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Competition and Real Estate by State

Michigan Michigan

Positive icon Allows choice of brokerage services
Positive icon 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.

Learn more about:

Brokerage services: Discount Brokers Can Make Selling a Home Less Costly

Rebates: Rebates Make Buying a Home Less Expensive

Press Releases

October 20, 2005

The Justice Department and the Federal Trade Commission Encourage Michigan Senate Committee to Continue to Allow Consumer Choice in Real Estate Brokerage Services

Comment Letters

May 30, 2007

Letter to Governor Granholm Re: Michigan House Bill 4416

June 2, 2006

Letter to Lt. Governor Cherry and Senator Birkholz Re: Michigan House Bill 4849

October 18, 2005

Letter to Senator Sanborn and Director Hollister Re: Michigan House Bill 4849

Related documents on the Internet:

Michigan Public Acts 90-08 and 91-08 establishing requirements for brokers to perform minimum services but allowing consumers to waive those services.

Michigan House Bills 4849 and 4850 would have established requirements for brokers to perform minimum services

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