Agency
In Minnesota, a buyer representation agreement that is signed creates:
AA unilateral contract obligating only the agent
BA bilateral contract obligating both the buyer and the brokerage✓ Correct
CA void agreement with no legal effect
DAn agency by estoppel
Explanation
A buyer representation agreement is a bilateral contract: the brokerage promises to represent the buyer and the buyer agrees to work exclusively with that brokerage and to pay compensation if applicable.
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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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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