Agency Disclosure Explained

An agency disclosure is a document in real estate transactions that outlines the roles and relationships between real estate agents and consumers. It serves as a valuable tool for ensuring transparency and clarity in our working relationship. Here’s why you should care and what you need to know:

1. Explanation of Representation: The agency disclosure explains who I, as your real estate agent, represent in the transaction. It outlines the different types of representation: a seller’s broker, a buyer’s broker, a dual agent, or a facilitator.
2. Fiduciary Duties: This disclosure specifies the fiduciary duties that I owe my you when I’m representing a seller or buyer. These include loyalty, confidentiality, full disclosure, and the duty to act in the client’s best interests. Consumers can ensure they receive the appropriate level of representation and protection by understanding these duties.
3. Understanding Conflicts of Interest: If the situation arises where I’m representing both the buyer and seller in a dual agency capacity, the agency disclosure highlights the potential limitations on confidentiality and advocacy.
4. Informed Decision-Making: The agency disclosure empowers you to make informed decisions about our working relationship. It ensures that you have a clear understanding of my role and responsibilities in the transaction.
5. Legal Protections: In Minnesota, it is a legal requirement for agents to provide agency disclosure early on in any real estate relationship. By receiving this document, you can be confident that I am following the law and adhering to ethical standards in our partnership. Although you will be asked to sign this document in any real estate relationship, it is not a contract.

With so many different disclosures, agreements, and contracts in real estate transactions, it’s important to understand what they mean and how they impact you! Be sure to reach out if you have any questions!