willingness of the Seller to complete the sale or to
accept a lower price.
real estate licensee can be the agent of both the Seller
and the Buyer in a transaction, but only with the
knowledge and informed consent, in writing, of both the
Seller and the Buyer.
In such a dual agency situation, the licensee will
not be able to disclose all known information to
either the Seller or the Buyer. As a dual agent, the
licensee will not be able to provide the full
range of fiduciary duties to the Seller or the Buyer.
The obligations of a dual agent are subject to any
specific provisions set forth in any agreement between
the dual agent, the Seller and the Buyer.
Buyer or Seller with a designated agency agreement is
represented only by agents specifically named in the
agreement. Any agents of the firm not named in the
agreement do not represent the Buyer or Seller. The
named "designated" agent acts solely on behalf of his or
her client and may only share confidential information
about the client with the agents supervisory broker who
is also named in the agreement. Other agents in the firm
have no duties to the Buyer or Seller and may act solely
on behalf of another party in the transaction.