Legislative Update

Bill to Eliminate Independent Contractor Status

As you know, back on April 13th, the Labor Committee of the Michigan House of Representatives held a hearing on HB 4390 sponsored by Rep. Jim Haadsma (D- Battle Creek). This legislation would ignore Michigan’s current real estate independent contractor test, in favor of a nearly impossible to pass “ABC Test” that would force almost every independent contractor in Michigan into an employer/employee relationship. This legislation would result in loss of worker flexibility, increased labor costs, and stiff penalties for businesses found in violation of the proposed law.

Michigan Realtors® is working hard to oppose the legislation which remains bottled up in committee since its initial hearing. At this time, Rep. Haadsma is open to including exemptions to the bill, similar to the California law, for real estate brokers/salespersons and real estate appraisers. There were talks about a potential workgroup this summer on all exemptions, but that group has yet to come together. There is never a final word on legislation so we are continuing to have conversations with legislative leaders as they eye a return to session in September. 

Source: Michigan REALTORS^® (MR)

6 Ways Your Buyers Can Save on Their Mortgage

With rates near 7%, your clients are feeling the financial squeeze. Here are a few secrets to ensuring they get the best deal they can on their loan.

Source: National Association of REALTORS^® (NAR)

Embrace an Educational Mindset and Watch Your Business Soar

A business approach that includes teaching, coaching and training can help you demonstrate your commitment to helping clients make informed decisions.

QUESTION: Who can provide a market analysis and who can be paid for a market analysis?

ANSWER: The Occupational Code allows a salesperson to prepare a market analysis only for a customer or potential customer and only if the salesperson does not charge separately for this service. This means that a salesperson cannot prepare a market analysis for any third party. A broker or associate broker can prepare a market analysis for any person or entity other than in “federally related transactions” and can charge for this service. The market analysis must be in writing and also include this language in boldface print: “This is a market analysis, not an appraisal and was prepared by a licensed real estate broker or associate broker, not a licensed appraiser.” MCL 339.2601(a)(ii).

For more legal Q&A, visit law.mirealtors.com

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