Michigan Real Estate Exam Practice Question
A buyer is signing a contract as a corporation. The broker should:
Correct Answer: D
Rationale: When a corporation signs a contract, it is crucial to ensure that the individual signing has the authority to bind the corporation. Obtaining a resolution from the board of directors confirms that the signatory is authorized to act on behalf of the corporation, thus protecting all parties involved.
Option A is inadequate as merely confirming the corporation's existence does not verify the authority of the signatory. Option B, while it may provide some security, is not necessary if proper authorization is already established. Option C is irrelevant in this context, as a power of attorney is not typically required for corporate contracts when a board resolution suffices.
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