Minnesota Residential Lease

When an individual hires a real estate agent to sell his house, they enter into a written contract called a listing agreement. This agreement sets out the duties and responsibilities the agent and gives him the right to sell the property. List of agreements vary from one state to another, and like most things, they are subject to change.

Case Study: Jane Doe is seeking to hire a real estate agent in Minneapolis to sell his house. Before she could begin, she must sign a Listing Agreement. She never signed a contract like this before, and she has questions. What conditions must be in agreement? What is prohibited?

In Minnesota, we must look to Minnesota Statute Section 82.21 subdivision 2 to help find answers. To date (June 12, 2008) the law says the following:

(A requirement). Permit holders must obtain a signed listing agreement or other signed written authorization from the owner of real property or another person authorized to offer the property for sale or lease before advertising to the public that real property is available for sale or lease. The purposes of this section "advertising" which involves placing a sign on the owner's property that indicates that the property is offered for sale or lease.

(B) Contents. All listing agreements must be in writing and must include:

(1) specifies an expiration date;

(2) a description of real property in question;

(3) a list of prices and conditions specified by the seller;

(4) the amount of any compensation or commission or the basis for calculating the

Commission

(5) a clear statement explaining the events or conditions that entitle a broker

Commission

(6) information regarding an override clause, if any, including a statement to the

effect that the override will not be effective unless the licensee provides the seller a protection list within 72 hours after the expiration of the listing agreement;

(7) the following notice in bold no less than ten point type immediately preceding a provision of the listing agreement relating to compensation of the licensee:

"NOTICE: compensation for the sale, lease, rental, or

Management of real estate are determined by each individual and the BROKER broker's client. "

(8) for a list of residential properties, the following "dual agency" statement:

If a buyer represented by broker wishes to buy a property of the seller, an agency will double

created. This means that the broker represents both the seller (s) and buyer (s) and have the same duties to the buyer (s) that the broker is the seller (s). This conflict of interest prohibit broker advocate solely on behalf of the seller. Dual Agency limits the level of intermediate representation can provide. If a dual agency arises, the seller (s) have to agree that confidential information about price, terms and motivation will still be kept confidential unless the seller (s) instruct broker in writing to disclose specific information about the seller (s). All other information will be shared. Broker can not act as a double agent unless the seller (s) and buyer (s) agree. By agreeing to a possible dual agency, seller (s) will be given the right to exclusive representation in a transaction internally. However, if the seller (s) should decide not to agree to a possible dual agency, and the seller (s) want broker to represent the seller (s), seller (s) may waive the opportunity to sell the property to buyers represented by broker.

Vendor Instructions t.