A Minnesota seller listed her home with Broker ABC. A buyer working with the same Broker ABC wants to purchase the property. The broker proposes that one of his agents act as a facilitator to assist both parties without representing either. The seller and buyer both agree in writing. Is this arrangement permissible under Minnesota law, and what must be disclosed?
Correct Answer
D) This arrangement is permissible; the facilitator must disclose their non-agency status in writing to both parties
Under Minn. Stat. Ch. 82, a licensee may act as a facilitator in an in-house transaction where the same brokerage represents both parties, provided the facilitator discloses their non-agency status in writing to both parties. This arrangement is permissible and is one of the ways Minnesota law addresses potential conflicts in in-house transactions — as an alternative to dual agency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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