A Minnesota real estate broker, Broker Nguyen, is negotiating a commission agreement with a seller. The seller insists that the commission rate be set at a fixed percentage mandated by the Minnesota Department of Commerce. Which of the following statements correctly reflects Minnesota law regarding commission rates?
Correct Answer
D) Commission rates in Minnesota are freely negotiable between the broker and the client
Under Minn. Stat. Ch. 82 and federal antitrust law, real estate commission rates in Minnesota are freely negotiable between the broker and the client. No government agency or trade association may set, mandate, or fix commission rates. Any attempt to fix rates would violate antitrust laws. The MN DOC has no authority to establish maximum or minimum commission rates.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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