Broker Maria is representing the Hendersons in the sale of their Minneapolis home. A buyer named Derek, who has no agent, contacts Maria directly and expresses strong interest in purchasing the property. Maria would like to represent both the Hendersons and Derek in the transaction. Under Minnesota law, which of the following steps is REQUIRED before Maria may legally proceed as a dual agent?
Correct Answer
A) Maria must obtain informed written consent to dual agency from both the Hendersons and Derek prior to proceeding in that capacity
Under Minn. Stat. Ch. 82, a licensee who wishes to act as a dual agent must obtain informed written consent from BOTH parties — in this case, both the Hendersons (the sellers) and Derek (the buyer) — before proceeding in that dual capacity. The consent must be informed, meaning both parties must understand the implications of dual agency, including the licensee's limited ability to advocate exclusively for either party. This is a firm statutory requirement in Minnesota, and proceeding without it constitutes a violation of license law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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