Minnesota License Law

A Minnesota real estate licensee is considering purchasing a property from one of their clients without disclosing their licensed status. This would violate which duty?

AOnly RESPA since a settlement service provider is involved
BThe fiduciary duty of loyalty and the requirement to disclose licensed status✓ Correct
CNo duty, since agents are permitted to purchase client property
DOnly the duty of confidentiality

Explanation

When a Minnesota licensee purchases property from a client, they must disclose their licensed status and the fact that they are acting as a principal (buyer) rather than an agent. Failure to disclose creates a conflict of interest that violates the duty of loyalty.

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