Dual Agency: Written Consent Requirements

Before you start — 7 things to know

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  Dual agency is when the same agent or brokerage represents both you (the buyer) and the seller in the same Minnesota transaction, and under Minn. Stat. §82.67, Subd. 1 it is only allowed if you receive a written disclosure and sign a written consent before the agent takes on that dual role.

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  Your written dual agency consent must clearly state that the agent cannot advocate only for you, cannot share the seller's minimum acceptable price with you, and will be limited in the negotiation advice they can give, so read it carefully instead of treating it as a routine form.

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  You have the right to refuse dual agency in Minnesota; if you are not comfortable with one agent representing both sides, you can ask for your own separate buyer's agent or walk away from working with that licensee on that specific property.

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  If the listing brokerage is large enough, you can ask about designated agency under Minn. Stat. §82.67, Subd. 3, where one licensee in the firm represents you and a different licensee represents the seller, which keeps more real advocacy on your side than full dual agency.

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  Written consent must be signed before any real negotiation begins; if an agent starts negotiating price or terms for both sides without first getting your signed dual agency consent, that is a compliance failure the Minnesota Department of Commerce can act on under Minnesota Rules Chapter 2805.

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  A vague or buried dual agency consent does not protect the agent and does not bind you; Minnesota regulators look closely at whether the consumer actually understood what dual agency meant, so ask the agent to explain anything that is unclear before you sign.

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  Some Minnesota brokerages have a written policy that prohibits dual agency entirely, so if an individual agent suggests it on a property you like, ask whether their broker actually permits it before you assume the arrangement is available.

The timeline — step by step

1. 1

   Step 1: When you first start working with a Minnesota real estate agent, ask whether they or their brokerage might also represent the seller on any home you want to see, so you know up front whether dual agency could come up.

2. 2

   Step 2: If you find a home where the listing agent or their brokerage is the same as your agent, request the written dual agency disclosure required by Minn. Stat. §82.67, Subd. 1 before you make an offer or talk price.

3. 3

   Step 3: Read the dual agency disclosure carefully and confirm it spells out that the agent cannot advocate only for you, cannot share the seller's lowest acceptable price, and will be limited in the advice they can give you during negotiation.

4. 4

   Step 4: Decide whether you want to consent, refuse and use a different agent, or ask the brokerage to set up designated agency under Minn. Stat. §82.67, Subd. 3 so a different licensee in the firm represents you.

5. 5

   Step 5: If you agree to dual agency, sign the written consent before any substantive negotiation on price or terms begins, since Minnesota law requires consent to come first, not after.

6. 6

   Step 6: Keep your signed copy of the dual agency disclosure and consent with your other transaction paperwork in case you later have questions about how the agent handled the deal.

Common questions