1997 Minnesota Statutes

     82.17 Definitions. 

    Subdivision 1.  For the purposes of this chapter the terms 
 defined in this section have the meanings given to them.  

    Subd. 2.  "Person" means a natural person, firm, 
 partnership, corporation or association, and the officers, 
 directors, employees and agents thereof.  

    Subd. 3.  "Commissioner" means the commissioner of commerce 
 or a designee.  

    Subd. 4.  "Real estate broker" or "broker" means any person 
 who: 

    (a) for another and for commission, fee, or other valuable 
 consideration or with the intention or expectation of receiving 
 the same directly or indirectly lists, sells, exchanges, buys or 
 rents, manages, or offers or attempts to negotiate a sale, 
 option, exchange, purchase or rental of an interest or estate in 
 real estate, or advertises or holds out as engaged in these 
 activities; 

    (b) for another and for commission, fee, or other valuable 
 consideration or with the intention or expectation of receiving 
 the same directly or indirectly negotiates or offers or attempts 
 to negotiate a loan, secured or to be secured by a mortgage or 
 other encumbrance on real estate; 

    (c) for another and for commission, fee, or other valuable 
 consideration or with the intention or expectation of receiving 
 the same directly or indirectly lists, sells, exchanges, buys, 
 rents, manages, offers or attempts to negotiate a sale, option, 
 exchange, purchase or rental of any business opportunity or 
 business, or its good will, inventory, or fixtures, or any 
 interest therein; 

    (d) for another and for commission, fee, or other valuable 
 consideration or with the intention or expectation of receiving 
 the same directly or indirectly offers, sells or attempts to 
 negotiate the sale of property that is subject to the 
 registration requirements of chapter 83, concerning subdivided 
 land; 

    (e) for another and for commission, fee, or other valuable 
 consideration or with the intention or expectation of receiving 
 the same, promotes the sale of real estate by advertising it in 
 a publication issued primarily for this purpose, if the person:  

    (1) negotiates on behalf of any party to a transaction; 

    (2) disseminates any information regarding the property to 
 any party or potential party to a transaction subsequent to the 
 publication of the advertisement, except that in response to an 
 initial inquiry from a potential purchaser, the person may 
 forward additional written information regarding the property 
 which has been prepared prior to the publication by the seller 
 or broker or a representative of either; 

    (3) counsels, advises, or offers suggestions to the seller 
 or a representative of the seller with regard to the marketing, 
 offer, sale, or lease of the real estate, whether prior to or 
 subsequent to the publication of the advertisement; 

    (4) counsels, advises, or offers suggestions to a potential 
 buyer or a representative of the seller with regard to the 
 purchase or rental of any advertised real estate; or 

    (5) engages in any other activity otherwise subject to 
 licensure under this chapter; 

    (f) engages wholly or in part in the business of selling 
 real estate to the extent that a pattern of real estate sales is 
 established, whether or not the real estate is owned by the 
 person.  A person shall be presumed to be engaged in the 
 business of selling real estate if the person engages as 
 principal in five or more transactions during any 12-month 
 period, unless the person is represented by a licensed real 
 estate broker or salesperson; 

    (g) offers or makes more than five loans secured by real 
 estate during any 12-month period and who is not a bank, savings 
 bank, mutual savings bank, or savings association organized 
 under the laws of this state or the United States, trust 
 company, trust company acting as a fiduciary, or other financial 
 institution subject to the supervision of the commissioner of 
 commerce, or mortgagee or lender approved or certified by the 
 secretary of housing and urban development or approved or 
 certified by the administrator of veterans affairs, or approved 
 or certified by the administrator of the Farmers Home 
 Administration, or approved or certified by the Federal Home 
 Loan Mortgage Corporation, or approved or certified by the 
 Federal National Mortgage Association. 

    Subd. 5.  "Real estate salesperson" means one who acts on 
 behalf of a real estate broker in performing any act authorized 
 by this chapter to be performed by the broker.  

    Subd. 6.  "Trust account" means, for purposes of this 
 chapter, a savings account, negotiable order of withdrawal 
 account, demand deposit or checking account maintained for the 
 purpose of segregating trust funds from other funds.  A trust 
 account must be an interest-bearing account paying the highest 
 current passbook savings account rate of interest and must not 
 allow the financial institution a right of set off against money 
 owed it by the licensee. 

    Subd. 7.  "Trust funds" means funds received by a broker, 
 salesperson, or closing agent in a fiduciary capacity as a part 
 of a real estate or business opportunity transaction, pending 
 the consummation or termination of a transaction, and includes 
 all down payments, earnest money deposits, rents for clients, 
 tax and insurance escrow payments, damage deposits, and any 
 funds received on behalf of any person.  

    Subd. 8.  For purposes of sections 82.17 to 82.34, real 
 estate shall also include, a manufactured home, when such 
 manufactured home is affixed to land.  Manufactured home means 
 any factory built structure or structures equipped with the 
 necessary service connections and made so as to be readily 
 movable as a unit or units and designed to be used as a dwelling 
 unit or units.  

    Subd. 9.  "Public member" means a person who is not, or 
 never was, a real estate broker, real estate salesperson, or a 
 closing agent or the spouse of such person, or a person who has 
 no, or never has had a material financial interest in acting as 
 a real estate broker, real estate salesperson, or a closing 
 agent or a directly related activity. 

    Subd. 10.  "Closing agent" or "real estate closing agent" 
 means any person whether or not acting as an agent for a title 
 company, a licensed attorney, real estate broker, or real estate 
 salesperson, who for another and with or without a commission, 
 fee, or other valuable consideration or with or without the 
 intention or expectation of receiving a commission, fee, or 
 other valuable consideration, directly or indirectly provides 
 closing services incident to the sale, trade, lease, or loan of 
 residential real estate, including drawing or assisting in 
 drawing papers incident to the sale, trade, lease, or loan, or 
 advertises or claims to be engaged in these activities.  

    Subd. 11.    Dual agency.  "Dual agency" means a 
 situation in which a licensee owes a duty to more than one party 
 to the transaction.  

    Circumstances which establish dual agency include the 
 following:  

    (1) when one licensee represents both the buyer and the 
 seller in a real estate transaction; or 

    (2) when two or more licensees, licensed to the same 
 broker, each represent a party to the transaction. 

    Subd. 12.    Residential real property or residential real 
 estate.  "Residential real property" or "residential real 
 estate" means property occupied by, or intended to be occupied 
 by, one to four families as their residence. 

    HIST: 1973 c 410 s 1; 1980 c 516 s 2; 1981 c 365 s 9; 1983 c 
 284 s 11,12; 1984 c 552 s 7; 1986 c 358 s 7; 1986 c 444; 1987 c 
 105 s 3; 1987 c 336 s 20; 1988 c 654 s 1; 1988 c 695 s 2; 1989 c 
 347 s 1-3; 1993 c 309 s 1-3; 1995 c 202 art 1 s 25