Realtors must disclose agency relationshipsPublished 1:06pm Thursday, May 9, 2013
By GARY WALTERS
You’ve heard that honesty is always the best policy? When you work with a Realtor during a real estate transaction, you will find they pledge themselves to protect and promote the interests of their clients. While this obligation to their clients is primary, they are also obligated to treat all parties to the transaction honestly.
Who is the Realtor’s client in the real estate transaction? Michigan law requires all real estate agents to present agency relationships to you and disclose on the Disclosure of Real Estate Agency Relationships Form who the agent and their company will be representing in the real estate transaction. This must be
completed before the consumer provides any information that would be considered confidential to the agent. The Disclosure of Real Estate Agency Relationships Form explains the different relationships that the agent “could have with you” and allows the agent to disclosure what relationship they “will have with you.”
So while it may seem like a step that slows your momentum to start a transaction, it allows you to understand who the Realtor is representing in the transaction: you, the other party, both or neither. It is an important step that should be fully understood. You will be asked to sign the Disclosure of Real Estate Agency Relationships Form so the State of Michigan will know that the Realtor has provided you the information that is required under the state law. The Agency Disclosure Form is “not” a contract.
The Southwestern Michigan Association of Realtors Inc. is a professional trade association for real estate licensees and ancillary service providers for the real estate industry in Van Buren, Berrien and Cass counties. The Association is located at 3123 Lake Shore Drive St. Joseph, MI 49085, (269) 983.6375.