Michigan License Law
In Michigan, a real estate licensee may NOT receive a commission from two parties in the same transaction unless:
AThey are a licensed appraiser
BBoth parties provide informed written consent to the dual compensation arrangement✓ Correct
COnly one party pays more than 50% of the total commission
DThe transaction closes above the listing price
Explanation
Michigan licensees may receive compensation from two parties in the same transaction (dual compensation) only if both parties are fully informed of the arrangement and provide written consent. Without disclosure and consent, this violates the duty of loyalty.
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Key Terms to Know
Dual Agency
A 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.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
State-Specific Concepts
License Law
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