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. A real
estate transaction is a transaction involving the sale or lease of
any legal or equitable interest in real estate consisting of not
less than 1 or not more than 4 residential dwelling units or
consisting of a building site for a residential unit on either a lot
as defined in section 102 or the land division act, 1987 PA 288, MCL
560 102 or a condominium unit as defined in section 4 of the
condominium act, 1978 PA 59, MCL 559, 104. 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.
(1) An agent providing services under any service provision
agreement owes, at a minimum, the following duties to the client.
a. The exercise of reasonable care and skill in representing the
client and carrying out the responsibilities of the agency
relationship.
b. The performance of the terms of the service provision agreement.
c. Loyalty to the interest of the client.
d. Compliance with the laws, rules, and regulations of this state
and any applicable federal statutes or regulations.
e. Referral of the client to other licensed professionals for expert
advice related to material matters that are not within the expertise
of the licensed agent.
f. An accounting in a timely manner of all money and property
received by the agent in which the client has or may have an
interest.
g. Confidentiality of all information obtained within the course of
the agency relationship, unless disclosed with the client's
permission or as provided by law, including the duty not to disclose
confidential information to any licensee who is not an agent of the
client.
(2) A real estate broker or real estate salesperson acting pursuant
to a service provision agreement shall provide the following
services to his or her client.
a. When the real estate broker or real estate salesperson is
representing a seller or lessor, the marketing of the client's
property in the manner agreed upon in the service provision
agreement.
b. Acceptance of delivery and presentation of offers and
counteroffers to buy, sell, or lease the client's property or the
property the client seeks to purchase or lease.
c. Assistance in developing, communicating, negotiating, and
presenting offers, counteroffers, and related documents or notices
until a purchase or lease agreement is executed by all parties and
all contingencies are satisfied or waived.
d. After execution of a purchase agreement by all parties,
assistance as necessary to complete the transaction under the terms
specified in the purchase agreement.
e. For a broker or associate broker who is involved at the closing
of a real estate or business opportunity transaction, furnishing, or
causing to be furnished, to the buyer and seller, a complete and
detailed closing statement signed by the broker or associate broker
showing each party all receipts and disbursements affecting that
party.
SELLER'S AGENTS
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 sub-agents, buyer's agents and/or transaction
coordinators. A sub-agent 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 sub-agents
will disclose to the seller known information about the buyer, which
may also be used to the benefit of the seller.
The seller through execution of a limited service agreement may
waive individual services. Only those services set forth in
paragraph (2) (b), (c), and (d) above may be waived by the execution
of a limited service agreement.
BUYER'S AGENTS
A buyer's agent, under a buyer's agency agreement with the buyer,
acts solely on behalf of the buyer. A sub-agent 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 sub-agents will disclose to the buyer know information
about the seller which may be used to benefit the buyer.
The buyer through execution of a limited service agreement may waive
individual services. Only those services set forth in paragraph (2)
(b), (c), and (d) above may be waived by the execution of a limited
service agreement.
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.
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.
DESIGNATED AGENCY
A buyer or seller with a designated agency agreement is represented
only agents specifically named in the agreement. Any agents of the
firm not named in the agreement do not represent the buyer or the
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 agent's 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.
REAL ESTATE LICENSEE DISCLOSURE - THIS IS NOT A CONTRACT FOR AGENCY
SERVICES
I hereby disclose that the agency status I/we have with the buyer
and/or seller below is:
_____XXX____ Seller's agent or sub-agent _____________ Dual Agent
_____________ Buyer's agent or sub-agent _____________ Transaction
Coordinator
AFFILIATED LICENSEE DISCLOSURE (check one)
________ Check here if acting as a designated agent. Only the
licensee's broker and a named supervisory broker have the same
agency relationship as the licensee named below. If the other party
in a transaction is represented by an affiliated licensee, then the
licensee's broker and all named supervisory brokers shall be
considered disclosed consensual dual agents.
___XXX___ Check here if not acting as a designated agent. All
affiliated licensees have the same agency relationships as the
licensee named below.
Further, this form was provided to the buyer or seller before
disclosure of confidential information.
______________________________________ Date ______________________
Licensee: Inn Broker, Inc Date
By: Robert J. Fuehr
The undersigned ____ does _XX__ does not have an agency relationship
with any other real estate licensee. If an agency relationship
exists, the undersigned is represented as a
__ Buyer __ Seller.
ACKNOWLEDGMENT
By signing below, the parties confirm that they have received and
read the information on 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. THIS IS NOT A CONTRACT.
_________________________________
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..
