Michigan House Bill HB5228

Michigan 2025-2026 Regular Session

• Introduced: 11/6/25
• Refer: 11/6/25
• Report Pass: 3/5/26
• Report Pass: 3/19/26
• Engrossed: 4/15/26
• Refer: 4/16/26

Caption

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

Impact

If enacted, HB 5228 will impact the way real estate brokers and salespersons interact with clients, mandating that they provide transparent and comprehensive information regarding their agency relationship. This will not only ensure that clients are informed of the services they can expect but also how those services may be affected by the client's decisions to waive certain services as set forth by the proposed changes. The bill aligns with ongoing efforts to improve consumer protection in real estate transactions within the state.

Summary

House Bill 5228 focuses on amending the Occupational Code to modify the disclosure requirements regarding real estate agency relationships. Specifically, it aims to enhance clarity on the agency's representation by establishing a written disclosure of all types of agency relationships available to buyers and sellers before any confidential information is disclosed by them. This change is intended to strengthen the safeguards in real estate transactions, providing potential clients with a clearer understanding of the duties and responsibilities that come with different agency relationships.

Sentiment

The general sentiment regarding HB 5228 seems to emphasize the importance of consumer protection while also balancing the operational flexibility of real estate licensees. Supporters of the bill argue that clear disclosures will promote trust in real estate transactions and protect clients from potential misunderstandings. Conversely, there may be concerns from some industry professionals about increased compliance burdens or impacts on how real estate deals are traditionally conducted.

Contention

Notable points of contention surrounding the bill include the potential impacts on the business practices of real estate professionals who may be required to adapt to these new disclosure norms. While proponents believe that greater transparency will ultimately benefit clients and reduce disputes in transactions, opponents may argue that the complexities of real estate dealings could complicate the process for agents and listings. Ensuring that the implementation of this bill does not overly hinder transactions or impose excessive regulatory burdens will be a key discussion point as the bill progresses.