Agency
A seller's agent in Michigan who learns the buyer's maximum budget should:
ADisclose it to the seller to get the best price for the client✓ Correct
BKeep it confidential as it does not benefit the seller
CReport it to the broker only
DDisclose it in the purchase agreement
Explanation
A seller's agent owes loyalty to the seller. Information about the buyer's maximum budget is material to the seller and must be disclosed to help the seller negotiate the best possible terms.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA 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.
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