Michigan License Law Practice Test

When must a written disclosure of agency relationships be provided to the seller?

1. After the seller makes an offer

2. Before any confidential information is disclosed by the seller

3. When the property is listed for sale

4. At the closing of the sale

The correct answer is: Before any confidential information is disclosed by the seller

The correct answer is that a written disclosure of agency relationships must be provided to the seller before any confidential information is disclosed by the seller. This requirement is crucial because it establishes clear communication about the roles and responsibilities of the parties involved in the real estate transaction. By providing this disclosure early in the process, the seller can be fully informed about the representation they will receive and the nature of their relationship with the real estate agent. It protects the interests of both parties by ensuring that the seller understands that any confidential information shared could impact the transaction and what obligations the agent has toward them. This practice upholds transparency and trust in the agency relationship, allowing the seller to make informed decisions regarding what information they choose to share as the process unfolds. Other options, such as providing the disclosure after an offer is made, when the property is listed, or at closing, do not meet the ethical and legal requirements set forth by Michigan license law. These scenarios could leave the seller vulnerable if they disclose sensitive information without first having a clear understanding of the agency relationship.