Minnesota Specifies (Kind of) Timing of “Related Party Disclosure” Requirement
[Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.]
Minnesota real estate agents have always had a duty to disclose that they were representing a family member in a transaction.
The logic?
To keep sophisticated pros (sharks?) from preying on taking advantage of everyone else (at least, that’s what I’ve always thought).
But, the timing of that disclosure was never stipulated.
Timing: BEFORE Closing
No more.
Effective August 1 (this Saturday), the disclosure must be provided “before negotiating or consummating any transaction.”
Here’s guessing that too many agents were waiting till the walk-thru inspection, closing, or even after to inform the other side . . .
P.S.: the standard for when Minnesota Realtors must discuss the state’s required “Agency Relationships” disclosure has long been defined as, at the time of the “first substantive contact” with (prospective) clients.
See also, “Shortcut for Realtors Who Can’t Remember “Related Party” Disclosure Rules“; “Keeping Emotion Out of the Deal: When the Seller & Listing Agent Are Related (or Friends)“; and “Working With Home Buyers: “Contracts” vs. “Paperwork”.”
Plus: “Sneak Peek: 2018-2019 Minnesota Real Estate Contract Changes“; “Sneak Peek: 2017-2018 Minnesota Real Estate Contract Changes“; and “When the Realtor is the Client’s Brother-in-Law/High School Buddy/Spouse’s First Cousin’s Sister.”
