Licensee Paul is acting as a facilitator in a Minnesota transaction. The seller offers Paul a bonus if the property sells at or above the listing price. Paul accepts the bonus offer and begins steering the buyer toward the full listing price by selectively sharing market information that supports the higher value. Under Minnesota law, which of the following is most accurate?
Correct Answer
D) Paul's conduct may violate Minnesota license law because his actions have crossed into undisclosed advocacy for the seller
Under Minn. Stat. Ch. 82, while a facilitator may receive compensation, accepting a performance-based bonus from the seller and then steering the buyer toward the seller's preferred price by selectively presenting market information constitutes undisclosed advocacy for the seller. This conduct is inconsistent with the facilitator's neutral role and may constitute misrepresentation or a violation of the duty to provide honest information to both parties. Paul's actions could expose him to disciplinary action by the Minnesota Department of Commerce.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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