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Under MI real estate law do you need to have 2 brokers in…

Customer Question
Under MI real estate...

Under MI real estate law do you need to have 2 brokers in order to operate a designated agency office?

Lawyer's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

Michigan

Lawyer's Assistant: Has any paperwork been filed?

No - I am trying to set up a new office and have concerns about the correct policy to implement.

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

I also just left an office where I had told that I was the designated broker when the acting broker would enter into designated agency. Would that not make me liable in those contracts that this took place?

Submitted: 10 months ago.Category: Real Estate Law
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Answered in 15 minutes by:
10/3/2017
Real Estate Lawyer: Ray, Lawyer replied 10 months ago
Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 48,856
Experience: Texas Attorney for 30 years dealing in real estate
Verified

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question, conduct and prepare your response.

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Real Estate Lawyer: Ray, Lawyer replied 10 months ago

Under MI real estate law do you need to have 2 brokers in order to operate a designated agency office?

Lawyer's Assistant: Because real estate law varies from place to place, can you tell me what state this is in?

Two brokers here.

I also just left an office where I had told that I was the designated broker when the acting broker would enter into designated agency. Would that not make me liable in those contracts that this took place?

Yes anything you signed here potentially makes you liable for it.

Reference for two brokers

http://www.michigan.gov/lara/0,4601,7-154-72600_72602_72731_72871-365233--,00.html

I appreciate the chance to help you today.Thanks.

If you can positive rate 5 stars it is much appreciated.

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Customer reply replied 10 months ago
This does not answer my question. When operating a designated agency office in Michigan, do you need to have 2 brokers on staff? If the owning broker is working as a designated agent for himself do you need a secondary broker to be compliant?
Real Estate Lawyer: Ray, Lawyer replied 10 months ago

Yes you do here.

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Customer reply replied 10 months ago
Please give me the written law or reference so that I can print it please. Thank you
Real Estate Lawyer: Ray, Lawyer replied 10 months ago
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Real Estate Lawyer: Ray, Lawyer replied 10 months ago

Have a great day and thanks again.Good luck here with your business.

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Customer reply replied 10 months ago
This is not the correct answer. I have already found this in my search. I need to law specific to designated agency. Do we need a primary and a secondary broker in order to practice designated agency in an office in Michigan. Meaning 2 licensed brokers in the company to comply?
Real Estate Lawyer: Ray, Lawyer replied 10 months ago

Let me opt here for Michigan expert, stand bye no need to rate or reply.

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Real Estate Lawyer: Law Educator, Esq., Lawyer replied 10 months ago
Law Educator, Esq.
Category: Real Estate Law
Satisfied Customers: 126,837
Experience: Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
Verified

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

I am a DIFFERENT CONTRIBUTOR as your previous contributor had to leave.

MCL(###) ###-####6)-(11) states what you need to have a designated agency. (https://www.legislature.mi.gov/documents/publications/MPLA/2000/pa236.pdf)

(a) In the absence of a written designated agency agreement, the client has an agency
relationship with the broker and all “affiliated licensees.” “Affiliated licensees” is defined as
individuals licensed as salespersons or associate brokers who are employed by the same broker.
(b) Designated agents who are affiliated licensees (i.e., in the same brokerage firm)
representing different parties in the same transaction must notify their clients that their broker
represents both the buyer and seller “before an offer to purchase is made or presented.”
(c) Two designated agents who are affiliated licensees may each represent different
parties in the same transaction and are not considered dual agents.
(d) A designated agent’s knowledge of confidential information of a client is not
imputed to any affiliated licensee who does not have an agency relationship with that client.
(e) A designated agent cannot disclose confidential information of a client to any
other agents (including affiliated licensees). The only exception is that a designated agent may
disclose confidential information to any supervisory broker for purposes of seeking advice or
assistance for the benefit of his or her client.
(f) A Realtor® who represents a client in an agency capacity does not breach any
duty or obligation owed to that client by failing to disclose confidential information obtained
through a present or past agency relationship
.

What the law states is only that there must be more than one broker/agent involved to have a designated agency. It means that the broker's business has at least another member who can be designated as an agent on transactions. It does not state one broker has to be primary and the other has to be secondary. Also, it does not say both have to be brokers, one can be an agent and the broker can own the agency.

There is no law saying that there must be two brokers specifically, but the above says that there would be multiple parties involved (More than one) to have a designated agency relationship.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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