Agency
A Minnesota real estate agent discovers that a property they are showing has a serious structural defect known to the seller but not disclosed. The agent is:
ANot required to disclose since the seller is their client
BRequired to advise the buyer of material facts known to the agent✓ Correct
CRequired only to recommend a home inspection
DProhibited from disclosing without the seller's consent
Explanation
Minnesota law requires real estate agents to disclose material facts to all parties, even when such facts are adverse to their client's interests. A structural defect is clearly material.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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