In Minnesota, broker David's firm represents the seller in a transaction. Another salesperson in the same firm, Angela, is working with the buyer. David and Angela's broker has obtained informed written consent from both the buyer and the seller for dual agency. Under Minnesota law, which of the following statements is MOST accurate about this arrangement?
Correct Answer
D) This arrangement constitutes dual agency and is permissible in Minnesota with the informed written consent of both parties
Under Minn. Stat. Ch. 82, dual agency — where a single brokerage represents both the buyer and the seller in the same transaction — is permissible in Minnesota provided that both parties give informed written consent. When two licensees within the same brokerage represent opposite sides of a transaction, the brokerage is considered a dual agent. With proper consent, this arrangement is lawful.
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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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