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HB 5228

Occupations: real estate; disclosure regarding real estate agency relationship; modify. Amends sec. 2517 of 1980 PA 299 (MCL 339.2517). TIE BAR WITH: HB 5227'25, HB 5229'25

2025-2026 Regular Session Introduced by Cam Cavitt and 4 co-sponsors

Requires a written disclosure of all agency relationships and duties before a buyer or seller shares confidential info, plus a standard model form and defined minimum services.

REFERRED TO COMMITTEE ON REGULATORY AFFAIRS
#occupations:realestate
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Bill Summary · HB 5228

Summary — HB 5228 (2025): Disclosure Regarding Real Estate Agency Relationships

Status: House introduced; bill electronically reproduced Nov. 6, 2025. Introduced Mar. 14, 2025 by Rep. Mike Hoadley. Referred to Committee on Regulatory Reform. Tie-bar with HB 5229 and HB 5227. Companion: SB 1761.

Purpose / Intent

HB 5228 amends section 2517 of Michigan’s Occupational Code (1980 PA 299, MCL 339.2517) to standardize and strengthen written agency-disclosure requirements in residential real estate transactions. The bill seeks to ensure prospective buyers/ sellers receive a clear, written description of the types of agency relationships available, the licensee’s duties under each, and that this disclosure occur before the potential client reveals any confidential information.

Key provisions

  • Requires a written agency disclosure to a potential buyer or seller describing all types of agency relationships available and the duties each creates — provided before the potential client discloses confidential information.
  • Specifies that a real estate broker or salesperson providing services under any service provision agreement must, at minimum, provide the duties listed in section 2512d(2) and the services listed in section 2512d(3), unless those services are knowingly waived via a limited service agreement.
    • Clarifies that only certain services (corresponding to paragraph (2)(b), (c), and (d) in the bill) may be waived in a limited service agreement.
  • Inserts a model “Disclosure Regarding Real Estate Agency Relationships” form and explanatory text into statute. The form:
    • Defines covered real estate transactions (sale/lease of 1–4 residential dwelling units, residential building sites, or condominiums).
    • Lists agent duties (reasonable care, performance of agreement, loyalty, compliance with law, referrals for non-expert matters, accounting, confidentiality including not disclosing client confidential information to licensees who are not the client’s agent).
    • Lists minimum services to be provided (marketing for sellers; acceptance and presentation of offers; assistance in negotiating and presenting offers until agreements executed and contingencies satisfied; post-execution assistance; and a broker-supplied closing statement unless the closing is conducted by a licensed title insurer or its agent).
    • Explains seller’s agents, buyer’s agents, subagents, and dual agency (requires informed written consent for dual agency and limits disclosure of information in dual-agency situations).
    • Provides checkbox options for licensees to identify their agency status and affiliated licensee disclosures, and attestation that the form was provided before disclosure of confidential information.

Who is affected

  • Real estate licensees (brokers, associate brokers, salespersons) and their brokers (must use the disclosure and comply with duties).
  • Buyers, sellers, lessors, lessees in covered residential transactions (1–4 units, building sites, condo units) who will receive the written disclosure before disclosing confidential information.
  • Brokerages (procedures, training, and potential liability/compliance costs).
  • Title insurance companies (explicit exception for broker-supplied closing statements when a licensed title insurer conducts the closing).

Procedural/timeline notes

  • Document shows multiple legislative actions across 2025 (readings, committee referrals, passage in one chamber on May 15, 2025, then electronic reproduction and reintroduction Nov. 6, 2025). Readers should consult the official legislative history on the Michigan Legislature website for current status and chamber-specific actions.
  • Tie-bar: HB 5229 and HB 5227 — these bills may be intended to advance together; check related texts for coordinated changes.

Potential impact

  • Increases consumer protections by requiring early, written explanation of agency relationships and duties.
  • Standardizes a statutory disclosure form, reducing ambiguity and potentially reducing inadvertent disclosure of confidential client information.
  • Imposes additional compliance steps for licensees and brokerages; may increase documentation and training needs and slightly raise transaction administrative costs.
  • Clarifies limited-service waiver scope and brokers’ closing-statement obligations.

For exact legal language and current status, review the full bill text and the Legislature’s official bill history.

Compiled from official sources — confirm details with the bill’s official record.

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