2001 Minnesota Statutes

     82.196 Buyer's broker agreements. 

    Subdivision 1.    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. 

    Subd. 2.    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 bold 
 face 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 you choose to purchase a property listed by broker, a 
 dual agency will be created.  This means that broker will 
 represent both you and the seller(s), and owe the same duties to 
 the seller(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 seller(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 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 will not agree to a dual agency 

              representation and will not consider 
              properties listed by broker. 

    

    

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

 Buyer                          Broker 

    

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

 Buyer                               Salesperson 

    

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

    (8) 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. 

    Subd. 3.    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.  

    Subd. 4.    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.  

    Subd. 5.    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.  

    Subd. 6.    Application.  This section applies only to 
 residential real property transactions. 

    HIST: 1993 c 309 s 8; 1996 c 439 art 3 s 3,4; 2001 c 208 s 10