Minnesota License Law
A Minnesota real estate salesperson is also a licensed mortgage broker. When working with a buyer who needs financing, the salesperson must:
AAlways use their own mortgage services
BDisclose both licenses and any financial interest in the transaction✓ Correct
CKeep the two businesses completely separate with no disclosure
DOnly act as a real estate agent, never as mortgage broker in the same transaction
Explanation
When a Minnesota licensee holds multiple licenses that may create a conflict of interest, they must disclose all relevant licenses and financial interests to the consumer. Disclosure allows the consumer to make an informed decision about the arrangement.
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Key Terms to Know
Agency
A 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.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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.
State-Specific Concepts
Disclosure Requirements
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