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.
As of Jan.1, 1994 Michigan Law requires real estate licensees who are acting as agents of sellers or buyers of real property to advise the potential sellers or buyers with whom they work of the nature of their agency relationship.
Michigan law requires real estate licensees who are acting as agents of sellers or buyers of real property to advise 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 following capacities:
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represent the seller as an authorized seller’s agent or subagent
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represent the buyer as an authorized buyer’s agent or subagent
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represent both the seller and buyer as a disclosed dual agent, authorized by both the seller and buyer
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represent neither the seller and buyer as an agent, but provide services authorized by both the seller and buyer
to complete a transaction as a transaction coordinator
SELLERS AGENT
A seller's 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 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 subagents will disclose to the seller known information about the buyer which may also be used to the benefit of the seller.
The duties that a seller’s agent and a subagent owes to the seller include:
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promoting the best interests of the seller
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fully disclosing to the seller all facts that might affect or influence the seller’s decision to accept an offer to purchase
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keeping confidential the seller’s motivations for selling
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presenting all offers to the seller
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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
A buyer's agent, under a buyer's agency agreement with the buyer, acts solely on behalf of the buyer. Buyer's agents and subagents will disclose to the buyer known information about the seller which may also be used to the benefit of the buyer.
The duties that a buyer’s agent and a subagent owes to the buyer include:
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promoting the best interests of the buyer
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fully disclosing to the buyer all facts that might affect or influence the buyer’s decision to tender an offer to purchase
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keeping confidential the buyer’s motivations for buying
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presenting all offers on the behalf of the buyer
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disclosing to the buyer all information about the willingness of the seller to complete the sale or to offer a lower price
DUAL AGENTS
A 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, and may include the provisions that the broker will not knowingly say anything or do anything which might place one party at a disadvantage, including the disclosure of personal confidences . For example, unless otherwise agreed, the dual agent broker will not disclose to the buyer that the seller might accept other than the listed price and terms; nor shall the dual agent broker disclose to the seller
that the buyer might be willing to pay a higher price or terms other than what is offered.
TRANSACTION COORDINATOR
A transaction coordinator is a licensee who is not acting as an agent of either the seller or the buyer, yet is providing services to complete a real estate transaction. The transaction coordinator is not an agent for either party and therefore owes no fiduciary duty to either party. The transaction coordinator is not the advocate of either party and therefore has no obligation to "negotiate" for either party. The responsibilities of the transaction coordinator typically include:
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providing access to and the showing of the property
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providing access to market information
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providing assistance in the preparation of a buy and sell agreement which reflects the terms of the parties’ agreement
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presenting a buy and sell agreement and any subsequent counter-offers
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assisting all parties in undertaking all steps necessary to carry out the agreement, such as the execution of
documents, the obtaining of financing, the obtaining of inspections, etc.
LICENSEE DISCLOSURE
I hereby disclose that the agency status I/we have with the buyer and/or seller below is:
_____XXX____ Seller's agent or subagent _____________ Dual Agent
_____________ Buyer's agent or subagent _____________ Transaction Coordinator
This form was provided prior to my exposure to any confidential information.
______________________________________ Date ______________________
Licensee: Inn Broker, Inc Date
By: Robert J. Fuehr
ACKNOWLEDGMENT
By signing below, the parties confirm that they have received and read the information in this agency disclosure statement and that this form was provided to them before the disclosure of any confidential information specific to the potential sellers or buyers.
_________________________________
Potential Buyer/Seller (circle one) Date
____________________________________
Potential Buyer/Seller (circle one) Date
For more information, contact Bob Fuehr by e-mail
or by calling
(800)926-INNS(4667) or 269\649-5556.
