Real Estate-Minnesota Unit 1 Questions and Answers Already Passed

Real Estate-Minnesota Unit 1 Questions and Answers Already Passed When must a real estate salesperson or broker provide an "agency disclosure form?" At the FIRST substantive contact with the residential buyer or seller. What is the "Agency Relationships in Real Estate Transactions" document? This is ONLY a disclosure form and explains what duties an agent owes the potential client in regards to what relationship they form. (NOT a contract. There is a provision for the client to sign acknowledging the receipt of the disclosure document) What are the 4 types of agency relationships? 1. Representing the Seller (As the broker or salesperson) 2. Representing the Buyer (As the broker or salesperson) 3. Dual Agency (Representing both buyer and seller as the broker or salesperson) 4. Facilitator (Does not represent anyone BUT offers services) How can a real estate agent or broker become a dual agent? 1. Buyer or seller being represented by the agent must give consent and both agent and client sign a "Representation Agreement." 2. Once an agent has found both a buyer and a seller to represent then both clients MUST give consent to be represented by the same agent/broker and SIGN in the disclosure of dual agency in the "Purchase Agreement." (Note: The agent does NOT sign the purchase agreement, ONLY the buyer and the seller) When an agent or broker becomes a dual agent, how many times does the agent sign their name and how many times does the buyer and seller sign their names for the representation to be legal and accurate? Agent/Broker signs 2 times. (The Agent Relationships in Real Estate Transactions Form and the Buyer/Seller Representation Form) Buyer/Seller sings 3 times. (The Agent Relationships in Real Estate Transactions Form, the Buyer/Seller Representation Form, and the Purchase Agreement Form) When an agent is representing someone, aside from the fiduciary duties granted by OLD CAR what other duties does the agent owe the client? (Hint: PTM) Price, Terms, and Motivation must be kept confidential forever. Does a licensee who is a facilitator owe fiduciary duties? Is a Facilitator Services Agreement Form required to perform said duties? And what happens to the facilitator if they show a property listed by their broker? No, a facilitator does not owe fiduciary duties. No, the facilitator services agreement form is NOT required, HOWEVER it is highly recommended. If a facilitator shows property listed by their agency to a potential buyer then they will become the "Seller's broker." In other words, because they have the seller's property listed in their system if they show that seller's property they would be REPRESENTING THE SELLER. The broker protection clause is also called the ___________ in Minnesota. What is the maximum amount of time that clause can be enforced for in the state of Minnesota for residential properties? What about regarding the purchase or sale of a business/commercial property? Broker protection clause is also called the "Override" clause. In the state of MN this clause can be enforced up to but no longer than 6 months for residential and 2 years for commercial/business properties. Who can produce a BPO? What does BPO stand for and what is it? A licensed salesperson, broker, or appraiser can produce a BPO. BPO stands for Broker's Price Opinion. BPO is an opinion on the value of a property and is NOT an appraisal. Who regulates, administers the law, as well as issue real estate licenses in the state of MN? Under which state statute are real estate licenses