AG Nessel Steps In as Governor, Signs Bill Saving Michigan Homeowners from Predatory Realtors

Michigan Attorney General Dana Nessel signs Senate Bill 602 into law as acting governor.Photo byOffice of Michigan Attorney General

Lansing, July 25, 2024 – In an unexpected twist of events, Michigan Attorney General Dana Nessel took a break from her usual duties to don the acting governor's hat, signing Senate Bill 602 into law. It seems that when the governor, lieutenant governor, and secretary of state are all out of town, someone has to keep the legislative wheels turning—and why not let the Attorney General have a little fun?

Accompanied by members of the Michigan Realtors, some of her department's representatives, and notably, her son (perhaps for a "take your child to work" moment), Nessel put pen to paper to outlaw the notorious "right-to-list" agreements that have been preying on unsuspecting homeowners.

In a dramatic move, Nessel declared, “Senate Bill 602 strengthens protections for homeowners by prohibiting unfair practices in real estate transactions.” Because apparently, predatory contracts were not already off the table in Michigan real estate. It's almost as if we needed a law to remind real estate professionals not to lock homeowners into perpetual servitude without clear consent or the option to bail out after two years.

State Senator Kevin Hertel chimed in with his take on the matter, underscoring the importance of the bill in safeguarding Michigan property owners from the peril of "coercion or deception." It's good to know that someone in the legislature is looking out for us, just in case the real estate agents start resembling used car salesmen.

The law's highlights include voiding agreements that aren’t in writing (because verbal agreements in high-stakes property deals are totally normal), aren’t signed by all property owners, or stretch beyond two years. Plus, there’s the novel concept of allowing homeowners to actually have a say in terminating the agreement. Imagine that!

For the real estate brokers who might not get the message, the law promises a delightful menu of consequences, ranging from license revocation to administrative fines up to $10,000. Because sometimes, just sometimes, the threat of a hefty fine can do wonders in reminding professionals to play fair.

As Dana Nessel's brief gubernatorial stint comes to a close, Michigan homeowners can sleep a little easier, knowing that their state leaders have their backs—at least when the usual top brass are out of town. Until next time, when the AG steps in for another cameo in the legislative spotlight!