Agency
An agent who represents a buyer and receives compensation from the seller's proceeds is:
AEngaged in an illegal kickback
BOperating as a sub-agent of the seller
CPermitted in Michigan provided there is proper disclosure and the buyer consents✓ Correct
DRequired to refund the compensation to the buyer
Explanation
In Michigan, a buyer's agent may receive compensation through the transaction (from seller proceeds via MLS co-op) provided there is full disclosure and the buyer consents. This does not create a conflict automatically if properly disclosed.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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.
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.
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