Agency
A Minnesota listing agent believes a seller's home is overpriced at $450,000 and should be listed at $420,000. The seller insists on $450,000. The agent should:
ARefuse to take the listing at the overpriced amount
BTake the listing at the seller's price while documenting their professional opinion✓ Correct
CList it at $420,000 without telling the seller
DRequest a mandatory price reduction clause in the listing agreement
Explanation
Minnesota agents can accept listings at prices they believe are above market value while documenting their professional opinion in writing. The agent should advise the seller of their market analysis and the risks of overpricing (longer market time, potential stigma), but ultimately the seller has the right to set the asking price. Taking the listing protects the seller and allows the agent to help manage the process.
Related Minnesota Agency Questions
- In Minnesota, a 'ministerial act' performed by a licensee does not create an agency relationship. Which of the following is a ministerial act?
- In Minnesota, a buyer's agent who is paid by the seller through the cooperative compensation (cooperating broker commission) is:
- Under Minnesota Agency Law, a buyer's agent owes which of the following duties to the buyer?
- A Minnesota licensee acting as a 'seller's agent' in a subagency arrangement owes fiduciary duties to:
- A Minnesota buyer's agent shows homes to a couple for six weeks. The couple then purchases a home directly from a seller using a different agent. The buyer's agent can recover a commission if there is a:
- Under Minnesota's agency disclosure requirements, when must a licensee first provide the agency disclosure form to a consumer?
- In Minnesota, a listing agreement that creates an agency relationship requires the broker to act in the seller's best interest. This includes which of the following duties?
- In Minnesota, which of the following must a licensee disclose to a buyer even if they represent the seller?
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