Michigan License Law

Michigan's Occupational Code prohibits 'secret profits,' meaning a licensee may not:

AEarn a commission in a transaction
BPersonally profit from a transaction involving a client without full disclosure and consent✓ Correct
CAccept a referral fee from another licensed broker
DEarn commission on both the buy and sell side with consent

Explanation

Secret profits occur when a licensee takes a financial benefit from a transaction (e.g., a kickback from a title company, or buying a client's property below value through an undisclosed arrangement) without disclosing and getting consent. This violates fiduciary duty and Michigan license law.

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