AGENCY RELATIONSHIPS IN

REAL ESTATE TRANSACTIONS

1 page1.

2. MINNESOTA LAW REQUIRES that early in any remtionship, real esiaie brokers or salespersons discuss with.

3. consumers what type of agency representation or relationship they desire.(1)The available options are listed

4. below. This is not a contract. This is an agency disclosure form only. If you desire representation you must enter

5. into a written contract, according to state law (a listing contract or a buyer/tenant representation contract). Until

6. such time as you choose to enter into a written contract lor representation, you will pe treated as a customer and

7. will not receive any representation from the broker or salesperson. The broker or salesperson will be acting as a

8. Facilitator (see DaraOraDh V on baoe two (2)), unless the broker or salesperson is reoresentino another party, as

9. described below ACKNOWLEDGMENT: I/We acknowledge that I/We have been presented with the below-.

10. described options I/We understand that until I/We have signed a representation contract, I/we am/are not

11. broker/salesperson represented by the I/We understand that written consent is required for a dual agency relationship.

12. THIS IS A DISCLOSURE ONLY, NOT A CONTRACT FOR REPRESENTATION.


13.


14. SeIIer's/LandIord's Broker: A broker who lists a property, or a salesperson who is licensed to the listing broker,

15. represents the Seller/Landlord and acts on behall of the Seller/Landlord. A Sellers/Landlord's broker owes to the

16. Seller/Landlord the fiduciary duties described on page two (2).'2' The broker must also disclose to the Buyer

17. material facts as defined in MN Statute 82.68, Subd. 3, of which the broker is aware that could adversely and

18. significantly aflect the Buyers use or enioyment of the property. (MN Statute 82.68, Subd. 3 does not apply to

19. rental/lease transactions.) I1 a broker or salesperson working with a Buyerfienant as a customer is representing

20. the Seller/Landlord, he or she must act in the Sellers/Landlord`s best interest and must tell the Seller/Landlord

21. any information disclosed to him or her, except confidential information acquired in a facilitator relationship (see

22. paragraph V on page two (2)). In that case, the Buyerfienant will not pe represented and will not receive advice

23. and counsel from the broker or salesperson.


24. Buyer'slTenant's Broker: A Buyer/Tenant may enter into an agreement for the broker or salesperson to

25. represent and act on behalf ofthe Buyer/Tenant.The broker may represent the Buyerffenant only, and not the

26. Seller/Landlord,even if he or she is being paid in whole or in part by the Seller/Landlord. A Buyer's/Tenan's

27. broker owes to the Buyer/Tenant the fiduciary duties described on page two (2).l2)The broker must disclose to

28. the Buyer material facts, as defined in MN Statute 82.68, Subd. 3, of which the broker is aware that could

29. adversely and significantly affect the Buyer`s use or enjoyment ofthe property. (MN Statute 82.68, Subd. 3 does

30. not apply to rental/lease transactions.)If a broker or salesperson working with a Seller/Landlord as a

31. customer is representing the Buyerffenant, he or she must act in the Buyer's/Tenant's best interest and must tell

32. the Buyerffenant any information disclosed to him or her, except confidential information acquired in a

33. facilitator relationship (see paragraph V on page two (2)). In that case, the Seller/Landlord will not be

34. represented and will not receive advice and counsel from the broker or salesperson.


35. Dual Agency - Broker Representing both Seller/Landlord and Buyer/Tenant: Dual agency occurs when one

36. broker or salesperson represen1s bo1h par1ies 10 a 1ransacti0n, or when1wo salespersons licensed 10 1he

37. same broker each represent a party 10 1he 1ransac1ion. Dual agency requires the informed consent of all

38. par1ies, and means 1ha1 the broker and salesperson owe the same duties 10 the Seller/Landlord and 1he

39. Eluyer/Tenan1. This role limits 1he level of represen1ation 1he broker and salesperson can provide, and

40. prohibits 1hem from ac1ing exclusively forei1her par1y. In a dual agency, confidential inlorma1ion about

41. price, 1erms and mo1iva1ion lor pursuing a 1ransac1ion will be kep1conliden1ial unless one party ins1ruc1s1h

42. broker or salesperson in wri1ing to disclose specific inlorma1ion about him or her. Other information will be

43. shared.Dual agents may no1 advoca1e lor one party to the detrimen1 ol the o1her. Wi1hin the limita1ions

44. described above, dual agents owe to bo1h Seller/Landlord and Buyerffenant the fiduciary duties described below

45. '2' Dual agents mus1 disclose to Buyers material lac1s as defined in MN S1a1ute 82.68, Subd.3, of which

46. the broker is aware 1ha1 could adversely and signilicamly af1ec1 the Buyer's use or enjoyment of the property.

47. (MN Slatu1e 82.68, Subd. 3 does no1 apply to rental/lease1ransac1ions.)

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