Minnesota State Real Estate Practice Test

What must a salesperson provide to prospective buyers when showing a home?

1. A listing of comparable sales

2. An agency disclosure agreement

3. A history of the property

4. An estimate of property taxes

The correct answer is: An agency disclosure agreement

A salesperson is required to provide an agency disclosure agreement to prospective buyers when showing a home. This document outlines the relationship between the agent and the client, ensuring that buyers understand who the agent represents in the transaction. It promotes transparency and establishes trust, as it clarifies the duties and responsibilities the agent has towards their client versus any other party involved in the transaction. Providing an agency disclosure is important because it protects both the agent and the consumer. It informs prospective buyers of their rights and the nature of the representation they can expect, whether the agent is acting solely for the seller, solely for the buyer, or in a dual agency capacity, where the agent represents both parties. While a listing of comparable sales, a history of the property, or an estimate of property taxes could be valuable information for buyers, they are not mandated requirements for a salesperson to provide during a showing, unlike the agency disclosure agreement, which is a legal requirement under Minnesota law.