Buying a Home
No Down Home Loans
Looking For No Down Home Loans? Get what You Need Here.
Va Home Loans
Looking For Va Home Loans? Get what You Need Here.
Looking for Buying A Home?
Find Top Rated Buying A Home Listings! Save Time and Money. Check the site for Buying A Home
Home Buying
Searching for Home Buying? Search no Further, We've Found Home Buying Here!
Buying a Home – Minnesota Agency Relationships in Real Estate Transactions
When a person is ready to buy a home, they typically meet with a real estate professional and go over several different forms before they get started. One of these forms is called an Agency Disclosure. What are the rules that govern this form and when must it be presented?
At the first substantive contact with a client the real estate agent or broker must present the Agency Disclosure Form to the client and get this form signed. This form describes the different types of agency relationships in real estate transactions (seller’s broker, subagent, buyer’s broker, dual agent, and facilitator), explains the various fiduciary duties, defines their meanings, and explains dual agency. Finally, it provides a notice regarding predatory offender information (explaining that you can obtain such information by contacting the local law enforcement offices in the community where the property is located or by contacting the Department of Corrections).
It is important to understand that this form is not the contract that hires the real estate agent or broker. Rather, it is a disclosure form that is designed to protect consumers and is required by law in any transaction involving property occupied or intended to be occupied by one to four families as their residence. When a consumer is ready to hire an agent or broker, a separate legal contract must be signed.
Also, keep in mind that some types of relationships provide more protection than others.
Some agency relationships create what is called Fiduciary Duties. A fiduciary duty is the highest standard of duty implied by law. In regard to real estate transactions, these duties include loyalty, obedience, disclosure, confidentiality, reasonable care, and accounting. The Agency Relationships in Real Estate Transactions form defines the terms as follows:
Loyalty – The broker/salesperson will act only in the client(s) best interest.
Obedience – broker/salesperson will carry out all client(s) lawful instructions.
Disclosure – broker/salesperson will disclose to client(s) all material facts of which broker/salesperson has knowledge which might reasonably affect the client(s) use and enjoyment of the property.
Confidentiality – broker/salesperson will keep client(s) confidences unless required by law to disclose specific information (such as material facts to buyers).
Reasonable care – broker/salesperson will use reasonable care in performing duties as an agent.
Accounting – broker/salesperson will account to client(s) for all client(s) money and property received as agent.
Finally, please note that Agency Relationships in Real Estate Transactions is required by Minnesota law. Each state has different rules and regulations. Do not rely on this article as legal advice. This information is provided as a public service. As always, consult with a professional in your location.
Chris Miles is author of this article on Buying Minneapolis Condos.
Find more information about Downtown Minneapolis Lofts here.