How must real estate commissions be structured according to Michigan law?

In Michigan, real estate commissions are required to be based on a written agreement. This legal requirement ensures that both the buyer and the seller have a clear understanding of the terms and conditions regarding the payment structure for services rendered by real estate professionals. A written agreement provides a formal record that can help prevent disputes between parties and ensures transparency in the transaction. Additionally, a written contract outlines the specific commission percentage or fee, the services provided, and other pertinent details, which is crucial for both compliance with state laws and the protection of all parties involved.

While commissions can indeed vary based on negotiations or specific arrangements, having a written document is key to ensuring that such terms are enforceable and clear. This approach aligns with Michigan’s emphasis on protecting consumers in real estate transactions.