Minnesota Real Estate Broker Exam — All Questions
3 questions
Minnesota recognizes a non-agency relationship in which a licensee assists the parties but represents neither as an agent. This is called a:
- a.Subagent
- b.Designated agent
- c.Universal agent
- d.Facilitator✓
Minnesota is distinctive in recognizing the 'facilitator' relationship: the licensee performs services such as showing property and preparing paperwork but owes no fiduciary duties of loyalty or advocacy to either party. The facilitator still owes honesty and disclosure of known material facts. Brokers must ensure the relationship is disclosed to consumers.
Under Minnesota's agency-disclosure rules, the required written agency-relationships disclosure must be provided:
- a.Only after a purchase agreement is signed
- b.Within 10 days after closing
- c.At the first substantive contact with the consumer✓
- d.Only if the consumer requests it
Minnesota requires the licensee to furnish the agency-relationships disclosure at the first substantive contact, before the consumer shares confidential negotiating information. This lets consumers understand seller agency, buyer agency, dual agency, and the facilitator option before choosing representation. The disclosure itself does not create an agency relationship.
A Minnesota primary broker wants the firm to represent both the buyer and the seller in the same transaction as a dual agent. This is permitted only if:
- a.The transaction price is below a statutory threshold
- b.Both parties give informed written consent to the dual agency✓
- c.The Department of Commerce approves the specific transaction
- d.The two parties use different title companies
Dual agency is legal in Minnesota only with the informed written consent of both the buyer and the seller. Because a dual agent cannot fully advocate for either party, the licensee must disclose the limited representation and obtain written consent, typically on the agency disclosure and the listing and buyer-representation agreements, and must not reveal one party's confidential information to the other.