Before a licensee can initiate civil action for commission owed, what must they prove?

Prepare for the Minnesota Real Estate Salesperson Exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

To initiate a civil action for commission owed, a licensee must indeed demonstrate several key factors, making the choice "All of the above" the correct answer.

First, proof that the licensee was employed by a broker is critical. In Minnesota, a licensed real estate salesperson is legally required to work under the supervision of a licensed broker. This relationship establishes the foundation for the commission structure, affirming that the broker is the party responsible for remuneration to the salesperson.

Second, the existence of a signed agreement is also necessary. This agreement typically outlines the terms of the commission and the scope of services provided. A well-documented agreement creates a legal obligation for the broker to pay the commission upon the fulfillment of specific conditions, such as the successful closing of a sale.

Lastly, evidence of full agency disclosure is vital. This means informing all parties involved in a transaction about the agency relationship and any potential conflicts of interest. Full disclosure ensures that all parties understand who represents them and the scope of that representation, which is important in maintaining transparency and trust in the transaction.

All these components work together to establish the legal groundwork that allows a licensee to pursue a commission through civil action, highlighting the importance of proper structure and adherence to real estate regulations in Minnesota

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