Agency Disclosure

Disclosure Regarding Real Estate
Agency Relationships

Before you disclose confidential information to a real estate licensee regarding a real estate transaction, you should understand what type of agency relationship you have with that licensee.
As of Jan. 1, 1994 Michigan law requires real estate licensees who are acting as agents of sellers or buyers of real property to advise the potential sellers or buyers with whom they work of the nature of their agency relationship.

A broker or salesperson may function in any of the following capacities:

represent the seller as an authorized seller's agent or subagent
represent the buyer as an authorized buyer's agent or subagent
represent both the seller and buyer as a disclosed dual agent, authorized by both the seller and buyer
represent neither the seller or buyer as an agent, but provide services authorized by the seller or buyer to complete a transaction as a transaction coordinator

SELLER'S AGENTS

A seller's agent, under a listing agreement with the seller, acts solely on behalf of the seller. A seller can authorize a seller's agent to work with subagents, buyer's agents and/or transaction coordinators. A subagent of the seller is one who has agreed to work with the listing agent, and who, like the listing agent, acts solely on behalf of the seller. Seller's agents and their subagents will disclose to the seller known information about the buyer which may be used to the benefit of the seller.

The duties that a seller's agent and subagent owes to the seller include:

promoting the best interests of the seller
fully disclosing to the seller all facts that might affect or influence the seller's decision to accept an offer to purchase
keeping confidential the seller's motivations for selling
presenting all offers to the seller
disclosing to seller all information known to the seller's agent about the identity of all buyers and the willingness of those buyers to complete the sale or to offer a higher price.

BUYER'S AGENTS

A buyers agent, under a buyer's agency agreement with the buyer, acts solely on behalf of the buyer. A subagent of the buyer is one who has agreed to work with the buyer's agent and who, like the buyer's agent, acts solely on behalf of the buyer. Buyer's agents and their subagents will disclose to the buyer known information about the seller which may be used to benefit the buyer.

The duties a buyer's agent and subagent owe to the buyer include:

promoting the best interests of the buyer
fully disclosing to the buyer all facts that might affect or influence the buyer's decision to tender an offer to purchase
keeping confidential the buyer's motivations for buying
presenting all offers on behalf of the buyer
disclosing to buyer all information known to the buyers agent about the willingness of the seller to complete the sale or to accept a lower price.

DUAL AGENTS

    A real estate licensee can be the agent of both the seller and the buyer in a transaction, but only with the knowledge and informed consent, in writing, of both the seller and the buyer.
    In such a dual agency situation, the licensee will not be able to disclose all known information to either the seller or the buyer. As a dual agent, the licensee will not be able to provide the full range of fiduciary duties to the seller or the buyer.
    The obligations of a dual agent are subject to any specific provisions set forth in any agreement between the dual agent, the seller and the buyer.

TRANSACTION COORDINATOR

A transaction coordinator is a licensee who is not acting as an agent of either the seller or the buyer, yet is providing services to complete a real estate transaction.
The transaction coordinator is not an agent for either party and therefore owes no fiduciary duty to either party. The transactional coordinator is not the advocate of either party and therefore has no obligation to "negotiate" for either party. The responsibilities of the transaction coordinator typically include:

providing access to and the showing of the property
providing access to market information
providing assistance in the preparation of a buy and sell agreement which reflects the terms of the parties' agreement
presenting a buy and sell agreement and any subsequent counter-offers
assisting all parties in undertaking all steps necessary to carry out the agreement, such as the execution of documents, the obtaining of financing, the obtaining of inspections, etc.

LICENSEE DISCLOSURE

I hereby disclose that the agency status I/we have with the buyer and/or seller below is:

_____ Seller's agent (We will not be representing the buyer unless otherwise agreed in writing.)

_____ Buyer's agent

_____ Dual agent

_____ Transaction coordinator (A licensee who is not acting as an agent of either the seller or the buyer.)

_____ None of the above

Further, this form was provided to them before disclosure of any confidential information.

Licensee ________________________________________Date ____________

ACKNOWLEDGMENT:
By signing below, the parties confirm that they have received and read the information in this agency disclosure statement and that this form was provided to them before the disclosure of any confidential information specific to the potential sellers or buyers. THIS IS NOT A CONTRACT

_________________________________________ _____________
Buyer/Seller (circle one) Date