Michigan License Law Practice Test

What is required for Tom to make an offer on Sara's home under a dual agency arrangement?

1. Oral agreement from both parties

2. Written consent from both parties

3. Permission from a third party mediator

4. Consultation with a real estate attorney

The correct answer is: Written consent from both parties

In a dual agency arrangement, the real estate agent represents both the buyer (Tom) and the seller (Sara) in the same transaction. For Tom to make an offer on Sara's home legally and ethically within this framework, written consent from both parties is required. This consent ensures that both the seller and buyer are fully aware of the agent's dual role and agree to it, which is crucial for maintaining transparency and avoiding potential conflicts of interest. Written consent also provides a tangible record of the agreement, which is important for compliance with Michigan real estate laws. This requirement helps protect the interests of both parties by ensuring that they understand the implications and nature of the dual agency relationship, including the limitations on the information the agent can share. Oral agreements may not suffice due to the need for clear documentation in real estate transactions, and reliance on a third-party mediator or real estate attorney is not a standard requirement for making an offer under dual agency, although consultation can be beneficial for other aspects of the process.