What Are Your Available Representation Options In Minnesota
State law in Minnesota requires that when you are discussing possible real estate transactions they present your available representation options to you very early in the process. Early in the process can be defined when you start discussing price, motivation, or terms. The two types of Representation contracts are Listings Contracts and Buyer Representation Contracts.
If you do sign a representation contract with a licensed Realtor in Minnesota these are the following fiduciary duties you are owed:
LOYALTY - agent will only act in your best interest.
OBEDIENCE - agent will carry out all of your lawful instructions.
DISCLOSURE - agent will disclose any material fact that will affect your enjoyment and use of the property.
CONFIDENTIALITY - agent will keep confidential all your information, motivation, etc. unless otherwise legally required to disclose.
REASONABLE CARE - agent will use reasonable care when performing duties as an agent.
ACCOUNTING - agent will account to you for all your money and property they receive as an agent.
The 4 types of representation are as follows:
1. Seller's/Landlord's Broker - Commonly known as the listings broker or listing agent. A listing broker/agent will represent the seller and act in the best interest of the seller. The list agent must also disclose any material fact that could adversely affect the Buyer's use and enjoyment of the property.
2. Buyer's/Tenant's Broker - Commonly known as a buyer's agent the agent represents and acts in the best interest of the buyer in a real estate transaction.
3. Dual Agent - This requires the written consent from parties in the transaction. Dual Agency occurs when a broker represents both the buyer and the seller in a real estate transaction. This means all duties are owed to both parties which limits the ability of the agent or broker to perform all of those duties as it is hard to advocate for one party to the detriment of another.
4. Facilitator - This option occurs when an agent will perform services such as paperwork. In this option no duties are owed to either parties aside from confidentiality and those otherwise required by law. This means there will not be any representation actions such as price negotiation or any other terms involved in the transaction.
Please contact me for more details or any other questions.