Legislative Analysis
Phone: (517) 373-8080
VOID AND UNENFORCEABLE RIGHT-TO-LIST
http://www.house.mi.gov/hfa
HOME SALE AGREEMENTS
Analysis available at
Senate Bill 602 (S-1) as reported from House committee http://www.legislature.mi.gov
Sponsor: Sen. Kevin Hertel
House Committee: Regulatory Reform
Senate Committee: Regulatory Affairs
Complete to 5-17-24
(Enacted as Public Act 122 of 2024)
SUMMARY:
Senate Bill 602 would amend the Occupational Code to specify when a right-to-list home sale
agreement would be void and unenforceable and to provide that a licensed real estate broker
would be subject to the penalties laid out in Article 6 of the act 1 if they enter into such an
agreement.
Under the bill, a right-to-list home sale agreement would be void and unenforceable if any of
the following apply to the agreement:
• It is not in writing.
• It is not signed by all persons that have an ownership interest in the residential real
estate considered in the agreement.
• It is for a period of more than two years.
• It does not include both of the following:
o An option for the owner to terminate the agreement before its expiration date
for an amount of consideration payable to the real estate broker that is not more
than the initial consideration the broker paid to the owner with interest of 6%
per annum that starts from the date the broker provided the initial consideration
through the date that the owner terminated the agreement.
o The period of time the agreement is effective and an explanation of the early
termination option on the first page of the agreement in a conspicuous manner.
Right-to-list home sale agreement would mean an agreement between an owner of
residential real estate and a real estate broker that obligates the owner to list the
residential real estate for sale with the real estate broker at a future date in exchange
for consideration. It would not include service provision agreements.
Residential real estate would mean the type of real estate described in MCL
339.2517(3). 2
The bill would apply to agreements entered into, extended, or renewed on or after its effective
date.
MCL 339.2501 and 339.2512 and proposed MCL 339.2512g
1
https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-299-1980-6
2
https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-339-2517
House Fiscal Agency Page 1 of 2
BRIEF DISCUSSION:
According to committee testimony, there have been examples of homeowners signing right-to-
list sales agreements that have locked them into a contract for decades and required them to
pay exorbitant cancellation fees to get rid of a lien on their home.
Supporters of the bill argued that it would provide guardrails and consumer protections to
prevent this type of predatory behavior.
FISCAL IMPACT:
Senate Bill 602 would not have a fiscal impact on any units of state or local government.
POSITIONS:
Representatives of the following entities testified in support of the bill (4-23-24):
• Newaygo County Register of Deeds
• Michigan Realtors
Representatives of the following entities indicated support for the bill (4-23-24):
• Department of Licensing and Regulatory Affairs
• Zillow
Legislative Analyst: Alex Stegbauer
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency SB 602 (S-1) as reported Page 2 of 2


Statutes affected:
Substitute (S-1): 339.2501, 339.2512
Senate Introduced Bill: 339.2501, 339.2512
As Passed by the Senate: 339.2501, 339.2512
As Passed by the House: 339.2501, 339.2512
Public Act: 339.2501, 339.2512
Senate Enrolled Bill: 339.2501, 339.2512