Broker Elaine's firm is representing seller Howard in the sale of his Minneapolis home. A prospective buyer, unrepresented by any agent, contacts the firm directly. Elaine assigns agent Paul to work with the buyer. Before proceeding, Elaine's firm must provide which disclosure to the buyer regarding Paul's role?
Correct Answer
B) An Agency Disclosure Statement informing the buyer that Paul is acting as a facilitator and does not represent the buyer's interests as an agent
Under Minn. Stat. § 82.67, the Agency Disclosure Statement must be provided to the buyer at the first substantive contact. Since Paul is assisting the buyer while Elaine's firm represents the seller, Paul would be acting in a facilitator capacity with respect to the buyer — not as the buyer's agent. The Agency Disclosure Statement must clearly inform the buyer of this limited role so the buyer understands that Paul does not owe them fiduciary duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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.
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