MN RE Broker key terms

A written employment contract between a seller and a broker that authorizes the broker to market the property and sets the term, compensation, and type of agency created.

A listing in which the broker earns a commission no matter who procures the buyer, including the seller's own sale, making it the strongest form of seller representation.

A listing that pays the broker a commission unless the seller personally finds the buyer, allowing the seller to avoid paying if selling without outside help.

A legal relationship in which a broker or salesperson acts on behalf of a client with authority to represent the client's interests in a real estate transaction, creating fiduciary obligations.

The duties an agent owes a client, including loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, and accounting for money and property entrusted to the agent.

A situation where one broker represents both buyer and seller in the same transaction, requiring written informed consent and impartial treatment of both parties rather than full loyalty to one.

An arrangement in which different agents within the same brokerage are assigned to represent the buyer and seller separately, so neither client is treated as a dual client.

A required written notice explaining agency relationships and who represents whom, given to consumers early enough to allow informed decisions before commitments are made.

A client's agreement to a practice such as dual agency or a limited service arrangement, given after receiving a clear written explanation of the consequences and alternatives.

The fiduciary duty to keep a client's nonpublic information, such as motivation or financial limits, private during and after the agency relationship, subject to legal exceptions.

The fiduciary duty to safeguard and accurately report all money or documents handled for a client, including earnest money, rents, and transaction records.

The binding contract in which a buyer agrees to buy and a seller agrees to sell real property on stated terms, including price, contingencies, deadlines, and closing conditions.

A deposit a buyer gives to show good faith and secure performance, typically held in a trust account and applied to the purchase price or forfeited if the buyer defaults.

A contract condition that must be satisfied or waived for the sale to proceed, commonly covering financing, inspection, appraisal, or the sale of the buyer's current home.

The final settlement of a real estate transaction, when funds are disbursed, the deed is delivered, and ownership transfers according to the contract terms.

A neutral third party's holding of funds and documents until contractual conditions are met, protecting both buyer and seller during the transaction.

A closing document itemizing all charges, credits, and disbursements for buyer and seller, showing how the final amounts owed were calculated.

A written instrument that transfers an interest in real property from a grantor to a grantee, which must be delivered and accepted to be effective.

A deed in which the grantor guarantees clear title and promises to defend the grantee against claims, offering the broadest protection among common deed forms.

A deed that transfers whatever interest the grantor may have without warranties, commonly used to clear clouds on title or transfer between family members.

The public filing of a deed or other instrument with the county recorder or registrar, which gives constructive notice and helps establish priority among competing claims.

A policy protecting a buyer or lender against losses from title defects, liens, or claims existing before the policy date that a title search failed to reveal.

A right to use another person's land for a specific purpose, such as utility access or a shared driveway, without owning the land itself.

Any claim, lien, easement, or restriction that burdens a property and may affect its value or transferability, disclosed in title reports.

A legal claim against property securing payment of a debt, such as a mortgage or tax lien, which must usually be resolved before clear title passes.

A written pledge of real property as security for a loan, giving the lender the right to foreclose if the borrower fails to repay according to the terms.

The borrower's written promise to repay a loan on stated terms, including principal, interest rate, payment schedule, and default provisions; it is separate from the mortgage.

The loan amount divided by the property's appraised value or purchase price, used by lenders to gauge risk and set mortgage insurance requirements.

Insurance that protects a lender against borrower default on loans with a high loan-to-value ratio, usually required when the down payment is below twenty percent.

The gradual repayment of a loan through scheduled payments that cover interest first and reduce principal over time until the balance reaches zero.

An analysis of recently sold, pending, and active comparable properties that a licensee uses to estimate a probable sale price for a specific property.

An independent, licensed opinion of a property's market value, typically required by lenders and prepared using approved valuation standards and methods.

Dollar or percentage changes made to comparable sales prices to account for differences in features, condition, location, or terms compared with the subject property.

The reasonably probable, legally permissible, physically possible, financially feasible use of a property that produces the greatest value.

Local government regulation that divides land into districts and specifies permitted uses, density, setbacks, and other development standards for each district.

A property use that lawfully existed before a zoning change but no longer complies with current rules, generally allowed to continue with limits on expansion.

An administrative exception allowing a property owner to depart from a specific zoning requirement because of unique hardship, without changing the underlying district.

Federal law prohibiting discrimination in the sale, rental, and financing of housing based on protected characteristics such as race, color, religion, sex, disability, and familial status.

Categories of people shielded from housing discrimination by federal, state, or local law, which may add characteristics beyond the federal list.

The illegal practice of guiding buyers or renters toward or away from neighborhoods based on protected characteristics, often by limiting housing choices or information.

The illegal practice of persuading owners to sell by suggesting that members of a protected class are moving into the neighborhood and will lower property values.

A separate bank account in which a broker holds client funds such as earnest money or security deposits, kept apart from operating funds and reconciled regularly.

The broker's obligation to create, retain, and make available transaction records, agency documents, and trust account records for the period required by law.

A broker's duty to oversee licensed and unlicensed staff, ensure compliance with statutes and rules, and maintain adequate policies, training, and review of transactions.

Required periodic coursework that licensees complete to renew their licenses and stay current on law, ethics, and practice requirements.

The process by which a licensee maintains active status by meeting education, fee, and filing deadlines set by the state licensing authority.