West Michigan · Buyer & Seller Agency Guide
Before you sign,
know who represents you.
Clear answers about real estate representation, agreements, and compensation in Michigan. Start with your questions. Move forward with a plan.
Michigan law
State law addresses agency disclosure, representation duties, and designated agency. Administrative rules also govern service agreements.
NAR and MLS rules
Industry requirements apply to covered professionals and MLS participants. They are distinct from state law.
Your agreement
Fees, duration, scope, and termination depend on the terms you accept. Read the actual documents before you agree.
01 / THE GUIDE
Start with who represents you.
Agency means representation. Know the role before sharing your negotiating position.
What does real estate agency mean?
An agency relationship identifies whose interests a real estate professional represents. A buyer’s agent represents the buyer; a seller’s agent represents the seller. Ask who the agent represents in your specific transaction. The person opening a door is not automatically your representative.
Read the source: Michigan agency disclosure law, MCL 339.2517
When should I receive the agency disclosure?
Michigan’s statutory framework calls for written agency disclosure before you share confidential information. Ask for it early, before discussing your maximum price, lowest acceptable price, or private motivation.
Read the source: Michigan agency disclosure law, MCL 339.2517
Is the agency disclosure the same as hiring an agent?
The statutory disclosure acknowledges receipt of agency information. Review any separate buyer agreement or listing agreement for the actual service, fee, and duration commitments. Read the title and every page before signing.
Read the source: Michigan agency disclosure law, MCL 339.2517
What duties does my agent owe me?
Michigan’s service agreement framework includes care, loyalty, confidentiality, accounting, following the agreement, and referral for expertise outside the agent’s scope. Services include offer and negotiation assistance, subject to lawful limited service arrangements.
Read the source: Michigan service duties, MCL 339.2512d
Is everything I tell an agent confidential?
Clarify representation first. Confidentiality has legal exceptions and does not authorize hiding required property information. Ask how sensitive information is handled, especially within one brokerage.
Read the source: Michigan agency disclosure law, MCL 339.2517 · Michigan service duties, MCL 339.2512d
Are a licensed agent and a REALTOR® the same thing?
Michigan licenses real estate professionals through LARA. REALTOR® identifies membership in NAR and carries Code of Ethics obligations. Licensing law, membership standards, and the terms of your agreement are different layers of responsibility.
Read the source: Michigan LARA real estate licensing and rules · 2026 NAR Code of Ethics, effective January 1, 2026
02 / THE GUIDE
Buying a home? Start here.
Understand what you are hiring someone to do, when an agreement is needed, and what you could owe.
What is a written buyer agreement?
It records the services and compensation arrangement between a buyer and a real estate professional. Ask whether the document creates agency representation, provides limited services, or has another purpose. A touring document should still be read for fees, exclusivity, and future obligations.
Read the source: NAR: Written Buyer Agreements 101
Do I need to sign before touring a home?
Under NAR’s practice changes, an MLS Participant working with a buyer must have a written agreement before an in person or live virtual home tour. This is an industry rule, separate from Michigan’s agency disclosure requirements. Ask which state, MLS, and brokerage requirements apply to your situation.
Read the source: NAR: Written Buyer Agreements 101 · NAR: Open Houses and Written Agreements
Can I attend an open house without hiring the host?
Under NAR’s guidance, visiting an open house on your own does not require a buyer agreement. A host acting only for the seller does not become your agent by letting you tour. Confirm the host’s role before discussing private financial or negotiating details.
Read the source: NAR: Open Houses and Written Agreements
Must a buyer agreement be exclusive or last several months?
NAR does not prescribe one required duration or exclusive arrangement. Michigan Rule R 339.22131 requires a definite expiration date for a service provision agreement and a completed, signed copy for the signing parties. Discuss the duration, covered properties, services, and exclusivity. Shorter or property specific terms may be available by mutual agreement.
Read the source: NAR: Negotiating Written Buyer Agreements · NAR: Written Buyer Agreements 101
Can I work with more than one buyer’s agent?
Check any agreement already in place before signing another or asking another agent to provide covered services. Overlapping commitments can create a dispute over compensation. Ask the current broker to clarify coverage and any release in writing.
Read the source: NAR: Negotiating Written Buyer Agreements · 2026 NAR Code of Ethics, effective January 1, 2026
What if I find a home online, at a builder, or for sale by owner?
Ask whether your agreement covers homes you find yourself, new construction, and homes outside the MLS. Before a builder visit, clarify any registration procedure with your representative and the builder. Do not assume a builder’s sales representative represents your interests.
Read the source: NAR: Negotiating Written Buyer Agreements
What happens if I decide not to buy?
Review when a fee is earned, when payment is due, any upfront charges, and what happens at expiration or termination. Do not assume that every fee depends on a completed purchase. Ask for a written explanation of your specific agreement.
Read the source: NAR: Written Buyer Agreements 101
Will I still see homes that offer no buyer broker compensation?
A REALTOR® must put the client’s interests first and must not steer based on the agent’s compensation. Discuss any possible payment gap before an offer so you can evaluate the home and the total cost with clear information.
Read the source: NAR: Putting Client Interests First
03 / THE GUIDE
Selling a home? Know your agreement.
A listing agreement should make the work, the costs, and the timeline clear.
What is a seller listing agreement?
It sets out the arrangement for marketing and representing you in a sale. Review the property, parties, start and end dates, services, listing price, compensation, and agency provisions. Ask for a written marketing plan rather than relying on a verbal description.
Read the source: Michigan service duties, MCL 339.2512d
What should I understand about an exclusive listing?
Ask the broker to explain how the proposed listing type treats a buyer you find yourself, an existing prospect, or an unrepresented buyer. Any exceptions should be written into the agreement. The words “exclusive right to sell” and “exclusive agency” can carry different obligations.
Read the source: 2026 NAR Code of Ethics, effective January 1, 2026
Do I have to offer compensation to the buyer’s broker?
NAR does not require sellers to offer buyer broker compensation. You can discuss whether to offer it, how much, and whether to negotiate it with a particular offer. A REALTOR® needs your advance written approval specifying the amount or rate before offering or paying it.
Read the source: NAR: Offers of Compensation
How should I compare offers with different compensation requests?
Ask for a side by side estimate of net proceeds using each offer’s price, requested credits, compensation, and other costs. Also compare financing, contingencies, closing dates, and possession. An estimate helps you compare tradeoffs; it is not a guarantee of final proceeds.
Read the source: NAR: Offers of Compensation
Does signing a listing mean I must accept an offer?
The listing agreement and a purchase agreement serve different purposes. Ask what events earn the brokerage’s fee, including any clause addressing a buyer who meets the listing terms. Declining an offer does not, by itself, answer whether a fee could be owed under your contract.
Read the source: 2026 NAR Code of Ethics, effective January 1, 2026
Can I pause marketing, change the price, or cancel the listing?
Ask how each change must be documented and who must consent. Removing a listing from public marketing may leave the representation agreement in effect. Obtain any release and its fee terms in writing before hiring another brokerage.
Read the source: 2026 NAR Code of Ethics, effective January 1, 2026
What does limited service representation mean?
Michigan permits specified services to be waived through a limited service arrangement. Ask exactly what is omitted, who handles the work, and what outside help you may need. A lower service level should come with a clear written explanation of responsibilities.
Read the source: Michigan service duties, MCL 339.2512d · Michigan agency disclosure law, MCL 339.2517
04 / THE GUIDE
Make the money conversation clear.
There is no standard commission set by law. Talk through the whole cost before committing.
Are real estate commissions set by law?
No. Broker compensation is fully negotiable. Ask for the proposed rate or fee, services, any additional charges, and payment triggers in writing. A broker can propose its own pricing, and you can decide whether the offered terms work for you.
Read the source: NAR: Negotiating Written Buyer Agreements · 2026 NAR Code of Ethics, effective January 1, 2026
Who can pay my buyer’s broker?
Depending on the agreements, compensation may come from you, the seller, the listing broker, or a combination. Seller participation is not guaranteed. Confirm the approved payment arrangements and any amount you would still owe before making an offer.
Read the source: NAR: Negotiating Written Buyer Agreements · NAR: Offers of Compensation
What must the buyer agreement say about compensation?
Under NAR’s requirements, compensation must be objectively determinable, not an open ended promise to accept whatever a seller offers. The agreement must disclose negotiability and bar the participant from receiving more from any source than the amount or rate agreed with the buyer.
Read the source: NAR: Written Buyer Agreements 101
What if the seller offers less or more than my agreement allows?
Ask your broker to show how the proposed seller payment fits your agreement. If it falls short, determine whether you owe a balance or whether another arrangement can be negotiated. A larger offer does not automatically entitle the buyer’s broker to collect above the agreed limit.
Read the source: NAR: Written Buyer Agreements 101
Are seller concessions the same as agent compensation?
No. Concessions address agreed buyer costs, while buyer broker compensation pays for brokerage services. Document each separately and have the lender and closing team confirm how the proposed credits and payments can be used in your transaction.
Read the source: NAR: Offers of Compensation
Why don’t I see buyer broker compensation in the MLS?
NAR’s practice changes prohibit offers of compensation on participating MLSs. An authorized offer can still be communicated outside the MLS. Its absence from an MLS listing does not tell you whether a seller will consider a request in your offer.
Read the source: NAR: Offers of Compensation
05 / THE GUIDE
Dual agency, designated agency, and other roles.
Two people at the same company can have different roles. Ask how yours will work.
What is dual agency?
Dual agency means the same licensee represents both sides. Michigan’s disclosure framework requires informed written consent and recognizes limits on advocacy and disclosure. Ask what advice the agent can provide before deciding whether to consent.
Read the source: Michigan agency disclosure law, MCL 339.2517
What is designated agency?
In Michigan’s framework, a written agreement names an individual agent for the client. Different designated agents at one brokerage may represent opposite parties; the broker and named supervisory brokers have a dual role. Ask how notice, supervision, and confidentiality work.
Read the source: Michigan agency disclosure law, MCL 339.2517
Does using the same brokerage automatically mean the same agent represents both sides?
Ask who is named as your representative and whether a designated agency agreement applies. Do not rely on a company name alone to understand the relationship. Have the broker explain any proposed change before you approve it.
Read the source: Michigan agency disclosure law, MCL 339.2517
Do I have to agree to dual agency?
Ask what choices are available before consenting and how declining would affect the proposed transaction under your existing agreement. This page does not establish KW Grand Rapids East’s policy on dual or designated agency.
Read the source: Michigan agency disclosure law, MCL 339.2517
What is a transaction coordinator?
Michigan’s agency statute uses this term for a licensee acting as neither party’s agent. Ask what help is included and what advocacy is absent. The term may also be used informally for administrative support, so clarify the actual legal role.
Read the source: Michigan agency disclosure law, MCL 339.2517
06 / THE GUIDE
Changes, termination, and concerns.
A clear exit conversation is part of a clear working relationship.
Can I terminate a buyer or listing agreement whenever I want?
Do not assume an automatic right to cancel without cost. Review notice, consent, cancellation charges, dispute procedures, and any continuing obligations. Ask the broker for a written release identifying the effective date, covered properties, and any fees that survive.
Read the source: NAR: Negotiating Written Buyer Agreements · NAR: Written Buyer Agreements 101
What is a protection period or carryover clause?
Some agreements address compensation if you buy or sell a covered property after the agreement ends. Ask which properties qualify, how long the provision lasts, what notice is needed, and whether an exception applies if another broker represents you. Check the actual wording of your agreement.
Read the source: NAR: Written Buyer Agreements 101
Does ending representation cancel a purchase agreement too?
Treat the representation agreement and the purchase agreement as separate documents. Before changing agents during a pending transaction, ask the brokers and a Michigan real estate attorney how deadlines, representation, and fees will be handled. Do not assume one cancellation ends both agreements.
Read the source: NAR: Negotiating Written Buyer Agreements
Where should I take an unresolved concern?
Start by documenting the concern and asking the supervising broker for a response. LARA provides licensing and complaint resources. A REALTOR® ethics concern may go to the appropriate REALTOR® association. For contract rights, compensation disputes, or legal remedies, consult a Michigan real estate attorney.
Read the source: Michigan LARA real estate licensing and rules · 2026 NAR Code of Ethics, effective January 1, 2026
Keep this conversation handy
Before you sign.
Use these questions with any agent. Take time to read the documents and ask for an explanation in words you understand.
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Every move begins with a plan.
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Clear answers need clear sources
Sources and scope.
Sources reviewed October 15, 2026: Michigan Compiled Laws sections 339.2517 and 339.2512d, LARA’s real estate licensing resources and current general rules, NAR buyer agreement and compensation guidance, and the 2026 NAR Code of Ethics. Michigan law, NAR and MLS requirements, and negotiated agreement terms are identified separately.
- LARA: Real Estate Brokers and Salespersons General Rules, including R 339.22131
- Michigan agency disclosure law, MCL 339.2517
- Michigan service duties, MCL 339.2512d
- Michigan LARA real estate licensing and rules
- NAR: Written Buyer Agreements 101
- NAR: Negotiating Written Buyer Agreements
- NAR: Open Houses and Written Agreements
- NAR: Offers of Compensation
- 2026 NAR Code of Ethics, effective January 1, 2026
- NAR: Putting Client Interests First
Your agreement matters: This guide does not describe specific KW Grand Rapids East form provisions or promise particular agency options or cancellation rights. Review the proposed documents with your broker, including services, fees, duration, supervision, conflicts, and termination. Applicable local MLS rules may add requirements.
This guide provides general education, not legal, tax, or lending advice. Your signed documents and applicable law govern your transaction. A Michigan real estate attorney can advise you about contract rights and disputes. Services are offered in accordance with Fair Housing requirements.