Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Free Guide to Hiring a Real Estate Lawyer
Keego Harbor is a small village in Oakland County, Michigan. Brokerage law in Keego Harbor is mainly governed by Michigan state law and by local ordinances that affect business operations, zoning, and property use. In most everyday contexts the word brokerage refers to real estate brokerage - the business of helping people buy, sell, lease, or manage real property. This guide focuses on real estate brokerage law, with brief notes about financial or securities brokerage where relevant.
Real estate brokerage law covers licensing for brokers and salespersons, duties and agency relationships, handling of client funds, required disclosures, advertising and marketing rules, commission agreements, and disciplinary enforcement. Local Keego Harbor rules can add requirements for business licenses, signage, short-term rental permits, and zoning for property use. Federal laws such as the Fair Housing Act and lead-based paint rules also apply.
People commonly seek a lawyer for brokerage matters when a transaction becomes contested or legally complex. Typical reasons include:
- Contract review and negotiation for purchase agreements, listing agreements, buyer representation contracts, commercial leases, or investor agreements.
- Disputes over commission amounts or who is entitled to a commission.
- Allegations of fraud, misrepresentation, or failure to disclose material defects in a property.
- Problems with trust or escrow accounts, including alleged mishandling of earnest money or client funds.
- Title problems, boundary disputes, easements, or survey issues that prevent transfer or use of property.
- Zoning, land use, or permitting conflicts with the village of Keego Harbor or Oakland County.
- Licensing complaints, disciplinary hearings, or defense against enforcement actions brought by the Michigan Board of Real Estate Brokers and Salespersons.
- Foreclosure, short sale, or complex financing transactions where creditor rights or regulatory issues are present.
- For financial brokerage issues, legal help is often required for suitability disputes, securities fraud claims, or FINRA arbitration matters.
Key legal and regulatory aspects you should know when dealing with brokerage in Keego Harbor include:
- Licensing and Education - Michigan requires real estate brokers and salespersons to be licensed through the state. Licensing prerequisites include pre-licensing education, passing an exam, sponsorship by a broker for salespersons, and ongoing continuing education to renew a license.
- Broker Responsibilities - A licensed broker has supervisory duties, must maintain proper records, and is responsible for how licensees under the broker operate. Brokers must follow state rules on trust accounts and handling client funds.
- Agency and Disclosure - Agents owe duties to their clients, such as loyalty, confidentiality, and reasonable care. Michigan has required seller disclosure forms for residential property condition, and other disclosures such as lead-based paint if the home was constructed before 1978. Dual agency or designated agency situations require clear disclosure and client consent.
- Trust or Escrow Accounts - Earnest money and other client funds generally must be deposited into an appropriate escrow or trust account and handled according to recordkeeping rules. Mishandling client funds can lead to civil liability and disciplinary action.
- Commissions and Agreements - Commissions are typically set by contract between broker and client. There is no state-fixed commission rate. Disputes over commissions are usually contractual matters handled in civil court or by arbitration if the contract requires it.
- Fair Housing and Anti-Discrimination - Both federal Fair Housing laws and Michigan laws, such as the Elliott-Larsen Civil Rights Act, prohibit discrimination in housing transactions based on protected characteristics.
- Local Permits and Zoning - Keego Harbor and Oakland County set rules on signage, business licensing, short-term rentals, and permitted uses for properties. Before listing or developing property check local codes and permit requirements.
- Title and Recording - Property transfers are recorded at the county level. The Oakland County Register of Deeds handles recordings, deeds, mortgages, and related documents; title defects, liens, or unresolved encumbrances can block a transaction.
- Consumer Protections and Enforcement - Consumers have remedies under state consumer protection laws for deceptive practices. The Michigan Board of Real Estate Brokers and Salespersons handles licensing enforcement for real estate professionals.
You can verify licensing and disciplinary history through Michigan state licensing records. The Michigan licensing agency maintains licensee information including license status, expiration, and any public disciplinary actions. Checking a license before you hire a broker is an important protective step.
A broker and their licensees owe duties that typically include loyalty, confidentiality, disclosure of material facts, reasonable care and competence, and accounting for client funds. The exact duties depend on whether you are a seller, buyer, landlord, or tenant and the written agency agreement you sign.
Sellers in Michigan must generally provide a written Seller Disclosure Statement that addresses property condition, known defects, utilities, environmental issues, and other material facts. For homes built before 1978 there is a required disclosure about potential lead-based paint hazards. Failure to disclose known defects can lead to legal claims after closing.
Dual agency, where one brokerage represents both the buyer and the seller in the same transaction, is allowed with proper disclosure and informed consent from both parties. Dual agency limits the agent's ability to fully advocate for one party over the other, so it requires careful explanation and written agreement.
If you believe earnest money has been improperly handled, first request an accounting and written explanation from the broker or escrow holder. Preserve all documents and communications. If the response is unsatisfactory, you can file a complaint with the Michigan licensing authority, seek recovery through civil court, or pursue mediation or arbitration if the contract provides for it.
Commissions are contractual. A listing agreement or buyer-broker agreement sets the commission terms. You can negotiate commission rates before signing. To dispute a commission you can pursue negotiation, mediation, arbitration if the contract requires it, or a civil lawsuit for breach of contract or other claims.
Short-term rentals can trigger local regulatory issues including business licensing, zoning, occupancy limits, safety and building code compliance, and tax collection. Keego Harbor may have specific rules restricting short-term rentals in certain zones. Consult local ordinances and consider legal advice when using property for short-term rental purposes.
If you suspect discrimination, you can file a complaint with the U.S. Department of Housing and Urban Development for federal Fair Housing Act violations, or pursue remedies under Michigan civil rights laws. You may also consult a lawyer to evaluate your case and to consider civil litigation for damages.
Misuse of client funds is a serious violation that can lead to civil liability and disciplinary action by the state licensing board. You should document the issue, contact the broker in writing, and file a complaint with the Michigan Board of Real Estate Brokers and Salespersons. You may also need to pursue civil claims for conversion or breach of fiduciary duty.
Michigan does not always require an attorney to close a residential real estate transaction, but many buyers and sellers choose to retain a lawyer for contract review, title issues, complex financing, or when disputes arise. For commercial transactions, complex deals, or contested matters an attorney is strongly recommended.
Here are organizations and local bodies that can help you find information or file complaints related to brokerage matters:
- Michigan Department of Licensing and Regulatory Affairs - includes the Michigan Board of Real Estate Brokers and Salespersons for licensing and discipline matters.
- Michigan Attorney General - Consumer Protection Division for consumer complaints and possible enforcement related to fraud or deceptive practices.
- Oakland County Register of Deeds for property records, deeds, and recordings applicable to Keego Harbor properties.
- Village of Keego Harbor - village hall or municipal offices for local business licensing, zoning, and permit information.
- U.S. Department of Housing and Urban Development - for federal fair housing complaints and guidance.
- National Association of Realtors and Michigan Association of Realtors - professional standards, ethics, and education resources.
- Oakland County Bar Association and Michigan State Bar - lawyer referral services to help you find a qualified real estate attorney.
- Consumer Financial Protection Bureau and Michigan Department of Insurance and Financial Services - for mortgage, lender, or financial services questions.
If you need legal assistance with a brokerage matter in Keego Harbor, consider these steps:
- Gather key documents - listing agreements, purchase contracts, closing statements, correspondence, inspection reports, title documents, and any relevant advertising or text messages.
- Identify the core issue - is it contract interpretation, misrepresentation, withheld disclosures, mishandled funds, zoning, or licensing enforcement?
- Check licenses and records - verify the broker or salesperson license status and any public disciplinary history through state records. Check county records for title, liens, and recorded documents.
- Contact a specialized attorney - seek a real estate attorney for property transactions and a securities or financial services attorney for brokerage account disputes. Use bar association referral services to find an attorney with relevant experience.
- Ask about initial consultation and fees - many attorneys offer a short intake or consultation to evaluate your situation. Understand billing - hourly, flat fee, or contingency - before retaining counsel.
- Consider alternative dispute resolution - mediation or arbitration can be faster and less expensive than litigation in many brokerage disputes. Your attorney can advise whether these options are appropriate.
- File complaints when appropriate - for licensing violations or consumer fraud file a complaint with the Michigan licensing board or the Attorney General's Consumer Protection Division. For fair housing issues contact HUD.
- Keep good records and act promptly - statutes of limitation, filing deadlines, and administrative timelines can limit remedies. Acting quickly and preserving evidence improves your ability to resolve the matter favorably.
If you are unsure where to start, a brief phone consultation with a real estate attorney can clarify your rights and options and help you decide the best next step.
