Agent Carla is acting as a facilitator in a Minnesota real estate transaction. The buyer asks Carla whether the seller has received any other offers on the property. Under Minnesota law, which of the following best describes Carla's obligation in this situation?
Correct Answer
C) Carla may not disclose the existence or terms of other offers without the seller's permission, as she still owes a duty of confidentiality to the seller
Even in a facilitator role, a Minnesota licensee who was previously or is simultaneously acting as the seller's agent retains certain duties to the seller, including confidentiality regarding information that could harm the seller's negotiating position. The existence and terms of competing offers are confidential seller information. Without the seller's permission, Carla may not disclose this information to the buyer. This illustrates that the facilitator role does not eliminate all duties — it limits them, but confidentiality obligations tied to the seller's interests remain.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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