Agent Kevin is a seller's agent for a home in Rochester, Minnesota. During a showing, the buyer mentions to Kevin that they are getting divorced and must purchase a home within 30 days or lose their financing approval. The buyer is not represented by an agent. Under Minnesota law, what is Kevin's fiduciary duty regarding this information?
Correct Answer
A) Kevin must disclose this information to his seller client because his fiduciary duty of disclosure runs to the seller
Under Minn. Stat. Ch. 82, a seller's agent owes fiduciary duties exclusively to the seller, including the duty of disclosure of all material information that could affect the seller's decisions. The buyer's urgent timeline and financial circumstances are material facts that could affect the seller's negotiating strategy and terms. Kevin must disclose this information to his seller client, as his loyalty and disclosure duties run to the seller, not to the unrepresented buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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