Mastering GLAR Contracts

May 2025 Industry Update

Panelists: Matt Robertson, Erica McAvoy, Brian Huggler, Jonathan Lum

Top 10 Takeaways

Purchase Agreement

1. Buyer broker agreements and broker-to-broker compensation are entirely separate and must not be conflated.

2. Buyer Broker Compensation Initials
This is now a critical and legally sensitive section due to the NAR lawsuits. Initials from both buyer and seller are required, regardless of whether compensation is being offered.

3. Earnest money is not required for a binding contract, but it must be deposited within 2 business days of being collected per Michigan law. Listing agents should request proof of collection. If a deal falls apart, and the buyer and seller are disputing the earnest money, mediation is the first required step for dispute resolution.

Listing Agreement

4. The listing agent must be an individual, not a team but all team members can be noted if they are all representing the seller.

5. Municipal assessments (e.g., drains, sidewalks) must be disclosed, as well as any HOA or condo special assessments. Buyers should request financials, meeting minutes, and bylaws for full understanding. Blank sections lead to ambiguity and future negotiation conflicts.

6. The seller’s disclosure is legally required unless they qualify under specific exemptions (e.g., estate sales by non-occupying fiduciaries). Incomplete or missing disclosures can void deals—even at closing. Seller’s disclosure exemption forms are available to members and required to be uploaded in the mls when seller disclosures are not required.

Closing Agreement

7. Who should prepare the closing agreement? GLAR REALTOR® members should be preparing this, as it is a form only available to GLAR REALTOR® members. This is typically the listing agent, however can be done by the buyer’s agent.

8. Occupancy dates, rent amounts (often based on PITI), and terms must be clearly stated. Buyers gain possession at 11:59 p.m. on the final day unless otherwise agreed. Sellers may need to refund unused days. A second walkthrough before occupancy is recommended.

9. Closing agreements help resolve final terms, tie up addenda, and release liability—but are not mandatory unless required by a brokerage or previously agreed upon by both parties.

10. GLAR contracts are available exclusively for GLAR REALTOR® members. These forms have been reviewed by legal experts and market tested for members.

Want to watch a replay and earn continuing education credit? Watch now on GLAR Academy

2 hours of legal real estate continuing education credit (C136817) 

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