Bill > HB5227

This bill amends Michigan's Occupational Code to modify regulations for real estate brokers and agents, introducing several key provisions that define prohibited conduct and clarify professional responsibilities. The bill adds a new requirement that real estate agents must enter into a written buyer agency agreement disclosing compensation before assisting a buyer in developing or negotiating an offer, with an exception allowing sellers' agents or transaction coordinators to prepare offers for unrepresented buyers. The bill also expands the list of actions that can result in penalties, including failing to provide proper agency disclosures, mishandling client funds, changing business locations without notification, and not returning licenses within specified timeframes. The bill clarifies that a prospective buyer is considered a customer until a formal written agency agreement is signed, and specifies that agency relationships cannot be created orally or by implication. Additionally, the bill maintains the existing 18-month statute of limitations for filing complaints related to these violations, with the timing calculated from either the date of the alleged violation or the completion of the related real estate transaction, whichever is later. The bill is tied to the passage of two companion house bills and is part of a broader effort to regulate real estate professional conduct.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5227