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SF 2116

as introduced - 88th Legislature (2013 - 2014) Posted on 03/04/2014 08:37am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to commerce; allowing for designated agency in real estate transactions;
amending Minnesota Statutes 2012, sections 82.55, by adding a subdivision;
82.66, subdivisions 1, 2; 82.67, subdivisions 3, 4; 82.73, subdivision 3, by
adding subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 82.55, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin Designated agency. new text end

new text begin "Designated agency" occurs when two or more real
estate salespersons, licensed to the same broker, each represent a party to the transaction.
Designated agency involves the selection and designation of one or more real estate
salespersons in a brokerage to represent only the interests of the seller and one or more
different real estate salespersons in the brokerage to represent only the interests of the buyer.
new text end

Sec. 2.

Minnesota Statutes 2012, section 82.66, subdivision 1, is amended to read:


Subdivision 1.

Listing agreements.

(a) Requirement. Licensees shall obtain
a signed listing agreement or other signed written authorization from the owner of real
property or from another person authorized to offer the property for sale or lease before
advertising to the general public that the real property is available for sale or lease.

For the purposes of this section "advertising" includes placing a sign on the owner's
property that indicates that the property is being offered for sale or lease.

(b) Contents. All listing agreements must be in writing and must include:

(1) a definite expiration date;

(2) a description of the real property involved;

(3) the list price and any terms required by the seller;

(4) the amount of any compensation or commission or the basis for computing
the commission;

(5) a clear statement explaining the events or conditions that will entitle a broker to
a commission;

(6) a clear statement explaining if the agreement may be canceled and the terms
under which the agreement may be canceled;

(7) information regarding an override clause, if applicable, including a statement
to the effect that the override clause will not be effective unless the licensee supplies the
seller with a protective list within 72 hours after the expiration of the listing agreement;

(8) the following notice in not less than ten-point boldface type immediately
preceding any provision of the listing agreement relating to compensation of the licensee:

"NOTICE: THE COMPENSATION FOR THE SALE, LEASE, RENTAL, OR
MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN
EACH INDIVIDUAL BROKER AND THE BROKER'S CLIENT.";

(9) for residential property listings, the following "dual agency" disclosure statement:

If a buyer represented by broker wishes to buy the seller's property, a dual agency
will be created. This means that broker will represent both the seller(s) and the buyer(s),
and owe the same duties to the buyer(s) that broker owes to the seller(s). This conflict
of interest will prohibit broker from advocating exclusively on the seller's behalf. Dual
agency will limit the level of representation broker can provide. If a dual agency should
arise, the seller(s) will need to agree that confidential information about price, terms, and
motivation will still be kept confidential unless the seller(s) instruct broker in writing to
disclose specific information about the seller(s). All other information will be shared.
Broker cannot act as a dual agent unless both the seller(s) and the buyer(s) agree to it. By
agreeing to a possible dual agency, the seller(s) will be giving up the right to exclusive
representation in an in-house transaction. However, if the seller(s) should decide not to
agree to a possible dual agency, and the seller(s) want broker to represent the seller(s), the
seller(s) may give up the opportunity to sell the property to buyers represented by broker.

Seller's Instructions to Broker

Having read and understood this information about dual agency, seller(s) now
instructs broker as follows:

.
Seller(s) will agree to a dual agency representation and will consider
offers made by buyers represented by broker.
.
Seller(s) will not agree to a dual agency representation and will not
consider offers made by buyers represented by broker.
.
.
Seller
Real Estate Company Name
.
By:
.
Seller
Salesperson
Date : . ;

new text begin (10) for residential property listings, the following "designated agency" disclosure
statement:
new text end

new text begin If seller(s) has agreed to dual agency, a designated agency relationship may also be
created. With consent of seller(s), exclusive representation will be provided to the seller(s)
through the undersigned salesperson(s) designated by broker to represent the seller(s).
Exclusive representation may also be provided to the buyer(s) through salesperson(s)
designated by broker. However, broker will represent both the seller(s) and the buyer(s)
and owe the same duties to each as stated in the dual agency section of this agreement.
Broker cannot designate salesperson(s) to act as designated agents unless both seller(s)
and buyer(s) agree.
new text end

new text begin Seller's Instruction to Broker
new text end

new text begin Having read and understood this information about designated agency, seller(s)
now instructs broker as follows:
new text end

new text begin .
new text end
new text begin Seller(s) will agree to designated agency representation.
new text end
new text begin .
new text end
new text begin Seller(s) will not agree to designated agency representation.
new text end
new text begin .
new text end
new text begin .
new text end
new text begin Seller
new text end
new text begin Real Estate Company Name
new text end
new text begin .
new text end
new text begin By:
new text end
new text begin .
new text end
new text begin Seller
new text end
new text begin Salesperson
new text end
new text begin Date: new text end new text begin . new text end ;

deleted text begin (10)deleted text endnew text begin (11)new text end a notice requiring the seller to indicate in writing whether it is acceptable to
the seller to have the licensee arrange for closing services or whether the seller wishes to
arrange for others to conduct the closing; and

deleted text begin (11)deleted text endnew text begin (12)new text end for residential listings, a notice stating that after the expiration of the
listing agreement, the seller will not be obligated to pay the licensee a fee or commission
if the seller has executed another valid listing agreement pursuant to which the seller is
obligated to pay a fee or commission to another licensee for the sale, lease, or exchange of
the real property in question. This notice may be used in the listing agreement for any
other type of real estate.

(c) Prohibited provisions. Except as otherwise provided in paragraph (d), clause
(2), licensees shall not include in a listing agreement a holdover clause, automatic
extension, or any similar provision, or an override clause the length of which is more than
six months after the expiration of the listing agreement.

(d) Override clauses. (1) Licensees shall not seek to enforce an override clause
unless a protective list has been furnished to the seller within 72 hours after the expiration
of the listing agreement.

(2) A listing agreement may contain an override clause of up to two years in length
when used in conjunction with the purchase or sale of a business. The length of the
override clause must be negotiable between the licensee and the seller of the business. The
protective list provided in connection with the override clause must include the written
acknowledgment of each party named on the protective list, that the business which is the
subject of the listing agreement was presented to that party by the licensee.

(e) Protective lists. A broker or salesperson has the burden of demonstrating that
each person on the protective list has, during the period of the listing agreement, either
made an affirmative showing of interest in the property by responding to an advertisement
or by contacting the broker or salesperson involved or has been physically shown the
property by the broker or salesperson. For the purpose of this section, the mere mailing or
other distribution by a licensee of literature setting forth information about the property in
question does not, of itself, constitute an affirmative showing of interest in the property on
the part of a subsequent purchaser.

For listings of nonresidential real property which do not contain the notice described
in paragraph (b), clause (11), the protective list must contain the following notice in
boldface type:

"IF YOU RELIST WITH ANOTHER BROKER WITHIN THE OVERRIDE
PERIOD AND THEN SELL YOUR PROPERTY TO ANYONE WHOSE NAME
APPEARS ON THIS LIST, YOU COULD BE LIABLE FOR FULL COMMISSIONS
TO BOTH BROKERS. IF THIS NOTICE IS NOT FULLY UNDERSTOOD, SEEK
COMPETENT ADVICE."

Sec. 3.

Minnesota Statutes 2012, section 82.66, subdivision 2, is amended to read:


Subd. 2.

Buyer's broker agreements.

(a) Requirements. Licensees shall obtain a
signed buyer's broker agreement from a buyer before performing any acts as a buyer's
representative and before a purchase agreement is signed.

(b) Contents. All buyer's broker agreements must be in writing and must include:

(1) a definite expiration date;

(2) the amount of any compensation or commission, or the basis for computing
the commission;

(3) a clear statement explaining the services to be provided to the buyer by the
broker, and the events or conditions that will entitle a broker to a commission or other
compensation;

(4) a clear statement explaining if the agreement may be canceled and the terms
under which the agreement may be canceled;

(5) information regarding an override clause, if applicable, including a statement to
the effect that the override clause will not be effective unless the licensee supplies the buyer
with a protective list within 72 hours after the expiration of the buyer's broker agreement;

(6) the following notice in not less than ten-point boldface type immediately
preceding any provision of the buyer's broker agreement relating to compensation of the
licensee:

"NOTICE: THE COMPENSATION FOR THE PURCHASE, LEASE, RENTAL,
OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN
EACH INDIVIDUAL BROKER AND THE BROKER'S CLIENT.";

(7) the following "dual agency" disclosure statement:

If the buyer(s) choose(s) to purchase a property listed by broker, a dual agency will
be created. This means that broker will represent both the buyer(s) and the seller(s),
and owe the same duties to the seller(s) that broker owes to the buyer(s). This conflict
of interest will prohibit broker from advocating exclusively on the buyer's behalf. Dual
agency will limit the level of representation broker can provide. If a dual agency should
arise, the buyer(s) will need to agree that confidential information about price, terms, and
motivation will still be kept confidential unless the buyer(s) instruct broker in writing to
disclose specific information about the buyer(s). All other information will be shared.
Broker cannot act as a dual agent unless both the buyer(s) and the seller(s) agree to it. By
agreeing to a possible dual agency, the buyer(s) will be giving up the right to exclusive
representation in an in-house transaction. However, if the buyer(s) should decide not to
agree to a possible dual agency, and the buyer(s) want(s) broker to represent the buyer(s),
the buyer(s) may give up the opportunity to purchase the properties listed by broker.

Buyer's Instructions to Broker

.
Buyer(s) will agree to a dual agency representation and will consider
properties listed by broker.
.
Buyer(s) will not agree to a dual agency representation and will not
consider properties listed by broker.
.
.
Buyer
Real Estate Company Name
.
By:
.
Buyer
Salesperson
Date: . ;
and

new text begin (8) for residential property listings, the following "designated agency" disclosure
statement:
new text end

new text begin If buyer(s) has agreed to dual agency, a designated agency relationship may also
be created. With consent of buyer(s), exclusive representation will be provided to the
buyer(s) through the undersigned salesperson(s) designated by broker to represent
the buyer(s). Exclusive representation may also be provided to the seller(s) through
salesperson(s) designated by broker. However, broker will represent both the buyer(s)
and the seller(s) and owe the same duties to each as stated in the dual agency section of
this agreement. Broker cannot designate salesperson(s) to act as designated agents unless
both buyer(s) and seller(s) agree.
new text end

new text begin Buyer's Instruction to Broker
new text end

new text begin Having read and understood this information about designated agency, buyer(s)
now instructs brokers as follows:
new text end

new text begin .
new text end
new text begin Buyer(s) will agree to designated agency representation.
new text end
new text begin .
new text end
new text begin Buyer(s) will not agree to designated agency representation.
new text end
new text begin .
new text end
new text begin .
new text end
new text begin Seller
new text end
new text begin Real Estate Company Name
new text end
new text begin .
new text end
new text begin By:
new text end
new text begin .
new text end
new text begin Seller
new text end
new text begin Salesperson
new text end
new text begin Date: . ;
new text end

deleted text begin (8)deleted text endnew text begin (9)new text end for buyer's broker agreements which involve residential real property, a
notice stating that after the expiration of the buyer's broker agreement, the buyer will not
be obligated to pay the licensee a fee or commission if the buyer has executed another
valid buyer's broker agreement pursuant to which the buyer is obligated to pay a fee or
commission to another licensee for the purchase, lease, or exchange of real property.

(c) Prohibited provisions. Licensees shall not include in a buyer's broker agreement
a holdover clause, automatic extension, or any other similar provision, or an override
clause the length of which is more than six months after the expiration of the buyer's
broker agreement.

(d) Override clauses. Licensees shall not seek to enforce an override clause unless
a protective list has been furnished to the buyer within 72 hours after the expiration of the
buyer's broker agreement.

(e) Protective lists. A licensee has the burden of demonstrating that each property
on the protective list has been shown to the buyer, or specifically brought to the attention
of the buyer, during the time the buyer's broker agreement was in effect.

(f) Application. This section applies only to residential real property transactions.

Sec. 4.

Minnesota Statutes 2012, section 82.67, subdivision 3, is amended to read:


Subd. 3.

Agency disclosure form.

The agency disclosure form shall be in
substantially the form set forth below:

AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS

Minnesota law requires that early in any relationship, real estate brokers or salespersons
discuss with consumers what type of agency representation or relationship they desire.(1)
The available options are listed below. This is not a contract. This is an agency
disclosure form only. If you desire representation, you must enter into a written
contract according to state law
(a listing contract or a buyer representation contract).
Until such time as you choose to enter into a written contract for representation, you
will be treated as a customer and will not receive any representation from the broker or
salesperson. The broker or salesperson will be acting as a Facilitator (see paragraph V
below), unless the broker or salesperson is representing another party as described below.

ACKNOWLEDGMENT: I/We acknowledge that I/We have been presented with the
below-described options. I/We understand that until I/We have signed a representation
contract, I/We are not represented by the broker/salesperson. I/We understand that written
consent is required for a dual agency relationship. THIS IS A DISCLOSURE ONLY, NOT
A CONTRACT FOR REPRESENTATION.

.
.
Signature
Date
.
.
Signature
Date

I.

Seller's Broker: A broker who lists a property, or a salesperson who is licensed to
the listing broker, represents the Seller and acts on behalf of the Seller. A Seller's
broker owes to the Seller the fiduciary duties described below.(2) The broker
must also disclose to the Buyer material facts as defined in Minnesota Statutes,
section 82.68, subdivision 3, of which the broker is aware that could adversely and
significantly affect the Buyer's use or enjoyment of the property. If a broker or
salesperson working with a Buyer as a customer is representing the Seller, he or
she must act in the Seller's best interest and must tell the Seller any information
disclosed to him or her, except confidential information acquired in a facilitator
relationship (see paragraph V below). In that case, the Buyer will not be represented
and will not receive advice and counsel from the broker or salesperson.

II.

deleted text begin Subagent: A broker or salesperson who is working with a Buyer but represents the
Seller. In this case, the Buyer is the broker's customer and is not represented by that
broker. If a broker or salesperson working with a Buyer as a customer is representing
the Seller, he or she must act in the Seller's best interest and must tell the Seller
any information that is disclosed to him or her. In that case, the Buyer will not be
represented and will not receive advice and counsel from the broker or salesperson.
deleted text end

deleted text begin III.
deleted text end

Buyer's Broker: A Buyer may enter into an agreement for the broker or salesperson
to represent and act on behalf of the Buyer. The broker may represent the Buyer
only, and not the Seller, even if he or she is being paid in whole or in part by the
Seller. A Buyer's broker owes to the Buyer the fiduciary duties described below.(2)
The broker must disclose to the Buyer material facts as defined in Minnesota
Statutes, section 82.68, subdivision 3, of which the broker is aware that could
adversely and significantly affect the Buyer's use or enjoyment of the property. If
a broker or salesperson working with a Seller as a customer is representing the
Buyer, he or she must act in the Buyer's best interest and must tell the Buyer any
information disclosed to him or her, except confidential information acquired in a
facilitator relationship (see paragraph V below). In that case, the Seller will not be
represented and will not receive advice and counsel from the broker or salesperson.

deleted text begin IV. deleted text end new text begin III.
new text end

Dual Agency-Broker Representing both Seller and Buyer: Dual agency occurs
when one broker or salesperson represents both parties to a transaction, or when two
salespersons licensed to the same broker each represent a party to the transaction.
Dual agency requires the informed consent of all parties, and means that the broker
and salesperson owe the same duties to the Seller and the Buyer. This role limits the
level of representation the broker and salespersons can provide, and prohibits them
from acting exclusively for either party. In a dual agency, confidential information
about price, terms, and motivation for pursuing a transaction will be kept confidential
unless one party instructs the broker or salesperson in writing to disclose specific
information about him or her. Other information will be shared. Dual agents may
not advocate for one party to the detriment of the other.(3)

Within the limitations described above, dual agents owe to both Seller and Buyer the
fiduciary duties described below.(2) Dual agents must disclose to Buyers material
facts as defined in Minnesota Statutes, section 82.68, subdivision 3, of which the
broker is aware that could adversely and significantly affect the Buyer's use or
enjoyment of the property.

new text begin IV.
new text end

new text begin Designated Agency: new text end new text begin Designated agency occurs when a broker represents both
parties to a transaction, and, by written agreement of the parties, designates one or
more salespersons associated with the broker to represent only the interests of the
Seller and one or more salespersons associated with the broker to represent only the
interests of the Buyer.
new text end

new text begin A licensee responsible for the supervision of other licensees is prohibited from
acting as a designated agent for a party in a real estate transaction when a salesperson
subject to that licensee's supervision is acting as a designated agent for the other
party. When a broker designates salesperson(s) to represent a Seller or Buyer, the
salesperson(s) so designated shall represent only the interest of that respective party
and shall not, without that party's permission, disclose to the other party or a licensee
designated to represent the other party the following information:
new text end

new text begin (1) Seller may agree to a price, terms, or any conditions of sale other than those
established by the Seller, or, that the Buyer may agree to a price, terms, or any
conditions of sale other than those established by the Buyer;
new text end

new text begin (2) Seller's motivation for engaging in the transaction, unless disclosure is otherwise
required by statute or rule, or, the Buyer's motivation for engaging in the transaction,
unless disclosure is otherwise required by statute or rule; and
new text end

new text begin (3) any information about Seller that the Seller has identified as confidential,
unless disclosure of the information is otherwise required by statute or rule, or, any
information about the Buyer that the Buyer has identified as confidential, unless
disclosure of the information is otherwise required by statute or rule.
new text end

V.

Facilitator: A broker or salesperson who performs services for a Buyer, a Seller, or
both but does not represent either in a fiduciary capacity as a Buyer's Broker, Seller's
Broker, or Dual Agent. THE FACILITATOR BROKER OR SALESPERSON
DOES NOT OWE ANY PARTY ANY OF THE FIDUCIARY DUTIES LISTED
BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE DUTIES ARE
INCLUDED IN A WRITTEN FACILITATOR SERVICES AGREEMENT.
The
facilitator broker or salesperson owes the duty of confidentiality to the party but
owes no other duty to the party except those duties required by law or contained in
a written facilitator services agreement, if any. In the event a facilitator broker or
salesperson, working with a Buyer, shows a property listed by the facilitator broker
or salesperson, then the facilitator broker or salesperson must act as a Seller's Broker
(see paragraph I above). In the event a facilitator broker or salesperson, working
with a Seller, accepts a showing of the property by a Buyer being represented by the
facilitator broker or salesperson, then the facilitator broker or salesperson must act
as a Buyer's Broker (see paragraph III above).

.

(1) This disclosure is required by law in any transaction involving property occupied
or intended to be occupied by one to four families as their residence.

(2) The fiduciary duties mentioned above are listed below and have the following
meanings:

Loyalty-broker/salesperson will act only in 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 disclosure of 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.

(3) If Seller(s) decides not to agree to a dual agency relationship, Seller(s) may give
up the opportunity to sell the property to Buyers represented by the broker/salesperson.
If Buyer(s) decides not to agree to a dual agency relationship, Buyer(s) may give up the
opportunity to purchase properties listed by the broker.

Sec. 5.

Minnesota Statutes 2012, section 82.67, subdivision 4, is amended to read:


Subd. 4.

Creation of dual agencynew text begin and designated agencynew text end.

If circumstances
create a dual agency situation, the broker must make full disclosure to all parties to the
transaction as to the change in relationship of the parties to the broker due to dual agency.
A broker, having made full disclosure, must obtain the consent of all parties to these
circumstances in residential real property transactions in the purchase agreement in the
form set forth below which shall be set off in a boxed format to draw attention to it:

Broker represents both the seller(s) and the buyer(s) of the property involved in this
transaction, which creates a dual agency. This means that broker and its salespersons owe
fiduciary duties to both seller(s) and buyer(s). Because the parties may have conflicting
interests, broker and its salespersons are prohibited from advocating exclusively for either
party. Broker cannot act as a dual agent in this transaction without the consent of both
seller(s) and buyer(s).

new text begin If circumstances create a designated agency situation, the broker must make full
disclosure to all parties to the transaction as to the change in the relationship of the parties
to the broker and to the broker's real estate salesperson(s) due to designated agency.
A broker, having made full disclosure, must obtain the consent of all parties to these
circumstances in residential real property transactions in the purchase agreement in the
form set forth below, which shall be set off in a boxed format to draw attention to it.
new text end

new text begin Broker, through separate designated salesperson(s), represents both the seller(s)
and the buyer(s) of the property involved in this transaction, which creates a designated
agency. Under designated agency, each party is represented by a different real estate
salesperson licensed to the broker and receives services from that salesperson. At the same
time, broker represents both parties and owes each party the same duties stated in the dual
agency section of this purchase agreement.
new text end

Seller(s) and buyer(s) acknowledge that:

(1) confidential information communicated to broker which regards price, terms, or
motivation to buy or sell will remain confidential unless seller(s) or buyer(s) instruct(s)
broker in writing to disclose this information. Other information will be shared;

(2) new text beginin a dual agency situation, new text endbroker and its salespersons will not represent the
interests of either party to the detriment of the other; deleted text beginand
deleted text end

(3) within the limits of dual agency, broker and its salespersons will work diligently
to facilitate the mechanics of the salenew text begin; and
new text end

new text begin (4) in a designated agency situation, seller(s) and buyer(s) will be exclusively
represented by separate salesperson(s) licensed to the broker
new text end.

With the knowledge and understanding of the explanation above, seller(s) and
buyer(s) authorize(s) and instruct(s) broker and its salespersons to act as dual agents
in this transaction.

.
.
Seller
Buyer
.
.
Seller
Buyer
.
.
Date
Date

new text begin With the knowledge and understanding of the explanation above, seller(s) and
buyer(s) authorize(s) and instruct(s) broker and its salespersons to act as dual agents
in this transaction.
new text end

new text begin .
new text end
new text begin .
new text end
new text begin Seller
new text end
new text begin Buyer
new text end
new text begin .
new text end
new text begin .
new text end
new text begin Seller
new text end
new text begin Buyer
new text end
new text begin .
new text end
new text begin .
new text end
new text begin Date
new text end
new text begin Date
new text end

Sec. 6.

Minnesota Statutes 2012, section 82.73, subdivision 3, is amended to read:


Subd. 3.

Responsibilities of brokers.

(a) Supervision of personnel. A new text beginprimary
new text endbroker shall adequately supervise the activities of the broker's salespersons and employees.
Supervision includes the ongoing monitoring of listing agreements, purchase agreements,
other real estate-related documents which are prepared or drafted by the broker's
salespersons or employees or which are otherwise received by the broker's office, and the
review of all trust account books and records. If deleted text beginan individualdeleted text endnew text begin a primarynew text end broker maintains
more than one place of business, each place of business shall be under the broker's
direction and supervision. If a brokerage maintains more than one place of business, each
place of business shall be under the direction and supervision of an individual broker
licensed to act on behalf of the brokerage.

The primary broker shall maintain records specifying the name of each broker
responsible for the direction and supervision of each place of business. If an individual
broker, who may be the primary broker, is responsible for supervising more than one
place of business, the primary broker shall, upon written request of the commissioner,
file a written statement specifying the procedures which have been established to ensure
that all salespersons and employees are adequately supervised. Designation of another
broker to supervise a place of business does not relieve the primary broker of the ultimate
responsibility for the actions of licensees.

(b) Preparation and safekeeping of documents. A broker is responsible for the
preparation, custody, safety, and accuracy of all real estate contracts, documents, and
records, even though another person may be assigned these duties by the brokernew text begin. A broker
shall have a written company policy that identifies and describes the types of real estate
brokerage relationships in which the broker and affiliated licensees may engage with any
seller or buyer as a part of any real estate brokerage activities
new text end.

(c) Documentation and resolution of complaints. A broker shall investigate and
attempt to resolve complaints made regarding the practices of any individual licensed to
the broker and shall maintain, with respect to each individual licensed to the broker, a
complaint file containing all material relating to any complaints received in writing for
a period of three years.

(d) Disclosure of listed property information. A broker may allow any unlicensed
person, who is authorized by the broker, to disclose any factual information pertaining
to the properties listed with the broker, if the factual information is provided to the
unlicensed person in written form by the broker representing or assisting the seller(s).

(e) Property management functions for individually owned or entity-owned
real estate.
A broker shall not be responsible for supervising, nor shall the licensee be
responsible for operating, within the scope of the brokerage or within the requirements of
this chapter, activities that would be considered property management, including leasing,
maintenance, and repair, so long as the real estate being managed is "individually owned"
or "entity-owned" as defined below:

(1) "individually owned" real estate is real property in which the licensee holds an
ownership interest; and

(2) "entity-owned" real estate is real property owned by a corporation, limited
liability company, partnership, or trust, within which entity the licensee holds an ownership
interest as an owner, trustee, partner, or officer, or in another beneficiary capacity.

Sec. 7.

Minnesota Statutes 2012, section 82.73, is amended by adding a subdivision to
read:


new text begin Subd. 4. new text end

new text begin Prohibition. new text end

new text begin A licensee responsible for the direction and supervision of
other licensees is prohibited from acting as a designated agent for a party in a real estate
transaction when a salesperson subject to that licensee's direction and supervision is acting
as a designated agent for the other party.
new text end

Sec. 8.

Minnesota Statutes 2012, section 82.73, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Restrictions on the disclosure of information. new text end

new text begin In a designated agency
situation, salesperson(s) representing seller(s) or buyer(s) shall not disclose certain
information of a personal nature to the other party without that party's authorization.
The protected information is as follows:
new text end

new text begin (1) the party's willingness to agree to a price, terms, or any conditions of sale other
than those established or offered;
new text end

new text begin (2) the motivation of the party for engaging in the transaction, unless disclosure is
otherwise required by statute or rule; and
new text end

new text begin (3) any information about the party that the party has identified as confidential,
unless disclosure is otherwise required by statute or rule.
new text end