Agent Maria is a buyer's agent for Chen, who is purchasing a townhome in Bloomington, Minnesota. Chen instructs Maria not to submit any offers below $320,000, even if Maria believes a lower offer would be accepted. Maria believes the property is overpriced and a $295,000 offer would likely succeed. Under Minnesota law, what should Maria do?
Correct Answer
A) Maria should follow Chen's instructions and submit no offer below $320,000, as obedience to lawful client instructions is a fiduciary duty
Under Minn. Stat. Ch. 82, a buyer's agent owes the fiduciary duty of obedience to the client's lawful instructions. Chen's instruction not to submit offers below $320,000 is a lawful directive. Maria must follow this instruction even if she personally believes a lower offer would succeed. Maria may share her professional opinion with Chen, but the final decision belongs to the client, and Maria must respect that decision.
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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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