Minnesota broker Linda has three salespersons: Alex represents the seller, Brenda represents the buyer, and Carl is acting as a facilitator for a third unrelated party in a different transaction. Alex and Brenda are both involved in the SAME in-house transaction. Linda has a written designated agency policy. Which party is considered a dual agent in this transaction under Minnesota law?
Correct Answer
C) Linda, the broker, because her firm represents both parties through her salespersons
Under Minnesota law, when a brokerage firm represents both the buyer and seller in the same transaction through designated salespersons, the supervising broker (Linda) is considered the dual agent. Alex and Brenda each serve as designated agents for their respective clients and owe full fiduciary duties to their own client only. However, Linda, as the broker responsible for both salespersons and both sides of the transaction, occupies the dual agent position. This must be disclosed to and consented to by both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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