Under Minnesota law, which of the following statements correctly describes the difference in fiduciary obligations between a dual agent and a facilitator?
Correct Answer
D) A dual agent represents both parties with reduced fiduciary duties to each, while a facilitator represents neither party and owes no fiduciary duties
Under Minn. Stat. Ch. 82, a dual agent in Minnesota represents both the buyer and the seller simultaneously. Because of the inherent conflict, a dual agent's fiduciary duties to each party are reduced — for example, the dual agent cannot fully advocate for either party's price position. A facilitator, by contrast, is not an agent at all and represents neither party. A facilitator owes no fiduciary duties and has only limited statutory obligations, such as disclosing known material facts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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