Bill signed, Nessel serves as acting governor in Whitmer’s absence

Senate Bill 602 was signed into law today by Attorney General Dana Nessel, it protects homeowners selling their houses from being locked into unfair contracts with real estate agents.

Office of the Governor - State of Michigan

“Senate Bill 602 strengthens protections for homeowners by prohibiting unfair practices in real estate transactions,” Nessel said. Many homeowners have faced predatory right-to-list agreements that lock them into unfavorable terms. This legislation provides much-needed clarity and protects both property owners and real estate professionals from such practices, and I am honored to have the opportunity to sign this legislation into law.”

Why did Nessel sign a bill into law?
Attorney General Dana Nessel is acting Governor for the State of Michigan while Governor Whitmer, Lieutenant Governor Gilchrist, and Secretary of State Benson are out of state, a provision detailed in Michigan's Constitution .

According to the new law, these contracts – often called right-to-list agreements – are void and unenforceable if they:

• Are not in writing
• Are not signed by all persons with ownership interest in the residential property in question
• Are for a period of over 2 years
• Do not include an option for the owner to terminate the agreement as specified in the new law

Real estate agents who attempt to have clients enter into these agreements are subject to penalties including losing their license, probation, and fines up to $10K.