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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.
NOTICE REGARDING
PREDATORY OFFENDER INFORMATION
Information regarding
the predatory offender registry and persons registered with the
predatory offender registry under MN Statuute 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 Corections at (651) 642-0200, or from the Depratment of Corrections
Web site at www.corr.state.mn.us.
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