Disclaimer: This article is for informational purposes only. It does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
Detailed Answer
1. Understand Your Co-Ownership Structure
In Michigan, co-owners typically hold property as tenants in common or joint tenants. Each co-owner owns an undivided interest and must agree to major decisions, including hiring a real estate broker. A listing agreement is a contract that requires the signatures of all titled owners to authorize a sale under the Michigan Real Estate Brokers and Salespersons Licensing Act, MCL 339.2501 et seq..
2. Communicate Goals and Criteria
Begin by meeting with your co-owner to discuss objectives: desired sale price, preferred timeline, commission rate, marketing strategy, and communication style. Agreeing on these factors up front streamlines the selection process.
3. Research and Interview Candidates
Compile a shortlist of licensed real estate brokers with solid track records in your area. Verify licenses at the Michigan Department of Licensing and Regulatory Affairs (LARA). Interview at least three brokers. Ask about recent sales, marketing plans, and fee structures.
4. Joint Review of Proposals
Have each broker submit a written proposal. Review them together. Compare marketing budgets, listing photographs, open house plans, and digital outreach. Use a simple scorecard to rate each broker on key factors like responsiveness and local expertise.
5. Formalize Your Choice in Writing
Once you agree on a broker, complete a written listing agreement. Ensure all co-owners sign the document. A valid listing requires mutual consent. Under Michigan law, unauthorized listing by one co-owner may expose that owner to liability for breach of contract or professional negligence.
6. Resolve Disputes or Deadlocks
If you and your co-owner cannot agree, consider mediation or arbitration to avoid court. As a last resort, a partition action under MCL 600.3201 et seq. allows a court to order sale or division of proceeds. Partition is costly and time-consuming; mediation is often faster and preserves relationships.
Helpful Hints
- Start discussions early to align expectations on price and timeline.
- Put all agreements in writing: verbal understandings can lead to disputes.
- Verify broker credentials online via LARA to ensure proper licensing.
- Use a standardized interview questionnaire for objective comparisons.
- Consider a co-owner meetup with prospective brokers to gauge chemistry.
- Include a clear termination clause in the listing agreement.
- If disagreements persist, consult a neutral mediator before filing court actions.
- Keep communication respectful and fact-based to maintain a working relationship.