During a transaction in Bloomington, Minnesota, the buyer's agent is a 'facilitator' as defined under Minnesota law. The buyer submits an offer and the seller makes a counteroffer. Which of the following BEST describes the facilitator's obligation regarding the counteroffer?
Correct Answer
A) The facilitator must present the counteroffer to the buyer and provide factual information without advocating for either party
Under Minnesota law (Minn. Stat. Ch. 82), a facilitator is a non-agent who assists in a real estate transaction without representing either party. A facilitator's duties are limited: they must present offers and counteroffers, provide factual information about the property and transaction, and account for funds — but they do NOT advocate for either party, provide negotiating advice, or owe fiduciary duties. Presenting the counteroffer with factual information (not advocacy) is the correct role of a facilitator.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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