82.81 PROHIBITIONS.
Subdivision 1. License required. No person shall act as a real estate broker or real estate salesperson
unless licensed as provided in this section.
Subd. 2. Misrepresenting status as licensee. No persons shall advertise or represent themselves to be
real estate brokers or real estate salespersons unless licensed as provided in this section.
Subd. 3. Limitation on broker when transaction not completed. When the owner fails or is unable
to consummate a real estate transaction, through no fault of the purchaser, the listing broker may not claim
any portion of any trust funds deposited with the broker by the purchaser, absent a separate agreement with
the purchaser.
Subd. 4. Authorizing or engaging unlicensed person to act on licensee's behalf. No real estate broker,
salesperson, or closing agent shall engage or authorize any person, except one licensed as provided herein,
to act as a real estate broker, salesperson, or closing agent on the engager's or authorizer's behalf.
Subd. 5. Self-serving provision prohibited. No purchase agreement, earnest money contract, or similar
contract for the purchase, rental, or lease of real property may contain any hold harmless clause or arbitration
clause which addresses the rights or liabilities of persons required to be licensed pursuant to this chapter
unless the person required to be licensed is a principal in the transaction.
This does not prohibit separate and independent written agreements between any of the parties and
persons required to be licensed pursuant to this chapter.
Subd. 6. Disclosure regarding representation of parties. (a) No person licensed pursuant to this chapter
or who otherwise acts as a real estate broker or salesperson shall fail to provide at the first substantive contact
with a consumer in a residential real property transaction an agency disclosure form as set forth in section
82.67.
(b) The seller may, in the listing agreement, authorize the seller's broker to disburse part of the broker's
compensation to other brokers, including the buyer's brokers solely representing the buyer, as authorized in
section 82.70, subdivision 4.
Subd. 7. Securities sold by businesses outside scope of licensing. A license issued under this chapter
does not allow a licensee to engage in the business of buying, selling, negotiating, brokering, or otherwise
dealing in vendor's interests in contracts for deed, mortgagee's interests in mortgages, or other evidence of
indebtedness regarding real estate, except that a licensee may, if there is no compensation in addition to the
brokerage commission or fee, and if the licensee represents the seller, buyer, lessor, or lessee in the sale,
lease, or exchange of real estate, arrange for the sale of a contract, mortgage, or similar evidence of
indebtedness for the subject property.
Subd. 8. Closing services. No real estate broker, salesperson, or closing agent shall require a person to
use any particular lender, licensed attorney, real estate broker, real estate salesperson, real estate closing
agent, or title insurance agent in connection with a residential real estate closing.
Subd. 9. Exclusive agreements. (a) Except as provided in paragraph (c), a licensee shall not negotiate
the sale, exchange, lease, or listing of any real property directly with the owner or lessor knowing that the
owner or lessor has executed a written contract granting exclusive representation or assistance for the same
service in connection with the property to another real estate broker, buyer, or lessee, nor shall a licensee
negotiate the purchase, lease, or exchange of real property knowing that the buyer or lessee has executed a
Official Publication of the State of Minnesota
Revisor of Statutes
82.81MINNESOTA STATUTES 20231
