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Minnesota Legislature

Office of the Revisor of Statutes

82.22 DISCLOSURE REQUIREMENTS.
    Subdivision 1.MS 2002 [Renumbered 82.29, subdivision 1]
    Subdivision 1. Advertising. Each licensee shall identify himself or herself as either a broker
or an agent salesperson in any advertising for the purchase, sale, lease, exchange, mortgaging,
transfer, or other disposition of real property, whether the advertising pertains to the licensee's
own property or the property of others.
    Subd. 2.MS 2002 [Renumbered 82.29, subd 4]
    Subd. 2. Agency disclosure. A real estate broker or salesperson shall provide to a consumer
in the sale and purchase of a residential real property transaction at the first substantive contact
with the consumer an agency disclosure form in substantially the form set forth in subdivision 4.
The agency disclosure form shall be intended to provide a description of available options for
agency and facilitator relationships, and a description of the role of a licensee under each option.
The agency disclosure form shall provide a signature line for acknowledgment of receipt by the
consumer. The disclosures required by this subdivision apply only to residential real property
transactions.
    Subd. 3.MS 2002 [Renumbered 82.29, subd 7]
    Subd. 3. Scope and effect. Disclosures made in accordance with the requirements for
disclosure of agency relationships set forth in this chapter are sufficient to satisfy common law
disclosure requirements.
    Subd. 4.MS 2002 [Renumbered 82.29, subd 3]
    Subd. 4. 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.
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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 82.22, subdivision 8, 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.
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.
III.
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 82.22, subdivision 8, 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.
IV.
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 82.22, subdivision 8, of which the broker is aware
that could adversely and significantly affect the Buyer's use or enjoyment of the property.
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.
    Subd. 5.MS 2002 [Renumbered 82.31, subd 5]
    Subd. 5. Creation of dual agency. 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).
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) broker and its salespersons will not represent the interests of either party to the detriment
of the other; and
(3) within the limits of dual agency, broker and its salespersons will work diligently to
facilitate the mechanics of the sale.
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.
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    Subd. 6. MS 2002 [Renumbered 82.29, subd 8]
    Subd. 6. Agent of broker disclosure. A salesperson shall only conduct business under the
licensed name of and on behalf of the broker to whom the salesperson is licensed. An individual
broker shall only conduct business under the broker's licensed name. A broker licensed to a
corporation or partnership shall only conduct business under the licensed corporate or partnership
name. A licensee shall affirmatively disclose, before the negotiation or consummation of any
transaction, the licensed name of the broker under whom the licensee is authorized to conduct
business in accordance with this section.
    Subd. 7.MS 1992 [Repealed, 1993 c 309 s 32]
    Subd. 7. Financial interests disclosure; licensee. (a) Prior to the negotiation or
consummation of any transaction, a licensee shall affirmatively disclose to the owner of real
property that the licensee is a real estate broker or agent salesperson, and in what capacity the
licensee is acting, if the licensee directly, or indirectly through a third party, purchases for
himself or herself or acquires, or intends to acquire, any interest in, or any option to purchase,
the owner's property.
(b) When a principal in the transaction is a licensee or a relative or business associate of the
licensee, that fact must be disclosed in writing.
    Subd. 8.MS 2002 [Renumbered 82.33, subdivision 1]
    Subd. 8. Material facts. (a) Licensees shall disclose to any prospective purchaser all
material facts of which the licensees are aware, which could adversely and significantly affect
an ordinary purchaser's use or enjoyment of the property, or any intended use of the property
of which the licensees are aware.
    (b) It is not a material fact relating to real property offered for sale the fact or suspicion
that the property:
    (1) is or was occupied by an owner or occupant who is or was suspected to be infected with
human immunodeficiency virus or diagnosed with acquired immunodeficiency syndrome;
    (2) was the site of a suicide, accidental death, natural death, or perceived paranormal
activity; or
    (3) is located in a neighborhood containing any adult family home, community-based
residential facility, or nursing home.
    (c) A licensee or employee of the licensee has no duty to disclose information regarding an
offender who is required to register under section 243.166, or about whom notification is made
under that section, if the broker or salesperson, in a timely manner, provides a written notice that
information about the predatory offender registry and persons registered with the registry may be
obtained by contacting local law enforcement where the property is located or the Department
of Corrections.
    (d) A licensee or employee of the licensee has no duty to disclose information regarding
airport zoning regulations if the broker or salesperson, in a timely manner, provides a written
notice that a copy of the airport zoning regulations as adopted can be reviewed or obtained at the
office of the county recorder where the zoned area is located.
    (e) A licensee is not required to disclose, except as otherwise provided in paragraph (f),
information relating to the physical condition of the property or any other information relating to
the real estate transaction, if a written report that discloses the information has been prepared by a
qualified third party and provided to the person. For the purposes of this paragraph, "qualified
third party" means a federal, state, or local governmental agency, or any person whom the
broker, salesperson, or a party to the real estate transaction reasonably believes has the expertise
necessary to meet the industry standards of practice for the type of inspection or investigation that
has been conducted by the third party in order to prepare the written report and who is acceptable
to the person to whom the disclosure is being made.
     (f) A licensee shall disclose to the parties to a real estate transaction any facts known by the
broker or salesperson that contradict any information included in a written report, if a copy of the
report is provided to the licensee, described in paragraph (e).
     (g) The limitation on disclosures set forth in paragraphs (b) and (c) shall modify any common
law duties with respect to disclosure of material facts.
    Subd. 9.MS 2002 [Repealed, 2004 c 203 art 2 s 62]
    Subd. 9. Nonperformance of any party. If a licensee is put on notice by any party to a real
estate transaction that the party will not perform in accordance with the terms of a purchase
agreement or other similar written agreement to convey real estate, the licensee shall immediately
disclose the fact of that party's intent not to perform to the other party or parties to the transaction.
Whenever reasonably possible, the licensee shall inform the party who will not perform of the
licensee's obligation to disclose this fact to the other party or parties to the transaction prior to
making the disclosure. The obligation required by this section shall not apply to notice of a
party's inability to keep or fulfill any contingency to which the real estate transaction has been
made subject.
    Subd. 10.[Renumbered 82.33, subd 4]
    Subd. 11.[Renumbered 82.29, subd 2]
    Subd. 12.[Renumbered 82.44]
    Subd. 13.[Renumbered 82.32]
History: 1986 c 444; 1993 c 309 s 9; 1994 c 461 s 1; 1996 c 439 art 3 s 5-8; 2001 c 208 s
11-13; 2002 c 286 s 2-4; 2004 c 203 art 2 s 22,61; 2007 c 64 s 1