Agency Relationship Options

In Minnesota there are five options for agency relationships:

SELLER’S BROKER:

Representing and acting for the seller only.    May be a listing agent or any REALTOR® licensed to

the listing broker.

SUB-AGENT:

A broker or salesperson who is working with a buyer but represents the seller.

BUYER’S BROKER:

Representing and acting for the buyer only.   As with a listing contract with sellers, an agreement for

buyer representation must be in writing.

DUAL AGENT:

One licensee representing both the seller and the buyer as clients in one transaction, or two agents

licensed to the same broker one of whom represents the seller and one of whom represents the buyer

in one transaction. In a dual agency, all licensees are deemed to represent both the seller and buyer.

This relationship requires full disclosure and informed consent of both parties.   Dual agents have a

limited role, must not advocate or negotiate for either party, and must not act to the detriment of

either party.

FACILITATOR:

A real estate licensee who works for a buyer, a seller or both in a transaction but does not represent

either in a fiduciary capacity as a Buyer’s Broker, Seller’s Broker or Dual Agent. Facilitators may

perform services for consumers, but do not represent them. Facilitators are bound by license law and

common law, but owe only the fiduciary duty of confidentiality unless other fiduciary duties are agreed

to between licensee and consumer.

 

FIDUCIARY DUTIES:

Loyalty – broker/salesperson will act only in client(s)’ best interest.

Obedience – broker/salesperson will carry out all client(s)’ lawful instructions.

Disclosure – broker/salesperson will disclose to client(s) all material facts of which broker/salesperson

has knowledge which might reasonably affect the client’s use and enjoyment of the property.

Confidentiality – broker/salesperson will keep client(s)’ confidences unless required by law to disclose

specific information (such as disclosure of material facts to Buyers).

Reasonable Care – broker/salesperson will use reasonable care in performing duties as an agent.

Accounting – broker/salesperson will account to client(s) for all client(s)’ money and property received.

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Under Minnesota law, a form entitled Agency Relationships in Real Estate Transactions must be

presented at first substantive contact to a buyer or seller in any real estate transaction. If there is to be

any agency representation, there must be a written contract with all elements required by statute for

the particular agreement.  An Agency Relationships In Real Estate Transactions form is a disclosure

form, NOT a contract although it does ask for the party’s acknowledgment.  First substantive contact

generally means before discussing financial, confidential or motivational information with a consumer.

Source: Minnesota Association of REALTORS®            REALTOR® Reference Guide, 2010 Edition