Agency and Broker Supervision in Michigan
Michigan requires an agency-relationships disclosure and holds the employing broker accountable for supervising affiliated licensees. This chapter covers disclosure timing, dual agency, and ongoing supervision.
Agency Disclosure
Michigan licensees must give consumers a written agency-relationships disclosure explaining seller agency, buyer agency, dual agency, and transaction coordination before disclosing confidential information and before the consumer becomes a client. Early disclosure lets consumers understand who represents them before sharing negotiating information, and the disclosure itself does not create an agency relationship.
Dual Agency and Designated Agents
When one brokerage represents both the buyer and the seller, Michigan permits dual agency only with the informed written consent of both parties. The employing broker commonly appoints separate designated agents within the firm to represent each party, and confidential information such as a buyer's price ceiling must not be shared across sides. No advance LARA approval of a specific transaction is required.
The Employing Broker's Supervision
Even when an associate broker has met broker qualifications, while working under an employing broker that broker remains responsible for supervising the associate's licensed activity, advertising, and trust-fund handling. Supervision is an ongoing duty, not a one-time check at licensing. Failure to supervise is a frequent basis for discipline.