Carlos is a Minnesota real estate salesperson acting as a facilitator for both the buyer and seller in a transaction. Midway through the transaction, the buyer asks Carlos to start representing him exclusively as a buyer's agent. Under Minnesota law, which of the following statements is MOST accurate?
Correct Answer
B) Carlos may transition to buyer's agency by entering into a written buyer representation agreement, but must then disclose the change to the seller
Under Minn. Stat. § 82.67, a licensee's agency role can change during a transaction if proper steps are taken. Carlos may transition from facilitator to buyer's agent by entering into a written buyer representation agreement. However, because this change affects the nature of the transaction for the seller (who was dealing with a neutral facilitator and will now face an advocate for the buyer), Carlos must disclose this change in agency status to the seller so the seller can decide how to proceed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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