Michigan Real Estate Broker Exam — All Questions

Michigan requires a real estate licensee to give a consumer a written disclosure describing the types of agency relationships:

• a.Only after the closing
• b.Only when the consumer is a first-time buyer
• c.Before disclosing confidential information and before the consumer becomes a client✓
• d.Only if the transaction exceeds a set price

Michigan licensees must provide a written agency-relationships disclosure that explains seller agency, buyer agency, dual agency, and transaction coordination before the licensee discloses confidential information and before the consumer becomes a client. Early disclosure lets consumers understand who represents them before they share negotiating information. The disclosure itself does not create an agency relationship.

In Michigan, when a single brokerage represents both the buyer and the seller, dual agency is permitted only if:

• a.The brokerage forgoes any commission
• b.Both parties give informed written consent, usually with the broker appointing designated agents✓
• c.LARA approves the specific transaction
• d.The parties waive all disclosure requirements

Michigan permits dual agency only with the informed written consent of both the buyer and the seller. The employing broker commonly appoints separate designated agents within the firm to represent each party individually and must keep confidential information (such as a buyer's price ceiling) from the other side. No advance LARA approval of a specific transaction is required.

An employing broker's supervisory responsibility over an associate broker in Michigan means the employing broker:

• a.Remains accountable for the associate broker's licensed activity and trust-fund handling✓
• b.Has no liability once the associate broker is licensed
• c.Must personally attend every showing
• d.May ignore the associate broker's advertising

Even though an associate broker has met broker qualifications, when working under an employing broker that employing broker remains responsible for supervising the associate's licensed activity, advertising, and handling of trust funds. Supervision is an ongoing duty, not a one-time check at licensing, though it does not require attending every showing. Failure to supervise is a common basis for discipline.