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02/12/13
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02/12/13
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7/18/2025 11:23:48 AM
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2/13/2013 1:16:02 PM
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Meetings
Meeting Document Type
Agenda
Document Title
Housing & Redevelopment Authority
Document Date
02/12/2013
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the property which has been prepared prior to the publication by the seller <br />or broker or a representative of either; <br />(3) counsels, advises, or offers suggestions to the seller or a representative <br />of the seller with regard to the marketing, offer, sale, or lease of the real <br />estate, whether prior to or subsequent to the publication of the <br />advertisement; <br />(4) counsels, advises, or - offers - suggestions to a potential buyer or a <br />representative of the seller with regard to the purchase or rental of any <br />advertised real estate; or <br />(5) engages in any other activity otherwise subject to licensure under this <br />chapter; <br />Accordingly, under subsection (a), one who (1) manages, offers, or attempts to negotiate <br />a sale, (2) of an interest in real estate, (3) in exchange for compensation, is a real estate <br />broker. Further, simply holding oneself out as engaged in such activities qualifies one as <br />a real estate broker. <br />Under subsection (f), one who promotes a sale of realty by advertising it in a publication <br />primarily meant for promoting real estate, and who also satisfies one or more of the five <br />listed criteria, is a real estate broker. <br />Section 82.56 sets forth numerous exceptions to the definition of real estate broker, none <br />of which would appear to cover Landform or its principals. <br />Importantly, § 82.85 prohibits a party who is required to be licensed as a real estate <br />broker from bringing any civil action in the state courts for recovery of compensation due <br />for real estate brokerage services unless the party proves they are licensed. Subdivision 1 <br />thereof specifically states: <br />Subdivision 1. Compensation actions; proof of license. No person shall <br />bring or maintain any action in the courts of this state for the collection of <br />compensation for the performance of any of the acts for which a license is <br />required under this chapter without alleging and proving that the person <br />was a duly licensed real estate broker, salesperson, or closing agent at the <br />time the alleged cause of action arose. <br />This provision therefore prohibits a civil action in the courts of Minnesota for the <br />recovery of compensation due for only those activities for which a broker's license is <br />required. Activities for which a broker's license is not required, e.g., civil engineering, <br />planning, surveying, consulting, etc., would still be actionable. This is contrary to the <br />opinion expressed in the previous memorandum, which states that "Landform is not <br />entitled to compensation for any of Lazan's services," since as further explained below <br />not all of the services provided by Landform fall under the definition of a real estate <br />broker. <br />Page 4 of 4 <br />
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