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INFO FOR BUYERS / SELLERS
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All of us at Real Estate One want you to understand the rules of agency. These rules govern
your sale or purchase of real estate and your relationship with the broker you select to help
you in these activities. This booklet (you will receive hard copy for reference) provides you
with that basic understanding, and describes the relationships between the Real Estate One
affiliated businesses.
Our company policy is to assist home sellers and purchasers in all aspects of the
home buying or selling process. We have a simple focus: to provide the fastest, highest
quality of service available in the real estate industry. Real Estate One provides the finest
professional real estate services.
We offer our clients and customers agency representation that fits their personal needs.
Designated agents are responsible for helping complete the sale and promoting the best
interest of the represented
party.
Before you disclose confidential information to a real estate licensee regarding a real estate
transaction, you should understand what type of agency relationship you have with that
licensee.
We believe that your understanding of this policy will allow us to continue to provide that
same high level of service to both home purchasers and home sellers– the best service
available anywhere.
The Agency Relationship
The agency relationship consists of one person representing the interests of another. The
parties to the relationship are the Principal (Seller or Buyer) and the Agent. The Agent is
retained by the Principal to work for, act on behalf of, and protect the Principal’s interests. The
relationship created is called a fiduciary relationship. It is a relationship founded on
trust because the agent owes precise duties to the Principal.
Among those duties are:
■ Loyalty ■ Diligence ■ Confidentiality
■ Obedience ■ Disclosure ■ Accounting
■ Reasonable Care
In the field of real estate sales, the Agent is required to fairly follow all of the duties owed to
the Principal and in addition, be honest with all others involved in any given transaction.
Real Estate One offers several types of agency relationships as defined on the following
pages.
Designated Agency
Real Estate One offers Designated Agency to provide the best representation to our clients.
Under Designated Agency, a seller or buyer is represented only by the agent(s) specifically
named in their agency agreement. The named “designated” agent acts solely on behalf of his
or her client and may only share confidential information about the client with the designated
agent’s supervisory broker who is also named in the agreement. Other agents, both within
the company or from other real estate brokers, do not have duties to the buyer or seller and
may act solely on behalf of another party in the transaction.
In the event both buyer and seller in a given transaction have designated agency contracts
with different designated agents from Real Estate One, or any other member of the Real Estate
One Family of Companies, each designated agent continues to represent interests of their
respective clients. The supervising broker named in each designated agency agreement
becomes a consensual dual agent on behalf of both the buyer and the seller.
Designated Seller’s Agency
Real Estate One agents, acting under designated agency, represent sellers directly as the
listing agent, or under a subagency agreement, through another broker’s listing.
The duties that designated seller’s agents and subagents owe the seller include:
■ promoting the best interests of the seller
■ disclosing to the seller all facts that might affect or influence
the seller’s decision to accept an offer to purchase
■ keeping confidential the seller’s motivations for selling
■ presenting all offers to the seller
■ disclosing to seller all information known to the seller’s
agent about the identity of all buyers and the willingness
of those buyers to the sale or to offer a higher price
A designated seller’s agent will establish a plan for marketing the home and provide
counseling to prepare the property for sale and regularly communicate during the marketing
period and through closing. The designated agent’s fiduciary duties are owed to the seller. As
listing agents, we cooperate with any other type of agency offered by other brokers when
they show our listings.
Subagency
As subagents, we provide buyers with the services they need
to purchase a home while acting as an agent for a seller.
Subagents must work with buyers in a sincere and honest
manner. Designated seller’s agents and their subagents will
disclose to the seller known information about the buyer
which may be used to the benefit of the seller.
The duties that a subagent owes a seller are the same as those outlined in the seller’s
agency above.
As a designated seller’s agent, Real Estate One will continue to offer the same excellent
customer services to buyers throughout the home buying process by providing information
about the properties shown, financial requirement, estimates of closing costs, disclosure of
material facts regarding properties and answering questions. We also assist in compiling
and submitting an offer to purchase and will communicate with the buyer throughout the
home finding and closing process.
Designated Buyer’s Agency
A designated buyer’s agent acts solely on behalf of the buyer.
Designated buyer’s agents will disclose to the buyer known
information about the seller which may be used to benefit the
buyer.
The duties that buyer agents owe to the buyer include:
■ promoting the best interest of the buyer
■ disclosing to the buyer all facts that might affect or influence the buyer’s decision to tender
an offer to purchase
■ keeping confidential the buyer’s motivations for buying
■ presenting all offers on behalf of the buyer
■ disclosing to buyer all information known to the buyer’s agent about the willingness of the
seller to complete the sale or to accept a lower price.
When Real Estate One acts as the agent for the buyer, that buyer has the freedom to discuss
the value of the properties, negotiating strategies, and personal finances with the sales
associate. The buyer can obtain the associate’s opinion concerning the condition of the
property, the affect of any improvements and a variety of other information which a
designated seller’s agent cannot provide. The designated buyer’s agent will make a
commitment to make every reasonable effort to locate a property with certain features
as described by the buyer.
It must be remembered, however, that the designated buyer’s agent is not an attorney,
accountant, appraiser, property inspector, engineer or surveyor. The buyer will need to seek
the advice of those professionals and others for the expertise they can provide.
When Designated Agents become DUAL AGENTS
Dual agency occurs when a designated agent has both a listing contract with the seller and a
buyer agency with the buyer. Under these circumstances, a Real Estate One agent can be the
agent of both the seller and the buyer in a single transaction, but only with the knowledge and
informed consent, in writing, of both the seller and the buyer.
If both the seller and the buyer agree in writing that the sales associate involved must not
disclose any information that would create a negotiating advantage for either client – such
as the fact that the seller will accept less than list price, or that the buyer will pay more than
offered – or other confidential information regarding the particular client, the parties may
continue with the transaction. In such cases, the Real Estate One designated agent will notify
all parties and will enter into a specific Dual Agency Agreement with them, which will override
all other agreements. Dual agents are able to facilitate the transaction, but must
remain neutral with regard to the negotiations and material facts of the sale. In the case
where two different Real Estate One/Real Estate One designated agents are involved in
representing a buyer and a seller, it is the named supervising broker(s) in your
agency contract(s) who also become dual agents and who must act as a neutral party. Each of
the designated agents continues to act on behalf of their clients.
Settlement Services
The sale or purchase of a home typically requires additional items known as “Settlement
Services.” Mortgage financing, title insurance and property insurance are all settlement
services. Real Estate One, as a member of the Real Estate One Family of Companies, offers all
of these services as a convenience to its customers. When you choose Real Estate One
as your agent, you not only get the services of Michigan’s largest real estate broker – you
also get the ease of one-stop shopping.
John Adams Mortgage Company
Through common ownership, Real Estate One is affiliated with John Adams Mortgage
Company, a mortgage lender. You are not required to use John Adams Mortgage Company,
but because it is an established mortgage lender with a wide variety of competitively priced
mortgage products, you will find it easy and convenient to do business with them.
Capital Title Insurance Agency, Inc.
A title insurance policy is usually provided by the seller to the purchaser as an incident of the
sale. The policy provides insurance against loss caused by an unknown defect in title
or interest in real estate. Capital Title Insurance Agency, Inc. is a subsidiary of John Adams
Mortgage Company. It was created to accommodate our customers’ desire to obtain all
necessary home sale services at one location. We believe you will appreciate the convenience
but, as with all other settlement services available through Real Estate One, you are not
required to use Capital Title Insurance Agency.
Insurance One Agency
If you finance your home purchase with a mortgage, your mortgage company will probably
require homeowners insurance for at least the amount of the mortgage. Insurance One
Agency is an independent insurance agency and a member of the Real Estate One, Inc. Family
of Companies. Insurance One Agency can provide insurance coverage for all of your home
purchase needs. As a full-service insurance agency, Insurance One Agency can also provide
you with automobile, boat, renter’s, life, and mortgage life insurance. In addition, Insurance
One can service your business insurance needs such as liability, worker’s compensation,
bonds, and fleet automobiles.
Relocation Services
Real Estate One provides corporate services to its customers through Real Estate One’s
Corporate Services & Relocation Department in the home search for hundreds of out-of-town
buyers, business transferees and others moving into our area. For those moving from this
area, this department can help make the selection of a new home in a distant city much
easier and less confusing.
Other Home Sale Legal Issues
Michigan Seller’s Disclosure
Generally, all home sellers must provide a state-mandated Seller’s Disclosure Statement in
which the seller discloses the condition and information concerning the home known to the
seller. The Seller’s Disclosure Statement is not required for certain types of
real estate transactions which your Real Estate One sales associate can review with you.
Your Real Estate One agent will provide the appropriate form for the seller to complete and will
make it available to prospective purchasers. As a seller, you must answer all of the questions
on the disclosure form. Your agent cannot answer or assist you in answering any portion of
the form. As a purchaser, you must acknowledge receipt by signing the Seller’s Disclosure
form prior to submitting an offer to purchase a home.
Federal Lead-Based Paint Disclosure
Federal law imposes additional disclosure requirements upon sellers of residential housing
built prior to 1978. These sellers must 1) provide a Lead Warning Statement and a “Protect
Your Family From Lead In Your Home” pamphlet; 2) disclose the known presence of lead-
based paint and lead-based paint hazards and provide copies of related written reports and
records; and 3) give the purchaser a 10-day opportunity (or other mutually agreed upon
period) to conduct a risk assessment or inspection, before the purchaser becomes obligated
under a purchase agreement.
Real Estate One developed proprietary forms to ensure that its customers comply with the
federal requirements. Your Real Estate One agent will provide the
appropriate form for the seller to complete and will make it and the pamphlet available to
prospective purchasers.
Earnest Money Deposits
Earnest money deposits are governed by the Michigan Occupational code and Administrative
Rules and the purchase agreement between the parties. Real Estate One maintains a non-
interest bearing demand escrow account as required by Michigan law. All earnest money
deposits are immediately deposited in this account. The purchaser’s earnest money deposit
is credited toward the purchase price if the sale is consummated. Deposits for which a
purchase agreement is never fully executed are refunded to the prospective purchaser after
the check clears. If the sale does not close, the earnest money will be disbursed as directed
in a written agreement signed by both the seller and purchaser. If the parties cannot agree,
Real Estate One will retain the earnest money in its escrow account until disbursement is
directed by agreement of the parties or court order.
Anti-Discrimination/Fair Housing
Your civil rights in relation to housing and real property are codified in the Michigan
Handicappers’ Civil Rights and Elliot-Larsen Civil Right Acts and
the federal Civil Rights Acts of 1866 and 1968. Generally, these laws prohibit discrimination in
real estate transactions by any party because of religion, race, color, national origin, age, sex,
handicap, marital or family status.
your sale or purchase of real estate and your relationship with the broker you select to help
you in these activities. This booklet (you will receive hard copy for reference) provides you
with that basic understanding, and describes the relationships between the Real Estate One
affiliated businesses.
Our company policy is to assist home sellers and purchasers in all aspects of the
home buying or selling process. We have a simple focus: to provide the fastest, highest
quality of service available in the real estate industry. Real Estate One provides the finest
professional real estate services.
We offer our clients and customers agency representation that fits their personal needs.
Designated agents are responsible for helping complete the sale and promoting the best
interest of the represented
party.
Before you disclose confidential information to a real estate licensee regarding a real estate
transaction, you should understand what type of agency relationship you have with that
licensee.
We believe that your understanding of this policy will allow us to continue to provide that
same high level of service to both home purchasers and home sellers– the best service
available anywhere.
The Agency Relationship
The agency relationship consists of one person representing the interests of another. The
parties to the relationship are the Principal (Seller or Buyer) and the Agent. The Agent is
retained by the Principal to work for, act on behalf of, and protect the Principal’s interests. The
relationship created is called a fiduciary relationship. It is a relationship founded on
trust because the agent owes precise duties to the Principal.
Among those duties are:
■ Loyalty ■ Diligence ■ Confidentiality
■ Obedience ■ Disclosure ■ Accounting
■ Reasonable Care
In the field of real estate sales, the Agent is required to fairly follow all of the duties owed to
the Principal and in addition, be honest with all others involved in any given transaction.
Real Estate One offers several types of agency relationships as defined on the following
pages.
Designated Agency
Real Estate One offers Designated Agency to provide the best representation to our clients.
Under Designated Agency, a seller or buyer is represented only by the agent(s) specifically
named in their agency agreement. The named “designated” agent acts solely on behalf of his
or her client and may only share confidential information about the client with the designated
agent’s supervisory broker who is also named in the agreement. Other agents, both within
the company or from other real estate brokers, do not have duties to the buyer or seller and
may act solely on behalf of another party in the transaction.
In the event both buyer and seller in a given transaction have designated agency contracts
with different designated agents from Real Estate One, or any other member of the Real Estate
One Family of Companies, each designated agent continues to represent interests of their
respective clients. The supervising broker named in each designated agency agreement
becomes a consensual dual agent on behalf of both the buyer and the seller.
Designated Seller’s Agency
Real Estate One agents, acting under designated agency, represent sellers directly as the
listing agent, or under a subagency agreement, through another broker’s listing.
The duties that designated seller’s agents and subagents owe the seller include:
■ promoting the best interests of the seller
■ disclosing to the seller all facts that might affect or influence
the seller’s decision to accept an offer to purchase
■ keeping confidential the seller’s motivations for selling
■ presenting all offers to the seller
■ disclosing to seller all information known to the seller’s
agent about the identity of all buyers and the willingness
of those buyers to the sale or to offer a higher price
A designated seller’s agent will establish a plan for marketing the home and provide
counseling to prepare the property for sale and regularly communicate during the marketing
period and through closing. The designated agent’s fiduciary duties are owed to the seller. As
listing agents, we cooperate with any other type of agency offered by other brokers when
they show our listings.
Subagency
As subagents, we provide buyers with the services they need
to purchase a home while acting as an agent for a seller.
Subagents must work with buyers in a sincere and honest
manner. Designated seller’s agents and their subagents will
disclose to the seller known information about the buyer
which may be used to the benefit of the seller.
The duties that a subagent owes a seller are the same as those outlined in the seller’s
agency above.
As a designated seller’s agent, Real Estate One will continue to offer the same excellent
customer services to buyers throughout the home buying process by providing information
about the properties shown, financial requirement, estimates of closing costs, disclosure of
material facts regarding properties and answering questions. We also assist in compiling
and submitting an offer to purchase and will communicate with the buyer throughout the
home finding and closing process.
Designated Buyer’s Agency
A designated buyer’s agent acts solely on behalf of the buyer.
Designated buyer’s agents will disclose to the buyer known
information about the seller which may be used to benefit the
buyer.
The duties that buyer agents owe to the buyer include:
■ promoting the best interest of the buyer
■ disclosing to the buyer all facts that might affect or influence the buyer’s decision to tender
an offer to purchase
■ keeping confidential the buyer’s motivations for buying
■ presenting all offers on behalf of the buyer
■ disclosing to buyer all information known to the buyer’s agent about the willingness of the
seller to complete the sale or to accept a lower price.
When Real Estate One acts as the agent for the buyer, that buyer has the freedom to discuss
the value of the properties, negotiating strategies, and personal finances with the sales
associate. The buyer can obtain the associate’s opinion concerning the condition of the
property, the affect of any improvements and a variety of other information which a
designated seller’s agent cannot provide. The designated buyer’s agent will make a
commitment to make every reasonable effort to locate a property with certain features
as described by the buyer.
It must be remembered, however, that the designated buyer’s agent is not an attorney,
accountant, appraiser, property inspector, engineer or surveyor. The buyer will need to seek
the advice of those professionals and others for the expertise they can provide.
When Designated Agents become DUAL AGENTS
Dual agency occurs when a designated agent has both a listing contract with the seller and a
buyer agency with the buyer. Under these circumstances, a Real Estate One agent can be the
agent of both the seller and the buyer in a single transaction, but only with the knowledge and
informed consent, in writing, of both the seller and the buyer.
If both the seller and the buyer agree in writing that the sales associate involved must not
disclose any information that would create a negotiating advantage for either client – such
as the fact that the seller will accept less than list price, or that the buyer will pay more than
offered – or other confidential information regarding the particular client, the parties may
continue with the transaction. In such cases, the Real Estate One designated agent will notify
all parties and will enter into a specific Dual Agency Agreement with them, which will override
all other agreements. Dual agents are able to facilitate the transaction, but must
remain neutral with regard to the negotiations and material facts of the sale. In the case
where two different Real Estate One/Real Estate One designated agents are involved in
representing a buyer and a seller, it is the named supervising broker(s) in your
agency contract(s) who also become dual agents and who must act as a neutral party. Each of
the designated agents continues to act on behalf of their clients.
Settlement Services
The sale or purchase of a home typically requires additional items known as “Settlement
Services.” Mortgage financing, title insurance and property insurance are all settlement
services. Real Estate One, as a member of the Real Estate One Family of Companies, offers all
of these services as a convenience to its customers. When you choose Real Estate One
as your agent, you not only get the services of Michigan’s largest real estate broker – you
also get the ease of one-stop shopping.
John Adams Mortgage Company
Through common ownership, Real Estate One is affiliated with John Adams Mortgage
Company, a mortgage lender. You are not required to use John Adams Mortgage Company,
but because it is an established mortgage lender with a wide variety of competitively priced
mortgage products, you will find it easy and convenient to do business with them.
Capital Title Insurance Agency, Inc.
A title insurance policy is usually provided by the seller to the purchaser as an incident of the
sale. The policy provides insurance against loss caused by an unknown defect in title
or interest in real estate. Capital Title Insurance Agency, Inc. is a subsidiary of John Adams
Mortgage Company. It was created to accommodate our customers’ desire to obtain all
necessary home sale services at one location. We believe you will appreciate the convenience
but, as with all other settlement services available through Real Estate One, you are not
required to use Capital Title Insurance Agency.
Insurance One Agency
If you finance your home purchase with a mortgage, your mortgage company will probably
require homeowners insurance for at least the amount of the mortgage. Insurance One
Agency is an independent insurance agency and a member of the Real Estate One, Inc. Family
of Companies. Insurance One Agency can provide insurance coverage for all of your home
purchase needs. As a full-service insurance agency, Insurance One Agency can also provide
you with automobile, boat, renter’s, life, and mortgage life insurance. In addition, Insurance
One can service your business insurance needs such as liability, worker’s compensation,
bonds, and fleet automobiles.
Relocation Services
Real Estate One provides corporate services to its customers through Real Estate One’s
Corporate Services & Relocation Department in the home search for hundreds of out-of-town
buyers, business transferees and others moving into our area. For those moving from this
area, this department can help make the selection of a new home in a distant city much
easier and less confusing.
Other Home Sale Legal Issues
Michigan Seller’s Disclosure
Generally, all home sellers must provide a state-mandated Seller’s Disclosure Statement in
which the seller discloses the condition and information concerning the home known to the
seller. The Seller’s Disclosure Statement is not required for certain types of
real estate transactions which your Real Estate One sales associate can review with you.
Your Real Estate One agent will provide the appropriate form for the seller to complete and will
make it available to prospective purchasers. As a seller, you must answer all of the questions
on the disclosure form. Your agent cannot answer or assist you in answering any portion of
the form. As a purchaser, you must acknowledge receipt by signing the Seller’s Disclosure
form prior to submitting an offer to purchase a home.
Federal Lead-Based Paint Disclosure
Federal law imposes additional disclosure requirements upon sellers of residential housing
built prior to 1978. These sellers must 1) provide a Lead Warning Statement and a “Protect
Your Family From Lead In Your Home” pamphlet; 2) disclose the known presence of lead-
based paint and lead-based paint hazards and provide copies of related written reports and
records; and 3) give the purchaser a 10-day opportunity (or other mutually agreed upon
period) to conduct a risk assessment or inspection, before the purchaser becomes obligated
under a purchase agreement.
Real Estate One developed proprietary forms to ensure that its customers comply with the
federal requirements. Your Real Estate One agent will provide the
appropriate form for the seller to complete and will make it and the pamphlet available to
prospective purchasers.
Earnest Money Deposits
Earnest money deposits are governed by the Michigan Occupational code and Administrative
Rules and the purchase agreement between the parties. Real Estate One maintains a non-
interest bearing demand escrow account as required by Michigan law. All earnest money
deposits are immediately deposited in this account. The purchaser’s earnest money deposit
is credited toward the purchase price if the sale is consummated. Deposits for which a
purchase agreement is never fully executed are refunded to the prospective purchaser after
the check clears. If the sale does not close, the earnest money will be disbursed as directed
in a written agreement signed by both the seller and purchaser. If the parties cannot agree,
Real Estate One will retain the earnest money in its escrow account until disbursement is
directed by agreement of the parties or court order.
Anti-Discrimination/Fair Housing
Your civil rights in relation to housing and real property are codified in the Michigan
Handicappers’ Civil Rights and Elliot-Larsen Civil Right Acts and
the federal Civil Rights Acts of 1866 and 1968. Generally, these laws prohibit discrimination in
real estate transactions by any party because of religion, race, color, national origin, age, sex,
handicap, marital or family status.
THE ACCURACY OF ALL INFORMATION, REGARDLESS OF SOURCE, IS NOT GUARANTEED OR
WARRANTED. ALL INFORMATION SHOULD BE INDEPENDENTLY VERIFIED
WARRANTED. ALL INFORMATION SHOULD BE INDEPENDENTLY VERIFIED
Oakland & Macomb County Homes For Sale
| Joe Clemons |