As acting governor, AG Nessel signs bill intending to protect homeowners into law 

Attorney General Dana Nessel is sworn in for a second term during the Michigan Inauguration on Jan. 1, 2023. | Andrew Roth/Michigan Advance

A bill intended to give 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 homeowners have faced predatory right-to-list agreements that lock them into unfavorable terms,” Nessel said in a release. “This legislation provides much-needed clarity and protects both property owners and real estate professionals.”

Nessel has been in the role of acting governor before, but this is the first bill she has signed. The attorney general has the power to sign bills into law if the governor, lieutenant governor and secretary of state are away.

SB 602, sponsored by state Sen. Kevin Hertel (D-East Lansing), is intended to help homeowners avoid getting stuck in contracts with real estate brokers. In a right-to-list home sale agreement, property owners promise to only work with a specific broker, a practice that can be, as Hertel described in the release, “exploitative.”

These agreements are only enforceable if the deal is in writing, signed by everyone with an ownership interest in the property and provides an opportunity for homeowners to terminate the contract if needed, under the new law. 

The contract also cannot be older than two years. 

The legislation was backed by the 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 realtors engage in predatory practices, it becomes even more difficult,” Hertel said in the release. “Michigan property owners deserve the ability to make informed decisions about a monumental life event without fear of coercion or deception.”

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