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Attention Sellers!
Lange Realty has selling fees
as low as 4˝%
or less
Why Pay More?
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AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS
Minnesota law requires that
early in any relationship, real estate brokers or salespersons discuss with
consumers what type of agency representation or relationship they desire.(1) The
available options are listed below. This is not a contract. This is an agency
disclosure form only. If you desire representation, you must enter into a
written contract according to state law (a listing contract or a buyer
representation contract). Until such time as you choose to enter into a written
contract for representation, you will be treated as a customer and will not
receive any representation from the broker or salesperson. The
broker or salesperson would then be acting as a Facilitator (see paragraph V below),
unless the broker or salesperson is representing another party as described
below.
ACKNOWLEDGEMENT: I/We acknowledge that I/We have been
presented with the below-described options. I/We understand that until
I/We have signed a representation contract, I/We are not represented by the
broker/salesperson and information given to the broker/salesperson may be
disclosed. I/We understand that written consent is required for a dual
agency relationship.
THIS IS A DISCLOSURE ONLY, NOT A CONTRACT FOR REPRESENTATION.
I. Seller's Broker: A broker who lists a property, or a salesperson who is
licensed to the listing broker, represents the Seller and acts on behalf of
the Seller. A Seller's broker owes to the Seller the
fiduciary duties described below.(2) The broker must also disclose to the
Buyer material facts as defined in Minnesota Statutes, Section 82.197,
subdivision 6, of which the broker is aware that could adversely and
significantly affect the Buyer's use or enjoyment of the property. If a broker
or salesperson working with a Buyer as a customer is representing the Seller,
he or she must act in the Seller's best interest and must tell the Seller any
information disclosed to him/her, except confidential information acquired in
a facilitator relationship (see paragraph V below). In that case, the Buyer will not be
represented and will not receive advice and counsel from the broker or
salesperson.
II. Subagent: A broker or salesperson who is working
with a Buyer but represents the Seller. In this case, the Buyer is the
broker's customer and is not represented by that broker. If a broker or
salesperson working with a Buyer as a customer is representing that Seller, he
or she must act in the Seller's best interest and must tell the Seller any
information that is disclosed to him or her. In that case, the Buyer
will not be represented and will not receive advice and counsel from the
broker or salesperson.
III. Buyer's Broker: A Buyer may enter into an agreement for the broker or
salesperson to represent and act on behalf of the Buyer. The broker may
represent the Buyer only, and not the Seller, even if he or she is being paid in
whole or in part by the Seller. A Buyer's broker owes to the Buyer the
fiduciary duties described below.(2) The broker must disclose to the Buyer any
material facts as defined in Minnesota Statutes, Section 82.197, subdivision
6, of which the broker is aware that could adversely and
significantly affect the Buyer's use or enjoyment of the property. If a broker
or salesperson working with a Seller as a customer is representing the Buyer,
he or she must act in the Buyer's best interest and must tell the Buyer any
information disclosed to him or her, except confidential information acquired
in a facilitator relationship (see paragraph V below). In that case, the
seller will not be represented and will not receive advice and counsel from
the broker or salesperson.
IV. Dual Agency - Broker Representing both Seller and Buyer:
Dual agency
occurs when one broker or salesperson represents both parties to a
transaction, or when two salespersons licensed to the same broker each
represent a party to the transaction. Dual agency requires the informed
consent of all parties, and means that the broker and salesperson owe the same
duties to the Seller and the Buyer. This role limits the level of
representation the broker and salespersons can provide, and prohibits them
from acting exclusively for either party. In a dual agency, confidential
information about price, terms and motivation for pursuing a transaction will
be kept confidential unless one party instructs the broker or salesperson in
writing to disclose specific information about him or her. Other information
will be shared. Dual agents may not advocate for one party to the detriment of
the other.(3)
Within the limitations described above, dual agents owe to
both Seller and Buyer the fiduciary duties described below.(2) Dual agents
must disclose to Buyers any material facts as defined in Minnesota Statutes,
Section 82.197, subdivision 6, of which the broker is aware that could
adversely and significantly affect the Buyer's use or enjoyment of the
property.
V. Facilitator: A broker or salesperson who performs services for
a Buyer , a Seller, or both but does not represent either in a fiduciary
capacity as a Buyer's broker, Seller's Broker, or Dual Agent. THE
FACILITATOR BROKER OR SALESPERSON DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY DUTIES
LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE DUTIES ARE INCLUDED IN THE WRITTEN
FACILITATOR SERVICES AGREEMENT. The facilitator broker or salesperson owes
the duty of confidentiality to the party but owes not other duty to the party
except those
duties required by law or contained in the written facilitator services
agreement, if any. In the event a facilitator broker or salesperson, working
with a Buyer, shows a property listed by the facilitator broker or
salesperson, then the facilitator broker or salesperson must act as a Seller's
Broker (see paragraph I above). In the event a facilitator broker or
salesperson, working with a Seller, accepts a showing of the property by a
Buyer being represented by the facilitator broker or salesperson, then the
facilitator broker or salesperson must act as a Buyer's Broker (see paragraph
III above).
(1) This disclosure is required by law in any transaction involving
property occupied or intended to be occupied by one to four families as
their residence.
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(2) The fiduciary
duties mentioned above are listed below and have the following meanings:
- Loyalty
- broker/salesperson will act only in the 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 rights and interests.
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 as agent.
(3) If Seller(s) decides not to agree to a dual agency relationship,
Seller(s) may give up the opportunity to sell the property to Buyers
represented by the broker/salesperson. If Buyer(s) decides not to agree to a
dual agency relationship, Buyer(s) may give up the opportunity to purchase
properties listed by the broker.
NOTICE REGARDING PREDATORY OFFENDER
INFORMATION
Information regarding the predatory
offender registry and persons registered with the predatory offender registry
under Minnesota Statutes, section 243.166, may be obtained by contacting the
local law enforcement offices in the community where the property is located, or
the Minnesota Department or Corrections at (651) 642-0200, or from the
Department of Corrections web site at www.corr.state.mn.us.
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