Committee hears bills to require written buyer-agency agreements for residential real estate

The House Regulatory Reform Committee heard testimony on House Bills 5227, 5228 and 5229, which sponsors and supporters say will update Michigan’s real-estate agency rules to reduce consumer confusion and align state law with changes in other jurisdictions.

Brian Westrin, general counsel for the Michigan Realtors, told the committee the bills "will amend the Michigan Occupational Code updating language specifying disclosure requirements relating to agent client relationships." He said the legislation would "eliminate implied agency" on the buyer side and require a written buyer-agency agreement before fiduciary duties arise, bringing the buyer side into the same formal structure that governs listing agreements.

Westrin cited the 2024 federal antitrust settlement in Burnett v. National Association of Realtors as part of the impetus for broader state-level changes. In committee questioning, he traced the industry's shift since the pre-1994 subagency model and said that without statutory clarity the state risks nonconsensual dual agency and potential forfeiture of compensation in disputes.

Westrin and sponsors emphasized the bills apply to residential transactions; he said commercial deals typically involve attorneys and different contractual approaches. The hearing record shows Mac Jones (LARA) registered neutral on the package; the clerk also recorded that the Michigan Society of Professional Engineers registered opposition to one bill in the record (transcript text reads "house bill 45229" — see clarifying note in provenance).

Committee members asked clarifying questions; no committee vote on these bills was recorded at this meeting.