MN home buyer rights

Minnesota Law requires that early on in ANY real estate transaction that consumers be made aware of their legal rights. That’s how important this is; just as important for an MN home buyer

So what are your rights? Of course, I am not an attorney and this page is referring to your specific rights regarding a buyer’s relationship to their realtor, or lack there of.  In order to understand fully your rights, you will want to understand the history behind them.  You can click here to view the Agency Disclosure form.


In the 1980’s a MN home buyer had NO legally protected rights of representation. The Media created a slogan “Buyer Beware.” This eluted to the fact the buyer may be taken advantage of when purchasing a home. The only way to visit a home in those days was to contact the Listing Agent directly. The listing agent of course was representing the seller and their best interests and no legal obligation to represent the buyer and theirs.

In the mid 1980’s Minnesota responded. They decided to create a relationship between home buyers and Realtors called Buyer Agency. This relationship allowed for buyers to hire their own Realtor in order to negotiate the purchase contract without being taken advantage of. The relationship has grown into more than just negotiating a contract. With the implementation of the Multiple Listing Service, a Buyer’s Realtor has access to all pertinent information regarding the sale of ANY home in MN.

What does this mean for the buyer? The buyer now has the OPTION to hire a Realtor to help them throughout the entire process of purchasing a home.


If the MN home buyer chooses NOT to hire their own Realtor – they will use the Seller’s Realtor by default and be catapulted back to the early 1980’s.  SORT OF.  This is very very confusing, but should be noted that this happens very often.


So, how much does something like this costThe good news for home buyers is that ALL Realtor commissions are paid by the seller to the Listing company. This means that the buyer will pay nothing for full representation.

Furthermore, buyers that have no representation (and default to using the seller’s Realtor) pay 4% more for Real Estate than if they choose a Full time Realtor. The question you might ask yourself is Why wouldn’t I hire a Realtor?


If you are purchasing a home from a relative and you have already negotiated a price; you can hire a Realtor to facilitate the transaction for you. Neither party will have representation and neither party will have the protection you would receive if you did. A Facilitator agreement typically runs between 1 and 3 percent of the purchase price of the home.


A FINAL NOTE ON YOUR RIGHTS:

If are intending on becoming an MN home buyer, call 651-485-6383 and set up a time to discuss your rights further. MN law currently protects the home buyer only if they have a Realtor. If not, than any one of these actions may default you back to the early 1980’s:

  1. Calling a For Sale Sign
  2. Calling an 800# in an ad
  3. Requesting information from an ad via email or fax
  4. Searching Open Houses

IT IS IN YOUR BEST INTEREST TO HIRE A REALTOR PER MINNESOTA’S LAW. HOWEVER, IT IS YOUR OPTION AND MOST REALTORS NEVER GIVE YOU THE CHOICE…BECAUSE THEY ARE WORKING FOR THE SELLER.


This page was created for prospective homeowners to not only search for homes, but to become an educated home buyer, to research information that is pertinent and relevant to buying in Minnesota.  For more information regarding buying a home, call Travis Anderson at 651-485-6383