Agency
In Minnesota, a real estate agent's authority to act on behalf of a client is derived from:
ATheir license from the Department of Commerce
BThe agency agreement (listing agreement or buyer representation agreement) with the client✓ Correct
CImplied consent given when the client calls to discuss real estate
DThe broker's membership in the MLS
Explanation
An agent's authority to act on behalf of a client is derived from the agency agreement between the client and the agent (or the brokerage). The listing agreement establishes the seller's agent's authority; the buyer representation agreement establishes the buyer's agent's authority. Without a proper agency agreement, the agent has no authority to bind the client or act as their representative.
Related Minnesota Agency Questions
- A Minnesota buyer tells their agent that they want to purchase a home near a specific school district because of their children's special needs. The agent must:
- The duty of 'accounting' in Minnesota agency law requires the agent to:
- In Minnesota, which of the following must a licensee disclose to a buyer even if they represent the seller?
- An agent who represents a buyer in Minnesota has a duty to:
- A Minnesota listing agent learns their seller is going through a divorce and must sell quickly. This information is:
- In Minnesota, a listing agreement that creates an agency relationship requires the broker to act in the seller's best interest. This includes which of the following duties?
- In a Minnesota designated agency arrangement, both buyer and seller are clients of the same brokerage. The broker assigns different agents to each party. What is the PRIMARY benefit of this arrangement?
- In a Minnesota dual agency situation, the agent owes which duties to BOTH parties?
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →