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Key: (1) language to be deleted (2) new language

CHAPTER 134--H.F.No. 2152
An act
relating to commerce; specifying the extent of responsibility of real
estate licensees for property management activities on real property owned by
the licensee or by an entity in which the licensee has an ownership interest;
amending Minnesota Statutes 2010, section 82.73, subdivision 3.

    Section 1. Minnesota Statutes 2010, section 82.73, subdivision 3, is amended to read:
    Subd. 3. Responsibilities of brokers. (a) Supervision of personnel. A broker
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 an individual 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 broker.
(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, officer, or in another beneficiary capacity.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to property management activities performed on or after that date.
Presented to the governor March 19, 2012
Signed by the governor March 20, 2012, 3:35 p.m.

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