Agent Rosa is acting as a facilitator in a transaction involving a Maple Grove, Minnesota property. The buyer asks Rosa to recommend a home inspector and to advise whether the asking price is fair given recent comparable sales. Under Minnesota law, which of the following correctly describes Rosa's obligations in this situation?
Correct Answer
B) Rosa may recommend an inspector but must decline to provide a price opinion because facilitators owe no fiduciary duties and cannot advocate for either party
Under Minn. Stat. Ch. 82, a facilitator may provide ministerial and informational services to the parties, such as recommending service providers (like a home inspector). However, a facilitator cannot provide advice or opinions that would constitute advocacy for one party, such as advising whether the asking price is fair — that would cross into the role of a buyer's agent. A facilitator's limited role prohibits advocacy while permitting neutral assistance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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.
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