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AGENCY RELATIONSHIPS IN REAL ESTATE
TRANSACTIONS
MINNESOTA LAW REQUIRES that early in any
relationship, real estate brokers or
salespersons discuss with consumers what
type of agency representation or
relationship they desire.(1) The available
options are listed below. This is not a
contract. This is an agency disclosure form
only. If you desire representation you must
enter into a written contract, according to
state law (a Listing Contract or a Buyer
Representation Contract). Until such time as
you choose to enter into a written contract
for representation, you will be treated as
a customer and will not receive any
representation from the broker or
salesperson. The broker or salesperson will
be acting as a Facilitator (see paragraph V
below), unless the broker or salesperson is
representing another party, as described
below.
ACKNOWLEDGMENT: I/We acknowledge that I/We
have been presented with the below-described
options. I/We understand that until I/We
have signed a representation contract, I/We
are not represented by the broker/
salesperson. I/We understand that written
consent is required for a dual agency
relationship. I/We have had the opportunity
to review the "Notice Regarding Predatory
Offender Information" on the reverse side of
this form.
THIS IS A DISCLOSURE ONLY, NOT A CONTRACT
FOR REPRESENTATION.
I. Seller's Broker: A broker who lists a
property, or a salesperson who is licensed
to the listing broker, represents the Seller
and acts on behalf of the Seller. A Seller's
broker owes to the Seller the fiduciary
duties described below. (2) The broker must
also disclose to the Buyer material facts as
defined in MN Statute 82.22, Subd. 8, of
which the broker is aware that could
adversely and significantly affect the
Buyer's use or enjoyment of the property. If
a broker or salesperson working with a Buyer
as a customer is representing the Seller, he
or she must act in the Seller's best
interest and must tell the Seller any
information disclosed to him or her, except
confidential information acquired in a
facilitator relationship (see paragraph V
below). In that case, the Buyer will not be
represented and will not receive advice and
counsel from the broker or salesperson.
II. Subagent: A broker or salesperson who is
working with a Buyer but represents the
Seller. In this case, the Buyer is the
broker's customer and is not represented by
that broker. If a broker or salesperson
working with a Buyer as a customer is
representing the Seller, he or she must act
in the Seller's best interest and must tell
the Seller any information that is disclosed
to him or her. In that case, the Buyer will
not be represented and will not receive
advice and counsel from the broker or
salesperson.
III. Buyer's Broker: A Buyer may enter into
an agreement for the broker or salesperson
to represent and act on behalf of the Buyer.
The broker may represent the Buyer only, and
not the Seller, even if he or she is being
paid in whole or in part by the Seller. A
Buyer's broker owes to the Buyer the
fiduciary duties described below. (2) The
broker must disclose to the Buyer material
facts as defined in MN Statute 82.22, Subd.
8, of which the broker is aware that could
adversely and significantly affect the
Buyer's use or enjoyment of the property. If
a broker or salesperson working with a
Seller as a customer is representing the
Buyer, he or she must act in the Buyer's
best interest and must tell the Buyer any
information disclosed to him or her, except
confidential information acquired in a
facilitator relationship (see paragraph V
below). In that case, the Seller will not be
represented and will not receive advice or
counsel from the broker or salesperson.
IV. Dual Agency - Broker Representing both
Seller and Buyer: Dual agency occurs when
one broker or salesperson represents both
parties to a transaction, or when two
salespersons licensed to the same broker
each represent a party to the transaction.
Dual agency requires the informed consent of
all parties, and means 1hat the broker and
salesperson owe the same duties to the
Seller and the Buyer. This role limits the
level of representation the broker and
salesperson can provide, and prohibits them
from acting exclusively for either party. In
a dual agency, confidential information
about price, terms and motivation for
pursuing a transaction will be kept
confidential unless one party instructs the
broker or salesperson in writing to disclose
specific information about him or her. Other
information will be shared. Dual agents may
not advocate for one party to the detriment
of the other. (3)
Within the limitations described above, dual
agents owe to both Seller and Buyer the
fiduciary duties described below. (2) Dual
agents must disclose to Buyers material
facts as defined in MN Statute 82.22, Subd.
8, of which the broker is aware that could
adversely and significantly affect the
Buyer's use or enjoyment of the property.
V. Facilitator: A broker or salesperson who
performs services for a Buyer, a Seller or
both but does not represent either in a
fiduciary capacity as a Buyer's Broker,
Seller's Broker or Dual Agent. THE
FACILITATOR BROKER OR SALESPERSON DOES NOT
OWE ANY PARTY ANY OF THE FIDUCIARY Duties
LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS
THOSE DUTIES ARE INCLUDED IN A WRITTEN
FACILITATOR SERVICES AGREEMENT. The
facilitator broker or salesperson owes the
duty of confidentiality to the party but
owes no other duty to the party except those
duties required by law or contained in a
written facilitator services agreement, if
any. In the event a facilitator broker or
salesperson working with a Buyer shows a
property listed by the facilitator broker or
salesperson, then the facilitator broker or
salesperson must act as a Seller's Broker
(see paragraph I above). In the event a
facilitator broker or salesperson, working
with a Seller, accepts a showing of the
property by a Buyer being represented by the
facilitator broker or salesperson, then the
facilitator broker or salesperson must act
as a Buyer’s Broker (see paragraph III
above).
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The fiduciary duties mentioned above are
listed below and have the following
meanings:
Loyalty - broker/salesperson will act only
in client(s)' best interest.
Obedience - broker/salesperson will carry
out all client(s)' lawful instructions.
Disclosure - broker/salesperson will
disclose to client(s) all material facts of
which broker/salesperson has knowledge which
might reasonably affect the client's use and
enjoyment of the property.
Confidentiality - broker/salesperson will
keep client(s)' confidences unless required
by law to disclose specific information
(such as disclosure of material facts to
Buyers).
Reasonable Care - broker/salesperson will
use reasonable care in performing duties as
an agent.
Accounting - broker/salesperson will account
to client(s) for all client(s)' money and
property received as agent.
If Seller(s) decide(s) not to agree to a
dual agency relationship, Seller(s) may give
up the opportunity to sell the property to
Buyers represented by the
broker/salesperson. If Buyer(s) decide(s)
not to agree to a dual agency relationship,
Buyer(s) may give up the opportunity to
purchase properties listed by the broker.
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NOTICE REGARDING PREDATORY OFFENDER
INFORMATION
Information regarding the predatory offender
registry and persons registered with the
predatory offender registry under MN Statute
243.166, may be obtained by contacting the
local law enforcement offices in the
community where the property is located, or
the Minnesota Department of Corrections at
(651) 642-0200, or from the Department of
Corrections Web site at
www.corr.state.mn.us.
If you have any
questions or would like more information, please contact us by phone
at 612.965.4008 or 763.494.0524,
email
us, or use our
online request form. |
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