4 Tips on Disclosure and Contracts

  1. An Agency Relationship in Real Estate Transactions form must be presented to a buyer/tenant and seller/landlord at first substantive contact with that party. This is a disclosure form, NOT a contract, although it does ask for the party’s signature as an acknowledgement. First substantive contract generally means before discussing financial, confidential or motivational information with a consumer.
  2. Listing contracts be signed before offering/advertising to property for sale or lease.
  3. Buyer/Tenant representation contracts must be signed before taking any action to represent a buyer/tenant and before a purchase agreement or lease agreement is signed.
  4. A contract is not required to act as a facilitator when working with a buyer/tenant. However, when acting as a facilitator and working with a buyer/tenant, a Buyer/Tenant Facilitator Services Contract may be wise in order to insure compensation is received for services provided, to establish an exclusive relationship so other agents are not intruding on the relationship between the facilitator and the buyer/tenant and/or to specifically define the services to be provided. (While most listing agents will use an Exclusive Right to Sell/Lease Listing Contract, a Seller/Owner Leasing Facilitator Services Contract may be used in listing property for seller/landlord.)

The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

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