Rachel is a Minnesota salesperson acting as a seller's agent for a lakefront property. The buyer, working without an agent, approaches Rachel directly and asks her to help draft the purchase agreement. Rachel does not enter into any written agreement with the buyer but assists with the paperwork. The buyer later claims Rachel was representing him. Under Minnesota law, what is the most accurate description of Rachel's agency status with respect to the buyer?
Correct Answer
A) Rachel remains the seller's agent only; her assistance with paperwork does not create a buyer's agency relationship
Under Minn. Stat. § 82.67, Rachel's existing seller's agency relationship with the seller does not change simply because she assists the unrepresented buyer with paperwork. Without a written buyer representation agreement, no buyer's agency is created. Rachel remains the seller's agent. However, she must disclose her agency status to the buyer and may have limited duties to the buyer as an unrepresented party, but she is NOT the buyer's agent and NOT a facilitator — she is the seller's agent who is also assisting an unrepresented buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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