Buyer’s Agency


Under Michigan law, every REALTOR must discuss Agency Relationships with any customer prior to any personal information being divulged.  Many don't feel comfortable discussing the matter right off the bat, but it's essential that every buyer or seller of property in Michigan understands the role that every party plays in the transaction.

Under Michigan law, every REALTOR must represent the best interest of any home seller that has a signed listing agreement with a REALTOR

By default, REALTORS begin every transaction as a seller's agent regardless of whether the property for sale is listed by their firm or another

In order to change that, a buyer must execute a Buyer Broker Agreement with an agent which establishes that agent as THEIR REALTOR

The Buyer Broker Contract outlines the obligations of the parties to each other.  It establishes an agency relationship with a specific REALTOR for a defined amount of time and, in exchange, the buyer agrees to work ONLY with that REALTOR when they decide to purchase a home

The contract can be limited by timeframe, by geographic area, by price point and any other terms the parties agree to

It's important to choose a REALTOR who is not only a good personality match but one who seems to be very professional, responsive, and knowledgeable about the area and legalities involved with a real estate transaction

Buyers do not HAVE to execute a Buyer Broker Agreement in order to work with a particular agent but some agents will not want to dedicate their valuable time and energy to a customer who may not, in the end, purchase through them

Buyers should not be pressured into signing a Buyer Broker Agreement if they choose not to

The REALTOR's job is to explain Agency thoroughly so the buyer may make their own decision as to whether to enlist a buyer's agent or not

It's not uncommon for a buyer to purchase a home directly through the seller's agent, but it's only recommended in a situation where that listing agent has shown they are professional, knowledgeable, and honest in their communications with the buyer

If you have a Buyer Broker Agreement executed with a REALTOR, make sure to disclose that with other agents you may come in contact with so as to avoid any confusion

While there are a lot of legal and financial considerations to be taken into account in the process of buying and selling real estate, it should also be fun!  Remember that as you're searching for your next home or property.  If you have any questions relative to agency  or any other real estate related issues, please contact us at your convenience to learn more at