Escrow & Title
In Michigan, a 'hold harmless' clause in a real estate purchase agreement typically protects the broker by:
APreventing the seller from suing for commission
BIndemnifying the broker from liability for information provided by third parties (sellers, appraisers, inspectors)✓ Correct
CGuaranteeing the broker receives their commission at closing
DProtecting the broker from buyer claims after closing
Explanation
Hold harmless/indemnification provisions in listing agreements protect the broker from liability for relying on information provided by the seller or third parties that later proves inaccurate, provided the broker acted in good faith.
People Also Study
Related Michigan Questions
- A Michigan purchase agreement contains a 'save harmless' (hold harmless) clause. This clause typically protects the:Contracts
- If a buyer defaults on a Michigan purchase agreement and the contract contains a liquidated damages clause, the seller:Contracts
- What is an 'as-is' clause in a Michigan purchase agreement?Contracts
- Which clause in a Michigan purchase agreement allows the buyer to exit if they cannot obtain financing at specified terms?Contracts
- What happens to a Michigan listing agreement when the seller dies before the property is sold?Agency
- Which of the following is NOT required to be included in a Michigan listing agreement?Michigan License Law
- In Michigan, a buyer who works with a listing agent (seller's agent) without signing a buyer representation agreement is considered a:Agency
- In Michigan, if an agent exceeds their authority under a listing agreement, the broker:Agency
Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Math Concepts
Study This Topic
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →