1998 Minnesota Statutes

     82.195 Listing agreements. 

    Subdivision 1.    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.  

    Subd. 2.    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) 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; 

    (7) 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 COMMISSION RATE FOR THE SALE, LEASE, RENTAL, 
 OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH 
 INDIVIDUAL BROKER AND ITS CLIENT."; 

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

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

             representation and will not consider offers

             made by buyers represented by broker. 

    

    

 .........................      ......................... 

 Seller                         Broker 

    

    

 .........................      By:  .................... 

 Seller                              Salesperson 

    

 Date:  ..................; 

    (9) 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.  The notice must also 
 include the disclosure of any controlled business arrangement, 
 as the term is defined in United States Code, title 12, section 
 2602, between the licensee and the real estate closing agent 
 through which the licensee proposes to arrange closing services; 
 and 

    (10) 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.  

    Subd. 3.    Prohibited provisions.  Except as otherwise 
 provided in subdivision 4, paragraph (b), 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. 

    Subd. 4.    Override clauses.  (a) 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.  

    (b) 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. 

    Subd. 5.    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 subdivision 2, clause (10), 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." 

    HIST: 1993 c 309 s 7; 1994 c 465 art 1 s 4; 1995 c 68 s 3; 
 1996 c 439 art 3 s 2