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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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