Linda is a Minnesota licensee whose brokerage has listed a home for seller David. Another agent at the same brokerage, Kevin, is working with buyer Priya, who wants to purchase David's listed property. The brokerage wishes to proceed with the transaction. Which of the following statements correctly describes the disclosure requirements under Minnesota law?
Correct Answer
B) The brokerage must obtain informed written consent to dual agency from both David and Priya before proceeding, and must disclose the dual agency relationship
Under Minn. Stat. § 82.67 and Ch. 82, when a brokerage represents both the seller and the buyer in the same transaction, a dual agency situation exists at the brokerage level. Minnesota law requires that both parties — David and Priya — provide informed written consent to the dual agency arrangement before the transaction proceeds. The brokerage must disclose this relationship clearly and obtain written consent from both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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.
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