Agency
In Minnesota, a buyer's agent representing a buyer who is also a licensed real estate agent must:
ACharge the buyer a reduced commission
BDisclose the buyer's license status to the seller as it may affect the transaction✓ Correct
CRefuse to represent the buyer in the transaction
DObtain special approval from the Department of Commerce
Explanation
When a licensed agent is purchasing property, their license status is a material fact that must be disclosed to the seller. A buyer who is a real estate licensee has professional knowledge that may give them an advantage in the transaction.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
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.
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.
Math Concepts
State-Specific Concepts
Disclosure Requirements
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