Agency
In Minnesota, what is 'undisclosed dual agency'?
AA licensee who holds two separate real estate licenses
BActing as agent for both buyer and seller in the same transaction without informing and obtaining written consent from both parties✓ Correct
CA licensee who manages rental properties while also selling homes
DA transaction where two different brokerages each claim a commission
Explanation
Undisclosed dual agency is a serious violation of Minnesota license law. When a licensee (or brokerage) represents both the buyer and seller in a transaction without disclosing this conflict and obtaining written consent from both, they violate their fiduciary duties to each party and Minnesota agency disclosure requirements.
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Key Terms to Know
Dual Agency
A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate 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.
Math Concepts
State-Specific Concepts
Disclosure RequirementsLicense Law
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