UNDERSTANDING REPRESENTATION

It's important to understand what legal responsibilites your real estate salesperson has to you and to other parties in the transaction.

In Michigan relationships generally fall into these categories.

• A seller representative  (also known as a listing agent or seller's agent) is hired by and represents the best interests of the seller. The relationship is usually created by a listing contract.
• A buyers representative (also known as a buyer's agent) is hired by prospective buyers to represent them in a real estate transaction. The relationship is usually created by a buyer's agency contract. The buyer's rep works in the buyer's best interest throughout the transaction. The buyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid by the seller or by a commission split with the listing broker.
• Disclosed dual agent  A real estate licensee can be the agent of both the seller and the buyer in a transaction, but only with the knowledge and informed consent, in writing, of both the seller and the buyers. Dual agents owe limited duties to each of the parties.  

Most Delta County area MLS offices use a form called Disclosure Regarding Real Estate  Relationships to disclose to sellers and buyers the types of representation available to them in a real estate transaction.