The Importance of Agency Disclosure

Before you Disclose, Know your Rights....

Whether you are looking for a home, condo or vacant land in Macomb County or Oakland County, you should know about Michigan Agency Disclosure Laws and how they can affect you. Before viewing a home that is listed with a real estate agent you should learn about the Agency Disclosure laws and who the agent will be representing. The information below explains the history of agency disclosure and what you need to know. So before you set an appointment to view a home or show your home...be sure you know who the agent will be representing.

History of Michigan Agency Disclosure

In Michigan, prior to January of 1994, real estate agents represented sellers as seller agents and sub-agents. As an agent, whether you were working with a buyer showing them houses or with a seller helping them sell their home, you represented the seller. Consequentially, many buyers disclosed confidential information, that worked in the sellers best interest because buyers had no one representing them. With the passing of the new Agency Disclosure Law, as real estate agents we then entered into contracts with our buyers, the same way we did with a seller. Now buyers and sellers could have someone representing them.

Know the Law

Did you Know that Article 25 339.2517 of the occupational code for real estate brokers and salesperson's, licensed in the state of Michigan, specifically outlines a real estate agents duties regarding Agency Disclosure. It even states they are subject to penalties. So be an informed Buyer and ask the agent showing you homes about the Agency Disclosure. View section 2517 of the occupational code (once in use Ctrl F and search for 2517).

Understanding Agency

It's important to understand what legal responsibilities your real estate salesperson has to you and to other parties in the transaction. Ask your salesperson to explain what type of agency relationship you have with him or her and with the brokerage company.

1. Seller's representative (also known as a listing agent or seller's agent). A seller's agent is hired by and represents the seller. All fiduciary duties are owed to the seller. The agency relationship usually is created by a listing contract.
2. Buyer's representative (also known as a buyers agent). A real estate licensee who is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest through out the transaction and owes fiduciary duties to the buyer. This fee is typically paid by the seller through the listing broker. But the buyer can pay the licensee directly through a negotiated fee.
3. Disclosed dual agent Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to the clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them is legal in most states.
4. Designated agent (also called, among other things, appointed agency). This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.
5. Non-agency (called, among other things, a transaction broker or facilitator). Some states permit a real estate licensee to have a type of non agency relationship with a consumer. These relationships vary considerably from state to state, both as to the duties owed to the consumer and the name used to describe them. Very generally, the duties owed to the consumer in nonagency relationships are less than complete, traditional fiduciary duties of an agency relationship.

And the February Facebook Contest Winner is.....

Congratulations to Beth Podolski for winning our February Facebook Contest! Beth was chosen in a lottery from the over 75 people that "liked" Real Estate Partners on Facebook. Keep an eye out for more contests and give-aways soon to come! Thanks again for all of your support. Think Spring!

Tips for Getting Organized

Get Organized!
Whether you are looking to move or not, now is a great time to get organized. The holidays are behind us and you need to find a place for all your new toys and gadgets, not to mention your holiday decorations. Here are some tips to get you started.
· Don’t get overwhelmed. Break your house down into smaller, more manageable zones and tackle them one at a time.
· Get your kids involved. They most likely have received many new things and outgrown many old ones. Ask them to donate 10-15 items to needy kids. Set guidelines for them but let them decide what to part with. You will be surprised at how willing they are to participate.
· Only keep what you use or need. A good rule of thumb is if you haven’t used something in a year, it’s probably time to part with it.
· Make 3-4 categories and label boxes or garbage bags accordingly:
1. Keep and Store-Items that you need but don’t use often. Invest in see-through plastic bins with lids. It will keep your items clean and dry while in storage and because they are see-through, it will be easy to identify what’s in them.
2. Donate-Check with your local charities to be sure you understand what they will accept (Salvation Army, Goodwill, Easter Seals or Purple Heart are a few in Oakland County). Don’t forget to get a receipt for your taxes-this is considered a charitable contribution!
3. Trash-Anything that cannot be donated. Consider checking with NO HAZ (North Oakland Household Hazardous Waste Consortium) before taking everything to the curb. Items such as electronics, paints, cleaners and small appliances are not friendly to the environment and are better off in the hands of professionals than in the landfills. Visit www.oakgov.com/waste/nohaz/nohaz.html for collection dates and items they will accept.
4. Pack for Move-If you do plan to move, it’s a good idea to start packing things that you will not need in the near future and store them. It’s one less thing to pack later and will help contain clutter while you show your home to potential buyers. Follow these simple steps and you are well on your way to being organized. Check back next week for more on organizing.

Did you know that 2012 is on track to be a great year in the real estate market? Below you will find a link to an informative and interesting article taken from Crain's Detroit about slow, but steady, improvements in your area. Now is the perfect time to consider buying or selling your home!

2011 Real Estate Review; More Homes Sold in Less Time; Price Data Mixed
Written By: Chad Halcom