Introduced by Rep. Tonya Schuitmaker (R) on March 6, 2007, to prohibit real estate brokers who have entered an "exclusive agency" listing agreement with a seller from accepting a commission unless the broker offers the traditional "full range" of services, including accepting and presenting all offers and counteroffers, and providing various types of assistance required to finalize a transaction. However, a seller could waive most of these services by entering a limited service agreement. An exclusive agency agreement prohibits a seller from paying a commission to anyone except the broker, thereby assuring the broker that he will profit from his sales efforts. (A broker can share the commission with other brokers if the agreement specifies this.) The bill would allow brokers to provide "unbundled" services (including certain internet-based marketing services) less than the full range of traditional services if the seller explicitly waives particular services.
Referred to the House Regulatory Reform Committee on March 6, 2007.
Reported in the House on November 27, 2007, with the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Substitute offered in the House on February 26, 2008, to replace the previous version of the bill with one that revises various details, but does not change its substance. This version was subsequently superseded by another substitute with more changes. The substitute failed by voice vote in the House on February 26, 2008.
Substitute offered by Rep. Tonya Schuitmaker (R) on February 26, 2008, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described`. The substitute passed by voice vote in the House on February 26, 2008.
Amendment offered by Rep. Barbara Farrah (D) on February 26, 2008, to only impose the requirement that a broker provide a complete closing statement on brokers who are actually involved in the closing. The amendment passed by voice vote in the House on February 26, 2008.
Passed 103 to 3 in the House on February 26, 2008, to prohibit real estate brokers who have entered an "exclusive agency" listing agreement with a seller from accepting a commission unless the broker offers the traditional "full range" of services, including accepting and presenting all offers and counteroffers, and providing various types of assistance required to finalize a transaction. However, a seller could waive most of these services by entering a limited service agreement. The bill would allow brokers to provide "unbundled" services (including certain internet-based marketing services) less than the full range of traditional services if the seller explicitly waives particular services. Who Voted "Yes" and Who Voted "No"
Received in the Senate on February 27, 2008.
Referred to the Senate Economic Development and Regulatory Reform Committee on February 27, 2008.
Reported in the Senate on March 18, 2008, with the recommendation that the bill pass.
Passed 38 to 0 in the Senate on March 20, 2008, to prohibit real estate brokers who have entered an "exclusive agency" listing agreement with a seller from accepting a commission unless the broker offers the traditional "full range" of services, including accepting and presenting all offers and counteroffers, and providing various types of assistance required to finalize a transaction. However, a seller could waive most of these services by entering a limited service agreement. The bill would allow brokers to provide "unbundled" services (including certain internet-based marketing services) less than the full range of traditional services if the seller explicitly waives particular services. Who Voted "Yes" and Who Voted "No"
Signed by Gov. Jennifer Granholm on April 8, 2008.
1) Walt by Anonymous Citizen on March 23, 2008 This bill is a totally unnecessary! This is government at it's worst.
This industry has been devestated and the state makes it more difficult for real estate agents to survive. Reply
2) Rep. Agema's "no vote explanation" by Admin003 on March 3, 2008 Rep. Agema, having reserved the right to explain his protest against the passage of the bill, made the following statement:
“Mr. Speaker and members of the House:
This is another unnecessary law that micro manages realtors
3) 2007 House Bill 4416 (Prohibit certain limited real estate marketing services ) by admin on January 1, 2001 Introduced in the House on March 6, 2007, to prohibit real estate brokers who have entered an "exclusive agency" listing agreement with a seller from accepting a commission unless the broker offers the traditional "full range" of services, including accepting and presenting all offers and counteroffers, and providing various types of assistance required to finalize a transaction. However, a seller could waive most of these services by entering a limited service agreement. The bill would allow brokers to provide "unbundled" services (including certain internet-based marketing services) less than the full range of traditional services if the seller explicitly waives particular services
The vote was 103 in favor, 3 opposed and 4 not voting