Agent Fiona is a Minnesota licensee who has been working with buyer client Ryan for three months. Ryan has now decided to purchase a property listed by Fiona's own brokerage. Fiona's broker informs her that the brokerage will be operating as a dual agent. Ryan is reluctant to sign the dual agency consent form. Under Minnesota law, what is the correct outcome if Ryan refuses to consent to dual agency?
Correct Answer
A) The brokerage cannot legally represent both Ryan and the seller in the same transaction without Ryan's written consent, and Ryan has the right to seek representation elsewhere
Under Minn. Stat. § 82.67 and Ch. 82, dual agency in Minnesota requires informed written consent from both parties. If Ryan refuses to provide written consent, the brokerage cannot legally proceed as a dual agent in this transaction. Ryan retains the right to seek representation from a different brokerage that does not have a conflict of interest. The brokerage cannot force dual agency on an unwilling party, and verbal consent is not sufficient under Minnesota law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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.
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