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Competition and Real Estate by State

Michigan

	Allows choice of brokerage services
	Allows brokers to offer rebates to consumers

In May 2005, minimum service bills (H.B. 4849 and 4850) were proposed in the Michigan House of Representatives. The bills would have reduced consumer choice by prohibiting home sellers who enter into “exclusive service provision agreements” from choosing the services they wish to purchase.

Under exclusive service provision agreements, the broker must perform all of the following services, even if the seller does not want them: 1) accept and deliver all offers and counteroffers; 2) assist in developing offers, counteroffers, and other materials until a purchase or lease agreement is executed and all contingencies are waived; and 3) furnish the closing statement to the seller. H.B. 4849 and 4850 died in December 2006 when the Michigan Senate took no action on them.

In March 2007, new minimum services bills (H.B. 4416 and 4417) were proposed in the Michigan House of Representatives. Unlike their predecessors, these bills would allow consumers to waive services they do not wish to purchase, with the exception of receiving detailed closing statements. The bills were passed into law on April 9, 2008 and became Public Acts 90-08 and 91-08, respectively.