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Selling Your Home
Tools for a Successful Sale
Agency Relationships in Real Estate Transactions
In Minnesota there are five options for relationships:
1. Seller's Agent: representing and acting for the seller only. May be a listing agent, or any REALTORŪ licensed to the listing broker, or a selling subagent.
2. Subagent: a broker or salesperson who is working with a buyer, but represents the seller.
3. Buyer's Agent: representing and acting for the buyer only. As with a listing contract with sellers, an agreement for buyer representation must be in writing.
4. 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. This 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.
5. 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.
Required Forms
2. Subagent: a broker or salesperson who is working with a buyer, but represents the seller.
3. Buyer's Agent: representing and acting for the buyer only. As with a listing contract with sellers, an agreement for buyer representation must be in writing.
4. 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. This 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.
5. 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.
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, or a nonagency relationship, there must be a written contract with all elements required by statute for the particular agreement.
Timing for Disclosures and Contracts
• An Agency Relationships in Real Estate Transactions form must be presented to a buyer and seller at first substantive contact with that party. This is a disclosure form, NOT a contract, although it does ask for the party's signature as an acknowledgment.
• Listing contracts must be signed before offering/advertising a property for sale or lease.
• Buyer representation contracts must be signed before taking any action to represent a buyer and before a purchase agreement is signed.
• Nonagency Services Agreements must be signed before performing services requiring a license.
• Listing contracts must be signed before offering/advertising a property for sale or lease.
• Buyer representation contracts must be signed before taking any action to represent a buyer and before a purchase agreement is signed.
• Nonagency Services Agreements must be signed before performing services requiring a license.
