2002 Minnesota Statutes

     82.19 Prohibitions. 

    Subdivision 1.    License required.  No person shall act 
 as a real estate broker, salesperson, or real estate closing 
 agent unless licensed as herein provided.  

    Subd. 2.    Misrepresenting status as licensee.  No 
 persons shall advertise or represent themselves to be real 
 estate brokers, salespeople, or closing agents unless licensed 
 as herein provided.  

    Subd. 3.    Commission-splitting, rebates, and fees.  No 
 real estate broker, salesperson, or closing agents shall offer, 
 pay, or give, and no person shall accept, any compensation or 
 other thing of value from any real estate broker, salesperson, 
 or closing agents by way of commission-splitting, rebate, 
 finder's fees, or otherwise, in connection with any real estate 
 or business opportunity transaction.  This subdivision does not 
 apply to transactions (1) between a licensed real estate broker 
 or salesperson and the person by whom the broker or salesperson 
 is engaged to purchase or sell real estate or business 
 opportunity, (2) among persons licensed as provided herein, (3) 
 between a licensed real estate broker or salesperson and persons 
 from other jurisdictions similarly licensed in that 
 jurisdiction, (4) involving timeshare or other recreational 
 lands where the amount offered or paid does not exceed $150, and 
 payment is not conditioned upon any sale but is made merely for 
 providing the referral and the person paying the fee is bound by 
 any representations the person receiving the fee makes, and (5) 
 involving a person who receives a referral fee from a person or 
 an agent of a person licensed under this section, provided that 
 in any 12-month period, no recipient may earn more than the 
 value of one month's rent, that the recipient is a resident of 
 the property or has lived there within 60 days of the payment of 
 the fee, and that the person paying the fee is bound by any 
 representations made by the recipient of the fee.  A licensed 
 real estate broker or salesperson may assign or direct that 
 commissions or other compensation earned in connection with any 
 real estate or business opportunity transaction be paid to a 
 corporation of which the licensed real estate broker or 
 salesperson is the sole owner. 

    Subd. 4.    Authorizing or engaging unlicensed person to 
 act on licensee's behalf.  No real estate broker, salesperson, 
 or closing agent shall engage or authorize any person, except 
 one licensed as provided herein, to act as a real estate broker, 
 salesperson, or closing agent on the engager's or authorizer's 
 behalf.  

    Subd. 4a.    Self-serving provision prohibited.  No 
 purchase agreement, earnest money contract, or similar contract 
 for the purchase, rental, or lease of real property may contain 
 any hold harmless clause or arbitration clause which addresses 
 the rights or liabilities of persons required to be licensed 
 pursuant to this chapter unless the person required to be 
 licensed is a principal in the transaction.  

    This does not prohibit separate and independent written 
 agreements between any of the parties and persons required to be 
 licensed pursuant to this chapter.  

    Subd. 5.    Disclosure regarding representation of 
 parties.  (a) No person licensed pursuant to this chapter or 
 who otherwise acts as a real estate broker or salesperson shall 
 fail to provide at the first substantive contact with a consumer 
 in a residential real property transaction an agency disclosure 
 form as set forth in section 82.197. 

    (b) The seller may, in the listing agreement, authorize the 
 seller's broker to disburse part of the broker's compensation to 
 other brokers, including the buyer's brokers solely representing 
 the buyer.  A broker representing a buyer shall make known to 
 the seller or the seller's agent the fact of the agency 
 relationship before any showing or negotiations are initiated. 

    Subd. 6.    Closing agents.  A real estate closing agent 
 may not charge a fee for closing services to a borrower, and a 
 borrower may not be required to pay such a fee at settlement, if 
 the fee was not previously disclosed in writing at least one 
 business day before the settlement.  This disclosure requirement 
 will be considered satisfied if a disclosure is made or an 
 estimate given under section 507.45. 

    Subd. 7.    Securities sold by businesses outside scope of 
 licensing.  A license issued under this chapter does not allow 
 a licensee to engage in the business of buying, selling, 
 negotiating, brokering, or otherwise dealing in vendor's 
 interests in contracts for deed, mortgagee's interests in 
 mortgages, or other evidence of indebtedness regarding real 
 estate, except that a licensee may, if there is no compensation 
 in addition to the brokerage commission or fee, and if the 
 licensee represents the seller, buyer, lessor, or lessee in the 
 sale, lease, or exchange of real estate, arrange for the sale of 
 a contract, mortgage, or similar evidence of indebtedness for 
 the subject property. 

    Subd. 8.    Closing services.  No real estate broker, 
 salesperson, or closing agent shall require a person to use any 
 particular lender, licensed attorney, real estate broker, real 
 estate salesperson, real estate closing agent, or title company 
 in connection with a residential real estate closing. 

    Subd. 9.  MS 1993 Supp Repealed, 1994 c 587 art 5 s 31 

    Subd. 9.    Exclusive agreements.  (a) Except as 
 provided in paragraph (c), a licensee shall not negotiate the 
 sale, exchange, lease, or listing of any real property directly 
 with the owner or lessor knowing that the owner or lessor has 
 executed a written contract granting exclusive representation or 
 assistance in connection with the property to another real 
 estate broker, buyer, or lessee, nor shall a licensee negotiate 
 the purchase, lease, or exchange of real property knowing that 
 the buyer or lessee has executed a written contract granting 
 exclusive representation or assistance for the purchase, lease, 
 or exchange of the real property with another real estate broker.

    (b) Licensees shall not induce any party to a contract of 
 sale, purchase, lease, or option, or to an exclusive listing 
 agreement or buyer's agreement, or facilitator services 
 agreement, to breach the contract, option, or agreement. 

    (c) A licensee may discuss the terms upon which a listing 
 or buyer representation contract or a contract for facilitator 
 services may be entered into after expiration of any existing 
 exclusive contract when the inquiry or discussion is initiated 
 by the owner, lessor, buyer, or lessee.  The licensee must 
 inquire of the owner, lessor, buyer, or lessee whether such an 
 exclusive contract exists. 

    HIST: 1973 c 410 s 3; 1975 c 38 s 2; 1985 c 148 s 1; 1985 c 
 251 s 6,7; 1986 c 358 s 8; 1986 c 444; 1989 c 347 s 5-9; 1992 c 
 555 art 1 s 2; 1993 c 309 s 4-6; 1993 c 375 art 5 s 1; 1995 c 68 
 s 2; 1996 c 439 art 3 s 1; 1997 c 73 s 1; 1997 c 222 s 33; 2002 
 c 286 s 1