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As Acting Governor, Attorney General Nessel Signs Bill to Protect Homeowners • Michigan Advance
A bill aimed at giving homeowners more legal protections when working with real estate brokers became law Thursday after Attorney General Dana Nessel signed the legislation as acting governor.
Many landlords have faced predatory right-to-sell agreements that lock them into unfavorable conditions, Nessel said in a statement. This legislation provides much-needed clarity and protects both landlords and real estate professionals.
Nessel has been She has served as acting governor before, but this is the first time she has signed a bill into law. The attorney general has the power to sign bills into law if the governor, lieutenant governor and secretary of state are absent.
SB 602, sponsored by state Sen. Kevin Hertel (D-East Lansing), aims to help homeowners avoid getting stuck in contracts with real estate brokers. In a home sale contract with a right to list, homeowners promise to work only with a specific broker, a practice that can be, as Hertel described in the release, abusive.
These agreements are only enforceable if they are in writing, signed by all persons with an ownership interest in the property and provide for the ability of the owners to terminate the contract if necessary, under the new law.
The contract cannot be more than two years old either.
The legislation was supported by Michigan Realtors, a group that lobbies on behalf of the real estate industry.
Selling a home is never an easy thing to do, and when real estate agents engage in predatory practices, it becomes even more difficult, Hertel said in the statement. Michigan homeowners deserve to be able to make informed decisions about a monumental life event without fear of coercion or deception.
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