Agency
A Michigan listing broker who discovers a hidden defect in the listed property must:
AKeep it confidential to protect the seller
BDisclose it to prospective buyers as a material fact✓ Correct
CReport it only if asked directly by buyers
DReduce the commission in lieu of disclosure
Explanation
Michigan licensees have a duty to disclose all material facts that could affect the value or desirability of the property, even if the seller instructs the agent to keep it quiet.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Math Concepts
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