Deborah Van Eendenburg, REALTOR®

View Original

Agency Relationships in Real Estate Transactions

Deborah Van Eendenburg

Minnesota is a consumer protection state and this form is required by law to ensure that I, and any real estate agent, explain agency to you. When you and I meet, we’ll discuss the 3 types of agency: the single agent relationship, dual agency, and facilitator.

WHAT ARE THE TYPES OF AGENCY?

  1. Single Agent Relationship: You can be represented in one of two ways, either in a single agent relationship where your broker represents only you.

  2. Dual Agency: Arises when an agent acts as an intermediary for the buyer and seller. buyer is interested in purchasing a property that their agent is also the agent for. If that occasion arises, I would need permission from both you and the seller to proceed with the transaction. If we did proceed, I would treat both you and the seller honestly and fairly and could not disclose any confidential information to either party.

  3. Facilitator: Performs services for one or multiple parties but does not represent either party. This role only requires confidentiality from the facilitator. This most often looks like an agent completing the necessary paperwork for both sides after the parties have decided together on the agreement. This does NOT look like the facilitating agent helping both sides come to an agreement (that would be dual agency).

WHEN IS IT SIGNED?

This disclosure is signed during our first conversation, as required by Minnesota law.

HOW LONG DOES IT LAST?

This is not a contract so there is no obligation of any kind tied to your signature. This disclosure simply acknowledges that we discussed the types of representation you may receive in a real estate transaction and what each could mean for you during the buying process.

IS THERE A FINANCIAL OBLIGATION?

No, there is no financial obligation. This is simply a disclosure to confirm that we have discussed the form’s contents, not a contract that holds you to any obligations.

The Minnesota Attorney General’s office has a Homebuyer’s Handbook that is an excellent resource. Dive in here. You can also download a copy of the disclosure: