When purchasing or selling real property in Michigan, parties often rely on their real estate agent to guide them through the process with their best interests in mind. However, this is only true of the buyer only agent or seller only agent. A dual agent, who represents both the buyer and seller in a transaction, does not owe its clients the same fiduciary duties that a buyer only agent or seller only agent would be required to provide. In fact, under Michigan law, dual agents have only the duty to provide services to complete a real estate transaction. (MCL 339.2517).
This rule is clear in the recent Michigan Court of Appeals case, Vanhellemont v Gleason, et al (Click here for a PDF of the unpublished decision). The Court in this case looked to the terms of the parties’ Purchase Agreement and the Dual Agency Agreement and held that the dual agent not only complied with her duties under the Dual Agency Agreement by simply completing the transaction, but she would have been in violation of her duties under the Dual Agency Agreement had she drafted either a buyer-oriented or a seller-oriented agreement.
Therefore, a buyer or a seller that agrees to a dual agency relationship with their real estate agent is also agreeing, unless stated otherwise in writing, to be responsible for understanding and approving the terms of the purchase and sale agreement that they sign. The dual agent will only ensure that the transaction in completed according to the terms of the purchase and sale agreement.
This article was written by Natalie C. Najarian, Associate at Demorest Law Firm.
