Chapter 2 of 1525% of exam

Agency Relationships in Minnesota

Minnesota recognizes several ways a licensee may work with consumers, including a distinctive non-agency 'facilitator' role. This chapter explains the required agency disclosure, the recognized relationships, and the rules for dual agency.

Agency Disclosure Timing

Minnesota licensees must give consumers a written disclosure of the available agency relationships at the first substantive contact, before the consumer shares confidential negotiating information. The disclosure explains seller representation, buyer representation, dual agency, and the facilitator option so the consumer can make an informed choice about representation. The disclosure itself is informational and does not create an agency relationship.

Seller, Buyer, and Facilitator Roles

A seller's broker represents the seller and owes fiduciary duties to that client; a buyer's broker represents the buyer. Minnesota also recognizes the facilitator: a licensee who assists the parties without representing either as an agent. A facilitator owes no duty of loyalty or advocacy but must still be honest and disclose known material facts. This limited, non-agency role is a feature of Minnesota law that many other states do not use.

Dual Agency

A dual agent represents both the seller and the buyer in the same transaction. Because the agent cannot fully advocate for either party, Minnesota permits dual agency only with the informed written consent of both parties. The licensee must not disclose one party's confidential information (such as the highest price a buyer will pay) to the other. Consent is documented in the agency disclosure and in the representation agreements.

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