Agent Hector is a buyer's agent for Yuki, who is purchasing a lakefront property in northern Minnesota. Yuki instructs Hector not to disclose that she is a licensed real estate agent when making the offer. Hector knows that Minnesota law requires licensees to disclose their licensed status when purchasing property. Under Minnesota law, what is Hector's obligation?
Correct Answer
A) Hector must advise Yuki that her instruction is unlawful and that Yuki, as a licensee purchasing property, must disclose her licensed status
Under Minn. Stat. Ch. 82, a real estate licensee who is purchasing property for their own account (or assisting a licensee in doing so) must disclose their licensed status to the seller. Yuki's instruction to conceal her licensed status is an unlawful directive. Hector's fiduciary duty of obedience applies only to lawful instructions. Hector must inform Yuki that she is legally required to disclose her licensed status and cannot instruct Hector to assist in concealing it. Hector must counsel Yuki to comply with the law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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.
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