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2. 2 AGENCY RELATIONSHIPS IN A REAL ESTATE TRANSACTION

3. 3 WHAT ARE THE OPTIONS ßCßCUSTOMER/FACILITATOR ßSßSELLER - REPRESENTED BY A SELLERS BROKER - AGENT ßBßBUYER - REPRESENTED BY A BUYERS BROKER - AGENT ßDßDUAL AGENCY – SAME BROKER, BOTH PARTIES

4. 4 WHY HIRE AN AGENT? ßREPRESENT YOUR BEST INTEREST ßKNOWLEDGE OF THE MARKET ßKNOWLEDGE OF THE LAW ßABILITY TO NEGOTIATE ßABILITY TO COMMUNICATE/COOPERATE WITH COLLEGUES ßYOUR REQUIREMENTS!

5. 5 WHAT DOES AGENCY REALLY MEAN? ßAN AGENT IS AN INDIVIDUAL WHO REPRESENTS THE PRINCIPAL WITH THIRD PARTIES. AGENT PRINCIPAL THIRD PARTY

6. 6 WHAT ARE THE FIDUCIARY DUTIES OF AN AGENT? ßLOYALTY ßOBEDIENCE ßDISCLOSURE ßCONFIDENTIALITY ßREASONABLE CARE ßACCOUNTING

7. 7 WHAT DOES MINNESOTA LAW REQUIRE ßEARLY DISCUSSION WITH CONSUMERS ßWHO DOES THE REALTOR  REPRESENT ßTHE RIGHTS OF THE CONSUMER ßTHE RESPONSIBILITIES OF THE CONSUMER ßACKNOWLEDGE RECEIPT OF THE “AGENCY RELATIONSHIP FORM”

8. 8 ßUNTIL THE BUYER MAKES A CHOICE ON REPRESENTATION, THE BUYER WILL BE TREATED AS A “CUSTOMER” ßVERY SIMILAR TO BUYING A CAR, AN APPLIANCE OR A PAIR OF SOCKS AT J C PENNY’S

9. 9 HOW SHOULD THE “SELLERS BROKER” ACT? ßSELLERS BROKER LISTS THE PROPERTY ßACTS ON BEHALF OF THE SELLER ßOWES FIDUCIARY DUTIES TO THE SELLER ONLY

10. 10 WHAT ARE THE FIDUCIARY DUTIES OF A SELLERS AGENT? ßLOYALTY ßOBEDIENCE ßDISCLOSURE ßCONFIDENTIALITY ßREASONABLE CARE ßACCOUNTING

11. 11 ADDITIONAL RESPONSIBILITIES ßMUST DISCLOSE TO THE BUYER ANY AND ALL MATERIAL FACTS THAT COULD AFFECT THE BUYER’S ENJOYMENT OF THE PROPERTY THAT THE AGENT AND/OR SELLER HAS KNOWLEDGE OF.

12. 12 IF THE BUYER IS NOT REPRESENTED! ßSELLERS BROKER MUST TELL THE SELLER ALL INFORMATION THE BUYER MAY HAVE TOLD THE AGENT... THE AGENT IS WORKING FOR THE SELLER! ßBUYER WILL RECEIVE NO ADVICE OR COUNSEL FROM THE SELLERS BROKER/SALESPERSON

13. 13 HOW SHOULD THE BUYERS BROKER ACT? ßA BUYER MAY ENTER INTO AN AGREEMENT TO HAVE A BROKER/SALESPERSON REPRESENT THE BUYER AND ACT ON THE BUYERS BEHALF. ßWHO PAYS THE BROKER IS NOT AN ISSUE OF AGENCY! ßSAME FIDUCIARY DUTIES AND OWES THESE DUTIES TO THE BUYER ONLY!

14. 14 BUYER MAY SIGN AGREEMENT FOR REPRESENTATION ßCONTRACT FOR EXCLUSIVE RIGHT TO REPRESENT THE BUYER ßCONTRACT FOR NON-EXCLUSIVE RIGHT TO REPRESENT THE BUYER ßNON-EXCLUSIVE MEANS YOU CAN HIRE SEVERAL BROKER/AGENTS TO WORK FOR YOU AT THE SAME TIME ßNEITHER ONE ALLOWS YOU TO BUY A FSBO WITHOUT COMPENSATION

15. 15 WHAT ARE THE FIDUCIARY DUTIES OF A BUYERS AGENT? ßLOYALTY ßOBEDIENCE ßDISCLOSURE ßCONFIDENTIALITY ßREASONABLE CARE ßACCOUNTING

16. 16 WHAT IS A DUAL AGENT ß“REPRESENTS” BOTH SIDES IN A REAL ESTATE TRANSACTION ßREQUIRES INFORMED CONSENT OF BOTH BUYERS AND SELLERS ßROLE OF “DUAL AGENT” LIMITS THE LEVEL OF REPRESENTATION TO BOTH PARTIES. ßMAY NOT ADVOCATE FOR EITHER SIDE

17. 17 ßNEITHER THE BUYER OR SELLER SHOULD DISCLOSE “CONFIDENTIAL” INFORMATION TO THE “DUAL AGENT” ßLIMITS THE WORDS AN AGENT MAY USE TO THE FOLLOWING: ßWOULD YOU LIKE TO ACCEPT, REJECT, OR COUNTEROFFER. ßDUAL AGENCY CREATED BY THE LEGISLATURE! ! !

18. 18 DUAL AGENCY PITFALL! ß. Dual agency is really no agency at all. Although most people contract with a real estate agent for their expertise and assistance, a dual agent must legally withhold his or her expertise and assistance to a large extent because the agent is actually representing two competing sides of a transaction at one time (the buyer and the seller) and is not supposed to promote the interests of one party to the detriment of the other.

19. 19 FACILITATOR ßFACILITATES THE TRANSACTION ßNO REPRESENTATION TO EITHER BUYERS OR SELLERS ßNO FIDUCIARY DUTIES TO EITHER PARTY, EXCEPT CONFIDENTIALITY ßMUST NOT VIOLATE THE STATE LAW - DISCLOSURE.

20. 20 REALITY ßBUYERS MAYBE SHOULD HAVE THEIR OWN AGENT ßSELLERS MAYBE SHOULD HAVE THEIR OWN AGENT ßDUAL AGENCY MAYBE SHOULD BE AVOIDED ßBEING TREATED AS A CUSTOMER MAYBE IS BETTER THAN DUAL AGENCY-AT LEAST YOU KNOW WHERE YOU STAND!

21. 21 SUMMARY ßBUYING AND SELLING REAL ESTATE IS NOT SIMPLE ßREALTORS  ARE MORE CONSCIOUS OF THEIR CLIENTS AND FIDUCIARY RESPONSIBILITIES THAN EVER BEFORE ßBUYERS AND SELLERS MUST UNDERSTAND THEIR RIGHTS, RESPONSIBILITIES AND OPTIONS

22. 22 THE END JIM MINER, REALTOR 