Real Estate Course 1 (1/2)

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In which of these situations, would the "Important Information about Contracts for Deeds" notice be required? This is the seller's sixth contract for deed transaction this year. The buyer is represented by an individual licensed to practice law in Minnesota. Notice Required/Notice Not Required

Notice Not Required

Appraiser Renewal Truths True/False Renewal dates are based on initial license dates

False

General or Special Agent Conducts duties of property managers

General

Mechanic's lien Voluntary/Involuntary

Involuntary

What are some issues you should look out for when dealing with foreclosure properties? Indicate whether or not these situations are issues by matching each one to the correct term. There may be unpaid tax liens. Issue/Not an issue

Issue

Law or Regulation Begins as legislation proposed by and voted into effect by a state legislature; also called a statue

Law

What are metes? And what is a bound? If you've reviewed the resource, you already know. Let's test your knowledge. Sort the items based on whether they are metes or bounds. One acre Metes/Bounds

Metes

Are the following actions prohibited or acceptable? You've been asked to arrange the closing, so you request that a colleague who is a licensed closing agent handle it.

Acceptable

Are the following actions prohibited or acceptable? Your client asks you about your experience with each attorney on a list that you provided. You mention that you've worked with three of the five but haven't interacted with the other two.

Acceptable

Pair each item to identify it as either a prorated accrued item or a prorated prepaid item. Interest on the seller's mortgage assumed by the buyer Accrued/Prepaid

Accrued

Pair each item to identify it as either a prorated accrued item or a prorated prepaid item. Rent the seller collected from the tenant for a period of time in which the buyer will own the property Accrued/Prepaid

Accrued

Pair each item to identify it as either a prorated accrued item or a prorated prepaid item. Unpaid real estate taxes Accrued/Prepaid

Accrued

Assume you have a client who is a successful single businessman who travels a lot for work. When he's home, he likes to go out on the town. He has no interest in yard work. What would be some of the advantages and disadvantages for him in owning a condo? No yard work Advantage/Disadvantage

Advantage

Assume you have a client who wants the convenience of living in an area that has shopping, recreation, and mass transit nearby. What are some of the advantages and disadvantages of PUD and MUD living? Review each statement about mixed-use developments and determine if the statement reflects an advantage or disadvantage of this type of housing. Convenience and security of having neighbors, shops, medical facilities, and mass transit nearby. Advantage/Disadvantage

Advantage

Assume you have a client who wants the convenience of living in an area that has shopping, recreation, and mass transit nearby. What are some of the advantages and disadvantages of PUD and MUD living? Review each statement about mixed-use developments and determine if the statement reflects an advantage or disadvantage of this type of housing. Residential and commercial are in the same building or group of buildings. Advantage/Disadvantage

Advantage

Assume you have a young couple as clients who are less interested in owning real estate and more interested in living in a place with other like-minded individuals. What are some of the advantages and disadvantages of co-op living? Review each statement about co-ops, and determine if the statement reflects an advantage or disadvantage of this type of housing. Own a share in the cooperative's corporation Advantage/Disadvantage

Advantage

Assume you have a young couple as clients who are less interested in owning real estate and more interested in living in a place with other like-minded individuals. What are some of the advantages and disadvantages of co-op living? Review each statement about co-ops, and determine if the statement reflects an advantage or disadvantage of this type of housing. The board is responsible for all of the corporation's financial and policy decisions. Advantage/Disadvantage

Advantage

Affected or Unaffected Some activities that real estate licensees perform are affected by license laws, and others are not. Which would be likely be affected? Ethical client interactions

Affected

Affected or Unaffected Some activities that real estate licensees perform are affected by license laws, and others are not. Which would be likely be affected? Required experience

Affected

Do you know how to perform these tests? Match each test to its description. Have the parties agreed (in writing) on whether an item will stay or go? Intention in placement/Agreement of the parties

Agreement of the parties

Read each scenario and determine if the level of service the licensee is providing is appropriate or not. Consuela has learned that her client failed to disclose certain information in the seller's disclosure statement. She discloses the information to the buyer and the buyer's agent.

Appropriate

Read each scenario and determine if the level of service the licensee is providing is appropriate or not. Hilary's very careful to provide not only quality service, but also knowledgeable and prudent service to her clients and customers

Appropriate

Your resource lists several assets and liabilities that borrowers may note on their loan application. Sort these into the appropriate category. Checking account Assets/Liabilities

Assets

Your resource lists several assets and liabilities that borrowers may note on their loan application. Sort these into the appropriate category. Real estate Assets/Liabilities

Assets

The education, research, and recovery fund is authorized by law to pay for certain expenditures. Which of the following are authorized expenditures? Contract a report on housing trends in rural MN.

Authorized

The education, research, and recovery fund is authorized by law to pay for certain expenditures. Which of the following are authorized expenditures? Create real estate related courses at a state university.

Authorized

The education, research, and recovery fund is authorized by law to pay for certain expenditures. Which of the following are authorized expenditures? Disseminate information an affordable housing.

Authorized

The education, research, and recovery fund is authorized by law to pay for certain expenditures. Which of the following are authorized expenditures? Underwrite CE workshops for licensees.

Authorized

Jeb decided to go with an LLC instead of a corporation. What are some benefits an LLC offers Jeb? May not have to file a separate tax return. Benefit/Not a Benefit

Benefit

Jeb decided to go with an LLC instead of a corporation. What are some benefits an LLC offers Jeb? Shields personal assets from liability. Benefit/Not a Benefit

Benefit

Determine whether each example describes a bilateral or unilateral agreement. You agree to buy a vacant property from a developer for $10,000. Bilateral/Unilateral

Bilateral

Determine whether each example describes a bilateral or unilateral agreement. You'll get a haircut that costs $50. Bilateral/Unilateral

Bilateral

Here are a few more for you to match your closing cost wits against. Match each expense item to who is responsible for paying it at closing. State and local deed taxes Seller/Both/Buyer

Both

Now let's see if you can sort out who pays for what at the closing table. Match each expense item to who is responsible for paying it at closing. Attorney's fees Seller/Both/Buyer

Both

What are metes? And what is a bound? If you've reviewed the resource, you already know. Let's test your knowledge. Sort the items based on whether they are metes or bounds. Battle Creek Metes/Bounds

Bounds

What are metes? And what is a bound? If you've reviewed the resource, you already know. Let's test your knowledge. Sort the items based on whether they are metes or bounds. Cluster of three oak trees Metes/Bounds

Bounds

For each of the following license requirements, indicate whether it applies to a broker or a salesperson. 30 total hours of education.

Broker

For each of the following license requirements, indicate whether it applies to a broker or a salesperson. Three years of experience, or a real estate degree.

Broker

As part of the building permit process, local building departments and the builder or property owner have specific responsibilities. Review each statement and decide if the responsibility belongs to the local building department or the builder/property owner. Obtains a building permit for a residential or commercial property before building or renovating and displays it on the job site. Local building department/Builder or property owner

Builder

As part of the building permit process, local building departments and the builder or property owner have specific responsibilities. Review each statement and decide if the responsibility belongs to the local building department or the builder/property owner. Submits construction plans for approval before building or renovation begin. Local building department/Builder or property owner

Builder

Here are a few more for you to match your closing cost wits against. Match each expense item to who is responsible for paying it at closing. Inspections Seller/Both/Buyer

Buyer

Here are a few more for you to match your closing cost wits against. Match each expense item to who is responsible for paying it at closing. Mortgage insurance Seller/Both/Buyer

Buyer

Here are a few more for you to match your closing cost wits against. Match each expense item to who is responsible for paying it at closing. Tax reserves Seller/Both/Buyer

Buyer

Here are a few more for you to match your closing cost wits against. Match each expense item to who is responsible for paying it at closing. Title insurance Seller/Both/Buyer

Buyer

Now let's see if you can sort out who pays for what at the closing table. Match each expense item to who is responsible for paying it at closing. Appraisal and credit report fees Seller/Both/Buyer

Buyer

You know what a contract for deed is, but do you know the advantages and disadvantages of such an agreement for both the buyer and the seller? Let's find out. Connect each statement to its corresponding advantage or disadvantage. The buyer doesn't have enough money saved for a traditional down payment. Buyer Advantage/Seller Advantage

Buyer Advantage

The buyer and seller have a lot of tasks to cross off their lists before going to closing. Can you identify which items are the buyer's responsibility and which are the seller's responsibility? Complete loan application Buyer's responsibility/Seller's responsibility

Buyer's

The buyer and seller have a lot of tasks to cross off their lists before going to closing. Can you identify which items are the buyer's responsibility and which are the seller's responsibility? Meet insurance requirements Buyer's responsibility/Seller's responsibility

Buyer's

The buyer and seller have a lot of tasks to cross off their lists before going to closing. Can you identify which items are the buyer's responsibility and which are the seller's responsibility? Obtain an appraisal Buyer's responsibility/Seller's responsibility

Buyer's

As a buyer's agent, you owe specific duties to your buyer client. What are these duties? Advocate for the interest of the buyer

Buyer's agent duty

As a buyer's agent, you owe specific duties to your buyer client. What are these duties? Seek the best price available or a price that's acceptable to your buyer

Buyer's agent duty

Can/Can't. As a single agent, on what topics can you advice your clients? Real estate

Can

In which of these circumstances could a real estate licensees prepare a BPO? For a bank preparing to auction off a foreclosed property

Can

In which of these circumstances could a real estate licensees prepare a BPO? For a buyer looking about making a competitive offer.

Can

In which of these circumstances could a real estate licensees prepare a BPO? For a seller thinking about listing his property.

Can

In which of these circumstances could a real estate licensees prepare a BPO? For an executor selling property on behalf of someone else's estate.

Can

Rachel must determine when she can release trust funds. A misstep her could lead to some serious drama down the line. In which of the following situations can she disburse the funds? If the sale goes through.

Can disburse

Can/Can't. As a single agent, on what topics can you advice your clients? Appraisal amount

Can't

Can/Can't. As a single agent, on what topics can you advice your clients? Legal items related to the transaction

Can't

Can/Can't. As a single agent, on what topics can you advice your clients? Mortgage qualifying

Can't

Can't disburse

Can't disbuse

Let's pick up with corporations. Remember that corporations hold property in severalty. What are some characteristics of this type of business? Exist only in law (is intangible) Characteristic/Not a Characteristic

Characeristic

Hey, you, sole proprietor! Did you know when you become a licensed real estate sales person, you become a sole proprietor? It'll be helpful to know what this business type is. Identify characteristics of a sole proprietorship. Business can be conducted and title to property held using your name in combination with the business name. Characteristic/Not a Characteristic

Characteristic

Hey, you, sole proprietor! Did you know when you become a licensed real estate sales person, you become a sole proprietor? It'll be helpful to know what this business type is. Identify characteristics of a sole proprietorship. Ownership of property is owned in severalty. Characteristic/Not a Characteristic

Characteristic

Let's pick up with corporations. Remember that corporations hold property in severalty. What are some characteristics of this type of business? Can exist as a subchapter S corporation or C corporation Characteristic/Not a Characteristic

Characteristic

Let's pick up with corporations. Remember that corporations hold property in severalty. What are some characteristics of this type of business? Can receive, hold, and transfer title to real property, and may give or hold a mortgage to secure a debt owed to the corporation Characteristic/Not a Characteristic

Characteristic

Let's pick up with corporations. Remember that corporations hold property in severalty. What are some characteristics of this type of business? Shareholders may be taxed at both the corporate and individual level Characteristic/Not a Characteristic

Characteristic

Do you recall in which common ownership property a corporation owns the property itself? Take a look at the resource that talks about a cooperative and a condominium project. Then identify whether the following are characteristics of cooperative versus condominium ownership. Ownership may follow occupancy agreement and can be approved/disapproved by the board Cooperative Ownership/Condominium Ownership

Co-op

Do you recall in which common ownership property a corporation owns the property itself? Take a look at the resource that talks about a cooperative and a condominium project. Then identify whether the following are characteristics of cooperative versus condominium ownership. Personal property Cooperative Ownership/Condominium Ownership

Co-op

Do you recall in which common ownership property a corporation owns the property itself? Take a look at the resource that talks about a cooperative and a condominium project. Then identify whether the following are characteristics of cooperative versus condominium ownership. Title to land and building is held by a corporation Cooperative Ownership/Condominium Ownership

Co-op

Amy is working as a seller's agent for Tom. They agreed upon a 45-day protection clause and included it in the listing agreement. For each of the situations, indicate whether Amy should receive commission under the protection clause. The Dragles looked at Tom's house once during the listing term and once after it had expired, eventually signing a sales contract 28 days after the listing agreement had expired. Commission/No Commission

Commision

Amy is working as a seller's agent for Tom. They agreed upon a 45-day protection clause and included it in the listing agreement. For each of the situations, indicate whether Amy should receive commission under the protection clause. Three individuals toured Tom's house twice while it was listed with Amy, but no one made an offer. A month after the listing expired, Tom decided he could take much less, so contacted the people to see if they'd be interested at a lower price. One was interested and decided to sign a purchase contract. Commission/No Commission

Commission

You know what a short sale is and some of the reasons why a homeowner would decide to take the short sale option. Now, let's see if you can pick out some of the common issues that arise from short sales. Lenders often take a long time to approve the short sale. Common issue/Not a common issue

Common issue

You know what a short sale is and some of the reasons why a homeowner would decide to take the short sale option. Now, let's see if you can pick out some of the common issues that arise from short sales. Sellers often leave the property in less-than-pristine condition. Common issue/Not a common issue

Common issue

You know what a short sale is and some of the reasons why a homeowner would decide to take the short sale option. Now, let's see if you can pick out some of the common issues that arise from short sales. The buyer could be responsible for any liens against the title. Common issue/Not a common issue

Common issue

There are two ways a taking can occur. Match the forms of taking with their correct descriptions. The government appraised the property it was taking and offered the property owner the appraised value as just compensation. Condemnation/Inverse condemnatio

Condemnation

Do you recall in which common ownership property a corporation owns the property itself? Take a look at the resource that talks about a cooperative and a condominium project. Then identify whether the following are characteristics of cooperative versus condominium ownership. Ownership may be transferred similar to other properties Cooperative Ownership/Condominium Ownership

Condo

Do you recall in which common ownership property a corporation owns the property itself? Take a look at the resource that talks about a cooperative and a condominium project. Then identify whether the following are characteristics of cooperative versus condominium ownership. Real property Cooperative Ownership/Condominium Ownership

Condo

Do you recall in which common ownership property a corporation owns the property itself? Take a look at the resource that talks about a cooperative and a condominium project. Then identify whether the following are characteristics of cooperative versus condominium ownership. Title to unit held by unit owner Cooperative Ownership/Condominium Ownership

Condo

Read through these situations and decide whether they invalidate consent. Bryce wants to make an offer on a house, but his financial institution won't give him the interest rate he wants. Invalidates consent/Consent still exists

Consent still exists

Read through these situations and decide whether they invalidate consent. Jill can't quite afford the down payment on the house she wants, so her aunt loans her $10,000. Jill makes a written offer on the house. Invalidates consent/Consent still exists

Consent still exists

We discussed loan terms for qualifying mortgages. Now, let's move on to borrowers. What do lenders consider when underwriting a loan? Current income or salary Consider/Don't consider

Consider

We discussed loan terms for qualifying mortgages. Now, let's move on to borrowers. What do lenders consider when underwriting a loan? Employment status Consider/Don't consider

Consider

We discussed loan terms for qualifying mortgages. Now, let's move on to borrowers. What do lenders consider when underwriting a loan? Estimated mortgage payment Consider/Don't consider

Consider

We discussed loan terms for qualifying mortgages. Now, let's move on to borrowers. What do lenders consider when underwriting a loan? Other mortgage payments on the property Consider/Don't consider

Consider

We discussed loan terms for qualifying mortgages. Now, let's move on to borrowers. What do lenders consider when underwriting a loan? Taxes, interest, and insurance payments for this property Consider/Don't consider

Consider

Dower and curtesy are two types of life estates rarely recognized, at least in their original form, in the U.S. But suppose Carolyn and Cooper have a life estate in place for their dairy farm and live in a state in which dower and curtesy are recognized. Identify which is an example of dower, and which is curtesy. We've included a set of flashcards in your resources to help you study these terms. Upon Carolyn's death, Cooper will take full ownership of the farm. Dower/Curtesy

Curtesy

Do you know the difference between a title and a deed? Match each term to its definition. A legal document used to transfer ownership from one party to another Title/Deed

Deed

For each scenario, indicate whether the licensee met the legal disclosure requirements. Adam didn't disclose to potential buyers that the prior owner died in the house.

Did meet

For each scenario, indicate whether the licensee met the legal disclosure requirements. The home inspector called out signs of an old electrical fire and noted that the panel box was replaced. Sam didn't specifically point this out to his buyer.

Did meet

For each scenario, indicate whether the licensee met the legal disclosure requirements. Dale's cousin owns the house he's listed, but he didn't disclose that to the buyer because he hasn't seen his cousin in over 10 years.

Did not meet

For each scenario, indicate whether the licensee met the legal disclosure requirements. The home inspector made a calculation error in his report and over measured the square footage, which Donna didn't disclose since the report is official.

Did not meet

Disadvantage

Assume you have a client who wants the convenience of living in an area that has shopping, recreation, and mass transit nearby. What are some of the advantages and disadvantages of PUD and MUD living? Review each statement about mixed-use developments and determine if the statement reflects an advantage or disadvantage of this type of housing. There is a higher density of people, homes, shops, and traffic. Advantage/Disadvantage

Disadvantage

Assume you have a client who wants the convenience of living in an area that has shopping, recreation, and mass transit nearby. What are some of the advantages and disadvantages of PUD and MUD living? Review each statement about mixed-use developments and determine if the statement reflects an advantage or disadvantage of this type of housing. There is nearby traffic congestion and noise. Advantage/Disadvantage

Disadvantage

Assume you have a young couple as clients who are less interested in owning real estate and more interested in living in a place with other like-minded individuals. What are some of the advantages and disadvantages of co-op living? Review each statement about co-ops, and determine if the statement reflects an advantage or disadvantage of this type of housing. Shareholders don't own any real estate. Advantage/Disadvantage

Disadvantage

Assume you have a young couple as clients who are less interested in owning real estate and more interested in living in a place with other like-minded individuals. What are some of the advantages and disadvantages of co-op living? Review each statement about co-ops, and determine if the statement reflects an advantage or disadvantage of this type of housing. Specific criteria for potential residents Advantage/Disadvantage

Disadvantage

Tanya is a licensed salesperson representing a seller in a residential transaction. Which of the following material facts must she disclose to a potential buyer? The home inspection report claims no water issues but the basement will flood in heavy rains.

Disclose

Tanya is a licensed salesperson representing a seller in a residential transaction. Which of the following material facts must she disclose to a potential buyer? There is a gas line right of way along the property boundary.

Disclose

Benjamin is a new licensee negotiating his first offer. Help him identify actions he should and shouldn't take. Disclose possible closing costs the parties may be responsible for.

Benjamin is a new licensee negotiating his first offer. Help him identify actions he should and shouldn't take. Provide signed copies as soon as available

Benjamin is a new licensee negotiating his first offer. Help him identify actions he should and shouldn't take. Submit a written offer promptly

Let's sort through these actions to determine more dos and don'ts. Encourage clients to have an attorney draft non-standard forms

Let's sort through these actions to determine more dos and don'ts. Know your state's definition of unauthorized practice of law.

The resource discusses several steps you can take to avoid antitrust violations. Sort the actions with regard to whether they are a do or a don't. Establish fees individually or as a company, not among competitors.

The resource discusses several steps you can take to avoid antitrust violations. Sort the actions with regard to whether they are a do or a don't. Make independent decisions about co-op fees.

The resource discusses several steps you can take to avoid antitrust violations. Sort the actions with regard to whether they are a do or a don't. Make independent decisions about compensation with other firms.

The resource discusses several steps you can take to avoid antitrust violations. Sort the actions with regard to whether they are a do or a don't. Walk away from discussions with agents in other companies about fees, rates, listing policies, non-cooperation with other firms, etc.

Understanding the actions you can and cannot take is one key to practicing within your area of expertise and avoiding unauthorized practice of law. Let's start by reviewing some of these actions, and determining which of these practices are dos, and which are don'ts. Explain clauses to your clients.

What needs to happen for a title to be considered transferred? A public official delivers the deed to the grantee or the grantee's agent. Must Happen/Doesn't Happen

Doesn't Happen

What needs to happen for a title to be considered transferred? The grantee must state acceptance of the deed. Must Happen/Doesn't Happen

Doesn't Happen

Dale, a real estate licensee, received a referral from Katherine, a mortgage broker. Dale pays Katherine a $100 finder's fee. What circumstances would make this legal? Match each option to the correct answer to indicate if the circumstance helps with the legality or if the circumstance wouldn't help make it legal. Dale disclosed it to all parties Helps make it legal/Doesn't help make it legal

Doesn't help make it legal

Dale, a real estate licensee, received a referral from Katherine, a mortgage broker. Dale pays Katherine a $100 finder's fee. What circumstances would make this legal? Match each option to the correct answer to indicate if the circumstance helps with the legality or if the circumstance wouldn't help make it legal. It's declared on Dale's taxes. Helps make it legal/Doesn't help make it legal

Doesn't help make it legal

Dale, a real estate licensee, received a referral from Katherine, a mortgage broker. Dale pays Katherine a $100 finder's fee. What circumstances would make this legal? Match each option to the correct answer to indicate if the circumstance helps with the legality or if the circumstance wouldn't help make it legal. It's not paid in cash, but in another form of compensation. Helps make it legal/Doesn't help make it legal

Doesn't help make it legal

Dale, a real estate licensee, received a referral from Katherine, a mortgage broker. Dale pays Katherine a $100 finder's fee. What circumstances would make this legal? Match each option to the correct answer to indicate if the circumstance helps with the legality or if the circumstance wouldn't help make it legal. It's paid through Dale's broker. Helps make it legal/Doesn't help make it legal

Doesn't help make it legal

MN Law requires that specific information be kept in trust account records. Indicate whether Rachel must keep the following dates to comply with the law. Personal bank account information for buyer and seller.

Doesn't need

Benjamin is a new licensee negotiating his first offer. Help him identify actions he should and shouldn't take. Disclosure terms of the offer to other agents before presenting to the seller.

Don't

Beyond your duties as a seller's agent, you also perform other specific tasks on behalf of your client. Which of the following tasks must you perform for the seller? Conduct an appraisal on the property

Don't

Let's sort through these actions to determine more dos and don'ts. Charge a fee for preparing transaction documents.

Don't

Let's sort through these actions to determine more dos and don'ts. Freely make changes to existing forms by striking provisions and writing new provisions.

Don't

The resource discusses several steps you can take to avoid antitrust violations. Sort the actions with regard to whether they are a do or a don't. Use phrases such as the "industry rate" or the "going rate."

Don't

We discussed loan terms for qualifying mortgages. Now, let's move on to borrowers. What do lenders consider when underwriting a loan? Value of any life insurance policies Consider/Don't consider

Don't consider

As a buyer's agent, you'll perform certain tasks for your client. Which of the following are tasks you should perform? Ensure a favorable appraisal of the property.

Don't perform

Dower and curtesy are two types of life estates rarely recognized, at least in their original form, in the U.S. But suppose Carolyn and Cooper have a life estate in place for their dairy farm and live in a state in which dower and curtesy are recognized. Identify which is an example of dower, and which is curtesy. We've included a set of flashcards in your resources to help you study these terms. Upon Cooper's death, Carolyn will take full ownership of the farm. Dower/Curtesy

Dower

Decide if the scenario is describing an encroachment or an easement. Susan lives next to a beach. In order for her neighbors to reach the beach, they must cross through her property. Easement/Encroachment

Easement

Determine each real estate characteristic and indicate which category it belongs in. Improvements Economic characteristics/Physical characteristics

Economic

Determine each real estate characteristic and indicate which category it belongs in. Permanence of investment Economic characteristics/Physical characteristics

Economic

Determine each real estate characteristic and indicate which category it belongs in. Scarcity Economic characteristics/Physical characteristics

Economic

Decide if the scenario is describing an encroachment or an easement. Jeffery built a swimming pool behind his house. Turns out, the swimming pool is two feet inside his neighbor's property. Easement/Encroachment

Encroachment

Determine if each example describes an enforceable or unenforceable contract. A written purchase agreement to buy a property, accepted in writing by the seller Enforceable/Unenforceable

Enforceable

Determine if each example describes an enforceable or unenforceable contract. Chet offers to buy Tina's property for $500,000. His written offer includes no earnest money. Tina accepts his offer. Enforceable/Unenforceable

Enforceable

During the contract for deed process (and any "in process" or executory contract), the seller still holds legal title rights to the property, while the buyer has equitable title rights. What is the difference between these two types of title rights? Match each right to its description. Financial or "equitable" interest in the property Legal title/Equitable title

Equitable Title

Determine whether each action is ethical or unethical. You treat all parties honestly, even customers.

Ethical

Determine whether the action is ethical or unethical. A licensee listing a property cooperates with the buyer's agent.

Ethical

Determine whether the action is ethical or unethical. A licensee treats all parties honestly, even customers.

Ethical

A real estate purchase agreement will be either executory or executed, depending on what stage of the process the transaction is in. When all terms of the contract have been met, the contract is executed. If any terms remain, the contract is executory. Keep in mind that an "executed" contract is also the term you'll hear when the parties have signed a contract. It's important to know the context to determine which form of an executed contract the speaker means. Which of these contracts would be considered "executed" and which are executory? A transaction has closed, and the parties have met all contract terms. Executed/Executory

Executed

A real estate purchase agreement will be either executory or executed, depending on what stage of the process the transaction is in. When all terms of the contract have been met, the contract is executed. If any terms remain, the contract is executory. Keep in mind that an "executed" contract is also the term you'll hear when the parties have signed a contract. It's important to know the context to determine which form of an executed contract the speaker means. Which of these contracts would be considered "executed" and which are executory? Mark's broker asks if the buyer and seller have signed a contract. Mark replies that the contract has been ______. Executed/Executory

Executed

A real estate purchase agreement will be either executory or executed, depending on what stage of the process the transaction is in. When all terms of the contract have been met, the contract is executed. If any terms remain, the contract is executory. Keep in mind that an "executed" contract is also the term you'll hear when the parties have signed a contract. It's important to know the context to determine which form of an executed contract the speaker means. Which of these contracts would be considered "executed" and which are executory? Closing is a week away, and the seller is nearly finished making agreed-upon repairs to the property. Executed/Executory

Executory

Let's say you just completed a showing with potential homebuyers who love the wetland beyond the rear boundary of the property. They're curious about what they can do in the protected wetland area. You direct them to review the Wetland Conservation Act of 1991 to learn what work would require a permit. However, you're also curious about this and take a look at the act, as well. What's exempt and what requires permission? Fishing Exempt/Requires permission

Exempt

Not everyone who buys and sells real estate will need a real estate license. The law allows an exemption from the license requirement for certain situations and individuals. A there exempt or not? Jackie is an auctioneer. Sometimes she sells real estate at auction.

Exempt form Licensure

Not everyone who buys and sells real estate will need a real estate license. The law allows an exemption from the license requirement for certain situations and individuals. A there exempt or not? Jorge likes to think of himself as a real estate agent, although he actually sells cemetery burial plots.

Exempt from Licensure

Not everyone who buys and sells real estate will need a real estate license. The law allows an exemption from the license requirement for certain situations and individuals. A there exempt or not? Sophie has been named executor of her mother's will, and will sell her mother's home as part of the estate liquidation.

Exempt from Licensure

Determine if each example describes an express or implied contract. You purchase a car from a dealer. You sign a purchase agreement detailing the transaction. Express/Implied

Express

Determine if each example describes an express or implied contract. You start a new job. You sign an employee agreement that spells out your salary and benefits package. Express/Implied

Express

Fresh out of college, a young man walks into the brokerage office. He'd like some help finding a new apartment. After chatting about what he's looking for and how he'd like to work with an agent, he signs an agency agreement, then heads out to meet some buddies for lunch.

Express

Implied/Express Agent A few years ago, you helped Renee buy a new home. Her parents have decided they'd like to downsize now that the kids have moved out. You meet with them to tour the property, but they were so pleased with ho you worked with Renee, they signed an agency agreement before you left.

Express

VA loans can be common, depending on the location. Identify whether the following statements about VA loans are fact or fiction. Borrowers are not required to have a down payment. Fact/Fiction

Fact

VA loans can be common, depending on the location. Identify whether the following statements about VA loans are fact or fiction. The U.S. Department of Veterans Affairs guarantees the loans. Fact/Fiction

Fact

VA loans can be common, depending on the location. Identify whether the following statements about VA loans are fact or fiction. The borrower must be an eligible veteran, active duty military, or surviving spouse and must qualify for the loan. Fact/Fiction

Fact

VA loans can be common, depending on the location. Identify whether the following statements about VA loans are fact or fiction. The loan amount may be for 100% of the CRV (VA appraisal) or 100% of the home sale price, whichever is less. Fact/Fiction

Fact

Another goal of the Minnesota Uniform Condominium Act is to ensure that potential buyers have all the information they need about a condominium to make an informed purchase. Review each statement about regulations regarding condominium purchases and determine if it is true or false. Prospective purchasers must be given at least 30 days to review the condo information before signing the sales contract. True/False

False

Appraiser Renewal Truths True/False If you haven't received your license by Sept 1 of the renewal year, you should consider your license application denied.

False

Appraiser Renewal Truths True/False Pre-licensing course are never acceptable for continuing eduction

False

As a real estate licensee, you'll need to act within the law if you want to keep your license. Acting ethically is also important to your career and your reputation. Let's review the concepts of ethics and law. Review these statements and determine if they're true or false. Ethics are legally enforced.

False

As she tests the faucets at the home she's inspecting, Sarah explains to Jerry that the safety of our public drinking water is a concern at the federal, state, and local levels. One primary concern is contaminants in the water. Determine whether these statements are true or false. Although microbiological organisms, such as giardia, Hepatitis A, and E. coli, are a concern, minerals, like lead and copper, are the most frequent contaminants found in public water and cause the most illness. True/False

False

Check out your new resource, 'Mobile Homes Aren't Real Property—But They Can Be,' and then review each statement about mobile homes and determine if the statement is true or false. A mobile home is considered real property the moment the owner purchases the land that the home is sitting on, even if the home is not on a permanent foundation. True/False

False

Determine whether these statements related to Joel's delinquent tax situation are true or false. If Joel doesn't pay his taxes by June 1, he'll be subject to an additional 4% penalty. True/False

False

Determine whether these statements related to Joel's delinquent tax situation are true or false. It's July 4th and Joel's penalties are skyrocketing. He was assessed an additional 2% penalty on the first of the month. True/False

False

Gloria is a new licensee who works in your office. She's come to you for ethical guidance. Can you assist her? Indicate whether each of these statements is true or false. Person ethics have no impact on professional behavior.

False

How do certain types of contingencies affect the purchase agreement? Review each statement and determine if the statement is true or false. The inspection contingency allows a buyer to negotiate repairs or a reduced sales price, but it doesn't allow the buyer to terminate. True/False

False

Identify whether each of the statements about floodplains is true or false. There is no need to preserve floodplains; they maintain themselves naturally. True/False

False

Identify whether each of the statements about floodplains is true or false. Unlike wetlands, floodplains are not beneficial. True/False

False

Identify whether each of the statements are true or false. Joe conducts brokerage activities; therefore, he is a real estate broker

False

Identify whether each of the statements are true or false. Only licensed brokers may specialize in commercial real estate.

False

Identify whether these statements about taxation as a government power are true or false. Unpaid property taxes are generally paid after all other creditors receive the money they're owed. True/False

False

In some states, married couples are required to acquire a title to real estate as community property. Which of the following scenarios are allowed, given what you now know about community property rights? Gene has owned his home in New Mexico for six years. Four years ago, he married Jade. New Mexico is a community property state, therefore, upon their marriage, Jade is entitled to community property rights. True/False

False

In some states, married couples are required to acquire a title to real estate as community property. Which of the following scenarios are allowed, given what you now know about community property rights? Sandy and John are married. Before they married, Sandy purchased an apartment in New York in her name only. John has property rights. True/False

False

Indicate whether each of the following statements is true or false. The coastal zone runs eight miles inland from the lake. True/False

False

Is the following statement true or false about contracts for deeds forms? There is a standard contract for deed form in Minnesota that every licensee is required by law to use. True False

False

Is the following statement true or false? Government recording charges are fees that the title company charges for supplying title insurance on a property. True False

False

Is the following statement true or false? The MRT is a tax that's applied to the value of a property. True False

False

Is the following statement true or false? A face-to-face closing is a better option if there have been contentious issues between the buyers and sellers during the contract period. True False

False

Is the statement true or false about license laws? Professional associations determine which actives are affected by state licensing laws.

False

Is the statement true or false about license laws? Real estate professionals are licensed at the federal level.

False

Is this statement true or false? In order for a deed conveyance to be legal, a grantee must sign a statement that says the deed has been delivered and accepted. True False

False

It's important that you understand the Minnesota statute provisions around listing agreements, not only for your licensing exam, but also as you begin your career in real estate. Let's start reviewing those items. Identify whether these statements are true or false. John was unable to sell Andrew's property within the term of the listing agreement despite a high level of interest. John provided a protective list to Andrew within 72 hours of their contract termination. Andrew's new agent sold the property one month later to someone on John's protective list. Andrew only owes compensation to the new agent. True/False

False

It's important that you understand the Minnesota statute provisions around listing agreements, not only for your licensing exam, but also as you begin your career in real estate. Let's start reviewing those items. Identify whether these statements are true or false. Nancy received an advertisement via mail from John, the listing agent. She didn't respond to the advertisement and hasn't been shown the property. John can include Nancy on a protective list since she received his mailing. True/False

False

Let's check your understanding. Which of the following statements about consent are true? "Voluntary Agreement" means the same thing as "under duress." True/False

False

Let's check your understanding. Which of the following statements about consent are true? Contracts are valid as long as at least one party has agreed to it voluntarily. True/False

False

Let's dive into a few deed details. Review each statement about deeds and determine whether it's true or false. A granting clause usually contains the words, "to have and to hold." True/False

False

Let's dive into a few deed details. Review each statement about deeds and determine whether it's true or false. For the conveyance to be legal, both the grantor and the grantee must be of legal capacity. True/False

False

Let's review a few facts relative to trust accounts. Can you help Rachel identify which of them are true? No business funds may ever be kept in a client trust fund.

False

Let's review a few facts relative to trust accounts. Can you help Rachel identify which of them are true? You should not accept earnest money in a non-deposit able form, such as a bond or treasury bill.

False

Let's review a few more details related to the tenancy by the entirety form of co-ownership. Identify whether these statements are true or false. If one spouse dies, that spouse's share is passed according to the will. True/False

False

Let's review a few more details related to the tenancy by the entirety form of co-ownership. Identify whether these statements are true or false. If the spouses divorce, they must sell the property. True/False

False

Let's review a few more details related to the tenancy by the entirety form of co-ownership. Identify whether these statements are true or false. One spouse may pledge the property without permission from the other spouse. True/False

False

Let's review some statements about land recording and registration in Minnesota. Determine whether each statement is true or false. Land registered under the Torrens system provides protection from those that don't have legal title to the property, but not proof of ownership. True/False

False

Let's review some statements about land recording and registration in Minnesota. Determine whether each statement is true or false. The order and decree of registration is filed with the district court who then issues a certificate of title to the land owner. True/False

False

Let's see how much you remember about restrictive covenants/deed restrictions. Review each of the statements and determine if it is true or false. A restrictive covenant ... Must be created by a developer True/False

False

Let's switch gears now and focus on the real property tax lien. Review each statement about real property tax liens and determine if it's true or false. The collection of the monies for unpaid property taxes is by a foreclosure sale of the property. True/False

False

Let's switch gears now and focus on the real property tax lien. Review each statement about real property tax liens and determine if it's true or false. The legal proceeding to collect unpaid property taxes is called an in lien legal proceeding. True/False

False

Let's take a closer look at timeshare ownership. Review each statement below about timeshare ownership and determine if it is true or false. Buyers of vacation timeshares are not allowed to rent, give, or sell their time to others. True/False

False

Let's take a closer look at timeshare ownership. Review each statement below about timeshare ownership and determine if it is true or false. Unlike other forms of owned real estate, timeshare estates cannot be sold or passed down to heirs. True/False

False

Minnesota has strict guidelines that the seller must follow should the purchaser default on a contract for deed. Read each statement about the contract for deed default process and determine whether it is true or false. The seller has the right to take possession of the property without notice if the purchaser is in default. True/False

False

NAR Code of Ethics Requirements. Indicate whether each statement is true or false. If you are a REALTOR(R), you owe agency duties to both customers and clients.

False

NAR Code of Ethics Requirements. Indicate whether each statement is true or false. The NAR Code of Ethics applies only to written transactions.

False

NAR Codes of Ethics Requirements True/False If you are a REALTOR(R), you owe agency duties to both customers and clients

False

NAR Codes of Ethics Requirements True/False The NAR Code of Ethics applies only to written transactions

False

Next, Jerry and Sarah discussed floodplain regulations in Minnesota. Help Jerry identify whether each of these statements is true or false. Joe wishes to build a house on his property, and he would like to get as close to the water as possible, which means he would be building in the floodway. This can be done with the proper permits. True/False

False

Not that we planned this, but let's find out what you know about the planning commission's role. Review each statement about the planning commission and its land use control responsibilities and indicate if the statement is true or false. Zoning ordinances are established before the planning commission presents its recommendations to the local government for the comprehensive master plan. True/False

False

Now let's focus on the Minnesota Condominium Act. Determine whether each statement is true or false. Condo owners must comply with guidelines and responsibilities described in the declaration. True/False

False

Now let's focus on the Minnesota Condominium Act. Determine whether each statement is true or false. Ownership in common areas is equal for all unit owners. True/False

False

Now that you know what probate is, let's look at the probate process. Review each statement and determine if it's true or false. Everything in an estate has to go through probate. True/False

False

Now that you know what probate is, let's look at the probate process. Review each statement and determine if it's true or false. If a will is determined to be valid, the court decides how the decedent's property will be distributed. True/False

False

Now that you know what probate is, let's look at the probate process. Review each statement and determine if it's true or false. The probate process doesn't apply to situations in which the deceased left no will. True/False

False

Now that you know what probate is, let's look at the probate process. Review each statement and determine if it's true or false. The probate process is automatically initiated when a person dies. True/False

False

Now that you've reviewed more information about police power, let's apply what you've learned. Review each statement about police power and determine if the statement is true or false. Government agencies may exercise police power only in situations where it does not restrict the freedom of its citizens. True/False

False

Now that you've reviewed more information about police power, let's apply what you've learned. Review each statement about police power and determine if the statement is true or false. The state controls lands and open spaces, planning and zoning, and subdivision development. True/False

False

Property taxes can be a reliable source of income for a municipality. Select true for the reasons why from the options below. There are no administrative costs associated with property tax collection. True/False

False

Read each statement about licensees and clouded titles and determine whether it's true or false. You should advise clients to terminate the purchase if the property title search reveals a cloud on the title. True/False

False

Review each statement about building code regulations and determine if the statement is true or false. If there's a conflict regarding building codes, the less strict code prevails. True/False

False

Review each statement about building code regulations and determine if the statement is true or false. States can change national building code requirements. True/False

False

Review each statement about homeowners insurance and determine if the statement is true or false. The seller is responsible for paying for the first year of the buyer's homeowners insurance. True/False

False

Review each statement about how proration is calculated and determine if the statement is true or false. For accrued real estate taxes that have been assessed but are not yet due, the seller receives a credit and the buyer receives a debit for the amount owed as of the day of closing. True/False

False

Review each statement about how proration is calculated and determine if the statement is true or false. Lenders, attorneys, and closing agents always prorate mortgage interest, taxes, insurance, and other similar expenses based on a 360-day calendar year. True/False

False

Review each statement about how proration is calculated and determine if the statement is true or false. With regard to how rent is prorated, a buyer always receives rent for the day of closing (if the property has current renters). True/False

False

Review each statement about legally competent parties and determine if the statement is true or false. A minor who enters into a contract to purchase real estate has contractual ability. True/False

False

Review each statement about mortgage liens and determine if it is true or false. A mortgage lien is a specific, involuntary lien. True/False

False

Review each statement about mortgage liens and determine if it is true or false. The proceeds from a foreclosure sale are sent to the borrower to help pay off the loan. True/False

False

Review each statement about option contracts related to leases and determine if it's true or false. It's illegal to attach an option contract to a lease. True/False

False

Review each statement about option contracts related to leases and determine if it's true or false. With an option attached to a lease, a landlord can increase the option amount if a better offer comes in. True/False

False

Review each statement about prorated items and determine if the statement is true or false. Accrued expenses go in the buyer's debit column. True/False

False

Review each statement about prorated items and determine if the statement is true or false. Prepaid items go in the seller's debit column and the buyer's credit column. True/False

False

Review each statement about the key closing documents and determine if the statement is true or false. A new deed is normally prepared for closing by the buyer's attorney. True/False

False

Review each statement about the key closing documents and determine if the statement is true or false. The buyer is always responsible for paying for the survey. True/False

False

Review each statement about the key closing documents and determine if the statement is true or false. The title insurance policy protects the insured against title defects existing at the time the title is transferred and for 90 days thereafter. True/False

False

Review each statement about the public records used to verify title ownership and determine if the statement is true or false. Standard title insurance coverage protects new buyers against all defects, including unrecorded liens. True/False

False

Review each statement about the public records used to verify title ownership and determine if the statement is true or false. The title insurance policy protects the insured against title defects existing when the title is transferred and for 90 days thereafter. True/False

False

Review each statement and determine whether it is true or false. A grantor can only be the person who legally owns the property bring conveyed. True/False

False

Review each statement and determine whether it is true or false. It is not legally required or even advisable for the grantee to sign a deed. True/False

False

Review each statement below about closing costs and determine if the statement is true or false. The purpose of an appraisal is to determine if the buyer needs to pay more for the property before the amount of a loan can be determined. True/False

False

Review each statement below about closing costs and determine if the statement is true or false. The purpose of tax reserves is to ensure that the buyer has enough money to cover the cost of the first three years of property assessment fees. True/False

False

Review each statement below about closing costs and determine if the statement is true or false. The seller is responsible for paying both the seller's and buyer's attorneys' fees. True/False

False

Review each statement below about closing costs and determine if the statement is true or false. There is a set fee from county to county for recording documents. True/False

False

Review each statement below about written contract requirements in Minnesota and determine if the statement is true or false. Although having contracts in writing minimizes the likelihood of misunderstandings, it does not minimize the chances of a lawsuit. True/False

False

Review each statement below about written contract requirements in Minnesota and determine if the statement is true or false. Minnesota's interpretation of the statute of frauds doesn't require that contracts be in writing. True/False

False

Review the following statements about activities related to the closing process and determine if each is true or false. A lender's attorney is always present at a title closing. True/False

False

Review the following statements about recordation and determine if each is true or false. All closing documents are recorded. True/False

False

Review the following statements about the different types of performance and determine if they're true or false. Partial performance always results in termination of the contract. True/False

False

Review the following statements about the different types of performance and determine if they're true or false. Specific performance requirements can be satisfied through property or monetary damages. True/False

False

Review these statements about flood insurance and identify them as true or false. Homeowners may purchase flood insurance directly from the NFIP. True/False

False

Rose is representing Ricardo, who's selling a rental property in the city. Ricardo was travelling on international business at closing, so Rose has held onto the final sale documents for him. Based on what you know about the scenario in the previous slide, consider these statements about the duties that Rose still owes Ricardo now that the transaction has closed. Indicate whether each statement is true or false. Rose still owes Ricardo the duty of loyalty.

False

Sarah called Jerry the next day to follow up and make sure he understood the information she'd sent him, starting with the National Flood Insurance Program. Help Jerry decide if these statements about the NFIP are true or false. Community participation in the NFIP is mandatory. True/False

False

So, what do you know about the two classes of plants and the actions that can impact them? Let's find out. Review each statement about the two classes of plants and determine if the statement is true or false. If a plant or shrub is under a certain size, it is acceptable for the seller to remove it from the property without the buyer's agreement. True/False

False

Sometimes during title examinations, deed errors are found that must be corrected before the title can be marketable. What's involved in correcting the error? Identify each statement as true or false. An error that results in reduction of the estate size can be recorded on a correction deed. True/False

False

Sometimes during title examinations, deed errors are found that must be corrected before the title can be marketable. What's involved in correcting the error? Identify each statement as true or false. The buyer must research and verify corrections to the deed. True/False

False

Sometimes during title examinations, deed errors are found that must be corrected before the title can be marketable. What's involved in correcting the error? Identify each statement as true or false. The seller makes the correction on the original deed and initials the correction. True/False

False

Sometimes during title examinations, deed errors are found that must be corrected before the title can be marketable. What's involved in correcting the error? Identify each statement as true or false. The seller must appear before a judge to approve the correction deed. True/False

False

The video on the last slide introduced you to the concept of easements. Your resource provides similar information, as well as information about common types of easements. Take a look and then identify whether these statements about easements are true or false. Easements are usually temporary. True/False

False

There are several addenda listed in the purchase agreement. When attached to the purchase agreement, they create contingencies. Review each statement below about the legal effect of these contingency addenda on the purchase agreement and determine if the statement is true or false. Note: If you need to brush up on the addenda, we recommend that you visit the Minnesota State Bar Association website provided in your resources before completing this exercise. If the buyer attaches the Contingencies for Sale or Purchase of Other Home(s) addendum to the purchase agreement, the seller can continue to market the property after accepting the buyer's contingency-based offer. The original offer is automatically terminated when the seller accepts a second offer. True/False

False

True or false about license renewal requirements. During each licensing period, licensees much complete one CE hour per year on commissioner-designated topics.

False

True or false about license renewal requirements. Licensees may complete all 30 CE hours in the second year of a licensing period.

False

True/False A transactional broker is a limited agent to the seller

False

True/False A universal agent is a faciliator

False

True/False Edwin collects rents, evicts tenants, and enters into leases on behalf of his boss, the property owner. Edwin is a designated agent.

False

True/False If both parties agree to dual agency, neither can sue you for actions taken during a dual agent situation?

False

True/False If the state permits it, you can engage in dual agency even if your firm doesn't allow it?

False

True/False Jamie acts as an intermediary, liaison, and negotiator for her client, but she's not authorized to make decisions on her client's behalf. Jamie's primary role is to help her client find and buy a house. Jamie is a general agent

False

True/False When working with customers you cannot negotiate from them, but you could recommend negotiation strategies

False

True/False Appraiser Licensing Truths Certified general appraiser applications should have at least 2500 experiential hours earned in no fewer than 24 months.

False

True/False Appraiser Licensing Truths You must apply for a license within one year of passing the corresponding exam

False

We are ALMOST finished talking about taxes. Yay! We want to test your knowledge a little more, then we can move on. Which of the following items are true of Minnesota property taxes? The annual tax statement is issued on October 15. True/False

False

What is true about name and address changes in MN? Licensees must make address change online within 30 days.

False

What is true about name and address changes in MN? Licensees must notify the MN Department of Licensing of any address changes.

False

What types of problems can title issues cause if they're not cleared before closing? Review each statement about these types of problems and determine whether it is true or false. Title issues result in bankruptcy. True/False

False

When it comes to conveying property to a spouse, what does Minnesota allow? Identify if the following statements are true or false. Spouses may not relinquish their rights to jointly owned property.

False

Which of the following statements about the TILA-RESPA Integrated Disclosures (TRID) are true? TRID documents are used for all residential mortgage loans, including home equity lines of credit and dwellings not attached to land. True/False

False

Which of the following statements are true about adjustable rate mortgages? Lenders may adjust the rates any time interest rates rise. True/False

False

Which of the following statements are true about conventional loans? Conventional loans must conform to Fannie Mae and Freddie Mac guidelines. True/False

False

Which of the following statements are true about the PMI Act of 1998? Select all that apply. Cancellation of PMI is never automatic. True/False

False

Which of the following statements are true, as defined in license law? A limited broker is a licensed broker who prefers to war under the supervision of another broker.

False

Which of the following statements are true, as defined in license law? Sponsors are brokers who are responsible for licensed salesperson.

False

Which of these statements about broker licensing are true? You must score 80% or higher on the broker's exam.

False

Which of these statements about broker licensing are true? You must submit your license application within six months of passing your broker's exam.

False

Which of these statements about quitclaim deeds and quiet title suits are true, and which are false? A quiet title suit is designed to keep property ownership anonymous. True/False

False

Without compensation, it'd be awfully difficult to sustain a career in real estate. Let's review a few key points related to compensation. A salesperson's compensation comes directly from the client or customer. True/False

False

Without compensation, it'd be awfully difficult to sustain a career in real estate. Let's review a few key points related to compensation. The industry has a "standard" compensation fee. True/False

False

You know what "assignment of contract" means, but do you understand how it works? Let's find out. Review each statement below about an assignment of contract and determine if the statement is true or false. The request to assign a contract is most often made prior to an offer being made to purchase the property. True/False

False

You'll cover zoning more in-depth shortly. For now, let's review to ensure you've got the basics down. Identify whether these statements are true or false. Local authorities can zone areas however they see fit. True/False

False

You'll handle a lot of paperwork over the course of your real estate career. While brokers are ultimately responsible for ensuring record requirements are met, all licensees should be familiar with the statue. Identify whether each statement is true or false. A licensed real estate broker shall retain for three years copies of all listings, buyer representation, and facilitator services contracts, deposit receipts, purchase money contracts, cancelled checks, trust account records, and such other documents as may reasonably be related to carrying on a real estate brokerage business.

False

You've been enlisted as a finder. You don't hold a real estate license. Casey is a buyer looking for a very specific property. Identify whether these statements are true or false of your role as Casey's finder. You can negotiate a better deal on Casey's behalf. True/False

False

You've been enlisted as a finder. You don't hold a real estate license. Casey is a buyer looking for a very specific property. Identify whether these statements are true or false of your role as Casey's finder. You must have your real estate license to act as Casey's finder. True/False

False

Your buyer clients will receive Loan Estimate and Closing Disclosure forms. How much do you know about these documents? Review each statement about the Loan Estimate and Closing Disclosure forms and determine if the statement is true or false. The Loan Estimate and the Closing Disclosure both have a two-day deadline. True/False

False

Your clients, Joe and Susie Wang, are house hunting. They heard from a friend that a special assessment has recently been levied in the neighborhood they're interested in. They've sent you an email asking if some of the things they've heard about special assessments are true. Fortunately, you've learned enough to clarify these points for them. Indicate whether each of the statements is true or false. Property owners only have to pay special assessments that they've agreed to fund. True/False

False

Your clients, Joe and Susie Wang, are house hunting. They heard from a friend that a special assessment has recently been levied in the neighborhood they're interested in. They've sent you an email asking if some of the things they've heard about special assessments are true. Fortunately, you've learned enough to clarify these points for them. Indicate whether each of the statements is true or false. Special assessments must be paid by property owners in full in the year in which they're imposed. True/False

False

Your clients, Joe and Susie Wang, are house hunting. They heard from a friend that a special assessment has recently been levied in the neighborhood they're interested in. They've sent you an email asking if some of the things they've heard about special assessments are true. Fortunately, you've learned enough to clarify these points for them. Indicate whether each of the statements is true or false. Unlike ad valorem taxes, a special assessment doesn't become a lien against the property. True/False

False

Fasle

VA loans can be common, depending on the location. Identify whether the following statements about VA loans are fact or fiction. The U.S. Department of Veterans Affairs insures the loans. Fact/Fiction

Fiction

VA loans can be common, depending on the location. Identify whether the following statements about VA loans are fact or fiction. Veterans can use VA loans for investment properties. Fact/Fiction

Fiction

Property can be identified in several ways, but only a few qualify as formal (legal) descriptions, and can therefore be used in a deed. The resource for this lesson describes the various legal descriptions available. Check it out, then identify whether the items below are formal or informal. Reference, plat, lot and block Formal/Informal

Formal

This lesson may feel a lot like a vocabulary test. In fact, you may see a lot of this vocabulary on your exam, so let's make sure you walk away with a general understanding of what these terms mean. Let's start with two terms we've already mentioned: freehold and leasehold estates. Match the scenario with the type of estate. You purchased a Colonial home eight years ago using a traditional 30-year-fixed conventional loan. Freehold estate/Leasehold estate

Freehold

General or Special Agent Handles all dealings for a specific piece of client property

General

Partnerships can come in general or limited form, as the resource discusses. Identify whether each statement is true of a general partnership or a limited partnership. Partners participate in partnership management General Partners/Limited Partners

General

Partnerships can come in general or limited form, as the resource discusses. Identify whether each statement is true of a general partnership or a limited partnership. Personally liable (both jointly and separately) if partnership debts exceed partnership assets General Partners/Limited Partners

General

In each of these scenarios, a licensee is a principal (the buyer or the seller) in a transaction. Look at each for any conflict of interest with a represented client. Select red flag if the licensee is acting as a dual agent, or green flag if there's no conflict of interest with a client. Shawna, a licensee, sells her property as a client of another sales agent at her brokerage.

Green Flag

Determine if each example describes an express or implied contract. You order dinner at a fancy restaurant. Your bill is $500, and you are obligated to pay it. Express/Implied

Implied

Implied/Express Agent You receive an all from a friend of a friend. He'd like you to show him some condos this weekend. After looking at a few options, he decides to make an offer, which you help present to the seller.

Implied

Informal

Initiate a Quiet Title Suit

Read each of these scenarios and determine whether the best option is to purchase title insurance or initiate a quiet title action. Select the correct response for each scenario. A cloud has appeared on the title to the property you own and want to sell. You need to locate a person who may have some claim on the title and obtain a document from that person to prove that a debt, for instance, has been paid or corrected. Purchase Title Insurance/Initiate a Quiet Title Suit

Initiate a Quiet Title Suit

Do you know how to perform these tests? Match each test to its description. Was the item intended to be temporary or permanent? Intention in placement/Agreement of the parties

Intention in placement

Read through these situations and decide whether they invalidate consent. Shelly's uncle, who manages a condominium complex where Shelly owns a condo, tells Shelly that if she doesn't sell her house to his friend, something may happen to her condo. Invalidates consent/Consent still exists

Invalidates consent

Read through these situations and decide whether they invalidate consent. The information in the contract lists that the property for sale is 5200 sq. ft. when actually, it's 2500 sq. ft. Invalidates consent/Consent still exists

Invalidates consent

There are two ways a taking can occur. Match the forms of taking with their correct descriptions. The property owner was not offered just compensation when the taking occurred, and the taking was probably regulatory in nature. Condemnation/Inverse condemnation

Inverse condemnation

Deceased person's debt Voluntary/Involuntary

Involuntary

Estate and inheritance tax lien Voluntary/Involuntary

Involuntary

Identify whether these methods of alienation are voluntary or involuntary. Court-ordered partitioning Voluntary/Involuntary

Involuntary

Identify whether these methods of alienation are voluntary or involuntary. Foreclosure Voluntary/Involuntary

Involuntary

Identify whether these methods of alienation are voluntary or involuntary. Natural processes Voluntary/ Involuntary

Involuntary

Identify whether these methods of alienation are voluntary or involuntary. Regulatory taking Voluntary/Involuntary

Involuntary

Income tax lien Voluntary/Involuntary

Involuntary

It would be helpful if you gave Joe and Susie some examples of voluntary and involuntary special assessments. Indicate whether each of the following descriptions is an example of a voluntary or an involuntary special assessment. New curbs and storm drains for a subdivision Voluntary/Involuntary

Involuntary

It would be helpful if you gave Joe and Susie some examples of voluntary and involuntary special assessments. Indicate whether each of the following descriptions is an example of a voluntary or an involuntary special assessment. Street paving, from gravel to asphalt Voluntary/Involuntary

Involuntary

Judgment lien Voluntary/Involuntary

Involuntary

Let's start off by sorting one method of alienation from another. Decide if each method is voluntary or involuntary. Adverse possession Voluntary/Involuntary

Involuntary

Let's start off by sorting one method of alienation from another. Decide if each method is voluntary or involuntary. Descent Voluntary/Involuntary

Involuntary

Let's start off by sorting one method of alienation from another. Decide if each method is voluntary or involuntary. Eminent domain Voluntary/Involuntary

Involuntary

Let's start off by sorting one method of alienation from another. Decide if each method is voluntary or involuntary. Escheat Voluntary/Involuntary

Involuntary

You know what the statute of frauds is, but do you know the statute's requirements to make contracts for the transfer of real property legally enforceable? Let's find out. Review each statement about the statute of frauds requirements for a real estate contract, and determine if it's a requirement under the statute of frauds. The contract subject matter must be clearly identified. Is a requirement/Is not a requirement

Is a requirement

You know what the statute of frauds is, but do you know the statute's requirements to make contracts for the transfer of real property legally enforceable? Let's find out. Review each statement about the statute of frauds requirements for a real estate contract, and determine if it's a requirement under the statute of frauds. The contracting parties must be identified. Is a requirement/Is not a requirement

Is a requirement

You know what the statute of frauds is, but do you know the statute's requirements to make contracts for the transfer of real property legally enforceable? Let's find out. Review each statement about the statute of frauds requirements for a real estate contract, and determine if it's a requirement under the statute of frauds. The essential terms and conditions of the contract must be present. Is a requirement/Is not a requirement

Is a requirement

The Wangs now want to know how they can pay for their $240 assessment. Determine whether the following are options for paying the assessment cost. Pay the amount in full. Is an Option/Isn't an Option

Is an Option

You know what the statute of frauds is, but do you know the statute's requirements to make contracts for the transfer of real property legally enforceable? Let's find out. Review each statement about the statute of frauds requirements for a real estate contract, and determine if it's a requirement under the statute of frauds. In addition to the written contract, there must also be an audio recording of an oral agreement between the contracting parties. Is a requirement/Is not a requirement

Is not a requirement

Issue

This lesson may feel a lot like a vocabulary test. In fact, you may see a lot of this vocabulary on your exam, so let's make sure you walk away with a general understanding of what these terms mean. Let's start with two terms we've already mentioned: freehold and leasehold estates. Match the scenario with the type of estate. You signed a two-year agreement to rent office space in a local commercial building. Freehold estate/Leasehold estate

Leasehold

Identify whether the following compensation scenarios are legal or prohibited under Minnesota law. In addition to being a licensed real estate salesperson, you own a web design company called Image Quest, LLC. Your broker makes your next commission check out to Image Quest. Legal/Prohibited

Legal

Identify whether the following compensation scenarios are legal or prohibited under Minnesota law. Your broker is in Europe for a four-week vacation, so the title company makes a commission check out in your name since they have a letter from your broker authorizing them to do so. Legal/Prohibited

Legal

Identify whether the following compensation scenarios are legal or prohibited under Minnesota law. Your broker splits the commission on a sale between you as the listing agent and another agent representing the buyers. Legal/Prohibited

Legal

Indicate whether each compensation scenario is legal under Minnesota law. At closing, James' buyer is informed that the estimated settlement fee of $185 that was previously communicated is actually $175. Legal/Illegal

Legal

Indicate whether each compensation scenario is legal under Minnesota law. James wants his commission check to be issued in the name of his company, James Scott Research, LLC. Legal/Illegal

Legal

Indicate whether each compensation scenario is legal under Minnesota law. The title company issues a check directly to James after having it authorized by his broker Mitch. Legal/Illegal

Legal

During the contract for deed process (and any "in process" or executory contract), the seller still holds legal title rights to the property, while the buyer has equitable title rights. What is the difference between these two types of title rights? Match each right to its description. Ownership interest in the property that is enforceable by law Legal title/Equitable title

Legal Title

Your resource lists several assets and liabilities that borrowers may note on their loan application. Sort these into the appropriate category. Mortgage Assets/Liabilities

Liabilites

Your resource lists several assets and liabilities that borrowers may note on their loan application. Sort these into the appropriate category. Car loan Assets/Liabilities

Liabilities

Your resource lists several assets and liabilities that borrowers may note on their loan application. Sort these into the appropriate category. Unpaid taxes Assets/Liabilities

Liabilities

Now that you know the meaning of appurtenance, let's turn our attention to the terms "profit" and "license." You might recall that profit and license are two of the sticks held in the bundle of rights, along with air rights, sub-surface rights, and water rights. How much do you remember about profit and license, and how they differ? Let's find out. Match each statement into the correct box to indicate whether it applies to profit or license. The owner may revoke this at any time unless a termination date has been specified by contractual agreement. Profit/License

License

Now that you know the meaning of appurtenance, let's turn our attention to the terms "profit" and "license." You might recall that profit and license are two of the sticks held in the bundle of rights, along with air rights, sub-surface rights, and water rights. How much do you remember about profit and license, and how they differ? Let's find out. Match each statement into the correct box to indicate whether it applies to profit or license. The permission to do something on another's land without actually possessing any interest or ownership in the land Profit/License

License

Now that you know the meaning of appurtenance, let's turn our attention to the terms "profit" and "license." You might recall that profit and license are two of the sticks held in the bundle of rights, along with air rights, sub-surface rights, and water rights. How much do you remember about profit and license, and how they differ? Let's find out. Match each statement into the correct box to indicate whether it applies to profit or license. This is not assignable or inheritable, and it is a temporary privilege. Profit/License

License

Partnerships can come in general or limited form, as the resource discusses. Identify whether each statement is true of a general partnership or a limited partnership. Not liable if partnership debts exceed partnership assets General Partners/Limited Partners

Limited

Partnerships can come in general or limited form, as the resource discusses. Identify whether each statement is true of a general partnership or a limited partnership. Silent partner General Partners/Limited Partners

Limited

As part of the building permit process, local building departments and the builder or property owner have specific responsibilities. Review each statement and decide if the responsibility belongs to the local building department or the builder/property owner. Decides which projects require a permit or approval. Local building department/Builder or property owner

Local

As part of the building permit process, local building departments and the builder or property owner have specific responsibilities. Review each statement and decide if the responsibility belongs to the local building department or the builder/property owner. Enforces code restrictions and licensing and insurance requirements for contractors, thereby enforcing the building code. Local building department/Builder or property owner

Local

As part of the building permit process, local building departments and the builder or property owner have specific responsibilities. Review each statement and decide if the responsibility belongs to the local building department or the builder/property owner. Issues certificate of occupancy after satisfactory final inspection. Local building department/Builder or property owner

Local

As part of the building permit process, local building departments and the builder or property owner have specific responsibilities. Review each statement and decide if the responsibility belongs to the local building department or the builder/property owner. Sends inspectors to the job site to verify that the work is being done in compliance with the building code. Local building department/Builder or property owner

Local

Although both manufactured and modular homes are built in a factory, they are very different animals. Do you know the primary differences between the two types of housing? Let's find out. Identify each statement as either a manufactured homes or a modular home. Because they are built using precise pieces, they are very energy efficient. Manufactured home/Modular home

Manufactured

Although both manufactured and modular homes are built in a factory, they are very different animals. Do you know the primary differences between the two types of housing? Let's find out. Identify each statement as either a manufactured homes or a modular home. They come in single-wide, double-wide, and triple-wide. Manufactured home/Modular home

Manufactured

Although both manufactured and modular homes are built in a factory, they are very different animals. Do you know the primary differences between the two types of housing? Let's find out. Identify each statement as either a manufactured homes or a modular home. Traditional mortgage financing is difficult to obtain for this type of housing because it is considered personal property instead of real property. Manufactured home/Modular home

Manufactured

With some types of government powers, the original owner of the property is compensated, but this isn't always the case. Sort the government powers based on whether the owner is compensated. Police power Yes/No/Maybe

Maybe

What are metes? And what is a bound? If you've reviewed the resource, you already know. Let's test your knowledge. Sort the items based on whether they are metes or bounds. 15 meters Metes/Bounds

Metes

What are metes? And what is a bound? If you've reviewed the resource, you already know. Let's test your knowledge. Sort the items based on whether they are metes or bounds. East 200 feet Metes/Bounds

Metes

What are metes? And what is a bound? If you've reviewed the resource, you already know. Let's test your knowledge. Sort the items based on whether they are metes or bounds. North eight degrees Metes/Bounds

Metes

High rise building with apartments on the upper floors, anchored by retail and restaurants on the ground floor Mixed use/Planned use development

Mixed

Although both manufactured and modular homes are built in a factory, they are very different animals. Do you know the primary differences between the two types of housing? Let's find out. Identify each statement as either a manufactured homes or a modular home. Regular mortgage financing is available for this type of housing. Manufactured home/Modular home

Modular

Although both manufactured and modular homes are built in a factory, they are very different animals. Do you know the primary differences between the two types of housing? Let's find out. Identify each statement as either a manufactured homes or a modular home. They come in either one or two stories. Manufactured home/Modular home

Modular

MN Law requires that specific information be kept in trust account records. Indicate whether Rachel must keep the following dates to comply with the law. Monthly balance of the account.

Must keep

MN Law requires that specific information be kept in trust account records. Indicate whether Rachel must keep the following dates to comply with the law. Separate records tying deposits and disbursements to transactions.

Must keep

Not everyone who buys and sells real estate will need a real estate license. The law allows an exemption from the license requirement for certain situations and individuals. A there exempt or not? Dan is an experienced fix-and-flipper. He also helps others with their home flipping projects, including helping them negotiate the purchase and sale of property.

Needs a License

A buyer agency agreement can be terminated for any number of reasons. Read each scenario and identify whether or not it would be considered a valid reason for termination. One week after entering into the buyer agency agreement, Gertie Johannes called her agent, Duke Strong, to say she had changed her mind about wanting to buy a house. Yes/No

A lease agreement can be terminated for any number of reasons. Read each scenario and identify whether or not it is a reason the agreement can be terminated. Hilda was tired of her month-to-month lease arrangement with her tenant, Derek. She knew that if she could get someone new in the apartment, she could require the new tenant to sign a year's lease. She told Derek he had two weeks to move out. Yes/No

A lease agreement can be terminated for any number of reasons. Read each scenario and identify whether or not it is a reason the agreement can be terminated. Rebecca had signed a year's lease for her apartment, but she found that she didn't like the neighborhood and didn't feel safe. Without notifying her landlord, she moved out the next month. Yes/No

A lease agreement in Minnesota can also be terminated under certain unique circumstances. Read each statement and identify whether or not it falls under the special provisions for lease termination. The tenant wants to find a less expensive place to live. Yes/No

A lease agreement in Minnesota can also be terminated under certain unique circumstances. Read each statement and identify whether or not it falls under the special provisions for lease termination. The tenant's neighbors play their music too loud and late into the night. Yes/No

A licensee does have responsibilities when it comes to helping clients understand the tax implications of their real estate decisions. Is it clear to you what those responsibilities are? Let's find out. Review each statement and determine if it is the licensee's responsibility or not. You should give your clients tax advice. Yes/No

A purchase agreement can be terminated for any number of reasons. Read each scenario and identify whether it is a reason the agreement can be terminated or not. The buyers, Ann and Mark Truehart, selected the "Buyer Accepts the Property As Is" item in the purchase agreement, and the seller, Harry Curtis, made the repairs stated in the agreement. After viewing the property again, the Trueharts decide they want out of the contract. Yes/No

And what about grantor and grantee indexes? Can you tell us which of the following are characteristics of this index type? Grantor and grantee indexes help with marketing a listed property. Yes/No

And what about grantor and grantee indexes? Can you tell us which of the following are characteristics of this index type? Grantor and grantee indexing involves grouping several parcels of land. Yes/No

Meanwhile, Brad's dad has decided it's time to buy a boat. He's found a personal loan with a rate of 5%. Brad's dad jumps on it, thinking it sounds like a good deal. Does this deal violate usury law in Minnesota? Yes No

Now that you know what a tract index is, let's see if you can tell us which of the following are characteristics of this type of index. Tract indexes are used in most states. Yes/No

Read each scenario and identify whether it is a reason the sales agreement can be terminated or not. A property that's under contract suffers minor roof damage during a hail storm. The seller has a professional roofer repair the roof prior to closing. The buyer isn't convinced that the job was done properly and wants out of the agreement. Yes/No

Read each scenario. Is the licensee following the legal standards of conduct? Reagan is holding an open house at her seller's starter house. Bob and Shelia walk through, and at the end of the tour, they inquire whether any offers are on the table. Reagan tells them that yes, there is one offer that just came in the night before. When they press for more information, she indicates that the offer is approximately 5% below the asking price.

Review each statement and determine if it is or is not a contributing factor to why property taxes are a reliable source of income for the municipality. Property taxes are easy to conceal. Yes/No

The statute of frauds has established a number of signature requirements to prevent fraudulent oral contract documentation. Review each statement and indicate whether or not it is one of the signature requirements. If the sellers are co-owners of the property, only one of the owners must sign. Yes/No

The statute of frauds has established a number of signature requirements to prevent fraudulent oral contract documentation. Review each statement and indicate whether or not it is one of the signature requirements. Under no circumstances may an agent sign on behalf of the principal. Yes/No

Uh oh! Now imagine the once friendly feud that surfaces between Jack and Joe during football season has reached a new level. Now Jack is forbidding Joe from entering certain rooms in the family home the brothers inherited. Can Jack do this? Yes/No

We've created our easements, now let's terminate them. Easements may be terminated in several ways, which are listed in the attached resource. Identify whether the items listed below are ways an easement can be terminated. The owner of the easement expires. Yes/No

Yes/No Fiduciary Duty Right to Profit

Yes/No to keeping something confidential. The seller originally paid $235,000 for the property

Yes/No to keeping something confidential. The seller recently replaced the roof due to hail damage

Yes/no. Duties owed to customers Confidentiality

Yes/no. Duties owed to customers Obedience

You have a client who's selling his family's working tree farm. Does TILA apply? If you need help, we've added a new resource for you. Yes No

You identified group boycotting in the last question. Are any of these situations an example of group boycotting? A licensee refuses to work with buyers who are obtaining financing through a questionable lender.

Your seller client signed a contract with a buyer, but the buyer now wishes to back out of the contract and has offered to have a friend take his place as buyer through the process of novation. Your seller client is agreeable. Since everyone agrees, is it okay for you to cross out the original buyer's name on the contract and substitute the new buyer's name? Yes No

Amy is working as a seller's agent for Tom. They agreed upon a 45-day protection clause and included it in the listing agreement. For each of the situations, indicate whether Amy should receive commission under the protection clause. Diane toured Tom's house and would've loved to make an offer, but couldn't until she found out whether her husband was going to be relocated. Two months after the listing expired, Diane learned they were staying put and called Amy, who told her that she no longer had Tom's house listed. Diane contacted Tom to make an offer. Commission/No Commission

No commission

Amy is working as a seller's agent for Tom. They agreed upon a 45-day protection clause and included it in the listing agreement. For each of the situations, indicate whether Amy should receive commission under the protection clause. Sandra started working with a buyer's agent about a week after the initial listing had expired. Her agent hadn't seen Tom's house but contacted him directly to find out if they could see it. Sandra ended up purchasing the house. Commission/No Commission

No commission

Dual agency or not You represent the buyer and an agent from a different firm represents the seller in the same transaction.

Not

Dual agency or not You represent the buyer in one transaction and the seller in a different transaction

Not

Mrs. Hudson has been the landlord of Lewis Arms for a number of years. Select whether each scenario regarding the security deposit with her tenant, Heather, is okay or not okay. Heather's security deposit is placed in a non-interest-bearing account. Okay/Not Okay

Not Okay

While there are many regulations in place to curb predatory practices, you or your clients may still encounter them from time to time. These practices are highlighted in the resource. Which of these lender actions are considered predatory? Refusing to give a loan to a consumer whose debt-to-income ratio is 50% Predatory/Not Predatory

Not Predatory

While there are many regulations in place to curb predatory practices, you or your clients may still encounter them from time to time. These practices are highlighted in the resource. Which of these lender actions are considered predatory? Selling a borrower's mortgage on the secondary market Predatory/Not Predatory

Not Predatory

In addition to being in writing, listing agreements used in Minnesota must contain certain elements. Sort these items based on whether they're required to be included in the contract. Name of closing agent to use should the property sell within the term of the listing agreement Required/Not Required

Not Required

Kendall's client, Lawrence, is looking for a house on the beach. Lawrence tells Kendall he'll pay him a $2,500 finder's fee if he finds him exactly what he's looking for before the property hits the market. Kendall meets Margot at a neighborhood BBQ and learns that she's thinking of putting her house on the market. He realizes it ideally suits Lawrence's needs. "I can save you a lot of hassle," he tells Margot. "You won't even have to list it. I have a buyer at the ready." What circumstances are required for Kendall to receive the finder's fee? Identify whether the circumstance is required or not required in order for Kendall to receive the finder's fee. Both parties would have to agree to dual representation. Required/Not Required

Not Required

Kendall's client, Lawrence, is looking for a house on the beach. Lawrence tells Kendall he'll pay him a $2,500 finder's fee if he finds him exactly what he's looking for before the property hits the market. Kendall meets Margot at a neighborhood BBQ and learns that she's thinking of putting her house on the market. He realizes it ideally suits Lawrence's needs. "I can save you a lot of hassle," he tells Margot. "You won't even have to list it. I have a buyer at the ready." What circumstances are required for Kendall to receive the finder's fee? Identify whether the circumstance is required or not required in order for Kendall to receive the finder's fee. Margot must be represented by another licensee. Required/Not Required

Not Required

Kendall's client, Lawrence, is looking for a house on the beach. Lawrence tells Kendall he'll pay him a $2,500 finder's fee if he finds him exactly what he's looking for before the property hits the market. Kendall meets Margot at a neighborhood BBQ and learns that she's thinking of putting her house on the market. He realizes it ideally suits Lawrence's needs. "I can save you a lot of hassle," he tells Margot. "You won't even have to list it. I have a buyer at the ready." What circumstances are required for Kendall to receive the finder's fee? Identify whether the circumstance is required or not required in order for Kendall to receive the finder's fee. Margot must list her house on the open market, and then if no other buyers are willing to pay more, she can sell to Lawrence at the price Kendall suggests. Required/Not Required

Not Required

What's required in order for a deed to be eligible for recording? Grantee must appear before a public officer Required/Not Required

Not Required

What's required in order for a deed to be eligible for recording? Grantee must state the deed signing is voluntary Required/Not Required

Not Required

Which of the following information is required in a written agency disclosure form? Explanation of brokerage compensation policies.

Not Required

Which of the following information is required in a written agency disclosure form? Summary of brokerage history.

Not Required

While buyer agreements may generally contain a bit more information, which of these items are required under Minnesota statute? Description of property being sought Required/Not Required

Not Required

Jeb decided to go with an LLC instead of a corporation. What are some benefits an LLC offers Jeb? Commingles personal and company assets in terms of liability. Benefit/Not a Benefit

Not a Benefit

Hey, you, sole proprietor! Did you know when you become a licensed real estate sales person, you become a sole proprietor? It'll be helpful to know what this business type is. Identify characteristics of a sole proprietorship. Business can be conducted and title to property held in your business name. Characteristic/Not a Characteristic

Not a Characteristic

Hey, you, sole proprietor! Did you know when you become a licensed real estate sales person, you become a sole proprietor? It'll be helpful to know what this business type is. Identify characteristics of a sole proprietorship. Ownership of property can be in the form of tenancy in common. Characteristic/Not a Characteristic

Not a Characteristic

Let's pick up with corporations. Remember that corporations hold property in severalty. What are some characteristics of this type of business? Physical, brick-and-mortar establishment Characteristic/Not a Characteristic

Not a Characteristic

There are valid reasons why a developer might place restrictive covenants/deed restrictions on the homes within a subdivision. Identify each of these options as either a reason, or not a reason, for deed restrictions. To control the ethnic background of the neighborhood Reason/Not a Reason

Not a Reason

Which of these actions would be a way to mitigate the effects of title issues, and which would not? Initiate an action to quiet title Ignore the issue Way to Mitigate/Not a Way to Mitigate

Not a Way to Mitigate

In addition to allowing homeowners some nice property tax breaks, homestead law also grants some other benefits to those who qualify. What are they? Allows an extension for the payment of property taxes. Benefit/Not a Benefit

Not a benefit

In addition to allowing homeowners some nice property tax breaks, homestead law also grants some other benefits to those who qualify. What are they? If married, the homestead exemption doubles. Benefit/Not a Benefit

Not a benefit

In addition to allowing homeowners some nice property tax breaks, homestead law also grants some other benefits to those who qualify. What are they? Protects the property from foreclosure for failure to pay property taxes. Benefit/Not a Benefit

Not a benefit

As a buyer's agent, you owe specific duties to your buyer client. What are these duties? Advocate for the interests of the seller

Not a buyer's agent duty

Why would the state even want Mr. Thomas' property? What use could it have for it? Believe it or not, the power of escheat actually serves a valuable purpose. For which of the following reasons does the state employ this power? To resell the property for a profit. Reason/Not a Reason

Not a reason

Well, why on earth would anyone sell their home for less than what they owe on it? Good question. What would be some reasons you would sell your home for less than what you owe on it? Desire to move to new location Reason to sell/Not a reason to sell

Not a reason to sell

Which of the following are broker supervisory responsibilities under MN law? Provide monthly reports on CE completions

Not a responsibility

Let's take a moment to review. Identify which of the following are rights for real property owners. Pollution

Not a right

As a seller's agent, you owe specific duties. Which of these are seller duties? Advocate for the buyer

Not a seller's agent duty

Now let's stretch your subdivision regulation knowledge. Determine which items are subdivision regulations, and which are not. Dividing the area into districts for residential, commercial, or industrial use Subdivision Regulation/Not a Subdivision Regulation

Not a subdivision

Now let's stretch your subdivision regulation knowledge. Determine which items are subdivision regulations, and which are not. Maximum financeable amount per house/lot Subdivision Regulation/Not a Subdivision Regulation

Not a subdivision

You've defined a tie-in arrangement. Now can you recognize it when it happens? In these scenarios, decide if the licensees are promoting tie-in arrangements or not. Claire tells a prospective buyer that she will only negotiate on his behalf if he signs an agency agreement to be a client.

Not a tie-in

You've defined a tie-in arrangement. Now can you recognize it when it happens? In these scenarios, decide if the licensees are promoting tie-in arrangements or not. Devin tells a buyer that his commission rate is 2%, but the buyer won't have to pay this out of pocket if the seller's agent pays a commission to cooperating agents.

Not a tie-in

Review the following scenarios and determine whether an antitrust violation has taken place. Deidre at Best Realty researches the local market and decides that her brokerage should increase its commission rate to 6.5%.

Not a violaiton

Your resource introduces the most common forms of antitrust violations seen in real estate practice. Which of these are federal antitrust violations? Individual boycotts

Not a violation

Can you identify what some of the common problems might be for an REO property? Homeowners using their right of redemption Issue/Not an issue

Not an issue

Can you identify what some of the common problems might be for an REO property? Tax liens Issue/Not an issue

Not an issue

Read each scenario and determine if the level of service the licensee is providing is appropriate or not. Derek was reviewing an offer that was submitted for his client's property. Feeling that the offer was too low, Derek contracted the buyer's agent and told her that the seller had rejected the offer

Not appropriate

Read each scenario and determine if the level of service the licensee is providing is appropriate or not. Harrison's clients, the Harpers, told him that they were really motivated to sell their home because they were struggling to make their mortgage payments and would take the first reasonable offer they received. Harrison immediately notified the agent of a buyer whom he knew was in the process of putting together an offer for the Harpers' home and told him about his clients' situation

Not appropriate

Read each scenario and determine if the level of service the licensee is providing is appropriate or not. Regardless of whom he's working with (client or customer), Damon prides himself on always putting their interests ahead of those he doesn't work with

Not appropriate

The education, research, and recovery fund is authorized by law to pay for certain expenditures. Which of the following are authorized expenditures? Pay attorney fees to defend lawsuits against the fund.

Not authorized

The education, research, and recovery fund is authorized by law to pay for certain expenditures. Which of the following are authorized expenditures? Support lobbyists who advocate for real estate issues.

Not authorized

Tanya is a licensed salesperson representing a seller in a residential transaction. Which of the following material facts must she disclose to a potential buyer? A local nonprofit plans to open a halfway house two blocks away.

Not disclose

Tanya is a licensed salesperson representing a seller in a residential transaction. Which of the following material facts must she disclose to a potential buyer? The prior owner committed suicide in the basement.

Not disclose

Tanya is a licensed salesperson representing a seller in a residential transaction. Which of the following material facts must she disclose to a potential buyer? There are three registered sex offenders living in a one mile radius of the property.

Not disclose

Determine whether each action is ethical or unethical. When listing a property, you cooperate with the buyer's agents.

Not ethical

Determine whether each action is ethical or unethical. You modify the suggested listing price of a property above market value in an effort to win the listing.

Not ethical

Determine whether each action is ethical or unethical. You offer advice on the condition of a property's roof.

Not ethical

Determine whether each action is ethical or unethical. You promote your own interests ahead of the client's.

Not ethical

Determine whether each action is ethical or unethical. You're the listing agent on your parents' property, but you keep this fact confidential from prospective buyers.

Not ethical

Determine whether the action is ethical or unethical. A licensee is the listing agent of his parents' property, but keeps this fact confidential from prospective buyers.

Not ethical

Determine whether the action is ethical or unethical. A licensee modifies the suggested listing price of a property above marker value in an effort to win the listing.

Not ethical

Determine whether the action is ethical or unethical. A licensee promotes own interests ahead of the client's.

Not ethical

Determine whether the action is ethical or unethical. A licensees offers advice on the condition of a property's roof.

Not ethical

Now that we've defined market allocation, let's see if we can recognize it. Determine whether these scenarios are examples of market allocation. A local realty firm is seeking to bring on an agent who will focus only on properties priced above $1 million.

Not market allocation

Now that we've defined market allocation, let's see if we can recognize it. Determine whether these scenarios are examples of market allocation. An agent has a client who would like to purchase a home in a neighboring county. Unfamiliar with the area, the agent refers the buyer to another agent with the firm who is more knowledgeable.

Not market allocation

Now that we've defined market allocation, let's see if we can recognize it. Determine whether these scenarios are examples of market allocation. Instead of competing in each other's territories, agents with one firm agree to segment the marketplace and refer clients to other agents who are outside of their assigned market area.

Not market allocation

Review each scenario and determine if it's an example of novation or not. Note: This is part one of a two-part question. Myra and Michelle have decided to buy a townhome and have entered into a contract with Hugh Dent, the seller. After reviewing her finances, Michelle gets cold feet, leaves Myra a note, and leaves town. Myra can't afford the place on her own and has to terminate the contract. Novation/Not novation

Not novation

Review each scenario and determine if it's an example of novation or not. Note: This is part one of a two-part question. Nora and her husband, Tom, have made a back-up offer on the home of their dreams, which is accepted. A week later, they're told that the first offer is going to closing. Nora and Tom make an offer on another home. Novation/Not novation

Not novation

Real estate professionals should never state or even suggest that there's a standard price or fee that all licensees charge. Consumers might see this as price fixing. Review these scenarios and identify whether they're examples of price fixing. All licensees with Max Realty charge a 4% commission split evenly with the cooperating licensee.

Not price fixing

Real estate professionals should never state or even suggest that there's a standard price or fee that all licensees charge. Consumers might see this as price fixing. Review these scenarios and identify whether they're examples of price fixing. Yankee Group and Met Realty both charge 5% commissions.

Not price fixing

Are the following actions prohibited or not? Clarissa thinks her clients may have trouble securing financing, so she provides a list of financial planners who could help them.

Not prohibited

Are the following actions prohibited or not? Salesperson Graham explains dual agency to his seller and lets him know that he can constant to or decline dual agency.

Not prohibited

Do you know what elements are required in a deed for it to be valid? Let's find out. Review each element and determine whether it's required or not. If you need help, check out your resources. Conveyed orally Required/Not required

Not required

Let's check some deed requirements. Review each element and determine whether it is required in a deed for it to be valid or not. Grantee's signature Required/Not required

Not required

Let's check some deed requirements. Review each element and determine whether it is required in a deed for it to be valid or not. Witness to the grantor's signatures Required/Not required

Not required

One of the ways to register a subdivision is through notification. Determine whether the following information must be provided to the commissioner to register through notification. Copies of planned marketing materials

Not required

The law requires appraisers to disclose certain things prior to performing any appraisal services. Determine whether this information must be disclosed. The date of the appraiser's initial licensure

Not required

The law requires appraisers to disclose certain things prior to performing any appraisal services. Determine whether this information must be disclosed. Whether the appraiser has ever evaluated the property

Not required

Certain loan features are considered toxic and aren't permitted for qualified loans. Review these items and determine whether or not they're toxic. 30-year loan term Toxic/Not toxic

Not toxic

Certain loan features are considered toxic and aren't permitted for qualified loans. Review these items and determine whether or not they're toxic. Amortized payments Toxic/Not toxic

Not toxic

Certain loan features are considered toxic and aren't permitted for qualified loans. Review these items and determine whether or not they're toxic. Lender points of 2% of loan value Toxic/Not toxic

Not toxic

In which of these situations, would the "Important Information about Contracts for Deeds" notice be required? This is the seller's first contract for deed transaction. The buyer is represented by a Minnesota real estate salesperson. Notice Required/Notice Not Required

Notice Not Required

In which of these situations, would the "Important Information about Contracts for Deeds" notice be required? This is the seller's fifth contract for deed transaction in the last 12 months. The buyer isn't represented by a lawyer or real estate licensee. Notice Required/Notice Not Required

Notice Required

Identify whether the licensee in each scenario is required to notify the commissioner. Abigial's WI appraisal license was revoked.

Notice required

Identify whether the licensee in each scenario is required to notify the commissioner. Harriett plead guilty to fraud.

Notice required

Identify whether the licensee in each scenario is required to notify the commissioner. Damian was found guilty of failure to yield, causing a traffic accident, and ordered to pay a fine of $1000 plus court costs.

Noticed not required

Review each scenario and determine if it's an example of novation or not. Note: This is part one of a two-part question. Miguel and Tina have a signed contract for Tina to buy Miguel's house. The original contract form is a mess. Tina spilled coffee on it, obliterating some of the text. Tina and Miguel have crossed out and initialed several changes. They decide to write a new contract that cleans up the coffee spill and incorporates all their changes. Novation/Not novation

Novation

Review each scenario and determine if it's an example of novation or not. Note: This is part one of a two-part question. Two couples, Jill and John and Josie and Jack, decide to enter into a timeshare agreement. When Josie gets cold feet about it, Jack ditches her and instead becomes a couple with Lourdes. Everyone agrees that Lourdes can replace Josie in the timeshare agreement, and Josie no longer will have any liability. Novation/Not novation

Novation

Mrs. Hudson has been the landlord of Lewis Arms for a number of years. Select whether each scenario regarding the security deposit with her tenant, Heather, is okay or not okay. Heather agreed to pay a security deposit equal to three months' rent. Okay/Not Okay

Okay

Mrs. Hudson has been the landlord of Lewis Arms for a number of years. Select whether each scenario regarding the security deposit with her tenant, Heather, is okay or not okay. Mrs. Hudson gave Heather a chance to view the property's condition before she signed the lease. Okay/Not Okay

Okay

Mrs. Hudson has been the landlord of Lewis Arms for a number of years. Select whether each scenario regarding the security deposit with her tenant, Heather, is okay or not okay. Mrs. Hudson may use the security deposit toward unpaid rent. Okay/Not Oka

Okay

As a buyer's agent, you'll perform certain tasks for your client. Which of the following are tasks you should perform? Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license.

Perform

As a buyer's agent, you'll perform certain tasks for your client. Which of the following are tasks you should perform? Show the buyer properties that meet the criteria and fall within the budget.

Perform

Beyond your duties as a seller's agent, you also perform other specific tasks on behalf of your client. Which of the following tasks must you perform for the seller? Communicate all offers and counter offers to the seller

Perform

Beyond your duties as a seller's agent, you also perform other specific tasks on behalf of your client. Which of the following tasks must you perform for the seller? Inform the seller of the responsibility to make all required property condition disclosures

Perform

Beyond your duties as a seller's agent, you also perform other specific tasks on behalf of your client. Which of the following tasks must you perform for the seller? Negotiate contract terms in accordance with the seller's wishes

Perform

Lenders want borrowers' business, but they can't say whatever they want to get that business. Certain statements are permitted, whereas others may be violations of TILA and require additional disclosure. Review the statements and determine which are permitted and which are violations if not accompanied by other terms. "Get a VA-guaranteed loan here!" Permitted/Violation

Permitted

Lenders want borrowers' business, but they can't say whatever they want to get that business. Certain statements are permitted, whereas others may be violations of TILA and require additional disclosure. Review the statements and determine which are permitted and which are violations if not accompanied by other terms. "Loans available at 5% annual percentage rate." Permitted/Violation

Permitted

Here are a few final items to consider. Indicate whether the following items are personal property or real property. Free-standing children's outdoor play set Personal property/Real property

Personal

Determine each real estate characteristic and indicate which category it belongs in. Immobility Economic characteristics/Physical characteristics

Physical

Determine each real estate characteristic and indicate which category it belongs in. Indestructability Economic characteristics/Physical characteristics

Physical

Determine each real estate characteristic and indicate which category it belongs in. Uniqueness Economic characteristics/Physical characteristics

Physical

A town comprised of smaller villages, each with a small shopping area, clustered around a larger commercial area, such as a shopping mall. Mixed use/Planned use development

Planned

Predatory

While there are many regulations in place to curb predatory practices, you or your clients may still encounter them from time to time. These practices are highlighted in the resource. Which of these lender actions are considered predatory? Giving a consumer a loan she can't afford Predatory/Not Predatory

Predatory

Pair each item to identify it as either a prorated accrued item or a prorated prepaid item. Rent paid by the seller under a lease assigned to the buyer Accrued/Prepaid

Prepaid

Pair each item to identify it as either a prorated accrued item or a prorated prepaid item. Taxes that have been paid in advance Accrued/Prepaid

Prepaid

Pair each item to identify it as either a prorated accrued item or a prorated prepaid item. Utilities that have been billed and paid in advance Accrued/Prepaid

Prepaid

Real estate professionals should never state or even suggest that there's a standard price or fee that all licensees charge. Consumers might see this as price fixing. Review these scenarios and identify whether they're examples of price fixing. Met Realty and Sox Properties agree to begin charging 6% commissions starting on the first of next month.

Pricing fixing

Now that you know the meaning of appurtenance, let's turn our attention to the terms "profit" and "license." You might recall that profit and license are two of the sticks held in the bundle of rights, along with air rights, sub-surface rights, and water rights. How much do you remember about profit and license, and how they differ? Let's find out. Match each statement into the correct box to indicate whether it applies to profit or license. Legal term that means the right to take products of the soil Profit/License

Profit

Now that you know the meaning of appurtenance, let's turn our attention to the terms "profit" and "license." You might recall that profit and license are two of the sticks held in the bundle of rights, along with air rights, sub-surface rights, and water rights. How much do you remember about profit and license, and how they differ? Let's find out. Match each statement into the correct box to indicate whether it applies to profit or license. When in the land, this can actually be more valuable than owning the land itself. Profit/License

Profit

Are the following actions prohibited or acceptable? Georgia tells you that she needs to sell her house for at least $310,000 to make any money. Her house is Wirth much more than that, so you guarantee that she will.

Prohibited

Are the following actions prohibited or acceptable? You only have six hours of coursework left to complete your GRI. You add the designation to your new business cards since you're so close, and proudly begin using them.

Prohibited

Are the following actions prohibited or acceptable? Your marketing materials indicate that you belong to MN Association to REALTORS(R). You intend to join MNAR, but haven't had a chance yet.

Prohibited

Are the following actions prohibited or not? Broker Christine tells her client, "These contracts are simple, and you won't need an attorney to review them."

Prohibited

Are the following actions prohibited or not? Jerry accepts a listing from a client who has been very clear that Jerry is not to sell the house to any Muslims.

Prohibited

Identify whether the following compensation scenarios are legal or prohibited under Minnesota law. You receive a referral fee from a mortgage professional when your buyers choose to work with her. Legal Prohibited

Prohibited

Identify whether the following compensation scenarios are legal or prohibited under Minnesota law. Your buyers are closing at 4 p.m. The closing agent calls you at 8 a.m. to let you know that the closing service fee will be $150. Legal/Prohibited

Prohibited

Purchase Title Insurance

Here are a couple more items to consider. Indicate whether the following items are personal property or real property. Garage remote controls Personal property/Real property

Real

There are valid reasons why a developer might place restrictive covenants/deed restrictions on the homes within a subdivision. Identify each of these options as either a reason, or not a reason, for deed restrictions. To maintain specific standards in subdivision quality, style, and characteristics Reason/Not a Reason

Reason

There are valid reasons why a developer might place restrictive covenants/deed restrictions on the homes within a subdivision. Identify each of these options as either a reason, or not a reason, for deed restrictions. To prevent early residents from creating issues that impede future sales of homes Reason/Not a Reason

Reason

Why would the state even want Mr. Thomas' property? What use could it have for it? Believe it or not, the power of escheat actually serves a valuable purpose. For which of the following reasons does the state employ this power? To put the property back into use for the public good. Reason/Not a Reason

Reason

Well, why on earth would anyone sell their home for less than what they owe on it? Good question. What would be some reasons you would sell your home for less than what you owe on it? Job loss Reason to sell/Not a reason to sell

Reason to sell

Well, why on earth would anyone sell their home for less than what they owe on it? Good question. What would be some reasons you would sell your home for less than what you owe on it? Mortgage that's too costly Reason to sell/Not a reason to sell

Reason to sell

In each of these scenarios, a licensee is a principal (the buyer or the seller) in a transaction. Look at each for any conflict of interest with a represented client. Select red flag if the licensee is acting as a dual agent, or green flag if there's no conflict of interest with a client. A broker or sales agent buys a property the brokerage has listed.

Red Flag

In each of these scenarios, a licensee is a principal (the buyer or the seller) in a transaction. Look at each for any conflict of interest with a represented client. Select red flag if the licensee is acting as a dual agent, or green flag if there's no conflict of interest with a client. A licensee is selling his own house and doesn't tell the buyer that he's a licensed real estate professional.

Red Flag

Law or Regulation A standard or rule adopted by a government agency, such as a state department of commerce or the EPA

Regulation

Required

In addition to being in writing, listing agreements used in Minnesota must contain certain elements. Sort these items based on whether they're required to be included in the contract. Amount or calculation of commission Required/Not Required

Required

In addition to being in writing, listing agreements used in Minnesota must contain certain elements. Sort these items based on whether they're required to be included in the contract. Dual agency disclosure statement Required/Not Required

Required

In addition to being in writing, listing agreements used in Minnesota must contain certain elements. Sort these items based on whether they're required to be included in the contract. Explanation of events or conditions that entitle the broker to commission Required/Not Required

Required

In addition to being in writing, listing agreements used in Minnesota must contain certain elements. Sort these items based on whether they're required to be included in the contract. Explanation of if and under what circumstances the listing agreement can be canceled Required/Not Required

Required

Kendall's client, Lawrence, is looking for a house on the beach. Lawrence tells Kendall he'll pay him a $2,500 finder's fee if he finds him exactly what he's looking for before the property hits the market. Kendall meets Margot at a neighborhood BBQ and learns that she's thinking of putting her house on the market. He realizes it ideally suits Lawrence's needs. "I can save you a lot of hassle," he tells Margot. "You won't even have to list it. I have a buyer at the ready." What circumstances are required for Kendall to receive the finder's fee? Identify whether the circumstance is required or not required in order for Kendall to receive the finder's fee. Lawrence must pay the finder's fee to Kendall's broker. Required/Not Required

Required

Let's check some deed requirements. Review each element and determine whether it is required in a deed for it to be valid or not. Delivery and acceptance Required/Not required

Required

Let's check some deed requirements. Review each element and determine whether it is required in a deed for it to be valid or not. Grantor's signature Required/Not required

Required

Let's check some deed requirements. Review each element and determine whether it is required in a deed for it to be valid or not. Restrictions and exceptions Required/Not required

Required

The law requires appraisers to disclose certain things prior to performing any appraisal services. Determine whether this information must be disclosed. Any ownership interest the appraiser has in the property

Required

The law requires appraisers to disclose certain things prior to performing any appraisal services. Determine whether this information must be disclosed. The appraiser's license classification

Required

The law requires appraisers to disclose certain things prior to performing any appraisal services. Determine whether this information must be disclosed. The difference between an appraisal and a market valuation

Required

The law requires appraisers to disclose certain things prior to performing any appraisal services. Determine whether this information must be disclosed. Who the appraiser is for

Required

What's required in order for a deed to be eligible for recording? Grantor must appear before a public officer Required/Not Required

Required

What's required in order for a deed to be eligible for recording? Grantor must state the deed signing is voluntary Required/Not Required

Required

What's required in order for a deed to be eligible for recording? Must be acknowledged or have an oath of a subscribing witness Required/Not Required

Required

Which of the following information is required in a written agency disclosure form? Description of licensee duties under each agency role.

Required

Which of the following information is required in a written agency disclosure form? Explanation of available agency options.

Required

Which of the following information is required in a written agency disclosure form? Signature line to acknowledge receipt.

Required

While buyer agreements may generally contain a bit more information, which of these items are required under Minnesota statute? Amount of compensation or manner for calculating it Required/Not Required

Required

While buyer agreements may generally contain a bit more information, which of these items are required under Minnesota statute? Definite expiration date Required/Not Required

Required

While buyer agreements may generally contain a bit more information, which of these items are required under Minnesota statute? Dual agency disclosure Required/Not Required

Required

While buyer agreements may generally contain a bit more information, which of these items are required under Minnesota statute? Explanation of broker's services provider to the buyer Required/Not Required

Required

While buyer agreements may generally contain a bit more information, which of these items are required under Minnesota statute? Explanation of events or conditions that entitle the broker to compensation Required/Not Required

Required

Requires permission

Which of the following are broker supervisory responsibilities under MN law? Investigate complaints about licensees

Responsibility

Which of the following are broker supervisory responsibilities under MN law? Monitor all listings and purchase agreements.

Responsibility

Which of the following are broker supervisory responsibilities under MN law? Submit license renewal applications

Responsibility

Brent completed the loan application, and he's cleared the appraisal and title hurdles. Next up is loan underwriting, which results in a decision to either grant or deny the loan. What information will the underwriter review in making this determination? Credit analysis Review/Don't Review

Review

Let's take a moment to review. Identify which of the following are rights for real property owners. Mineral

Right

Let's take a moment to review. Identify which of the following are rights for real property owners. Water

Right

You know what a contract for deed is, but do you know the advantages and disadvantages of such an agreement for both the buyer and the seller? Let's find out. Connect each statement to its corresponding advantage or disadvantage. The buyer doesn't have ownership in the property until it is completely paid off. Buyer Advantage/Seller Advantage

Seller Advantage

You know what a contract for deed is, but do you know the advantages and disadvantages of such an agreement for both the buyer and the seller? Let's find out. Connect each statement to its corresponding advantage or disadvantage. The seller can avoid paying federal capital gains all at once and can pay them through percentage payments each year. Buyer Advantage/Seller Advantage

Seller Advantage

The buyer and seller have a lot of tasks to cross off their lists before going to closing. Can you identify which items are the buyer's responsibility and which are the seller's responsibility? Request loan payoff (reduction certificate) statement Buyer's responsibility/Seller's responsibility

Seller's

As a seller's agent, you owe specific duties. Which of these are seller duties? Advocate for the seller

Seller's agent duty

As a seller's agent, you owe specific duties. Which of these are seller duties? Seek a sale of the property at the best price available or a price acceptable to the seller

Seller's agent duty

Read each scenario and decide if it is an example of severance or annexation. Ann is going to sell her house, but first she digs up several of her irises and bags the rhizomes to take when she moves. Severance/Annexation

Sererance

Read each scenario and decide if it is an example of severance or annexation. Jack decides to cut down a few trees on his property and use them for firewood. Severance/Annexation

Severance

Read each scenario and decide if it is an example of severance or annexation. Tim is thinking about selling his house, so he cuts down a dying pine tree in the back yard. Severance/Annexation

Severance

General or Special Agent Acts as an intermediary but doesn't make decisions or enter into contracts on the client's behalf

Special

General or Special Agent Acts with limited authority on a client's behalf

Special

General or Special Agent Covers most real estate transactions involving a buyer and seller

Special

Indicate the occurrences that terminate an agency agreement The client revokes the agreement with cause prior to the agreement's expiration date.

Terminates

Indicate the occurrences that terminate an agency agreement The client's goals were met during the term of the agency agreement (i.e. the sale is completed).

Terminates

Indicate the occurrences that terminate an agency agreement The specified term in the agency agreement expires.

Terminates

Certain loan features are considered toxic and aren't permitted for qualified loans. Review these items and determine whether or not they're toxic. Balloon payments Toxic/Not toxic

Toxic

Certain loan features are considered toxic and aren't permitted for qualified loans. Review these items and determine whether or not they're toxic. Lender points of 4% of loan value Toxic/Not toxic

Toxic

Another goal of the Minnesota Uniform Condominium Act is to ensure that potential buyers have all the information they need about a condominium to make an informed purchase. Review each statement about regulations regarding condominium purchases and determine if it is true or false. Buyers who entered into a contract without having first received a copy of the offering statement may cancel the contract without penalty within 15 days after receiving the statement. True/False

True

Another goal of the Minnesota Uniform Condominium Act is to ensure that potential buyers have all the information they need about a condominium to make an informed purchase. Review each statement about regulations regarding condominium purchases and determine if it is true or false. Prospective purchasers must be given a copy of the public offering statement that includes, but is not limited to, the bylaws, rules and regulations, projected operating budgets for the building, liens, and encumbrances on the property. True/False

True

Appraiser Renewal Truths True/False All renewal applicants must have completed the USPAP update course

True

Appraiser Renewal Truths True/False If your initial license was granted less than two years prior, you need only 15 continuing education hours

True

Appraiser Renewal Truths True/False Some courses may count for both salesperson and appraiser licensing renewal

True

As she tests the faucets at the home she's inspecting, Sarah explains to Jerry that the safety of our public drinking water is a concern at the federal, state, and local levels. One primary concern is contaminants in the water. Determine whether these statements are true or false. Local codes for public water have maximum contaminant levels and ensure compliance with federal standards. True/False

True

As she tests the faucets at the home she's inspecting, Sarah explains to Jerry that the safety of our public drinking water is a concern at the federal, state, and local levels. One primary concern is contaminants in the water. Determine whether these statements are true or false. The higher the pH level, the more corrosive and harder the water is. The lower the pH, the softer and the more acidic it is. True/False

True

Check out your new resource, 'Mobile Homes Aren't Real Property—But They Can Be,' and then review each statement about mobile homes and determine if the statement is true or false. A manufactured home that is not on a permanent foundation is considered personal property. True/False

True

Check out your new resource, 'Mobile Homes Aren't Real Property—But They Can Be,' and then review each statement about mobile homes and determine if the statement is true or false. In Minnesota, mobile homes are considered motor vehicles and therefore owners must register them with the Minnesota Department of Public Safety, Driver and Vehicle Services Division. True/False

True

Check out your new resource, 'Mobile Homes Aren't Real Property—But They Can Be,' and then review each statement about mobile homes and determine if the statement is true or false. Mobile homes cost less to buy than other permanent structures because they are less labor intensive to build. True/False

True

Determine if the statements are true or false regarding encroachments and easements. An easement is a right to cross over or otherwise use another's land for a specified purpose. True/False

True

Determine if the statements are true or false regarding encroachments and easements. An encroachment is an intrusion of a structure or object on another's land. True/False

True

Determine whether these statements related to Joel's delinquent tax situation are true or false. If Joel continues to neglect his taxes, he'll eventually run into penalties of up to 8%. True/False

True

Determine whether these statements related to Joel's delinquent tax situation are true or false. It's May 20th and Joel hasn't paid property taxes on his homestead property. He's been assessed a 2% penalty. True/False

True

Determine whether these statements related to Joel's delinquent tax situation are true or false. Joel's new year's resolution is to resolve his tax delinquency. Once the calendar turns to January, he'll be responsible for interest charges on top of the taxes and penalties he owes. True/False

True

Gloria is a new licensee who works in your office. She's come to you for ethical guidance. Can you assist her? Indicate whether each of these statements is true or false. A licensee's personal ethical standards interact with laws and morals every day.

True

Gloria is a new licensee who works in your office. She's come to you for ethical guidance. Can you assist her? Indicate whether each of these statements is true or false. As a licensee, the Golden Rule can help you behave ethically no matter the situation.

True

Gloria is a new licensee who works in your office. She's come to you for ethical guidance. Can you assist her? Indicate whether each of these statements is true or false. The "right thing" is always ethical.

True

Gloria is a new licensee who works in your office. She's come to you for ethical guidance. Can you assist her? Indicate whether each of these statements is true or false. The easiest course of action isn't always the most ethical.

True

How do certain types of contingencies affect the purchase agreement? Review each statement and determine if the statement is true or false. In a contingent-offer situation, the first buyer has the option to remove the contingency and proceed with the sale. True/False

True

How do certain types of contingencies affect the purchase agreement? Review each statement and determine if the statement is true or false. Sellers are often reluctant to accept contingent offers, and when they do, they usually reserve the right to continue to market and show the property to other buyers. True/False

True

How do certain types of contingencies affect the purchase agreement? Review each statement and determine if the statement is true or false. With an appraisal contingency, the buyer can use the fact that the property has not appraised to terminate and receive a refund of the earnest money. True/False

True

Identify whether each of the statements about floodplains is true or false. Communities that participate in the NFIP must adopt and enforce a floodplain management ordinance. True/False

True

Identify whether each of the statements about floodplains is true or false. Floodplains store floodwaters, mitigate erosion, maintain water quality, and provide wildlife habitats and recreation. True/False

True

Identify whether each of the statements about floodplains is true or false. When communities participate in the National Flood Insurance Program, the federal government makes flood insurance available within the community. True/False

True

Identify whether each of the statements are true or false. Amy is an independent contractor and a licensed salesperson and may not receive compensation directly from buyers or sellers.

True

Identify whether these statements about taxation as a government power are true or false. Paying taxes related to the property is one way to avoid a lien being placed on real estate. True/False

True

Identify whether these statements about taxation as a government power are true or false. Taxation is one of the inherent burdens of private landownership. True/False

True

Identify whether these statements about taxation as a government power are true or false. The purpose of taxation is to meet the need for public works by funding them through a stable source of income that allows many to share the burden. True/False

True

In some states, married couples are required to acquire a title to real estate as community property. Which of the following scenarios are allowed, given what you now know about community property rights? Madge and Steve are married. They decide to purchase a home in Arizona, with Steve as the sole owner, yet Madge still has property rights. True/False

True

Indicate whether each of the following statements is true or false. The North Shore coastal areas are sensitive to changes caused by development or landscape shifts. True/False

True

Indicate whether each of the following statements is true or false. The goal is to preserve, protect, and responsibly develop the Lake Superior North Shore. True/False

True

Indicate whether each of the following statements is true or false. The program provides federal funding and annual grants for development along the North Shore area. True/False

True

Is the following statement about written contract requirements and electronic transactions true or false? Electronic records and electronic signatures in electronic transactions are legally enforceable as long as both parties to a transaction agree to conduct the transaction electronically. True False

True

Is the following statement true or false? According to the MCIOA, participating associations are required to provide disclosure certificates to prospective buyers.

True

Is the following statement true or false? Contractors can force a foreclosure on a property if they're not paid for their services. True False

True

Is the following statement true or false? In some areas, documents can be scanned and uploaded to a courthouse using a computer. True False

True

Is the following statement true or false? The Minnesota deed tax is applied to a property's purchase price. True False

True

Is the statement true or false about license laws? License laws exist to protect consumers.

True

Is the statement true or false about license laws? License laws often prescribe a standard of conduct for licensees.

True

Is this statement true or false? Both parties must place consideration into the real estate agreement. True False

True

Let's check your understanding. Which of the following statements about consent are true? If your client signs a contract while under duress, that contract is not valid. True/False

True

Let's check your understanding. Which of the following statements about consent are true? One form of duress is a threat of significant economic harm. True/False

True

Let's dive into a few deed details. Review each statement about deeds and determine whether it's true or false. A grantor does not have to actually own the property. True/False

True

Let's dive into a few deed details. Review each statement about deeds and determine whether it's true or false. A valid deed does not require the grantee's signature. True/False

True

Let's review a few facts relative to trust accounts. Can you help Rachel identify which of them are true? Trust fund accounts can be disbursed if he purchase agreement is cancelled.

True

Let's review a few more details related to the tenancy by the entirety form of co-ownership. Identify whether these statements are true or false. If one spouse dies, the other automatically becomes the sole owner. True/False

True

Let's review a few more details related to the tenancy by the entirety form of co-ownership. Identify whether these statements are true or false. If the spouses divorce, the tenancy by the entirety automatically ends, and the former spouses become tenants in common. True/False

True

Let's review some statements about land recording and registration in Minnesota. Determine whether each statement is true or false. After an investigation by a title examiner to verify title, a hearing is held in district court where an order and decree of registration is issued. True/False

True

Let's review some statements about land recording and registration in Minnesota. Determine whether each statement is true or false. Along with an application to register land, the owner must also provide an abstract of title. True/False

True

Let's review some statements about land recording and registration in Minnesota. Determine whether each statement is true or false. In Minnesota, you will likely see both the Torrens and abstract land record systems. True/False

True

Let's review some statements about land recording and registration in Minnesota. Determine whether each statement is true or false. Under the Torrens system, titles are registered with the examiner of titles and maintained by the county. True/False

True

Let's see how much you remember about restrictive covenants/deed restrictions. Review each of the statements and determine if it is true or false. A restrictive covenant ... Can be placed on an individual property, a subdivision, or an entire neighborhood True/False

True

Let's see how much you remember about restrictive covenants/deed restrictions. Review each of the statements and determine if it is true or false. A restrictive covenant ... Is a covenant between two or more parties that appears in legal documents True/False

True

Let's switch gears now and focus on the real property tax lien. Review each statement about real property tax liens and determine if it's true or false. A real property tax lien is specific and involuntary. True/False

True

Let's switch gears now and focus on the real property tax lien. Review each statement about real property tax liens and determine if it's true or false. If a property owner doesn't pay her assessed real estate property taxes, the local tax collector can bring legal action to collect them. True/False

True

Let's take a closer look at timeshare ownership. Review each statement below about timeshare ownership and determine if it is true or false. Fee simple ownership for a vacation timeshare works in the same way as other types of timeshares: Ownership can be enjoyed, sold, or passed down to heirs. True/False

True

Let's take a closer look at timeshare ownership. Review each statement below about timeshare ownership and determine if it is true or false. Resale timeshares often do not recoup the buyers' initial investment. True/False

True

Let's take a closer look at timeshare ownership. Review each statement below about timeshare ownership and determine if it is true or false. Some vacation ownership timeshare plans operate on a "points" system, where the buyers can book vacations in different locations based on the number of points purchased. True/False

True

Let's take a closer look at timeshare ownership. Review each statement below about timeshare ownership and determine if it is true or false. With a right-to-use timeshare, the week or weeks to be used are specified in advance, with buyers of high-season dates paying more than low-season purchasers. True/False

True

Minnesota has strict guidelines that the seller must follow should the purchaser default on a contract for deed. Read each statement about the contract for deed default process and determine whether it is true or false. If a purchaser fails to comply with the terms of a contract for deed, the purchaser is in default. True/False

True

Minnesota has strict guidelines that the seller must follow should the purchaser default on a contract for deed. Read each statement about the contract for deed default process and determine whether it is true or false. If a purchaser fails to make a payment on a contract for deed, the purchaser is in default. True/False

True

Minnesota has strict guidelines that the seller must follow should the purchaser default on a contract for deed. Read each statement about the contract for deed default process and determine whether it is true or false. If the purchaser doesn't cure the default within the allotted time frame, the seller has the right to follow through on carrying out the intended remedy, with some restrictions. True/False

True

Minnesota has strict guidelines that the seller must follow should the purchaser default on a contract for deed. Read each statement about the contract for deed default process and determine whether it is true or false. The seller must give a purchaser who is in default a minimum of 30 days to make the payment (or comply with the contract's terms). True/False

True

NAR Code of Ethics Requirements. Indicate whether each statement is true or false. Only members of NAR are required to follow the NAR Code of Ethics.

True

NAR Codes of Ethics Requirements True/False Only members of NAR are required to follow the NAR Code of Ethics

True

Next, Jerry and Sarah discussed floodplain regulations in Minnesota. Help Jerry identify whether each of these statements is true or false. From its beautiful lakeside location, Wild Adventures rents boats and jet skis, and provides wilderness experiences. It cannot store its boats and extra gasoline in the floodway. True/False

True

Next, Jerry and Sarah discussed floodplain regulations in Minnesota. Help Jerry identify whether each of these statements is true or false. Sam and Amy own a lake home. They would like to construct a small storage shed in the flood-fringe to store their boat and fishing equipment. This can be done with the proper permits. True/False

True

Not that we planned this, but let's find out what you know about the planning commission's role. Review each statement about the planning commission and its land use control responsibilities and indicate if the statement is true or false. The planning commission determines zones and specifies the allowed use within those zones. True/False

True

Not that we planned this, but let's find out what you know about the planning commission's role. Review each statement about the planning commission and its land use control responsibilities and indicate if the statement is true or false. The planning commission is responsible for the comprehensive master plan, which is based on a survey of the community's physical and economic assets. True/False

True

Not that we planned this, but let's find out what you know about the planning commission's role. Review each statement about the planning commission and its land use control responsibilities and indicate if the statement is true or false. The purpose of the planning commission is to ensure that the community grows in a controlled and orderly fashion, with a focus on quality of life and livability. True/False

True

Now let's focus on the Minnesota Condominium Act. Determine whether each statement is true or false. A condo building's association must meet at least once each year. True/False

True

Now let's focus on the Minnesota Condominium Act. Determine whether each statement is true or false. Condo buildings must have bylaws and a declaration. True/False

True

Now let's focus on the Minnesota Condominium Act. Determine whether each statement is true or false. Condo owners may be responsible for repairs, liens, and any other expenses related to common areas. True/False

True

Now let's focus on the Minnesota Condominium Act. Determine whether each statement is true or false. Each condo unit owner also owns an undivided interest in common areas. True/False

True

Now that you have a basic understanding of ground leases, let's take a closer look at them and community trusts. Review each statement and determine if the statement is true or false. If the ground tenant fails to pay rent, otherwise breaches the lease's terms, or if the lease expires, the land will revert to the leaseholder (the landowner). True/False

True

Now that you have a basic understanding of ground leases, let's take a closer look at them and community trusts. Review each statement and determine if the statement is true or false. In Minnesota, community land trusts are permitted to buy and sell land and enter into ground leases. True/False

True

Now that you know what probate is, let's look at the probate process. Review each statement and determine if it's true or false. Before an estate's assets can be distributed, the court must determine that the will is legal. True/False

True

Now that you've read up on license, let's see what you know. Identify whether the statements about license are true or false. A license is permission to do something on another's land without actually possessing any interest or ownership in the land. True/False

True

Now that you've read up on license, let's see what you know. Identify whether the statements about license are true or false. A license isn't assignable or inheritable, and it's a temporary privilege. True/False

True

Now that you've read up on license, let's see what you know. Identify whether the statements about license are true or false. The owner may revoke a license at any time, unless a termination date has been specified by contractual agreement. True/False

True

Now that you've reviewed more information about police power, let's apply what you've learned. Review each statement about police power and determine if the statement is true or false. Local governments and their planning boards control budgeting, site plan review, and building codes. True/False

True

Now that you've reviewed more information about police power, let's apply what you've learned. Review each statement about police power and determine if the statement is true or false. Police power is the government's authority at all levels to ensure the health, safety, and welfare of its citizens, which includes the control of public land use. True/False

True

Property taxes can be a reliable source of income for a municipality. Select true for the reasons why from the options below. Property taxes are paid by a wide section of the community (residential, industrial, commercial, agricultural, utilities, etc.); therefore, the tax associated with property taxes is relatively stable and a high-revenue generator. True/False

True

Read each statement about licensees and clouded titles and determine whether it's true or false. Foreclosed properties may have hidden title issues. True/False

True

Recall the bundle of rights a property owner inherits when acquiring property. Evaluate these statements and determine if they're true or false for a fee simple/fee simple absolute freehold estate. It offers the most complete form of ownership and the entire bundle of rights. True/False

True

Recall the bundle of rights a property owner inherits when acquiring property. Evaluate these statements and determine if they're true or false for a fee simple/fee simple absolute freehold estate. The owner's heirs may inherit the property. True/False

True

Review each statement about building code regulations and determine if the statement is true or false. If there's no state or local building code to cover a situation, the national code applies. True/False

True

Review each statement about building code regulations and determine if the statement is true or false. The purpose of building codes is to ensure a safe, properly functioning environment for the building's occupants. True/False

True

Review each statement about deeds and determine whether it's true or false. A deed is a written and signed legal document that transfers ownership from one person to another. True/False

True

Review each statement about deeds and determine whether it's true or false. A deed is an instrument of conveyance. True/False

True

Review each statement about deeds and determine whether it's true or false. The grantee is the person receiving the title. True/False

True

Review each statement about deeds and determine whether it's true or false. The grantor is the person who transfers the title. True/False

True

Review each statement about homeowners insurance and determine if the statement is true or false. At closing, if a mortgage is involved, buyers must show that they have obtained homeowners fire and hazard insurance. True/False

True

Review each statement about homeowners insurance and determine if the statement is true or false. If borrowers allow a homeowners insurance policy to lapse, the lender may purchase insurance and charge it back to the borrower. True/False

True

Review each statement about homeowners insurance and determine if the statement is true or false. If the buyer is obtaining a mortgage, the lender will be listed on the policy as a named insured entity. True/False

True

Review each statement about how proration is calculated and determine if the statement is true or false. Accrued real estate taxes that have been assessed but not yet due are prorated to the day of closing. True/False

True

Review each statement about how proration is calculated and determine if the statement is true or false. Some local practices provide that beginning with the day of closing, all expenses are the buyer's, and all income (e.g., from a current renter) goes to the buyer. True/False

True

Review each statement about how proration is calculated and determine if the statement is true or false. Typically, the seller pays the costs for things such as property taxes and utilities on the day of closing. True/False

True

Review each statement about legally competent parties and determine if the statement is true or false. A minor who enters into a contract with an adult to purchase real estate may hold the adult to the contract, but the adult can't legally hold the minor to the contract. True/False

True

Review each statement about legally competent parties and determine if the statement is true or false. If a party doesn't have legal capacity and enters into a contract anyway, the contract is voidable by the party lacking the capacity. True/False

True

Review each statement about mortgage liens and determine if it is true or false. If the borrower doesn't repay their mortgage loan, the lender can foreclose by having the property sold at public auction. True/False

True

Review each statement about option contracts related to leases and determine if it's true or false. An option contract attached to a lease gives the lessee the option to purchase the property at some point in the future. True/False

True

Review each statement about option contracts related to leases and determine if it's true or false. An option contract that's attached to a lease is known as a lease option, or a lease with an option to buy. True/False

True

Review each statement about prorated items and determine if the statement is true or false. At closing, a seller will give the buyer a credit for accrued expenses. True/False

True

Review each statement about prorated items and determine if the statement is true or false. Examples of typical prorated items include taxes, rent, and utility bills. True/False

True

Review each statement about prorated items and determine if the statement is true or false. Prorated items are either accrued or prepaid. True/False

True

Review each statement about prorated items and determine if the statement is true or false. Usually, prorations are computed by the buyer's lender or attorneys for the parties. True/False

True

Review each statement about the key closing documents and determine if the statement is true or false. For a title to be clear, the chain of title must be unbroken. True/False

True

Review each statement about the key closing documents and determine if the statement is true or false. Prior to closing, an attorney should update the abstract of title, if one is used, and provide a written certificate of title opinion that the title is clear only after reviewing the title records thoroughly and verifying there are no title defects. True/False

True

Review each statement about the key closing documents and determine if the statement is true or false. The purpose of the title search is to collect evidence that the title is a marketable title, meaning it's clear and free of encumbrances. True/False

True

Review each statement about the public records used to verify title ownership and determine if the statement is true or false. For a title to be clear, the chain of title must be unbroken. True/False

True

Review each statement about the public records used to verify title ownership and determine if the statement is true or false. Prior to closing, an attorney will update the abstract of title and provide a written certificate of title opinion that the title is clear only after reviewing the title records thoroughly and verifying there are no title defects. True/False

True

Review each statement about the public records used to verify title ownership and determine if the statement is true or false. The purpose of the title search is to collect evidence that the title is marketable, meaning it's clear and free of encumbrances. True/False

True

Review each statement about the public records used to verify title ownership and determine if the statement is true or false. There are two levels of title insurance coverage: standard and extended. True/False

True

Review each statement and determine whether it is true or false. A deed signed by the grantor but not delivered to and accepted by the grantee is ineffective. True/False

True

Review each statement and determine whether it is true or false. A grantee is not required to have full legal capacity. True/False

True

Review each statement and determine whether it is true or false. Only the grantor is obligated to sign a deed. True/False

True

Review each statement below about closing costs and determine if the statement is true or false. If a buyer is assuming the seller's loan, the buyer would more than likely pay both an origination fee and an assumption fee. True/False

True

Review each statement below about closing costs and determine if the statement is true or false. Only after satisfying any outstanding liens can the seller turn over a clear title to the buyer. True/False

True

Review each statement below about written contract requirements in Minnesota and determine if the statement is true or false. In Minnesota, a contract for the sale of real estate is not enforceable unless it's in writing and signed by the person who will be charged with the promise/agreement, or by someone who's legally authorized to sign for that person. True/False

True

Review each statement below about written contract requirements in Minnesota and determine if the statement is true or false. In Minnesota, a lease for real estate for a term of more than one year is not enforceable unless it's in writing and signed by the person who will be charged with the promise/agreement, or by someone who's legally authorized to sign for that person. True/False

True

Review the following statements about activities related to the closing process and determine if each is true or false. Sometimes, because of the need for an adjustment, not all closing costs and prepaids are accounted for in the funds that the buyer brings to the closing. True/False

True

Review the following statements about activities related to the closing process and determine if each is true or false. The funds that a buyer brings to closing must generally be in the form of a cashier's check, a certified check, or a wire transfer. True/False

True

Review the following statements about recordation and determine if each is true or false. Recordation and possession protect the owner's title against all claims of interest not recorded in any public record. True/False

True

Review the following statements about recordation and determine if each is true or false. Until a deed is recorded, ownership can be legally challenged. True/False

True

Review the following statements about the different types of performance and determine if they're true or false. Impossibility of performance occurs when the property is destroyed, or is made the subject of eminent domain. True/False

True

Review the following statements about the different types of performance and determine if they're true or false. In impossibility of performance situations, the parties are released from their contractual obligations. True/False

True

Review the following statements about the different types of performance and determine if they're true or false. In substantial performance situations, the offending party may be required to compensate the other party for damages, resulting from incomplete performance of the contract terms. True/False

True

Review these statements about flood insurance and identify them as true or false. Borrowers who own property in an area certified by FEMA as a flood plain are required to carry flood insurance. True/False

True

Review these statements about flood insurance and identify them as true or false. Homeowners purchase flood insurance from local providers who offer flood insurance policies through the National Flood Insurance Program (NFIP). True/False

True

Sarah called Jerry the next day to follow up and make sure he understood the information she'd sent him, starting with the National Flood Insurance Program. Help Jerry decide if these statements about the NFIP are true or false. As of February 2015, more than 12,000 Minnesota communities participated in the NFIP. True/False

True

So, what do you know about the two classes of plants and the actions that can impact them? Let's find out. Review each statement about the two classes of plants and determine if the statement is true or false. Annexation occurs when personal property is attached to real property, which makes it a fixture. True/False

True

So, what do you know about the two classes of plants and the actions that can impact them? Let's find out. Review each statement about the two classes of plants and determine if the statement is true or false. Cultivated crops, aka emblements, are considered personal property even though they are part of the soil. True/False

True

So, what do you know about the two classes of plants and the actions that can impact them? Let's find out. Review each statement about the two classes of plants and determine if the statement is true or false. Severance occurs when an item that was real property becomes personal property by detaching it (severing it) from the land. True/False

True

Sometimes during title examinations, deed errors are found that must be corrected before the title can be marketable. What's involved in correcting the error? Identify each statement as true or false. The correction deed must be resolved before closing. True/False

True

Sometimes during title examinations, deed errors are found that must be corrected before the title can be marketable. What's involved in correcting the error? Identify each statement as true or false. The seller is responsible for corrections to the deed. True/False

True

There are several addenda listed in the purchase agreement. When attached to the purchase agreement, they create contingencies. Review each statement below about the legal effect of these contingency addenda on the purchase agreement and determine if the statement is true or false. Note: If you need to brush up on the addenda, we recommend that you visit the Minnesota State Bar Association website provided in your resources before completing this exercise. If the buyer adds a mortgage contingency to the purchase agreement, the contract is contingent upon the buyer obtaining financing. If the buyer is unable to obtain financing, it protects her earnest money. True/False

True

There are several addenda listed in the purchase agreement. When attached to the purchase agreement, they create contingencies. Review each statement below about the legal effect of these contingency addenda on the purchase agreement and determine if the statement is true or false. Note: If you need to brush up on the addenda, we recommend that you visit the Minnesota State Bar Association website provided in your resources before completing this exercise. An insurance contingency may be structured so that if the buyer is unable to obtain insurance for a specific amount, the buyer can terminate and receive a refund of any earnest money deposited. True/False

True

There are several addenda listed in the purchase agreement. When attached to the purchase agreement, they create contingencies. Review each statement below about the legal effect of these contingency addenda on the purchase agreement and determine if the statement is true or false. Note: If you need to brush up on the addenda, we recommend that you visit the Minnesota State Bar Association website provided in your resources before completing this exercise. If the buyer adds the Buyer's Home Inspection Contingency to the agreement, the contract is contingent upon the buyer receiving a satisfactory home inspection report. If not received, the buyer has the option to terminate the contract. True/False

True

True or false about license renewal requirements. During each licensing period licensees must complete one CE hour per year on agency law.

True

True or false about license renewal requirements. During each licensing period, licensees must complete one CE hour related to hair housing or housing for underserved populations.

True

True/False A non-agent is a facilitator

True

True/False An escrow agent is a limited agent

True

True/False Harriet has just been appointed guardian of her 12 year old niece, Annabel, whose parents were tragically killed in an automobile accident. Harriet is a universal agent.

True

True/False Ingo and Amy both wrk at the same firm and are involved in the same transaction, in which Amy represents the sell and Ingo represents the buyer. Into owes fiduciary duties to the buyer, and Amy to the seller. Ingo and Amy are designated agents.

True

True/False One way to avoid dual agency risk is to refer one of the parties to another licensee?

True

True/False When it comes to disclosing material facts, the duty of honesty to your customer trumps your duty of confidentiality to your client

True

True/False When working with customers you can answer questions about the property

True

True/False You have a duty to treat both customers and clients honestly and fairly

True

True/False You would breach your duties of honesty and disclosure of all material facts if you kept a roof leak secret from a buyer

True

True/False Appraiser Licensing Truths A degree in real estate may substitute for some of the pre-licensing coursework

True

True/False Appraiser Licensing Truths Certified general appraiser candidates need at least 1500 hours of experience doing nonresidential appraisals

True

True/False Appraiser Licensing Truths Certified residential appraiser coursework should focus on the appraisal of residential property

True

We are ALMOST finished talking about taxes. Yay! We want to test your knowledge a little more, then we can move on. Which of the following items are true of Minnesota property taxes? The Truth in Taxation notice breaks down how taxes are determined, what that money funds, and information about the property. True/False

True

We are ALMOST finished talking about taxes. Yay! We want to test your knowledge a little more, then we can move on. Which of the following items are true of Minnesota property taxes? The tax statement itemizes local taxes and special assessments. True/False

True

What happens if landlords or tenants fail to reasonably maintain their part of the rental agreement? Let's drop in on Mrs. Hudson and Heather again and find out. Heather doesn't pay her rent on time, so Mrs. Hudson begins the eviction process. True/False

True

What happens if landlords or tenants fail to reasonably maintain their part of the rental agreement? Let's drop in on Mrs. Hudson and Heather again and find out. Heather may withhold rent if Mrs. Hudson fails to keep the building habitable. True/False

True

What happens if landlords or tenants fail to reasonably maintain their part of the rental agreement? Let's drop in on Mrs. Hudson and Heather again and find out. If Heather removes walls to install a home theater, Mrs. Hudson may seek damages and evict her. True/False

True

What is true about name and address changes in MN? Licensees must provide supporting documentation for name changes.

True

When it comes to conveying property to a spouse, what does Minnesota allow? Identify if the following statements are true or false. Divorce automatically voids joint tenancy.

True

When it comes to conveying property to a spouse, what does Minnesota allow? Identify if the following statements are true or false. Jointly owned property can only be transferred with both signatures.

True

Which of the following statements about penalties are true? If a licensee doesn't comply with a final order, a civil court can impose a fine for contempt.

True

Which of the following statements about penalties are true? The commissioner can deny issuing an initial license.

True

Which of the following statements about penalties are true? The commissioner can suspend a license, pending a final determination.

True

Which of the following statements about the TILA-RESPA Integrated Disclosures (TRID) are true? Lenders must provide the LE to borrowers within three days of loan application receipt. True/False

True

Which of the following statements about the TILA-RESPA Integrated Disclosures (TRID) are true? TRID disclosures are required for all federally-related mortgage loan transactions. True/False

True

Which of the following statements about the TILA-RESPA Integrated Disclosures (TRID) are true? The CFPB is responsible for enforcing TRID disclosures be made True/False

True

Which of the following statements are true about adjustable rate mortgages? ARM interest rates can fluctuate with the national economy. True/False

True

Which of the following statements are true about adjustable rate mortgages? Caps apply to adjustments. True/False

True

Which of the following statements are true about adjustable rate mortgages? Often, an ARM will have a below-market rate for the first year of the loan. True/False

True

Which of the following statements are true about adjustable rate mortgages? The mortgage documents specify the adjustment period for each ARM. True/False

True

Which of the following statements are true about conventional loans? Conventional loans can vary in length and terms. True/False

True

Which of the following statements are true about conventional loans? Originators of conventional loans often package and sell groups of loans on the secondary mortgage market. True/False

True

Which of the following statements are true about conventional loans? Originators of conventional loans usually don't service the loans once they've been sold. True/False

True

Which of the following statements are true about the PMI Act of 1998? Select all that apply. It requires cancellation of PMI when the borrower's equity reaches 22% of the property's original loan value. True/False

True

Which of the following statements are true about the PMI Act of 1998? Select all that apply. This act is also called the Homeowner's Protection Act. True/False

True

Which of the following statements are true, as defined in license law? A brokerage can be a corporation or an LLC that holds a broker's license.

True

Which of the following statements are true, as defined in license law? A non-licensed individual may sell up to four personally owned properties on their own behalf per year.

True

Which of the following statements are true, as defined in license law? A seller's broker represents the seller in any given transactions.

True

Which of the following statements are true, as defined in license law? Trust funds include money received by a broker as part of. a real estate transaction.

True

Which of these statements about broker licensing are true? If you're a practicing real estate attorney, you must be able to waive the three year experience requirement to be a broker.

True

Which of these statements about broker licensing are true? The broker's exam requires a higher degree of knowledge than the salesperson's exam.

True

Which of these statements about broker licensing are true? You must complete a 30 hour course to sit for the broker's exam.

True

Which of these statements about quitclaim deeds and quiet title suits are true, and which are false? A cloud on title caused by a foreclosure or inheritance claim may be resolved by the execution of a quitclaim deed. True/False

True

Which of these statements about title insurance are true? Select all that apply. An owner's policy covers legal costs associated with clearing title problems that are not found in the title search. True/False

True

Which of these statements about title insurance are true? Select all that apply. There are many ways that title to real property can be An owner's policy is not the same as a lender's policy and may need to be requested separately by the buyer. True/False

True

Which of these statements about title insurance are true? Select all that apply. There are many ways that title to real property can be jeopardized. True/False

True

Which of these statements about title insurance are true? Select all that apply. Title insurance companies conduct title searches, or title examinations, prior to the close of a sale, to ensure no surprises after property is conveyed. True/False

True

Without compensation, it'd be awfully difficult to sustain a career in real estate. Let's review a few key points related to compensation. Brokerage compensation options include a flat fee, fee for service, or percentage of sale. True/False

True

Without compensation, it'd be awfully difficult to sustain a career in real estate. Let's review a few key points related to compensation. Consumers compensate brokers for their services, generally in the form of a percentage of the sales price of the property involved in the transaction. True/False

True

Without compensation, it'd be awfully difficult to sustain a career in real estate. Let's review a few key points related to compensation. If a licensee is the procuring cause for a sale, that licensee may still earn compensation. True/False

True

Without compensation, it'd be awfully difficult to sustain a career in real estate. Let's review a few key points related to compensation. The amount a salesperson is compensated is dependent upon the agreement with the broker. True/False

True

You know what "assignment of contract" means, but do you understand how it works? Let's find out. Review each statement below about an assignment of contract and determine if the statement is true or false. In the event that the new party fails to live up to the obligations stated in the contract, the original party remains responsible to the terms of the agreement unless specifically stated otherwise in the contract. True/False

True

You know what "assignment of contract" means, but do you understand how it works? Let's find out. Review each statement below about an assignment of contract and determine if the statement is true or false. When assigning a contract, the assignor should also check off any "contract is assignable" clause that is part of the purchase contract. True/False

True

You'll cover zoning more in-depth shortly. For now, let's review to ensure you've got the basics down. Identify whether these statements are true or false. Zoning dictates how an area can be used. True/False

True

You'll cover zoning more in-depth shortly. For now, let's review to ensure you've got the basics down. Identify whether these statements are true or false. Zoning is a police power that cities can use. True/False

True

You'll handle a lot of paperwork over the course of your real estate career. While brokers are ultimately responsible for ensuring record requirements are met, all licensees should be familiar with the statue. Identify whether each statement is true or false. Agency disclosure forms provided to prospective buyers or sellers, where no contractual relationship is subsequently created and no services are provided by the licensee don't need to be retained.

True

You'll handle a lot of paperwork over the course of your real estate career. While brokers are ultimately responsible for ensuring record requirements are met, all licensees should be familiar with the statue. Identify whether each statement is true or false. When destroying documents after the retention period has passed, the broker must ensure that the documents are disposed of according to the confidential record destruction procedures of the Fair and Accurate Credit Transaction Act of 2003

True

You've been enlisted as a finder. You don't hold a real estate license. Casey is a buyer looking for a very specific property. Identify whether these statements are true or false of your role as Casey's finder. You can introduce Casey to the seller of the property you identify for him. True/False

True

Your buyer clients will receive Loan Estimate and Closing Disclosure forms. How much do you know about these documents? Review each statement about the Loan Estimate and Closing Disclosure forms and determine if the statement is true or false. The Loan Estimate discloses mortgage loan key features, costs, and risks. True/False

True

Your buyer clients will receive Loan Estimate and Closing Disclosure forms. How much do you know about these documents? Review each statement about the Loan Estimate and Closing Disclosure forms and determine if the statement is true or false. The Loan Estimate displays the total principal the borrower will pay. True/False

True

Your clients, Joe and Susie Wang, are house hunting. They heard from a friend that a special assessment has recently been levied in the neighborhood they're interested in. They've sent you an email asking if some of the things they've heard about special assessments are true. Fortunately, you've learned enough to clarify these points for them. Indicate whether each of the statements is true or false. Improvements for which special assessments are levied must benefit the properties they are levied against. True/False

True

Determine if each example describes an enforceable or unenforceable contract. An oral agreement to purchase a property Enforceable/Unenforceable

Unenforceable

Determine whether each example describes a bilateral or unilateral agreement. You own an "option to buy" on a property that says if you want to buy the place in two years for $20,000, you may. Bilateral/Unilateral

Unilateral

Determine whether each example describes a bilateral or unilateral agreement. You promise to pay a $100 reward if someone returns your phone. Bilateral/Unilateral

Unilateral

Universal or Designated Agent Empowered to do anything the principal could do personally

Universal

Universal or Designated Agent Holds the most authority of any agent

Universal

Review the following scenarios and determine whether an antitrust violation has taken place. Melissa at ABC Brokerage, Beth at M&M Associates, and Grant at XYZ Realty decide to increase their commission rates to 6.5%.

Violation

Review the following scenarios and determine whether an antitrust violation has taken place. The city housing office is looking for a brokerage to sell units in a public affordable housing complex. Melissa, Beth, and Grant get together again and decide they'll each bid on the project noting an 8% commission rate.

Violation

Your resource introduces the most common forms of antitrust violations seen in real estate practice. Which of these are federal antitrust violations? Group boycotts

Violation

Your resource introduces the most common forms of antitrust violations seen in real estate practice. Which of these are federal antitrust violations? Market allocation agreements

Violation

Your resource introduces the most common forms of antitrust violations seen in real estate practice. Which of these are federal antitrust violations? Price fixing

Violation

Your resource introduces the most common forms of antitrust violations seen in real estate practice. Which of these are federal antitrust violations? Tie-in arrangements

Violation

Identify whether these methods of alienation are voluntary or involuntary. Will Voluntary/Involuntary

Voluntary

It would be helpful if you gave Joe and Susie some examples of voluntary and involuntary special assessments. Indicate whether each of the following descriptions is an example of a voluntary or an involuntary special assessment. Sidewalks requested by property owners Voluntary/Involuntary

Voluntary

Let's start off by sorting one method of alienation from another. Decide if each method is voluntary or involuntary. Deed Voluntary/Involuntary

Voluntary

Now that you're more familiar with the types of voluntary and involuntary liens, let's see if you can remember which liens are voluntary and which are involuntary. Don't hesitate to use your resource if you get stuck. Mortgage lien Voluntary/Involuntary

Voluntary

Which of these actions would be a way to mitigate the effects of title issues, and which would not? Purchase title insurance Way to Mitigate/Not a Way to Mitigate

Wat to Mitigate

A buyer agency agreement can be terminated for any number of reasons. Read each scenario and identify whether or not it would be considered a valid reason for termination. The client, Arnold Smith, died suddenly of a heart attack prior to making an offer on a property. Yes/No

Yes

A buyer agency agreement can be terminated for any number of reasons. Read each scenario and identify whether or not it would be considered a valid reason for termination. Tim Micah and his buyer clients, Bob and Ann Marie Williams, had entered into a buyer agency agreement with a term of 90 days. After the 90 days passed and the Williamses still had not found a property to purchase, the two parties agreed to part ways. Yes No

Yes

A lease agreement can be terminated for any number of reasons. Read each scenario and identify whether or not it is a reason the agreement can be terminated. Harriet and Micah Richards signed a nine-month lease. After their nine-month lease expired, they moved to a different apartment complex. Yes/No

Yes

A lease agreement can be terminated for any number of reasons. Read each scenario and identify whether or not it is a reason the agreement can be terminated. Jane Ryland had only been in her apartment for three months when her boss informed her that she was being transferred. She explained the situation to her landlord, Sheila, and Sheila agreed to let her out of her lease. Yes/No

Yes

A lease agreement in Minnesota can also be terminated under certain unique circumstances. Read each statement and identify whether or not it falls under the special provisions for lease termination. A landlord discovers the property he is leasing is being used for prostitution. Yes/No

Yes

A lease agreement in Minnesota can also be terminated under certain unique circumstances. Read each statement and identify whether or not it falls under the special provisions for lease termination. A tenant is being subjected to physical and sexual abuse on a daily basis by her husband, who shares the apartment with her. Yes/No

Yes

A purchase agreement can be terminated for any number of reasons. Read each scenario and identify whether it is a reason the agreement can be terminated or not. The buyer, Nicholas Dandy, failed to pay the earnest money by the date specified in the contract and is now in default. Yes/No

Yes

And what about grantor and grantee indexes? Can you tell us which of the following are characteristics of this index type? Grantor and grantee indexes are filed by grantor and grantee name. Yes/No

Yes

And what about grantor and grantee indexes? Can you tell us which of the following are characteristics of this index type? Grantor and grantee indexes show where to locate corresponding documents. Yes/No

Yes

Brad is poised to make it big in the music world. He's got talent, he's got drive, and he's got a garage band. The only thing he hasn't got is money to buy the new guitar he needs. No one he knows will lend him the money, so he ends up striking a deal with a fellow one of his bandmates knows. Brad gets the money, buys his guitar, and figures he'll worry about that 18% interest rate next month, when his first payment is due. Does this deal violate Minnesota usury law? Yes No

Yes

Imagine the "happenin' condo" is too much for Sidney. She's looking for something a bit more serene and decides to sell her share of ownership to Rita, who's now ditching the confines of Crusty Acres Retirement Center. Can Sidney do this? Yes/No

Yes

Now that you know what a tract index is, let's see if you can tell us which of the following are characteristics of this type of index. Each property is indexed onto a page that includes all corresponding mortgages, deeds and other documents. Yes/No

Yes

Now that you know what a tract index is, let's see if you can tell us which of the following are characteristics of this type of index. Tract indexes direct users to the recordation book and page where documents are located. Yes/No

Yes

Now that you know what a tract index is, let's see if you can tell us which of the following are characteristics of this type of index. Tract indexing involves grouping several parcels of land. Yes/No

Yes

Owners of existing buildings or developers of new, unimproved land who want to create a condominium project are required by the Minnesota Uniform Condominium Act to adhere to certain regulations. Review each statement and determine if it's a requirement of the act or not. Create and record a declaration of condominium. Yes/No

Yes

Owners of existing buildings or developers of new, unimproved land who want to create a condominium project are required by the Minnesota Uniform Condominium Act to adhere to certain regulations. Review each statement and determine if it's a requirement of the act or not. List the bylaws governing the operation of the condominium association and restrictive covenants that apply. Yes/No

Yes

Owners of existing buildings or developers of new, unimproved land who want to create a condominium project are required by the Minnesota Uniform Condominium Act to adhere to certain regulations. Review each statement and determine if it's a requirement of the act or not. Provide a legal description of the units and the common elements, including any elements that serve a single unit. Yes/No

Yes

Owners of existing buildings or developers of new, unimproved land who want to create a condominium project are required by the Minnesota Uniform Condominium Act to adhere to certain regulations. Review each statement and determine if it's a requirement of the act or not. Provide blueprints showing the size, boundaries, and location of each unit. Yes/No

Yes

Read each scenario and identify whether it is a reason the sales agreement can be terminated or not. Maria entered into a contract to purchase Samuel's home. Maria's title company discovered that there was a $10,000 mechanic's lien on the property. Maria filed a Title Objection and gave Samuel 30 days to make the title marketable, but Samuel didn't respond to it, figuring the debt would be paid from his closing proceeds at settlement 45 days later. Yes/No

Yes

Read each scenario. Is the licensee following the legal standards of conduct? Ethan is a new salesperson hoping for some word-of-mouth marketing from friends. His acquaintance Janie calls to ask about buyer representation. Ethan explains a little, but encourages Janie to meet with him the next day. She does, and Ethan then provides the agency disclosure form.

Yes

Read each scenario. Is the licensee following the legal standards of conduct? Independent broker Jose sold his client's condo in six days. At closing, the commission check was made out directly to Jose, so he deposited it into his account.

Yes

Read each scenario. Is the licensee following the legal standards of conduct? Ricky tells potential seller Lisa that Hometown Realty has a guaranteed sale program, and her house is eligible. If Ricky is unable to negotiate a sales agreement in 180 days, they will purchase Lisa's home for the determined reserve minimum. He provides detailed documentation for her to review.

Yes

Read each scenario. Is the licensee following the legal standards of conduct? Walt put his house on the market and then went on vacation to the Caribbean. His agent, Sean, received an offer and wants to present it to Walt but Walt says he can't get to a fax machine, so Sean presents the offer verbally with Walt's approval.

Yes

Review each statement and determine if it is or is not a contributing factor to why property taxes are a reliable source of income for the municipality. People tend to pay their property taxes. Yes/No

Yes

Review each statement and determine if it is or is not a contributing factor to why property taxes are a reliable source of income for the municipality. The value of the underlying property remains relatively steady. Yes/No

Yes

The statute of frauds has established a number of signature requirements to prevent fraudulent oral contract documentation. Review each statement and indicate whether or not it is one of the signature requirements. The party to be charged (or an authorized representative) must sign. Yes/No

Yes

The statute of frauds has established a number of signature requirements to prevent fraudulent oral contract documentation. Review each statement and indicate whether or not it is one of the signature requirements. The spouse must sign any time there is a release of marital property rights. Yes/No

Yes

There are several places where you would see a legal description. Would you likely see a legal description in the following documents? Deeds of conveyance Yes/No

Yes

There are several places where you would see a legal description. Would you likely see a legal description in the following documents? Leases Yes/No

Yes

There are several places where you would see a legal description. Would you likely see a legal description in the following documents? Mortgages Yes/No

Yes

There are several places where you would see a legal description. Would you likely see a legal description in the following documents? Offers to purchase Yes/No

Yes

There are several places where you would see a legal description. Would you likely see a legal description in the following documents? Tax assessments, rolls, and other tax records Yes/No

Yes

There are several places where you would see a legal description. Would you likely see a legal description in the following documents? Title insurance policies Yes/No

Yes

Yes/No Fiduciary Duty Accounting

Yes

Yes/No Fiduciary Duty Confidentiality

Yes

Yes/No Fiduciary Duty Disclosure

Yes

Yes/No Fiduciary Duty Loyalty

Yes

Yes/No Fiduciary Duty Obedience

Yes

Yes/No to keeping something confidential. The buyer is going to offer $245,000, but to go as high as $250,000

Yes

Yes/No to keeping something confidential. The buyer wants to buy the home so he can rent it to his sister

Yes

Yes/No to keeping something confidential. The property is listed for $265,000, but the seller is willing to go as low as $250,00

Yes

Yes/No to keeping something confidential. The seller wants to move because of an ongoing dispute with the neighbor

Yes

Yes/no. Duties owed to customers Disclosure of material facts

Yes

Yes/no. Duties owed to customers Honesty and fair dealing

Yes

Yes/no. Duties owed to customers Prompt presentation of all written offers and counter offers

Yes

Yes/no. Duties owed to customers Reasonable skill and care

Yes

You correctly identified where you would find a legal descriptions. What are some of the reasons you would include a legal description on legal documents? A legal description uses unambiguous terms to describe the property. Yes/No

Yes

You correctly identified where you would find a legal descriptions. What are some of the reasons you would include a legal description on legal documents? A mailing or street address does not provide an adequate description of the property. Yes/No

Yes

You correctly identified where you would find a legal descriptions. What are some of the reasons you would include a legal description on legal documents? Inclusion is best practice and legally responsible. Yes/No

Yes

You correctly identified where you would find a legal descriptions. What are some of the reasons you would include a legal description on legal documents? Inclusion protects your client's interests. Yes/No

Yes

You identified group boycotting in the last question. Are any of these situations an example of group boycotting? Local licensees agree not to show listings from a new limited service firm.

Yes

You identified group boycotting in the last question. Are any of these situations an example of group boycotting? The licensees with Maize Realty and Spartan Homes agree to refuse to show their clients any properties listed with Scarlet Realty Group.

Yes

Which of these statements about quitclaim deeds and quiet title suits are true, and which are false? A cloud on title caused by unpaid property taxes can be removed by paying the taxes. True/False

`True

A part of your property is used by the local utility company to maintain its power lines. What's this an example of? a) Easement b) Eminent domain c) Encroachment d) Illegal use

A person who doesn't owe either party any fiduciary duties and only introduces the buyer and seller is called a ____. a) Finder b) General agent c) Limited agent d) Special agent

A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400 feet deep. What was the price per front foot of the property? a) $1,335.67 b) $2,000 c) $363.64 d) $598.95

Although it's his first home purchase, Brent isn't completely naive about the process. His parents put him in touch with a mortgage broker they know, who provided Brent with a letter shortly before he started working with you. But he didn't know there were different types of letters, so he's asked you to explain the differences. Sort the statements based on the letters they describe. Involves lender verification of buyer-provided information a) Pre-Approval Letter b) Pre-Qualification Letter

Although it's his first home purchase, Brent isn't completely naive about the process. His parents put him in touch with a mortgage broker they know, who provided Brent with a letter shortly before he started working with you. But he didn't know there were different types of letters, so he's asked you to explain the differences. Sort the statements based on the letters they describe. More difficult to obtain a) Pre-Approval Letter b) Pre-Qualification Letter

Although it's his first home purchase, Brent isn't completely naive about the process. His parents put him in touch with a mortgage broker they know, who provided Brent with a letter shortly before he started working with you. But he didn't know there were different types of letters, so he's asked you to explain the differences. Sort the statements based on the letters they describe. More reliable a) Pre-Approval Letter b) Pre-Qualification Letter

An agency relationship that exists because you behaved in a way that led the consumer to believe you're her agent a) Implied agent b) Express agent

Are you familiar with all of the documents to transfer a title? Although not required at every closing, a handful of documents are used at most closings. Connect each document to its purpose. Establishes path and proof of ownership a) Chain of title b) Abstract of title c) Deed d) Title insurance policy e) Survey

As Brent's agent, you confirm that his income and assets were verified when he obtained the pre-qualification letter. The letter must be provided during the transaction process. But when? a) When an offer is made b) When a purchase agreement is signed c) When a loan application is started d) When signing closing paperwork

As a real estate licensee, you'll need to know how the definitions of land, real estate, real property, and personal property differ. Let's find out if you know the differences. Match each term to its description. The earth's surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects a) Land b) Real property c) Improvements d) Personal property e) Real estate

As part of a purchase agreement, a seller in Minnesota agreed to include a small boat with a lake house he's selling. However, he later tells his agent that he's changed his mind and doesn't want to give up the boat. What obligation does his agent have? a) The agent must immediately disclose his client's nonperformance of a contract agreement action to the other party. b) The agent must receive written permission to disclose this fact to the other party. c) The agent owes his seller client the duty of confidentiality and shouldn't disclose this fact to the other party. d) This isn't a material fact related to the property itself, so the agent is not required to disclose this to the other party.

As with most contracts, there are many ways to terminate a lease. Mrs. Hudson has a lot of lease terminations, and a few other issues, to deal with. Match the correct lease termination term to the proper tenant scenario. Madeline didn't pay rent for the last two months, her lease doesn't end for another two months, and she's apparently moved out. a) Abandonment b) Eviction c) Expiration d) Holdover tenant e) Mutual agreement

As you know, the seller is responsible for certain expenses at closing. What is the purpose of each expense? Connect each expense to its description. Nominal filing fees that are required to clear all defects, so that the buyer can be presented with a clear title a) Recording documents b) Deed preparation fee c) State and local deed taxes d) Attorney fees e) Broker commission f) Satisfaction of existing liens

Before we begin, let's identify the steps we need to take in order to calculate a proration. Calculate the daily rate a) Step One b) Step Two c) Step Three

Before we get into how the secondary mortgage market supports the primary mortgage market, let's review the key players in this market. Match these players with the loans they buy or insure. Conventional loans from commercial banks a) Fannie Mae b) Freddie Mac c) Ginnie Mae d) Farmer Mac

Belinda's client asked her to draft an addendum containing complicated terms that even Belinda doesn't fully understand. Belinda should ______. a) Avoid unauthorized practice of law b) Hire an attorney c) Refuse to work with this client d) Use legalese

Below are the remaining buyer's expenses. What is the purpose of each of these expenses? Connect each expense to its description. For the title company that conducts and insures a search to verify legal ownership of property or any existing encumbrances a) Title insurance b) Mortgage insurance c) Tax reserves d) Inspections

Boris bought a property with a purchase price of $300,000. He had a down payment of $10,000 and financed the difference. How much deed tax is owed? a) $990 b) $690 c) $957 d) $667

Bradley is a real estate licensee acting as a finder for Emma. What happens if he performs duties beyond just introducing the buyer and seller, such as negotiating a deal? a) An agency relationship is created. Bradley can face disciplinary action if an agency is formed without proper agency disclosures. b) Bradley is guilty of misrepresentation. c) He can get in trouble for acting as a dual agent. d) Nothing. He has a real estate license so he can perform other duties as needed.

Buyer April is interested inn Wayne's condo. Steve represents April, and Wanda represents Wayne. Who are the principal(s) in this sales transaction? a) April and Wayne b) April, Wayne, Steve, and Wanda c) Steven and Wanda d) Wanda

Buyer Kristin has a buyer agency agreement with Carlotta, a licensee. Kristin's brother, Dalton, is going to showings with Kristin and helping her decide which house is the best fit. Who is/are Carlotta's client(s)? a) Kristin b) Kristin and Dalton c) Kristin and the seller d) the seller

Bylaws outline a board's scope of power as well as the community's conditions, covenants, and restrictions (CC&Rs). Decide if the following statements are examples of a condition, covenant or restriction. Agreements between the association and the property owner a) Covenant b) Condition c) Restriction

Carla's evaluating the real estate code of ethics. It has minimum ethical standards. This means that Carla should ______. a) Apply the golden rule when interacting with consumers b) Charge more money for exceptional services c) Expect clients to treat her with the utmost respect d) Not treat all consumers equally

Client Bette asked licensee Frank about a home equity line of credit versus home equity loan. Which of the following offers an brief overview of what a home equity line of credit is? a) A borrower borrows against the equity in the house and pays back the amount withdrawn plus interest. b) A borrower can pick up paying on the mortgage where the seller left off, assuming the buyer qualifies for the loan. c) A veteran can obtain the loan with no down payment and no private mortgage insurance requirement. d) It's a very low-interest loan where borrower will have to repay the entire home balance in seven years.

Closing day has arrived! Newlyweds Connie and Tony Trowbridge are planning on sitting in on their first face-to-face closing and are excited to finally get the keys to their first home. Review each item and identify whether it would happen during a face-to-face closing. The Trowbridges, the sellers, their respective attorneys and real estate agents, the escrow officer, and lender may all be part of the closing meeting. a) Would happen b) Would not happen

Closing day has arrived! Newlyweds Connie and Tony Trowbridge are planning on sitting in on their first face-to-face closing and are excited to finally get the keys to their first home. Review each item and identify whether it would happen during a face-to-face closing. The meeting may take place in the title company conference room. a) Would happen b) Would not happen

Connect each type of specific lien to its description. A claim filed by a contractor for labor performed on a property a) Mechanic's lien b) Mortgage lien c) Real property tax lien

Creation of an easement varies with the type of easement. The resource attached to this slide contains a chart showing various Government exercises its right of eminent domain a) Easement by condemnation b) Easement by prescription c) Express easement d) Easement by necessity e) Implied easement

Devian Lane is preparing to relocate to St. Paul and is closing on her new home there. Because she is still out of state, she'll be closing through escrow. The escrow agent forwards the correct paperwork to all appropriate parties and records all documents. a) Would happen b) Would not happen

Devian Lane is preparing to relocate to St. Paul and is closing on her new home there. Because she is still out of state, she'll be closing through escrow. The sellers turn in their paperwork to an escrow agent for processing. a) Would happen b) Would not happen

Diana works for an organization that accepts savings deposits and then loans the funds out through mortgage and other types of loans. She must keep commercial lending under 20%. What type of lender does Diana work for? a) Savings and loan b) Commercial bank c) Credit union d) Investment group e) Insurance company

Do the brothers meet the requirements for this type of ownership? There's more than one owner, so we know it's not estate in severalty. Which of the remaining do they represent? a) Bring legal action to have the property partitioned. b) Jack and Joe each sell their portion of the property. c) Apply for joint tenancy.

Do you know how to perform each of the tests of property type? Match each test to its description. When a dispute occurs, courts tend to favor tenants and buyers over landlords and sellers. a) Relationship of the parties b) Adaptability of use c) Method of annexation

Do you know the difference between the performance of a contract and time is of the essence? What about partial performance? Let's find out. Choose whether each scenario describes the performance of a contract, partial performance, or the "time is of the essence" phrase. One day, Herman Yolk and his wife, Imelda, bought a goose. The pair entered into a contract with the goose that stated that as long as the goose continued to lay golden eggs each day for a month, the couple would not have the goose for dinner. The goose laid a golden egg each day for one month, and the Yolks ordered takeout. a) Performance of a contract b) Partial performance c) Time is of the essence

Doris and Kathleen, who are neighbors, enter into an agreement to not permit their real estate agents to sell their homes to families with children. This agreement lacks ______, so it's void. a) A lawful objective b) A mutual agreement c) A purpose d) Two parties

During closing, the attendees consummate a number of contracts. Do you know which parties are responsible for closing which contracts? Match these parties to the contract they're finalizing. Close on the compensation agreement based on terms of their agreement a) Agents' brokerage firms b) Seller and seller's agent c) Buyer and lender d) Buyer and title company rep.

Each stage of the property ownership life cycle can be affected by income tax issues. Match each income tax-related item to the correct term to indicate the stage of the property ownership life cycle it's associated with. Points deduction a) Acquisition b) Ownership c) Reversion

Ezra's lease on his condo includes an option to purchase. He told his landlord, Sherm, that he's ready to purchase the condo, and they've negotiated a purchase price and closing date. What kind of contract is this? a) Bilateral b) Executed c) Unilateral d) Voidable

First-time buyer Frannie signed a representation agreement with new licensee Marcus. The market was hot, so Frannie wanted the seller to know that she'd beat any offer he received by $10,000. She asked Marcus to include this clause in the contract, so he wrote it in as an additional provision on the standard contract form. The seller had received three offers, all over list price. He then accepted Frannie's offer for $10,000 over the highest list price, which ended up being more than Frannie could comfortably afford. To protect his client, what action should Marcus have taken? a)Advise Frannie to consult with an attorney to draft the clause. b)Refuse to support Frannie in her decision to offer more. c)Terminate his agency agreement with Frannie.

Frances collected an earnest money check from her client, but didn't have an opportunity to deliver it to the escrow agent before close of business on Friday. For safekeeping, she deposited it into her personal checking account over the weekend and wrote the escrow agent a new check on Monday morning. Which of these statements is true? a) Frances is guilty of commingling. b) Frances is guilty of commingling and conversion. c) Frances is guilty of conversion. d) Frances is guilty of fraud.

Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? a) Easement by prescription b) Easement in gross c) Express easement d) Visible easement

Gloria Meeker can't believe it. She thought she had a buyer for her home, and at the last minute, the buyer bailed. At least Gloria can keep the earnest money. That's some consolation. What remedy is Gloria pursuing to address her breach of contract situation? a) Accept liquidated damages b) Accept partial performance c) Mutually rescind the contract d) Unilaterally rescind the contract e) Sue for damages f) Sue for specific performance

Great work! You referred a buyer to a colleague in a neighboring state. The buyer found their dream home for a price of $325,000. A couple of weeks after closing, you receive a card with a check for $3,250 as a thank you from your colleague. At what rate as a percentage did your referral pay off? a) 1% b) 10% c) .001%

Greater Lakes Townhome Association was formed in June 2004. Which statement best describes their participation in the Minnesota Common Interest Ownership Act? a) Based on the date the association formed, participation is automatically required. b) Based on the date the association formed, the association must opt in to participate. c) Based on the type of association, participation is automatically required. d) Based on the type of association, participation isn't required.

Hanna represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client? a) Buyer agency b) Dual-license dual agency c) Seller agency d) Single-license dual agency

Here are some other rights that are included in property ownership. Match each right to its definition. States that the property is owned by the title holder a) Possession b) Exclusion

How does the lender determine whether the property is worth the sales price? a) Appraisal b) Demographics of the area c) Prior history with borrower d) Style of home

How familiar are you with the types of liens? Let's find out. Connect each type of lien to its description. If you're unsure as to the answers, don't hesitate to consult your resource. A general, involuntary lien that is brought against a property due to a court decree resulting from a lawsuit. a) Judgment lien b) Estate/inheritance tax lien c) Mortgage lien d) Income tax lien

If the secondary mortgage market didn't exist, what could happen to the primary mortgage market? The primary mortgage market would have fewer funds available for lending. a) Could happen b) Couldn't happen

In Minnesota, which of the following documents must you present to a potential buyer client prior to entering into a buyer agency agreement with him? a) Agency Relationships in Real Estate Transactions form b) Listing agreement c) Purchase Agreement d) Seller's disclosure notice

In Minnesota, which of the following documents must you present to a potential seller client prior to entering into a listing agreement? a) Agency Relationships in Real Estate Transactions form b) Buyer agency agreement c) Listing contract d) Seller's disclosure notice

In order for Minnesota homeowners to qualify to homestead their residence, which of the following must be true? a) It must be their primary residence. b) The home's assessed value must be higher than the market value. c) The home's value must be $50,000 or less. d) The title must be held in the name of only one person.

In situations where no will exists, the deceased person's estate's assets are distributed according to the law of __________________. a) Descent and distribution b) Dispersal c) Heir intestacy d) Inheritance

Jackson Elementary School is undergoing some major renovations during the summer while school is out of session. The renovation crew has a detailed list of requirements for the disposal and drainage of wastewater and sewage. These requirements are likely part of the ________ with which the renovators must comply. a) Building code b) Deed restriction c) Safety laws d) Zoning regulation

Jamal is selling his townhome for $242,000, and closing is set for July 20. He has a loan balance of $193,000 at a 3.7% interest rate, and he's current on his payments. Jamal has prepaid the property taxes ($1,165) and insurance ($745). Using a calendar year proration method for calculations, how will these amounts appear on Jamal's closing statement? a) $523.16 seller credit b) $523.16 seller debit c) $798.89 seller credit d) $872.45 seller credit

Jamie wants to find the legal description for a property. What's her best bet? a) County recorder's office, registry of deeds, or a title company b) Motor vehicle department c) Neighborhood notice d) Real estate flyer

Janet and Frank are living the dream. They've purchased a lovely home in St. Paul for $425,000, which is now their primary residence. They were excited to hear that they can homestead their property in order to exempt a portion of it from property tax. If all goes well and they qualify, what is the amount they will be able to exempt from property taxes? a) Up to $390,000 b) Up to $975,000 c) Up to $780,000 d) Up to $1,950,000

Jarvis, a designated broker, discusses antitrust scenarios at staff meetings and makes certain his firm makes independent decisions about co-op fees. This is a great way for Jarvis to do what? a) Avoid antitrust violations b) Eliminate the competition c) Get in trouble with the DOJ d) Inadvertently violate antitrust law

Jeff has filed a quiet title suit against Roger. What's the purpose of this suit? a) To clear up a cloud on title b) To clear up a property line dispute c) To exercise his right to quiet enjoyment of the property d) To prohibit the seller from releasing the buyer's name

Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account to pay the developer. Which answer correctly identifies the violation(s) Jill has committed? a) Commingling and conversion b) Commingling only c) Conversion and fraud d) Deceptive business practice

Jocelyn is ready to submit an application for a MN real estate salesperson license. Which of the following is NOT necessarily true? a) She has a high school diploma or GED b) She passed the licensing exam within the last 12 months c) She's at least 18 years of age d) She's completed courses I, II, and III

Joe Bob is the grantor of a deed, and is in the final stages of transferring a deed to the new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of the deed to Frank? a) Deliver the deed to Frank, his agent or attorney, or the title company issuing the title b) Get Frank's signature on the official acceptance letter notarized and recorded at the county clerk's office. c) Send the deed via certified mail so that the shipment is officially tracked d )Submit delivery and acceptance paperwork to the Board of Submission and Acceptance

Johnnie and Mary each own a unit in a new condominium complex. According to Minnesota law, in which element do they NOT have an undivided ownership interest? a) Condo units b) Lobby and elevators c) Parking lot d) Pool and recreational areas

Kenneth entered into a contract to sell his home to Valerie, who put down a $5,000 earnest money deposit. At the last minute, Valerie backed out of the deal, and Kenneth kept the earnest deposit. This is an example of ______. a) Accepting liquidated damages b) Accepting partial performance c) Suing for damages d) Suing for specific performance

Land contracts and purchase money mortgages are two types of seller financing, but they have some differences. Read these items and determine if they apply to land contracts or purchase money mortgages. The seller retains ownership while the buyer has possession. a) Land contract b) Purchase money mortgage

Landlords and tenants each have many obligations to hold up their end of the lease contract. Let's take a look at what each party is responsible for doing to ensure these duties are met. Owes quiet enjoyment a) Landlord Obligation b) Tenant Obligation c) Mutual Obligation

Landlords and tenants each have many obligations to hold up their end of the lease contract. Let's take a look at what each party is responsible for doing to ensure these duties are met. Warn tenants of dangerous problems or maintenance issues that occur a) Landlord Obligation b) Tenant Obligation c) Mutual Obligation

Landon is the listing agent for Maury's property. Maury is moving out of state for a new job, so the house will be vacant for some time, depending on how long it takes to sell. Maury is pretty adamant about not having a sign in his yard, especially after he moves. Landon follows Maury's wishes, but a month after Maury moved, there hasn't been any movement on the property. Landon places a sign in the yard, hoping it will drum up some interest. Is this okay? a) No, Landon shouldn't place a sign on Maury's property without Maury's written permission. b) No, Maury's neighbors might tattle. c) Yes, as the listing agent, Landon has the right to place a sign on the properties he has listed. d )Yes, since Maury has moved, Landon can make decisions related to the property.

Let's check your understanding. What is the statute of frauds? a) A legal requirement that real estate contracts be in writing and signed in order to be enforceable in a court of law b) A legal requirement that real estate contracts list the elements of fraud c) A law that says dishonest contracts are voidable d) A law that says dishonest contracts are void

Let's look at a couple of lenders. One of them demonstrates some predatory actions, and the other does not. Which scenario could be regarded as predatory? a) Lending for You was really friendly. When Bob told the representative he only had 10% saved for a down payment on a new home, the representative didn't discourage him at all. In fact, she suggested taking out a personal loan and using that money toward the down payment. Bob could even obtain that loan through Lending for You. She also said that if Bob waits until a few days before closing, it wouldn't factor the personal loan into Bob's debt-to-income ratio. Bob can almost feel the keys to his new home in his pocket. b) Lend-Right came highly recommended, but so far, Bob doesn't feel any closer to homeownership. He's provided tax returns, W-2 forms, bank statements, and information about his car loan. When he said he only had about 10% saved for a down payment, his representative said he'd have to purchase something called PMI. Bob feels like they're just trying to drive up costs on him.

Let's see how much of this title terminology stuck with you. Match the title procedure terms with their correct descriptions. We've attached a set of flashcards for you to practice with. Obtained from a title insurance company to provide evidence of title a) Abstract of title b) Title search c) Affidavit of title d) Marketable title e) Evidence of title f) Title insurance

Let's see how much you know about subdivisions and the terms associated with their development. Match each term to its description. Written record of land divided into lots and used in the legal description of deeds a) Subdivision plat b) Subdivision c) Plat book d) Demographics e) Development agreement

Let's see if you can remember what rights are included in the bundle of rights. Match each right with its definition. Allows the owner to control the use of the property, including how others may use the property a) Control b) Enjoyment c) Disposition

Let's see what you know about the types of title examinations and the terms involved in examining title. Match the title examination term to its description. Provides the buyer with valuable data about any matters impacting the title a) Title report b) Correction deed c) Limited search d) Title examination

Let's test what you just learned. Try matching the government power with the type of legal power it possesses. Involuntary conveyance at death when no will exists and no heirs or creditors are found a) Escheat b) Taxation c) Police power d) Eminent domain

Let's try your hand at some more fun deed terminology. Connect each deed term to its description. Required to execute the deed and convey the interest of the property to the grantee a) Signature of grantor b) Restrictions and exceptions c) Consideration d) Delivery and acceptance

MN broker responsibilities for salesperson supervision are outlined in the standards of conduct. Which of the following is one of these responsibilities? a) Document and investigate all complaints against licensees. b) Keep a comparison chart showing how each salesperson is doing relative to all others. c) Provide CE opportunities each quarter. d) Sit in on all meetings with new licensees for a least 90 days.

Many activities occur during a title closing, both prior to and at the closing itself. Match each activity to the time frame in which it occurs during the closing process. The buyer's agent, attorney, or lender contacts the buyer and tells the buyer how much money will be needed to close. a) Prior to closing b) At closing

Marcus is a real estate licensee who works with landlords and tenants. What should Marcus do to ensure he doesn't overstep into the unauthorized practice of law? a)Marcus should know and understand tenant/landlord legal rights. b)Marcus should advise clients on tenant/landlord legal rights and responsibilities.

Marcy is found guilty of price fixing. It's safe to assume that she must have done what? a) Agreed with a competitor to charge a specific amount b) Charged a fixed commission price her broker asked her to use c) Charged a separate co-op fee for different brokerages d) Deviated from the standard commission rate

Marie's brokerage relationship with the Clarks has terminated. She has some paperwork she needs to send to them. When she provides this paperwork to them, what is this an example of? a) Accounting b) Loyalty c) Obedience d) Reasonable skill and care

Match each antitrust violation with its description. Limit or discontinue making goods or offering services to control or limit the going rate for them a) Production control b) Collusive bidding c) Discriminatory agreement

Match each contract type to the actions it enables once it's agreed to and signed. This allows the buyer to legally possess the property once all terms and conditions have been satisfied. a) Sale agreement b) Brokerage agreement c) Listing agreement

Match each of the four types of easements with its characteristic. This usually involves access to a road a) Easement by necessity b) Easement appurtenants c) Easement by prescription d) Easement in gross

Match each of these terms with its corresponding definition. The cost of borrowing money from someone else a) Interest b) Amortization c) Principal d) Term

Match the definitions to their corresponding type of equity-related financing. Used similarly to a credit card a) Home equity line of credit b) Reverse annuity mortgage c) Home equity loan

Match the description to these terms. Property possessed for someone's lifetime a)Life estate b)Fee on condition c) Fee simple determinable

Match the license type to the application requirements for that type. a) Broker b) Salesperson c) Limited broker Three years of experience or waiver situation, 30 hours of education, 75% or higher on exam.

Match the percentage of funds to the source of financing to complete the 70/20/10 piggyback loan ratio and avoid paying PMI. 70% a) First mortgage b) Down payment c) Second mortgage

Match the statement to the type of mortgage to which it applies. May require PMI for down payments less than 20 to 25% a) Conventional b) VA c) FHA

Match the status change to its decription a) incapacitation of broker b) terminaiton c) withdrawal d) transfer A temporary individual may be allowed to serve as broker for 45 days.

Match the type of consideration with its description. Can be measured in terms of money a) Valuable consideration b) Good consideration

Mattie is a licensed salesperson who works under Tyler at ABC Realty. She decides to move to another town to help care for her mother, so Tyler terminates her license. Six months later, Mattie has the opportunity to work with a broker in her new town, so she wants to reactivate her license under the new broker. Under what circumstance will her license transfer? a) It will transfer upon licensee application b) It will transfer with paperwork from the former broker c) It will transfer with the payment of a new license fee d) It will transfer if it occurs in the first year of a license period

Meet Sergei Sergei has just purchased his first house. He owns it; no one else does! No one tells him what he can do with the house—he decides. No one shares his house with him, or holds any interest in the house (except his lender, of course). What ownership type describes Sergei's situation? a) Estate in Severalty b) Tenancy in Common c) Joint Tenancy d) Tenancy by the Entirety

Mike began his presentation with some of the legislation and acts influencing lending. Match the regulation or act with its requirement. Requires disclosure of loan terms and costs a) Truth in Lending Act b) Community Reinvestment Act c) RESPA d )Equal Credit Opportunity Act

Mike described a few mortgage lenders to Keira. Let's see how well you captured the information. Match these descriptions with the appropriate mortgage lender. Companies that finance mortgage loans, but specialize in insurance products a) Insurance companies b) Savings and loan associations c) Credit unions

Mike is a mortgage broker, and his role is different from that of a mortgage banker. Identify whether each of the following relates to a mortgage banker or mortgage broker. Lends money a) Mortgage Banker b) Mortgage Broker

Multi-Office Brokerage Adam is the primary supervisory broker at the west end location of the corporate brokerage City Love Real Estate. City Love also has east end and central locations. Who can supervise at those locations? a) Each location needs an individual broker supervising b) Adam can supervise at all locations c) A license from the corporate board must supervise

Next, let's focus on life estates. With these, someone's lifetime controls the duration of ownership or possession. Papa conveyed 20 acres of land to Teddy Jr. for life. Upon Teddy Jr.'s death, the land will go back to Papa. a) Reversionary interest b) Act of waste c) Remainderman

Now let's look at what expenses the buyer is responsible for at closing and what is the purpose of each expense is. Connect each expense to its description. Results when properties change hands to someone outside of certain family members and other exempt parties a) State and local deed taxes b) Loan fees c) Appraisal / Credit report fees d) Attorney's fees e) Recording fees

Now that you have had a chance to familiarize yourself with the various methods of discharging a contract, let's see if you can recall the types of performance associated with each method. Connect each type of performance to its description. Due to circumstances out of their control, the parties cannot legally or practically do what they've agreed to do. a) Impossibility of performance b) Specific performance c) Partial performance d) Substantial performance

Now that you're more familiar with the required elements of a deed, let's see how knowledgeable you are about deed terminology. Connect each deed term to its description. States the intention to convey from the grantor to the grantee. a) Granting clause b) Legal description c) Grantor/grantee

Now that you've correctly identified real estate characteristics by category, let's see if you can match each economic characteristic to its description. The concept that there's a finite amount of land a) Scarcity b) Improvements c) Permanence of investment d) Location or area preference

Now that you've correctly identified what real property rights are, let's see if you know what they mean. Match each right to its description. Right to determine interest in the property for others a) Control b) Possession c) Disposition d) Exclusion e) Enjoyment

Now, instead of calculating the amount, let's determine the ratio. What if your clients have total monthly debt of $1,000 and a gross income of $3,500 and wants to figure out their debt-to-income ratio? You'll need to work backwards! Take their monthly debt obligations ÷ monthly gross income. Go ahead and give it a try now. a) 28.6% b) 40% c) 35%

Of the fiduciary duties an agent owes to a client, which one was left out of the following string: loyalty, care, obedience, confidentiality, accounting? a) disclosure b) disobedience c) lawfulness d) skill

Of the following, which is most likely to be considered a fixture? a) a fence around a field b) a pasture c) a stream d) a tractor

Office buildings, shopping centers, and hotels are examples of _______ properties. a) commercial b) industrial c) residential d) special purpose

Orchards and ranches are examples of _______ properties a) agricultural b) business c) commercial d) residential

Part of the loan application has the applicant provide details of assets and liabilities so a determination of net worth can be made. What do these terms mean? Obligations or debts owed by the borrower a) Liabilities b) Net worth c) Assets

Paul is a first-time homebuyer who travels a lot. He's interested in purchasing a home to use as a rental property. If he meets all the requirements, which Minnesota homebuyer assistance programs might he qualify for? Select all that apply. a) Start Up b) Step Up c) Mortgage Credit Certificate Program

Prevention of a legal claim that tis contrary to the person's own actions a) estoppel b) ratification

Property with ownership by more than one person is known as ______. a) Co-ownership b) Dual ownership c) Estate by severalty d) Property partnership

Provide retail, entertainment, institutional, residential, office, and governmental space all in one area a) Downtown district b) Residence district c) Commercial district d) Office residence district e) Industrial district

Quentin brought an application before city council to build a shopping mall on 17 acres south of town that currently don't have a zoning designation. The council referred him to the planning commission, which will review the application in light of the city's ________. a) Comprehensive plan b) Economic development plan c) Health and sanitation ordinances d) Zoning ordinances

Rachel opens an interest bearing trust account. What must she do to comply with the trust account laws? a) obtain buyer and seller permission for the account. b) use some of the interest for administrative costs. c) use the interest to offset commission fees.

Rachel's client, Terrence, made an offer a house, and gave Rachel $3500 in earnest money. The seller rejected the offer, and Terrence was unwilling to continue negotiating. How long does Rachel have to return Terrence's deposit? a) 1 business day b) 2 business day c) 3 business day d) 5 business day

Rose's seller client had listed the property at $150,000, but Tim's offer was for $125,000. The seller is considering accepting Tim's offer, but Rose lets him know that she thinks Tim can afford the full price based on the money he made off the recent sale of his property. Did Rose breach her duty to Tim? a) Yes. Rose broke the confidentiality that she stills owes to Tim, her former client. b) Yes. However, her duty to her current client supersedes her duty to her former client. c) No. Rose owes the duty of disclosure to her client, the seller. d) No. Rose and Tim no longer have a client relationship.

Sam grants Steve a license to hunt deer on his property. Which of the following statements about the license is true? a) Sam can revoke the license at any time. b) The license is a permanent privilege. c) The license is assignable. d) The license is inheritable.

Sarah wants to make sure Jerry understands Minnesota's Lake Superior Coastal Program, so it's important that he's able to identify the following terms. Match each term with the correct description. 189 miles of Lake Superior's shores a) Coastal boundary b) Watershed c) Shoreland district

Several water acts have been established to protect the quality of our nation's water supply. Do you know the purpose of each act? Match each statement with the correct text to indicate with which national water act it is associated. Established quality standards for surface waters. a) Clean Water Act b) Rivers and Harbors Act c) Coastal Zone Management Act

Specific public records are used to provide proof of title ownership. How familiar are you with these public records? Let's find out. Match each document to its purpose. Provides a summary of the title history a) Abstract of title b) Title insurance policy c) Deed d) Chain of title

The Bransons have a conventional loan for which they were required to obtain private mortgage insurance. Their local real estate market has been going like gangbusters, and their house is now appraised at twice their loan balance! Will their PMI be cancelled? a) Maybe, but they'll have to petition their lender b) No, because PMI lasts for the life of the loan c) Yes, because their equity is over 20% d) Yes, because their equity position is at least 50%

The Kelo vs. City of New London U.S. Supreme Court ruling was controversial because the U.S. Constitution prohibits the government from taking private property except for "public use". What governmental power was central to this case? a) Eminent domain b) Escheat c) Police power d) Taxation

The client owes the agent the primary duties of ______, information, indemnification, and availability. a) Compensation b) Consideration c) Courtesy d) Critical feedback

The closing meeting has occurred, but there are still several things that need to happen. Can you identify what's been completed, and what still needs to be done? Calculate prorated expenses a) Completed b) Still Needs To Be Done

The closing meeting has occurred, but there are still several things that need to happen. Can you identify what's been completed, and what still needs to be done? Perform a title search a) Completed b) Still Needs To Be Done

The closing meeting has occurred, but there are still several things that need to happen. Can you identify what's been completed, and what still needs to be done? Prepare closing statements a) Completed b) Still Needs To Be Done

The document Mike emailed Keira summarized the types of loans available. The loans vary slightly based on the type of property and who's obtaining financing. We'll group similar loans together when we review the options. Let's start with some general residential mortgage types. Match the type of mortgage with its description. Interest rate fluctuates based on the economic index to which it's tied a) Adjustable rate b) Amortized c) Straight d) Growing equity

The duty of ______ that a licensee owes the client remains after the brokerage relationship terminates. a) Accounting b) Disclosure c) Loyalty d) Obedience

The power of escheat lies in different hands depending on the state. In Minnesota, which entity holds the power of escheat? a) State b) County c) City

The resource mentions a few federal antitrust acts. Match the description to the appropriate act. Prohibited monopolies and actions that cause an unreasonable restraint of trade. a) Sherman Act b) Clayton Act c) FTC Act

The sellers left some storage shelving in the basement after they moved out. They purchased new ones, but then asked the buyers to let hem in to retrieve the shelving they left. The buyers refused. The sellers threatened to sue, but their lawyer advised them they couldn't a) estoppel b) ratification

The three primary commercial lease categories vary, based mainly on how expenses, such as taxes, insurance, and maintenance, are handled. Match the commercial lease type category with its description. Tenant pays some or all expenses separately a) Net lease b) Gross lease c) Percentage lease

They're guilty, so what do we need to prove? It's all a matter of per se. What does per se mean? a) Guilt is established on the face of the circumstances. b) Guilt is established upon justification of the actions. c) Guilt is determined after a full review of the entire situation.

This resource introduced a few words related to eminent domain. Let's make sure we understand what they mean before we move on. Match the terms related to eminent domain with their definitions. When the government takes someone's property using the power of eminent domain and the owner receives compensation for the property value a) Condemnation b) Eminent domain c) Taking

This type of point allows you to buy down your interest rate, therefore lowering your monthly payment. (If you need a hint, go back to the previous slide.) a) Discount point b) Loan origination point c) Points of view

Three frequently confused terms are valid, invalid, and voidable. Select the correct term for each example. A contract that is missing one or more essential elements a) Invalid b) Valid c) Voidable

Timeshare ownership can take several forms. How familiar are you with how these forms differ? Let's find out. Connect each timeshare term to its description. The owner buys the right to use the developer's facilities and may use the designated area at any time during the year a) Vacation ownership b) Campground membership c) Timeshare use d) Timeshare estate

Today, just a year later, the condo is back on the market with another listing agent. The Radcliffs are renewing their vows and have decided to celebrate their new commitment to one another with a new home. You're working exclusively with a buyer client who's also in love (with the condo, but not with the price). You reassure your buyer that there's room to negotiate. You tell him the property is paid off and the sellers are more concerned with selling fast than making a profit. Did you breach your duties to the Radcliffs? a) Yes. You broke the sellers' confidentiality. b)Yes. However, the relationship to the buyer supersedes any prior relationships. c) No, because you and seller no longer have an agency relationship.

Todd and Susan are a married couple living in Minnesota. Susan purchased their homestead shortly before they married and only her name appears on the property's title. They are planning to sell this property and purchase a condo. Whose signatures are required to sell their current property? a) Because this is a homestead property and Susan is married to Todd, both Susan and Todd's signatures are required. b) Because Todd and Susan are married, both of their signatures are required. c) Only Susan's name appears on the title, so only her signature is required to convey the property. d) Susan purchased the property prior to the marriage, so only her signature is required.

Trina's property is listed with Avalon Homes. The market is a little slow, and Trina's listing is a high-end home, where sales are even slower. She's had several showings, but no offers. The term of the listing agreement is nearly over. What happens when the termination date is reached? a) The listing expires and is automatically terminated. b) Trina can't extend the listing agreement, so she'll have to list with another brokerage firm. c) Trina owes Avalon whatever compensation was noted in the listing agreement. d) Trina's agent may still try to sell the property.

Trish's initial loan amount is $236,000 with an interest rate of 4%. It's a 30-year amortized loan, which she pays monthly. How much interest will she pay with her first month's payment? You do the math. a) $786.67 b) $1,033.33 c) $9,440.00

Two large local brokerage firms agreed to lower their commission rates to the same amount—approximately 1% less than any other firm in town. After extensive marketing of their new lower rate, these two firms began to see a big increase in the number of listings they received, costing their competitors substantial amounts of money. What about this situation makes it a per se antitrust violation? a) The agreement between the two firms b) The dollar amount the competitors lost c) The marketing efforts the two firms used d) The size of the two brokerage firms

Unauthorized practice of law and acting outside the scope of one's expertise are similar issues. Which of the following circumstances specifically relates to the unauthorized practice of law? a) Predicting a specific tax increase or decrease b) Predicting the return on investment for a rental property c) Recommending specific investments d) Writing contract addenda or additional provisions that cover unfamiliar circumstances

Use your resource to match some common types of deeds with their descriptions. May come with or without covenants of warranty a) Bargain and sale b) Quitclaim c) Referee d) Full covenant and warranty e) Executor

Using the 'Calculating Area and Length Cheat Sheet' in your resources, define these common land measurements. 640 acres a)Square mile b) Mile c) Square foot d) Yard e) Acre

We've introduced a lot of easement-related terms, and there are a few more worth knowing. We included all of these terms in the flashcards attached to this slide. Match these terms with their definitions. Rights to occupy a property a) Possessory rights b) Party wall c) Non-possessory rights

Wells, rivers, lakes ... they each come with a set of water rights. Match the scenario with the water right it's describing. Back in the day, Sandra's family found a stream they used as irrigation for crops, and they still have primary rights to it. a) Prior appropriation b) Littoral c) Riparian

What calculation is used to determine the accrued taxes owed by a seller at closing? Assume the closing is held on the last day of the month, the seller owns the day of closing, and you're using a statutory year. a) Taxes owed ÷ 12 months = taxes owed per month AND taxes owed per month × number of full months passed = accrued taxes owed by the seller at closing b) Taxes owed ÷ 12 months = taxes owed per month AND taxes owed per month × number of full months remaining = accrued taxes owed by the seller at closing c) Taxes owed per month ÷ number of full months past = accrued taxes owed by the seller at closing d) Taxes owed per month × number of full months remaining = accrued taxes owed by the seller at closing

What do you think a wetland is? Identify the descriptions that 'could be wetlands' or are 'not wetlands.' Use both resources if you're having any trouble. An area that floods only occasionally, with strong winds or spring tides a) Could be wetlands b) Not wetlands

What do you think a wetland is? Identify the descriptions that 'could be wetlands' or are 'not wetlands.' Use both resources if you're having any trouble. An area that's dry part of the year a) Could be wetlands b) Not wetlands

What do you think a wetland is? Identify the descriptions that 'could be wetlands' or are 'not wetlands.' Use both resources if you're having any trouble. An area with a prevalence of vegetation adapted to saturated soils a) Could be wetlands b) Not wetlands

What do you think a wetland is? Identify the descriptions that 'could be wetlands' or are 'not wetlands.' Use both resources if you're having any trouble. An area within a floodplain or with low spots in which water stands at or above the soil surface during the growing season a) Could be wetlands b) Not wetlands

What does it mean if a property falls in a floodplain? a) Experts believe it is likely to be flooded sometime in the next 100 years. b) It has been the site of a recent flood. c) Soil tests show elevated moisture content. d) There is visible water on the property.

What entities make up the secondary mortgage market? a) Fannie Mae, Ginnie Mae, Freddie Mac, Farmer Mac, and lending institutions that buy loans from other lenders b) Lending institutions that lend directly to consumers c) Savings and loans, thrifts, and credit unions d) The U.S. Department of Veterans Affairs and the Federal Housing Administration

What feature do most adjustable rate mortgages have? a) Allows borrowers to convert to a fixed-rate during a specific period of the mortgage b) Gives buyers the option to increase their interest rate in return for cash lump sum c) Permits buyers to refinance in five years d) Requires buyers to pay points to buy down their interest rate

What formula will you use to calculate the amount of interest Trish will pay on her $236,000 loan in the first month? a) (Loan balance x interest rate) ÷ number of payments annually b) (Loan balance x interest rate) - number of payments annually c) (Loan balance x interest rate) x (number of payments over life of loan ÷ number of payments annually) d) (Loan balance x 12) x interest rate

What information is on the amortization table? Match the items with their descriptions. Take a closer look at your resource if needed. Amount to be sent for payment a) Scheduled payment/total amount b) Ending balance c) Interest d) Annual interest rate e) Principal f) Beginning balance

What is a watershed? a) A land formation that directs water from higher elevations into lakes and other bodies of water b) A manmade system that diverts flood water away from residential areas c) A naturally formed water reservoir d) The area between the shoreline and the point where construction doesn't need a DNR permit

What is it called when one party to a contract transfers the contractual rights and obligations to another but remains liable for the contract terms? a) Assignment b) Execution c) Novation d) Termination

What is the best way for a seller and buyer to demonstrate their agreement that the home's existing refrigerator and a dishwasher are included in the property sale? a) By including a bill of sale or agreement in the purchase contract b) By shaking hands on it on the day of the sale c) By verbal agreement after the sale d) By verbal agreement before the sale

What is the listing agreement's purpose? a) To identify the terms of the listing agent/seller agency relationship b) To identify the terms of the listing agent/buyer agency relationship c) To identify the terms of the buyer agent/buyer agency relationship

What is true about group or team advertising in Minnesota? a) It's allowed with broker approval. b) It's illegal in all situations. c) It's limited to once per quarter. d) It's permitted in certain fonts.

What kinds of legal action are possible for antitrust violations in Minnesota? a) Both civil and criminal action b) Civil action only c) Criminal action only d) Regulatory fines only

What language may be included in a contract after the assignor's name to make it clear that the contract is assignable? a) "And/or assigns" b) "Buyer beware" c) "Spouse or partner" d) "Time is of the essence"

What type of title insurance covers defects of an incorrect survey and boundary encroachments? a) Extended title insurance b) Homeowners insurance c) Standard title insurance d) Title survey and boundary insurance

What's one reason a borrower may choose a piggyback (or split) loan? a) To avoid paying private mortgage insurance b) To give the lender a little extra commission c) To stay under the radar of the IRS d) To trick the system into a lower combined interest rate

What's one reason a borrower would choose a split—or piggyback—loan option? a) To avoid going over the conforming loan limit b) To avoid paying too much interest c) To give business to two preferred banks d) To take advantage of loopholes in the system

What's the experience requirement for an appraiser trainee? a) no experience required b) one supervised appraisal c) 6 months of experience d) 3 completed appraisals

What's the longest sentence someone can serve in prison for an antitrust violation? a) 10 years b) 30 days c) Antitrust violations do not lead to prison sentences, merely fines. d )One year

What's the minimum age requirement for a licensed trainee appraiser? a) 18 years b) 21 years c) 25 years d) There is no minimum

What's the primary purpose of the Subdivided Land Act? a) regulate subdivision sales practices to protect consumers b) outline where subdivisions may and may not be located c) regulate who may own and subdivide land

What's the relationship between TILA, RESPA, and TRID? a) The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID). b) TILA and RESPA require lenders to use TRID. c) TILA, RESPA, and TRID mandate the lender disclosures required for federally related transactions. d) TRID mandates the type of disclosures for TILA- and RESPA-related transactions.

What's true of all appraiser license classifications in Minnesota? a) They must complete a 15-hour USPAP course. b) They must re-license every year. c) They must take and pass the same exam. d) They need a special endorsement to appraise agricultural property.

When does title officially change hands? a) With the transfer of the deed from the seller to the buyer b) When the deed is recorded c) When actual notice of the deed is given to the mortgage company d) After the final document is signed at closing

Which Minnesota homebuyer assistance program allows first-time homebuyers to claim 35% of their annual mortgage interest as a federal income tax credit? a) Mortgage Credit Certificate Program b) New Homebuyer Credit Program c) Start Up d) Step Up

Which action can a finder perform? a) Introduce the buyer and seller b) Negotiate an offer for a client c) None of these actions d) Present the offer on a client's behalf

Which department typically decides which development projects require a permit or approval? a) Building department b) Environmental compliance department c) Health department d) Housing department

Which document is used to establish the path and proof of ownership? a) Chain of title b) Deed c) Survey d) Title

Which document is used to fix an error in the title history? a) Correction deed b) Limited search c) Title examination d) Title report

Which economic characteristic of land contains the concept that a land's value can be affected by the changes made to it, such as construction of buildings or fences? a) Improvements b) Permanence of investment c) Scarcity d) Uniqueness

Which fiduciary duties does a finder owe? a) A finder doesn't owe any fiduciary duties. b) A finder only owes the duties of confidentiality and loyalty. c) A finder only owes the duty of confidentiality. d) A finder owes the duties of obedience, loyalty, disclosure, confidentiality, accountability, and reasonable skill and care.

Which fiduciary duty requires agents to promptly account for all money and property with which their client entrusts them? a) accounting b) disclosure c) obedience d) reasonable skill and care

Which method of alienation is being used? Cindy devised her house to her brothers and sisters upon her death. a) Will b) Natural processes c) Court-ordered partitioning d) Foreclosure

Which method of alienation is being used? The city council imposed so many use restrictions on Myron's property, there's no way he could recoup his initial investment if he sells. a) Regulatory taking b) Eminent domain c) Deed d) Adverse possession

Which of the following best describes the listing agreement's purpose? a) To identify the obligations of seller and seller brokers to one another b) To identify the terms of a sales transaction between the seller and the buyer c) To identify the terms of the buyer broker/seller broker relationship d) To identify the terms of the landlord/tenant relationship

Which of the following describes a listing agreement termination by completion/performance? a) Dean lists his property on August 1. After just a few showings, he accepts an offer on August 12. The closing takes place on September 22. b) Margaret listed her property on April 1. She receives and accepts an offer on April 3. On closing day, the buyers back out. c) On December 15, Kevin lists his property for three months. On March 16, he declines to extend the listing agreement. d) Wendall lists his property on January 1. His agent fails to show or market the property, and Wendall revokes the listing agreement on March 1.

Which of the following describes a price fixing antitrust violation? a) A conspiracy between competitors to set prices b) A conspiracy between consumers to not pay above a certain price c) An agreement between a business and consumer to purchase at a specific price

Which of the following expenses does the tenant pay in a net lease? Insurance a) Tenant b) Landlord

Which of the following expenses does the tenant pay in a net lease? Maintenance a) Tenant b) Landlord

Which of the following expenses does the tenant pay in a net lease? Taxes a) Tenant b) Landlord

Which of the following has the legal effect of preventing a person from making a claim based on her prior behavior or statements? a) estoppel b) in rem proceeding c) ratification d) reaffirmation

Which of the following is a tie-in arrangement? a) Providing a service that's dependent on the client obtaining another recommended service b) Offering certain services to customers, but additional services to clients c) Representing a client on both the sale of an existing home and the purchase of a new home

Which of the following is an advantage of living in a PUD or MUD? a) Easy access to amenities b) Higher density of people c) No nearby businesses d) Reduced noise, compared to the suburbs

Which of the following is an allowed expenditure from Minnesota's Real Estate Education, Research, and Recovery Fund? a) Creating a university real estate department and a position to chair that department b) Paying the initial or renewal license fees for state employees who are also licensed c) Paying the retainer for an attorney who will focus on state real estate cases d) Providing scholarships for students majoring in real estate

Which of the following properties is classified as residential real property in MN? a) a building with four studio apartments b) a four floor building with 16 residences c) a motel d) an office building with four units

Which of the following situations is an example of a non-agency relationship? a) Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork. b) Kendra represents Steven in the sale of his home by helping him complete the necessary paperwork to make his offer. c) Licensee Alexa works closely with her buyer clients' lender to be sure the lender has all information needed to approve the loan. d) Licensee Ingrid helps her neighbor Jeremy spruce up his house before Jeremy's agent holds an open house.

Which of the following statements about the Torrens system, which may be used in Minnesota, is true? a) The approach is only used in a handful of states. b) The approach is only used in northern states. c) The approach is only used in southern states. d) The approach is used nationwide.

Which of the following statements is true about zoning classifications? a) A home business would be considered an accessory use. b) A residential property may only have one use. c) Condos are always commercial property. d) Multi-family housing is zoned commercial.

Which of the following will an underwriter evaluate prior to loan funding? a) Available funds b) Census statistics on viability of employment c) Tax write-offs d) Utility bills

Which of these constitutes a breach of contract? a) One party fails to meet the obligations of the contract. b) One party threatens to terminate the contract. c) Something surfaces with the contract, causing both parties to question the contract's validity. d) Both parties fail to meet contract obligations.

Which of these is a central element of an antitrust violation? a) A contract b) Customer relationships c) High stakes d) Interstate dealings

Which of these is the best example of an estate from period to period? a) After Morgan's one-year lease expired, he continued to lease the property with no defined end date. b) John's lease terminated automatically and was inheritable. c) Peggy's lease expired, but she wouldn't leave the apartment. d) Ricardo's lease had no specified end date and required reasonable notice to terminate.

Which of these situations is an example of designated (appointed) agency? a) Jacob, a broker, acts as the dual agency and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction b) Marvel's broker at Homeworks Realty appoints her as the buyer's agent in a transaction. Tim's broker at Great Homes Real Estate appoints him as the seller's broker in the same transaction c) Meredith's broker appoints her to represent both the buy and the seller in a single transaction d) Michele is the firm's managing broker. She's the designated dual agent in all dual agency transactions.

Which one of the following says that real estate acquired by either spouse during a marriage (in most cases) is considered community property? a) Community property rights b) Joint tenancy c) Tenancy in common d) Tenancy in severalty

Which practice involves talking the consumer into refinancing over and over so a lender can charge fees? a) Loan flipping b) Poison lending c) Premeditated lending d) Turnover lending

Which type of lender is a member-based cooperative that provides credit for auto loans and home loans, takes deposits, and offers savings vehicles and money markets? a) Credit union b) Mortgage banker c) Mortgage broker d) Savings and loan association

While the video didn't talk about calculating perimeters, this topic is covered in the 'Calculating Area and Length Cheat Sheet,' which is attached to this slide for your reference. Match these formulas to the appropriate shape on how to calculate the perimeter of each. (2 × length) + (2 × width) a) Rectangle b) Square c) Triangle

Who can do these tasks a) broker b) salesperson c) both Can receive compensation directly from buyers or sellers

Who can do these tasks a) broker b) salesperson c) both Responsibilities for the acts of all licensees who work under them.

Who is usually responsible for ordering and reviewing the survey of the property? a) Buyer b) Lender c) Seller d) Title insurance representative

Who's responsible for any tax reserves required to pay property taxes? a) The buyer b) The closing agent c) The lender d) The seller

Who's responsible for paying appraisal and credit report fees? a) The buyer b) The lender c) The seller d) The title company

Why should a grantee always receive an acknowledged deed? a) It provides the grantee title protection against other purchasers of the same property from the grantor. b) It provides the grantor title protection against other purchases of the same property from the grantee. c) It constitutes the transfer of the title between the grantor and grantee.

With percentage leases, tenants pay their landlord a percentage of their sales once their sales exceed a certain point, which is the natural break-even point. The resource attached to this slide talks a bit about why a tenant would choose this type of lease. Why? a) The tenant wants to keep base rent low. b) The landlord is part owner of the store. c) The tenant brings consumers to the landlord's retail space.

Woody has a lease with an option to buy on his penthouse apartment. Each month, 20% of his lease payment goes toward ________. a) A down payment toward the purchase price b) Maintenance and utilities c) Property taxes d) The option fee

You did a good job matching the economic characteristics with their descriptions. Let's see how you do with the physical characteristics. Match each physical characteristic to its description. Land isn't interchangeable. One piece of land isn't exactly like another. a) Uniqueness b) Immobility c) Indestructability

You know that REO stands for real estate-owned property, but do you know what an REO is? Choose the best definition. a) Occurs when a property doesn't receive an acceptable bid in a foreclosure sale, and the bank takes ownership of the property b) Occurs when the market value of the property is less than the net proceeds the borrower will receive from a sale c) Occurs every time a one-story house or single-family home is sold in an urban residential market d) Occurs when the borrower defaults on the mortgage loan, and the lender moves to recoup costs owed by forcing a property sale

You may see several variations of an amortization chart or table throughout your career. Let's take a look at an amortization chart, which is located in your resources. We'll assume an interest rate of 5% and a mortgage term of 30 years on a $200,000 loan. What is the correct corresponding factor according to the chart? a) 5.36822 b) 4.8755 c) 5.000 d) 30-year e) 5.125+

You're probably familiar with the terms "lease with option to buy" and "right of first refusal," but do you know the difference between the two options? Let's find out. Identify each statement as either "lease with option to buy" or "right of first refusal." This option is often used by prospective purchasers who can't purchase immediately but intend to soon, and would like to buy the property they're renting. a) Lease with option to buy b) Right of first refusal

You're probably familiar with the terms "lease with option to buy" and "right of first refusal," but do you know the difference between the two options? Let's find out. Identify each statement as either "lease with option to buy" or "right of first refusal." With this option, the holder can decide when and whether to exercise the right to the property. a) Lease with option to buy b) Right of first refusal

You're representing Jeff and Sherry, first time buyers who have had an offer accepted on a townhouse. You just learned that Jeff was laid off and the current lender won't provide financing. What should you do? a) inform the seller's agent about the change in circumstance b) nothing, as the lender has the disclosure responsibility c) wait to see if Jeff and Sherry can line up financing from another ledner

You're the listing agent for the Browns, so you have a duty of obedience to them. They've noticed moisture in the basement but only after very hard rains. They've asked you not to disclose that to any potential buyers. What should you do? a) you must always disclose all material facts, even if your client doesn't want you to b) you must not disclose because clients are owed obedience c) you must not disclose because of the duty of confidentiality d) you should ignore their request because customer duties always outweigh client duties

You're trying to locate the northwest corner of a recently surveyed 10-acre property you will be listing for sale. The deed tells you that this corner is marked with a monument. What are you looking for? a) An iron rod with a surveyor's cap b) An "X" painted on the ground c) A rock with a surveyor's mark etched in it d) A small copper sign labeled "monument"

You've identified the covenants included in a warranty deed. Now let's define them. Match the covenant with its meaning (use the resource if you get stuck). Grantee has possession and shall not be disturbed in use or enjoyment a) Quiet enjoyment b) Right to convey c) Further assurances d) Warranty e) Seisin f) Against encumbrances

You've identified the items you need to know to calculate commission. How do you calculate it? a) Commission = sales price x commission rate b) Commission = sales price ÷ commission rate c) Commission = commission rate ÷ sales price d) Commission = sales price - commission rate

You've shown that you know the client's primary duties to the agent or broker, but do you know what each entails? Match each duty to its example. The deal is done, and Randall is looking forward to collecting his well-earned commission. a) Compensation b) Information c) Availability d) Indemnification

Your "Calculating Area" video introduced formulas for calculating the area of a few basic shapes. Select the correct formula for each shape. Having trouble remembering the formulas? We've included the video and its transcript on this slide for you to reference. Length × width a) Rectangle b) Square c) Triangle

Your buyer client gave you a treasury bill to use as earnest money. As a MN licensee, what should you do with it? a) deposit it with an escrow agent and get a receipt for its value b) keep it in the office safe deposit box until transaction closes c) return it to the buyer, because you can't deposit it into your trust account d) take it to your bank to convert it to cash

Your buyer client gave you a treasury bill to use as earnest money. As a Minnesota licensee, what should you do with it? a) Deposit it with an escrow agent and get a receipt for its value. b) Keep it in the office safe deposit box until transaction closes. c) Return it to the buyer, because you can't deposit it into your trust account. d) Take it to your bank to convert it to cash.

Your client, a builder, is considering buying three adjacent lots. They each have the same depth: 275 feet. Lot A is 35,750 s.f., Lot B 53,900 s.f., and Lot C is 33,000 s.f. If your client buys all three lots, what total street frontage will he have? a) 446 feet b) 462 feet c) 464 feet d) 466 feet

Your seller clients are angry because the buyer's financing fell through. "The buyer was pre-qualified! How can this happen?" they ask. How do you answer? a) re-qualification does not equal pre-approval. b) The lender must have used the wrong formula. c) We can sue. d) You win some, you lose some.

_________ is the power of the government to take private land for public use. a) Eminent domain b) Encumbrance c) Escheat d) Foreclosure

Brokerage firms (and you) usually get paid based on a percentage of a property's sales price. The terms "procuring cause" and "protection clause" impact your compensation. Which two of these statements about these terms are correct? (2) a) Rowena's exclusive-right-to-sell agreement with her seller client Connie guarantees that Connie will pay the brokerage firm's fee no matter who sells the property. b) Morey's listing agreement includes a 45-day protection clause. Three days after the agreement ends, Morey sells his house to a buyer whom his agent originally brought to the property. Morey may owe this agent a commission. c) Brokerage firms and licensees don't get paid if a transaction doesn't close.

a, b

Let's start by defining exactly what a deed restriction is. Which of these describe a deed restriction? Select all that apply. (2) a) A private agreement that impacts the use of the land b) A covenant c) A document conveying title to a property

a, b

Review these scenarios and identify which ones violate licensing law. Select all that apply. (2) a) Nathan and Cassie are friends. Cassie, a real estate licensee, recently provided some real estate services to Nathan's company. Now, Nathan is preparing to do some work-related travel overseas and wants to give his wife power of attorney (POA) in case anything comes up while he's gone. He asked Cassie to prepare the POA for him, and she agreed. Did Cassie violate her responsibilities as a real estate licensee? b) Tamron is the listing agent for Anthony's 25 acres of land. Carter would like to purchase the land and makes a full-price offer on the land. But now seller Anthony thinks he might get more for his property because the first offer has come in at full price, so he asks Tamron to counter-offer for a higher price. Carter, upset that they've countered his full-price offer, mentions possibly contacting his lawyer to force the sale at the list price. Tamron persuades Carter otherwise by telling him that it would be a lengthy process, cost more money, and, in her opinion, would not go in Carter's favor. Based on what Tamron told him, Carter agrees to the counter-offer, and the sale is completed. Afterward, Carter files a complaint. What do you think? Does Carter have a valid complaint against Tamron?

a, b

Stephanie, a real estate licensee, received a referral from Gloria, another licensee who's in her office and will be out of town at the time that her buyer wants to go house hunting. Under what two circumstances may Stephanie pay Gloria a referral fee? (2) a) If she disclosed it to all parties b) If it were paid through Stephanie's and Gloria's broker c) Never, because both Stephanie and Gloria are settlement service providers d) If it were based on a percentage of the commission received by Stephanie and Stephanie paid it directly to Gloria after closing

a, b

What are the functions and actives of the Licensing Unit? Select all that apply (3) a) administer initial licensing b) oversee license renewal c) arbitrate consumer complaints d) provide education and exam information

a, b, and d

It's important to include the legal description in an offer to purchase. Where would you go to track down a property's legal property description? (3) a) County recorder or assessors offices b) Title company c) Registry of deeds online d) Phone book

a, b, c

Lenders must provide the borrower with a disclosure statement. At what three points in time can a lender provide this statement to the borrower and still be within regulations? (3) a) At the time of the loan application b) One day after the loan application c) Three days after the loan application d) Five days after the loan application e) One week after the loan application f) At the loan closing

a, b, c

The income from property taxes benefits the community. Which three of these are examples of these benefits? a) Police department b) Roadways c) State aid d) New housing

a, b, c

The loan application is used to gather information needed to determine whether the applicant can repay the loan. What information is requested in the application? Select all that apply. (3) a) credit references b) Borrower net worth c) Employment history d) Appraised value of property

a, b, c

What type of information is generally found in a lease agreement? Select all that apply. (3) a) The owner/landlord's and the tenant's obligations with regard to leasing the property b) Use of the premises c) Lease term/length and the amount of rent due d) Other tenants' contact information

a, b, c

What four things does Minnesota's Statute 504B apply to? (4) a) Regulates relationships between landlords and tenants b) Regulates security deposits c) Requires property condition inventory checklists d) Regulates how many properties landlords may own e) Regulates lease termination arrangements f) Limits tenants' rights for the first 13 months of tenancy

a, b, c , e

An improvement district is formed when an improvement is needed that results in a special assessment tax. Who or what entities can form an improvement district? Select all that apply. (4) a) Concerned citizens b) City council c) School board d) HOA members

a, b, c, d

Once property value is determined, the lender assesses the borrower's creditworthiness. Lenders look at lots of criteria and information. Which documents that a borrower submits would a lender likely review to determine whether a borrower is a good credit risk? Select all that apply. (4) a) Tax returns b) W-2 c) Pay stub d) Bank statement e) Marriage license f) Credit report

a, b, c, d

The Antitrust Division of the U.S. Department of Justice prosecutes antitrust violations. What are the possible penalties it may impose on violators? (4) a) A prison sentence b) Restitution to victims c) Fines d) Monetary damages

a, b, c, d

What factors affect the ARM? Select all that apply. (4) a) Initial rate b) Index c) Margin d) Lender

a, b, c, d

Whereas with tenancy in common, only the unity of possession is required, joint tenancy requires several unities. Which of these unities are required for joint tenancy? (4) a) Time b) Title c) Possession d) Interest

a, b, c, d

Check out the video and the 'Title Issues' resource we've provided. What are the five most common title issues mentioned in this video? (5) a) Errors in public records b) Missing heirs c) Forgeries d) Unknown liens e) Survey or boundary issues f) Title destroyed by fire

a, b, c, d, e

A full covenant and warranty deed is the strongest and broadest form of guarantee of title. As such, it includes several covenants. Which of these covenants are included in the warranty deed?Select all that apply. (6) a) Warranty b) Seisin c) Right to convey d) Against encumbrances e) Quiet enjoyment f) Further assurances

a, b, c, d, e, f

What do wetlands provide that warrants their protection? Select all that apply. (6) a) Species habitat b) Surface water protection c) Beauty d) Erosion control e) Flood and storm water control f) Pollution treatment

a, b, c, d, e, f

You go against everything your pre-licensing course, laws, regulations, and firm have told you and you engage in undisclosed dual agency. What are the possible consequences for your flawed judgement? Select all that apply. a) Monetary damages b) Rescission of contracts in transaction c) Fines d) License suspension e) License revocation f) Future license denial

a, b, c, d, e, f

Because our sources of drinking water can become contaminated, measures to ensure that the water is safe to drink have been put in place. Do you know who or what sets guidelines and standards for drinking water regulations and drinking water safety? Select all that apply. (4) a) Department Of Health b) Safe Drinking Water Act c) Local Water Suppliers d) Local Hospitals e) Environmental Protection Agency f) Spring Water Bottling Companies

a, b, c, e

Some actions can lead to the suspension or revocation of your license. Identify those actions that may be a reason for this penalty. (4) a) engages in deceptive practices b) fails to supervise licensees c) fails to disclose a conflict of interest d) performs dual agency for multiple transactions e) files a license application with misleading information

a, b, c, e

As you know, the definition of real property includes certain interests, benefits, and rights. Can you identify what the rights are? Select the five answers that illustrate the rights associated with real property ownership. (5) a) Enjoyment b) Disposition c) Possession d) Abandonment e) Control f) Exclusion

a, b, c, e, f

In a real estate transaction, which three of the following are examples of consideration? (3) a) The seller's promise to sell the property to the buyer b) The seller's commitment to transfer the property to the new owner c) The buyer's decision to take out a loan d) The property itself

a, b, d

Indicate which three of the following are prohibited actions for MN licensees. (3) a) Require your buyer to use a certain lender b) Imply you are a mortgage expert c) Accept earnest money d) Misrepresent your certifications e) Allow your client to decline dual agency

a, b, d

So now you know what recording fees are. What are three types of records available for a fee in a Minnesota recording office? (3) a) Official plat b) Abstract of title c) Title insurance d) Satisfactions

a, b, d

The U.S. Department of Veterans Affairs' website outlines eligibility requirements for home loans. Take a look at the resource to read about eligibility. What three items are required to be eligible for a VA-guaranteed loan? (3) a) Suitable credit b) Sufficient income c) Statement from commanding officer d) Valid certificate of eligibility

a, b, d

What are three of the flood risk management regulations that Minnesota has adopted as a part of the Floodplain Management Act to help mitigate flood damage? (3) a) Created zoning laws for floodplain areas b) Created flood proofing regulations c) Created a new River Cleanup Act to reduce flooding d) Created flood warning practices

a, b, d

What type of information is generally covered in a purchase agreement? Select all that apply. (3) a) The amount of the purchase offer b) The buyer's financing contingencies c) Criteria for the types of offers the seller will consider d) The earnest money deposit amount

a, b, d

Which of these are true of a grantor of a legal conveyance? Select all that apply. (3) a) The grantor is typically the property seller. b) The grantor must be mentally competent. c) The grantor doesn't have to be specifically named or positively identified. d) The grantor must not be a minor.

a, b, d

Which three of the following statements indicate who has the right to terminate a breached contract? (3) a) Both parties can agree to terminate the contract. b) The innocent party can terminate the contract. c) The guilty party can terminate the contract. d) The guilty party can terminate the contract with aggrieved party's permission.

a, b, d

You're representing a young woman who's very excited to be purchasing her first investment property: a cozy little townhouse that a tenant currently occupies. What three things should you make sure happen before the property closes? (3) a) The closing agent should prorate the rent payment for that month. b) If applicable, rents and security deposits should be transferred to the buyer. c) The seller should give the renter a 30-day notice of property transfer. d) The seller should give copies of the move-in checklist to the buyer.

a, b, d

So far, we've seen the buyer and seller as they prepare for closing, but what four things does the closing agent do to prepare? (4) a) Perform a title search b) Obtain the seller's loan payoff amount c) Distribute closing proceeds d) Prorate property taxes e) Prepare closing statements f) File form 1099-S

a, b, d, e

The commerce commissioner has a broad authority to investigate real estate professionals for potential illegal actions. Which of these actions can be taken under that authority? Select all that apply? (4) a) require the licensee to pay the investigation costs b) access records, safes, and vaults of the licensee under investigation c) deposit any collected fees into the real estate education fund d) subpoena a witness e) require that evidence be produced

a, b, d, e

Select the images which are examples of restrictive covenants/deed restrictions. (5) a) Exterior material color b) No Boats or RVs in the driveway c) Style and color of carpet d) Property size and setbacks e) Architectural design f) Fence height and style

a, b, d, e, f

When a breach of contract occurs, the aggrieved party can remedy the situation in four of these ways. What options does the wronged party have? (4) a) Accept partial performance b) Sue for specific performance c) Request jail time for the guilty party d) Sue for damages e) Replace the guilty party with a new party f) Mutually rescind the contract

a, b, d, f

What are the three primary types of commercial property leases? (3) a) Gross lease b) Net lease c) Capitalization lease d) Profit lease e) Percentage lease f) Dual lease

a, b, e

It's a good idea to steer buyers clear of subprime lenders. It may be easier to do this if you know what to look for. What are three common characteristics of subprime lenders? (3) a) Higher interest rates b) Higher fees c) Targets high credit scores d) Lower interest rates e) Lower fees f) Targets low credit scores

a, b, f

As monopolies began taking over entire industries, antitrust laws were enacted. Which two of these were goals of these laws? (2) a) Protect consumers by promoting competition in the marketplace. b) Diminish profitability of businesses. c) Outlaw unfair methods of competition. d) Protect businesses from aggressive competition.

a, c

Now that we know what a title is, let's talk about deeds. Which of the following statements correctly describes a deed? Select all that apply. (2) a) A deed is a written and signed legal document that transfers ownership from one person to another. b) A deed is not a document, but a legal concept. c) A deed is an instrument of conveyance.

a, c

Sandra is a first-time homebuyer. If she meets all of the requirements, which two Minnesota homebuyer assistance programs might she qualify for? (2) a) Start Up b) Step Up c) Mortgage Credit Certificate Program

a, c

The Minnesota Uniform Condominium Act also includes specific requirements for building owners who are converting a building from apartments to condominiums. What are two of these requirements? (2) a) Building owners must inform the current tenants about the conversion. b) Building owners must refund the current tenants their last month's rent in addition to any deposits. c) Building owners must give current tenants the option to buy their units or to continue as tenants for a specified period of time. d) Building owners must provide eviction notices to the current tenants 60 days prior to the conversion dates.

a, c

What are the two most commonly used indexing systems? (2) a) Grantor and grantee indexes b) Property sales indexes c) Tract indexes d) Good practice indexes

a, c

Which of the following are distinguishing characteristics of condo living? Select all that apply. (2) a) Attached residential building. b) The owner owns both the structure and the land. c) The owner owns a unit within the structure, but not the structure itself or the land. d) Freestanding residential building. e) The owner owns the structure but not the land. f) Designed specifically for older adults.

a, c

Which of these are true of a grantee of a legal conveyance? Select all that apply. (2) a) The grantee must be clearly identified. b) The grantee is required to have full legal capacity. c) The grantee is the person receiving the title, usually the buyer. d) The grantee is required to sign the deed being conveyed.

a, c

Which two of these statements describe the essential element of offer and acceptance? (2) a) Two parties enter into an agreement with a full understanding of contract terms. b) Jim makes an offer on a property with specific terms. Angel accepts it without reading through the terms. c) A real estate broker offers to represent a client in a sales transaction. They discuss the terms of the agreement, and the client accepts. d) A buyer makes an offer to a seller, and the seller makes a counter-offer.

a, c

HOA restrictions can vary by development. What are some of the more common restrictions? (3) a) Exterior home color b) Carpet style c) Height of fencing d) Landscaping e) Vehicle type

a, c, d

If you're serving as a dual agent, what can't you disclose to your buyer client? Select all that apply. (3) a) reasons for selling b) material facts about property condition c) minimum amount sellers will take d) details about other offers

a, c, d

Marie is the listing agent for Amy's house. In a meeting with prospective buyer Jim, Marie realizes that Amy's house might be perfect for him. She discloses this information to Jim and Amy, explains the concept of dual agency, and asks if they're willing to work this way. They say yes. What must they acknowledge in the consent form? Select all that apply (3) a) confidential information will stay that way unless they give Marie written permission to disclose b) Marie will represent both Jim and Amy to the full extent, just as she would with any client c) Marie will not advocate for either one of them to the detriment of the other d) There may be conflicting interests but Marie will work diligently to ensure the sale goes through

a, c, d

Part of entering into a listing agreement is determining the type of agency relationship the seller wants to have with you. What are the three types of listing agreements? (3) a) Open listing b) Closed listing c) Exclusive right to sell d )Exclusive agency

a, c, d

Piggyback financing is a legal way to avoid having to purchase private mortgage insurance. Which of the following statements are true about this type of financing and the concepts that make it work? Select all that apply. (3) a) Conventional loans require PMI if the loan-to-value ratio is over 80%. b) Borrowers using a piggyback loan take out a first mortgage for 90% of the amount to be borrowed, then a second mortgage to finance the remainder. c) The first mortgage in a piggyback loan must be 80% or less of the property's value. d) The second mortgage amount in a piggyback loan is the difference between the remaining balance owed and the amount of the down payment.

a, c, d

Required disclosures (3) Select the three disclosures that licensees are required to make a) any financial interest you have in the property b) whether the property is believed to be haunted c) that you're doing business on behalf of your brokerage d) if one of the parties won't be able to complete the sale

a, c, d

This next scenario digs more into other sections of the NAR Code of Ethics. Meet George, a real estate licensee who was fairly new to the industry. In an attempt to build his business, he drove through neighborhoods, looking for homes listed for sale. After identifying a few, doing some research, and preparing comparative market analyses (CMAs), he contacted several sellers. He told the sellers he'd appraised their property at a higher value than their current listing agent. He offered the sellers a discount on the commission if they terminated their listing with their current agent and signed a contract with him. What three things did George do wrong? (3) a) Contacted sellers who were working with other agents b) Prepared a CMA. c) Contacted sellers for the purpose of asking them to break their contracts with their agents. d) Told sellers that he appraised their property.

a, c, d

What happens after a document is recorded? Select all that apply. (3) a) It is photocopied. b) It is laminated. c) It is filed in chronological order. d )It is bound in a book.

a, c, d

Which of the following actions can the commissioner take relative to an investigation? Select all that apply. (3) a) issue cease and desist orders b) sentence licensees to jail time c) request sales reports from licensees d) compel witnesses to appear

a, c, d

Which of these are true about a legal property description?Select all that apply. (3) a) Must be accurate and leave no room for interpretation b) Must include local landmarks c) Can be accomplished through a metes-and-bounds description d) Can be documented through a plat e) Can be documented using a Google map f) Can be identified by street name and number if the property is located in a small town

a, c, d

Ginger sure has a lot on her plate as a title insurance representative, and she usually sits in on face-to-face closings to answer any of the buyer's or lender's last-minute title questions. Which four of these obligations does Ginger fulfill during the closing process? (4) a) Ensures the title is marketable b) Approves final loan application c) Conducts a title search d) Receives affidavit of title from seller e) Issues title insurance policy f) Approves the Settlement Statement

a, c, d, e

Which four federally related lending transactions does RESPA cover? (4) a) New first mortgage loan b) Foreclosure c) Refinance loan d) Second mortgage e) Home equity loan

a, c, d, e

So, did you find MARIA helpful? What are the five tests to determine if an item is a fixture and part of the real estate? (5) a) Agreement of the parties b) Method of accountability c) Method of annexation d) Intention of the person placing the item e) Relationship of the parties f) Adaptability of item for land's use

a, c, d, e, f

Enforcement of antitrust law occurs at various levels. Which three of these parties are involved in the enforcement of antitrust law? (3) a) Federal Trade Commission b) Federal Communications Commission c) Department of Justice d) Federal Bureau of Investigation e) State attorney general f) Office of the Inspector General

a, c, e

Which three of the following statements apply to a home equity line of credit? (3) a) The draw period varies. b) Closing costs don't apply. c) An appraisal is often required. d) Interest rates are always fixed. e) No interest is paid by the borrower until funds are drawn on the loan.

a, c, e

TILA (Regulation Z) requires that lenders make certain disclosures. Which four of these disclosures does the Truth in Lending Act require lenders to make? (4) a) Annual percentage rate b) Total principal, interest, taxes, and insurance paid c) Total principal and interest to be paid toward the mortgage d) Amount due at closing e) Finance charge f) Amount financed

a, c, e, f

Window coverings, light fixtures, and mounted TVs are often items that confuse buyers and sellers when differentiating between real and personal property. Identify the three items that are personal property and would move with the seller. (3) a) TV and electronics b) Light fixture c) Rug and table d) Window blinds e) Built-in fireplace f) Sofa

a, c, f

After the deed has been recorded and existing loans have been paid off, what's left for the closing agent to do? Select all that apply. (2) a) Distribute closing proceeds b) Hold the earnest money c) Prepare closing paperwork d) File form 1099-S

a, d

Brendan's former clients were awarded a judgment against him, but he's not able to pay it. The clients applied for revery from the MN Real Estate Education, Research and Recovery Fund and were awarded a claim. Identify all the consequences Brendan faces as a result of the claim being awarded. (2) a) Brendan's license will be suspended b) Brendan must file for bankruptcy c) Brendan must pay back the amount of disbursed from the fund. d) Brendan must pay back twice the amount disbursed from the fund, plus interest

a, d

Mortgage lending disclosure laws have been around for many years. Which two of these statements about disclosure laws are correct? (2) a) The Department of Housing and Urban Development originated RESPA; which is currently under the CFPB's purview. b) The Truth in Lending Act of 1969 required lenders to use the Loan Estimate and Closing Disclosure forms to inform consumers about important loan characteristics. c) The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act implemented RESPA and TILA. d) The TILA-RESPA Integrated Disclosures, implemented by the Dodd-Frank Act in 2010, mandate the use and timing of loan disclosures.

a, d

What are two primary categories of real estate characteristics? (2) a) Economic b) Material c) Substantive d) Physical

a, d

Why was the Minnesota Uniform Condominium Act created? Select all that apply. (2) a) To establish the process for condominium creation b) To ensure all condominiums have the same look and feel c) To establish a cap on the price of condominiums d) To provide certain disclosures for purchasers of condominiums

a, d

Which of the following four duties does the client owe the agent? (4) a) Indemnification b) Allegiance c) Confidence d) Availability e) Information f) Compensation

a, d, e, f

An agent owes a client certain fiduciary duties. Some duties are still owed after agency terminates. Identify the two duties of agency that continue after termination. (2) a) confidentiality b) disclosure c) loyalty d) obedience e) accounting f) reasonable skill and care

a, e

A MN licensee is being investigated for a possible license law violation. The commerce commissioner has asked the licensee for certain documentation. What should the licensee do to cooperate with this investigation? a) Refuse to attend commission hearings and proceedings b) Respond to commissioner requests within 30 days, unless specified otherwise c) Stop practicing real estate until the investigation is complete d) Surrender his or her license to the commission

A MN subdivision project was registered by notification. Which of the following must be true about the project? a) estimated sales are expected to gross less than $10 million b) no more than 100 lots are available for sale c) the land cost less than $1 million d) the land is no more than 100 acres

A Minnesota licensee is being investigated for a possible license law violation. The commerce commissioner has asked the licensee for certain documentation. What should the licensee do to cooperate with this investigation? a) Refuse to attend commission hearings and proceedings. b) Respond to commissioner requests within 30 days, unless specified otherwise. c) Stop practicing real estate until the investigation is complete. d) Surrender his or her license to the commission.

A consumer received payment from the MN Real Estate Education, Research, and Recovery Fund to satisfy a judgement against a MN licensee. Which statement best describes the consequences the licensee faces? a) The license will be revoked until the licensee pays back the amount disbursed, plus interest. b) The license will be suspended until the licensee pays back double the amount disbursed, plus interest. c) The license will be suspended until the licensee pays back the amount disbursed and completes additional CE. d) The license will be suspended until the licensee pays back the amount disbursed plus interest.

A deed is said to be an instrument of conveyance. What does this mean? a) It proves ownership of a vehicle used for conveying passengers. b) It's a written document used to convey property title from one person or entity to another.

A general, involuntary lien placed against businesses that fail to pay their corporation franchise tax a) Deceased person's debt b) Corporation franchise tax lien c) Real property tax lien d) Mechanic's lien

A licensee has several tasks to perform for seller clients. What's one of those tasks a) advise seller on the property conditions they shouldn't disclose to the buyer b) communicate all offers and counter-offers to the sellers c) disclose to the sellers that if the property doesn't sell within 60 days, the asking price must be lowered d) ensure an implied agency agreement is in place

A loan where the payments gradually adjust (usually upward) based on a pre-determined schedule and amount is known as a _________________ loan. a) Construction b) Graduated payment c) Home equity d) Reverse annuity

A seller agreed to leave a painting the buyer liked. As moving day approached, however, the seller was having trouble parting with her uncle's painting, so she took it with her. Then she contacted her agent to serif she could provide the monetary value of the painting instead of leaving the painting. An addendum to the contract was created, which the buyer signed. a) estoppel b) ratification

Acceptance after the fact, either through paperwork or actions of the parties a) estoppel b) ratification

According to Mike, you can often find predatory lenders floating in the subprime loan market, targeting borrowers whom primary lenders may consider to be subprime, or less creditworthy. Which of these borrowers might be considered subprime? a) He may not have the longest credit history and has only worked for his employer a couple of years, but he's never missed a debt payment and shows sufficient income. b) He seems genuine when he says the car repossession last year wasn't his fault, and that the late payments on his credit report were misunderstandings.

According to NAR's Code of Ethics, which responsibility do licensees have related to material facts? a) Accept all client statements concerning the property as material facts b) Make a reasonable effort to ascertain all material facts concerning each property for which an agency is accepted c) Make extraordinary efforts to ascertain all material facts concerning each property for which an agency is accepted d) None

Acme Realty offers flat fee, menu-based services. Berringer Realty and Hawthorne Real Estate Group decide to not show any of Acme's listings and to prohibit showings from Acme buyers to drive Acme out of business. What is this an example of? a) A tie-in arrangement b) Group boycotting c) Market allocation d) Price fixing

After owning their home for five years, Charlie and Wendy have $125,000 in equity built up. How's equity calculated? a) Home purchase price minus the amount of any indebtedness b) Appraised home value minus the amount of any indebtedness against the home c) Current mortgage balance plus any home renovations made

Alex has a loan where the payments start out mostly paying the interest and, over time, an ever-increasing percentage goes to principal. What type of loan does he have? a) Adjustable rate loan b) Amortized loan c) Blanket loan d) Bridge loan

Alice dies alone with no known relatives and no will. No one makes a claim to her house, so the property is taken by the state and turned into a home for children. What method of involuntary alienation was used in this situation? a) Regulatory taking b) Escheat c) Eminent domain d) Adverse possession

Although it's his first home purchase, Brent isn't completely naive about the process. His parents put him in touch with a mortgage broker they know, who provided Brent with a letter shortly before he started working with you. But he didn't know there were different types of letters, so he's asked you to explain the differences. Sort the statements based on the letters they describe. Easily obtained from a mortgage broker, lender, or even a website a) re-Approval Letter b) Pre-Qualification Letter

Although it's his first home purchase, Brent isn't completely naive about the process. His parents put him in touch with a mortgage broker they know, who provided Brent with a letter shortly before he started working with you. But he didn't know there were different types of letters, so he's asked you to explain the differences. Sort the statements based on the letters they describe. Has many loopholes a) Pre-Approval Letter b) Pre-Qualification Letter

Although it's his first home purchase, Brent isn't completely naive about the process. His parents put him in touch with a mortgage broker they know, who provided Brent with a letter shortly before he started working with you. But he didn't know there were different types of letters, so he's asked you to explain the differences. Sort the statements based on the letters they describe. Includes language like "pending verification of buyer-provided information" a) Pre-Approval Letter b) Pre-Qualification Letter

An agent relationship that is understood and agreed to by both parties a) Implied agent b) Express agent

Are you familiar with all of the documents to transfer a title? Although not required at every closing, a handful of documents are used at most closings. Connect each document to its purpose. Provides a summary of the title history a) Chain of title b) Abstract of title c) Deed d) Title insurance policy e) Survey

As a licensee, you're helping a couple buy a new home. The title company discovers a cloud on the home's title. Which one of these is your best course of action? a) Encourage the couple to move forward. b) Recommend the couple find another property or get the seller to quiet title. c) Keep the sale moving but recommend the couple purchase title insurance. d )File a court affidavit to verify the issue and move forward with the sale.

As a real estate licensee, you'll need to know how the definitions of land, real estate, real property, and personal property differ. Let's find out if you know the differences. Match each term to its description. Real estate, plus the interests, benefits, and rights automatically included with real estate ownership a) Land b) Real property c) Improvements d) Personal property e) Real estate

As we stated earlier, commercial leases can vary based on which expenses are paid by the landlord and which are included in the lease payment (and paid by the tenant). Let's apply this knowledge. Assume a tenant has entered into a gross lease. Who pays the following expenses related to the property? Taxes a) Tenant b) Landlord

As with most contracts, there are many ways to terminate a lease. Mrs. Hudson has a lot of lease terminations, and a few other issues, to deal with. Match the correct lease termination term to the proper tenant scenario. Mrs. Hudson has gone through proper channels to legally end John's lease before the contracted end date. a) Abandonment b) Eviction c) Expiration d) Holdover tenant e) Mutual agreement

As you know, the seller is responsible for certain expenses at closing. What is the purpose of each expense? Connect each expense to its description. For the preparer of a new deed a) Recording documents b) Deed preparation fee c) State and local deed taxes d) Attorney fees e) Broker commission f) Satisfaction of existing liens

Before we begin, let's identify the steps we need to take in order to calculate a proration. Find out the number of days in the proration period a) Step One b) Step Two c) Step Three

Before we get into how the secondary mortgage market supports the primary mortgage market, let's review the key players in this market. Match these players with the loans they buy or insure. Conventional loans from smaller institutions a) Fannie Mae b) Freddie Mac c) Ginnie Mae d) Farmer Mac

Before we jump into a calculation, let's define a point. What does a point equal? Refer to your video or the transcript, if needed. a) 1% of sale price b) 1% of loan amount c) $100 d) $10 e) $1

Below are the remaining buyer's expenses. What is the purpose of each of these expenses? Connect each expense to its description. Only incurred by buyers who put less than 20% down on their mortgage loan a) Title insurance b) Mortgage insurance c) Tax reserves d) Inspections

Benji is a landlord in Minnesota. In which of these situations could he charge a late fee for rent? a) A 10% fee that's disclosed and agreed to in writing by Benji and the tenant b) A 5% fee that's disclosed and agreed to in the lease agreement between Benji and the tenants c) After 11:59 p.m. the date the rent is due d) When the rent is at least three business days' late

Bobby is completing a residential loan application. On the application, he lists his liabilities. What are liabilities? a) Items of value the borrower owns b) Obligations the borrower owes c) The difference between a borrower's items of value and obligations d) Wages earned from employment

Business is booming for Johnstone Realty, a new brokerage firm in town. The other firms in the area are unhappy about the cooperating split Johnstone offers, and they all agree to not show Johnstone's listings to their buyer clients. What is this an example of? a) Blockbusting b) Group boycotting c) Market allocation d) Steering

Bylaws outline a board's scope of power as well as the community's conditions, covenants, and restrictions (CC&Rs). Decide if the following statements are examples of a condition, covenant or restriction. Likelihood on which property ownership may be lost if a condition is violated a) Covenant b) Condition c) Restriction

Can you define an option contract? a) Another name for a sales contract b) An offer to purchase a specific piece of real estate but without the obligation to buy it c) An agreement in which the seller has the option to withdraw the offer to sell at any time d) An agency agreement that gives the client the option of terminating without a written notice

Carlton listed his property with an agreement end date of August 31. The property went under contract on May 12 and closed on July 2. When did Carlton's listing agreement officially terminate? a) August 31 b) July 2 c) May 12 d) Upon revocation by the agent

Closing day has arrived! Newlyweds Connie and Tony Trowbridge are planning on sitting in on their first face-to-face closing and are excited to finally get the keys to their first home. Review each item and identify whether it would happen during a face-to-face closing. After the meeting, the closing agent will send each party a copy of the closing statement which itemizes and divides their financial obligations. a) Would happen b) Would not happen

Closing day has arrived! Newlyweds Connie and Tony Trowbridge are planning on sitting in on their first face-to-face closing and are excited to finally get the keys to their first home. Review each item and identify whether it would happen during a face-to-face closing. There may be two separate meetings, so each party can review and sign the closing paperwork. a) Would happen b) Would not happen

Connect each Minnesota regulatory authority with its proper description. Administers the Wetland Conservation Act a) Local government unit b) Board: Water & Soil Resources c) Dept. of Natural Resources

Connect each type of specific lien to its description. A claim against a property that was put up as collateral for a loan a) Mechanic's lien b) Mortgage lien c) Real property tax lien

Consuela is a Minnesota real estate licensee, and she has three other licensees working under her supervision. What type of license does Consuela hold? a) Associate broker b) Broker c) Office manager d) Salesperson

Creation of an easement varies with the type of easement. The resource attached to this slide contains a chart showing various A person uses another's land without permission for a statutory period of time a) Easement by condemnation b) Easement by prescription c) Express easement d) Easement by necessity e) Implied easement

Derrick was thrilled to find out that the land he purchased includes several small caves. He's been spelunking for about three years and looks forward to exploring the caves on weekends. Which real property right allows him to do so? a) Disposition b) Enjoyment c) Exclusion d) Possession

Devian Lane is preparing to relocate to St. Paul and is closing on her new home there. Because she is still out of state, she'll be closing through escrow. The buyers submit the property insurance policies and evidence of marketable title. a) Would happen b) Would not happen

Devian Lane is preparing to relocate to St. Paul and is closing on her new home there. Because she is still out of state, she'll be closing through escrow. The sellers submit the loan documents and proof of insurance to the escrow agent. a) Would happen b) Would not happen

Do you know how to perform each of the tests of property type? Match each test to its description. Is the item being used as personal property or real property—has it been adapted or customized? a) Relationship of the parties b) Adaptability of use c) Method of annexation

Do you know the difference between the performance of a contract and time is of the essence? What about partial performance? Let's find out. Choose whether each scenario describes the performance of a contract, partial performance, or the "time is of the essence" phrase. Sissy Redcap's litigious-happy grandmother coerced her into signing a contract that stated that Sissy would visit her grandmother every day and bring along a basket of goodies. In return, Sissy would receive a grandmotherly hug. After a week of visiting her grandmother, Sissy said, "The heck with this!" and played with her new friend, Winnifred Wolfe. a) Performance of a contract b) Partial performance c) Time is of the essence

Douglas is the buyer's agent for a transaction in which May (from a different brokerage) listed her seller client George's property. From whom will Douglas receive his compensation? a) From George b) From his own broker c) From May's broker d) It depends

During an investigation, what may Minnesota's commerce commissioner do? a) Engage state police to assist with an ongoing investigation. b) Examine all business records, including sales reports. c) Examine personal bank records of individuals under investigation. d) Require the surrender of passports from individuals under investigation.

During closing, the attendees consummate a number of contracts. Do you know which parties are responsible for closing which contracts? Match these parties to the contract they're finalizing. Close on the listing agreement a) Agents' brokerage firms b) Seller and seller's agent c) Buyer and lender d) Buyer and title company rep.

Each stage of the property ownership life cycle can be affected by income tax issues. Match each income tax-related item to the correct term to indicate the stage of the property ownership life cycle it's associated with. Mortgage interest deduction a) Acquisition b) Ownership c) Reversion

Each stage of the property ownership life cycle can be affected by income tax issues. Match each income tax-related item to the correct term to indicate the stage of the property ownership life cycle it's associated with. Property tax deduction a) Acquisition b) Ownership c) Reversion

For conventional loans in which the loan-to-value ratio is in excess of a certain percentage, lenders generally require private mortgage insurance. What's this percentage? a) 75% b) 80% c) 85% d) 90%

Gabi owns one parcel measuring one square mile and another parcel measuring one mile by a half mile. She combined the parcels and sold them for $2.5 million. What price per acre did she receive for the land? a) $1,953.13 b) $2,604.17 c) $3,125.00 d) $3,906.25

Ginnie's Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the market for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What's the best way to terminate the agreement? a) Becca should revoke the listing. b) Ginnie and Becca can mutually agree to terminate the agreement. c) Ginnie should renounce the listing. d) They should wait for the listing to expire.

Gross Lease As we stated earlier, commercial leases can vary based on which expenses are paid by the landlord and which are included in the lease payment (and paid by the tenant). Let's apply this knowledge. Assume a tenant has entered into a gross lease. Who pays the following expenses related to the property? Insurance a) Tenant b) Landlord

Henry plans to convert an apartment building he owns to condominiums. Brenda is a tenant in the building. Under Minnesota law, what right does Brenda have? a) The right to occupy the unit for at least 180 more days b) The right to purchase her unit c) The right to renew her lease for another year d) The right to sell her unit to Henry

Here are some other rights that are included in property ownership. Match each right to its definition. Provides the owners with the right to decide who may or may not access the property a) Possession b) Exclusion

How are license law violations classified in MN a) felony b) misdemeanor c) infraction

How familiar are you with the types of liens? Let's find out. Connect each type of lien to its description. If you're unsure as to the answers, don't hesitate to consult your resource. A general, involuntary lien placed on all of the property inherited by a deceased person's heirs. a) Judgment lien b) Estate/inheritance tax lien c) Mortgage lien d) Income tax lien

How is a license law violation classified in MN? a) Felony b) Gross misdemeanor c) Infraction d) Regulatory noncompliance

How is the education, research, and recovery account funded? a) Brokers submit 1% of their commission earnings annually b) Fees for initial license and license renewal c) Fees charged to continuing education provides d) Interest income from interest-bearing accounts

How long does a licensee have to respond to any commissioner request during an investigation? a) 7 days b) 30 days c) 45 days d) 60 days

How many CE hours are needed by licensed brokers and salesperson? a) 10 hours every year after the first renewal b) 30 hours every two years with at least 15 in year one c) 30 hours a year, including one hour of fair housing CE

If John suspects that his neighbor's deck encroaches on his back yard, what should John do to determine whether an encroachment exists? a) He should check legal description of the property. b) He should consult a survey for the exact property lines. c) He should find out if the neighbor's deed has been recorded or not. d) He should investigate whether there is a tax lien on their neighbor's property.

If a community isn't growing in an orderly fashion, which local land use group is likely at fault? a) Downtown business association b) Planning board c) PTA d) Zoning board of appeals

If someone were to ask you to explain probate, what one answer would you give? a) It's a process used by estate investigators to probe into the background of the deceased to uncover any illegal activity. b) It's a legal process used to determine the validity of a will and to ensure the will accurately reflects the deceased person's wishes. c) It's the process by which someone who has committed a crime and has been in jail is released under supervision. d) It's the process by which someone drafts a will, sends it to an attorney for review, and then has it witnessed.

If the sale of a property that includes soybean fields occurs before the crops are ready for harvest, which of the following is the best option for the parties to the transaction to take? a) The buyer should assume the crop transfers with the property. b) The contract between the parties should clarify the disposition of the crop. c) The seller should assume the crop does not transfer with the property. d) The seller should harvest the beans before the sale closes.

If the secondary mortgage market didn't exist, what could happen to the primary mortgage market? Borrowers could borrow more money. a) Could happen b) Couldn't happen

If the secondary mortgage market didn't exist, what could happen to the primary mortgage market? Loan origination fees would decrease. a) Could happen b) Couldn't happen

If your clients are considering financing $200,000 with a 30-year loan at a 5% interest rate, how much would their principal and interest payment be per month? Plug in the numbers using the amortization chart in your resources to determine the payment per month. Remember: The monthly payment multiplier is per $1,000 of the mortgage. a) $1,001.32 b) $1,073.64 c) $1,296.21

In MN, what's the rescission period after a purchaser receives a copy of the subdivision sales contract? a) 10 days b) 5 days c) 1 week d) 2 days

In Minnesota, approval for regulated activities in wetlands must be obtained from which entity? a) Department of Health b) Local government units c) Urban planners d) Zoning Board of Appeals

In a buyer agency relationship, whom does the licensee represent? a) both the seller and the buyer b) the buyer c) the listing firm and the buyer d) the seller

In light of economic conditions, lenders consider borrower credit and property value. Property value is important because it factors into the loan-to-value ratio (LTV) calculated by the lender. Let's say the buyer and seller agreed to a sales price of $90,000, but the property appraised at $100,000. What value would the lender use to calculate LTV? a) $100,000 appraisal value b) $90,000 sale price

In order to be considered REALTORS®, what must licensees do? a) Have their real estate license for at least five years. b) Join the National Association of REALTORS®. c) Pass their broker exam. d) Pass their initial licensing exam.

In order to receive federal flood insurance, communities must adopt and enforce a _______ in Special Flood Hazard Areas. a) Floodplain drainage ordinance b) Floodplain management ordinance c) Floodplain recognition ordinance d) Floodplain removal ordinance

In the real estate business, whose primary role is to perform a visual inspection of a property's structure, systems, and site conditions? a) appraiser b) home inspector c) property manager d) real estate broker

Is it a good idea for a licensee to buy a property listed by their employing broker? a) no, the broker won't earn a commission if the licensee purchases the property b) no, the licensee may put their own interests before those of the client c) yes, they may be able to get a real bargain d) yes, they may be privy to inside information about the seller's motivation

It's closing day! Which of the following is likely to happen at this time? a) A preliminary title report will be issued to the buyer. b) The buyer's loan funds will be transferred. c) The buyer will receive loan approval. d) The seller will receive the buyer's pre-approval letter.

It's time to crunch some numbers. You're working with buyers who are pre-approved for a loan up to $150,000. If they estimate paying $625 per month toward interest, what interest rate are they assuming? a) 4% b) 5% c) 6% d) 7%

Jack, Jerry, and Joe are brothers. Their parents die, leaving them the family home. Each holds an undivided interest in the entire property, and there is no right of survivorship. If one of them dies, that brother's share will go to whomever he's stipulated in his will. What ownership type describes Jack, Jerry, and Joe's situation? a) Estate in Severalty b) Tenancy in Common c) Joint Tenancy d) Tenancy by the Entirety

Joey is a Minnesota real estate salesperson with the Geller Team, which works for Exceptional Realty. When creating advertisements, what must he keep in mind? a) "Exceptional Realty" and "Geller Team" must be displayed more prominently than Joey's name. b) "Exceptional Realty" must be clearly and conspicuously. c) "Geller Team" must be displayed most prominently. d) Joey's name must be displayed most prominently.

Joint tenancy and tenancy by the entirety are very similar. One factor makes Madge and Steve tenants by the entirety instead of joint tenants. What is it? a) They're business partners. b) They're married. c) They're siblings.

Jolene signs a contract to buy Harvey's home. Before closing, it's discovered that Jolene is only 16 years old. Because she's a minor, she's not considered legally competent to enter into a contract. Which of the parties can void the contract? a) Harvey b) Jolene c) Nobody d) Only a judge

Juan has decided to invest his small inheritance in real estate. He is drawn to the fact that he can add a building where there wasn't one previously and immediately increase the value of his investment. Which economic characteristic of real property is this? a) Area preference b) Improvements c) Permanence d) Scarcity

Juan secures a fixed rate amortized 30-year loan for $295,000 at 4.25%. If his monthly P&I payment is $1,750, how much interest does he pay in the second month of the loan? a) $1,038.59 b) $1,042.29 c) $1,044.79 d) $1,750

Kelo vs. City of New London was a U.S. Supreme Court case that centered on a city's use of the power of eminent domain. The resource briefly describes the focus of this case. What was significant about the court's ruling? a) The court ruled that the government can't take private property unless it's for a "public use." b) The court ruled that cities can exercise the power of eminent domain to promote private economic development, stating that the public will get an economic benefit. c) The court ruled that the government power of eminent domain is unconstitutional. d) This case gave municipalities license to take private homes to increase development and provide a larger tax base for the city.

Lance purchased a home, but he won't own any real estate—just shares in a corporation. This is because his new home is ______. a) A condominium b) A cooperative c) A townhouse d) A triplex

Land contracts and purchase money mortgages are two types of seller financing, but they have some differences. Read these items and determine if they apply to land contracts or purchase money mortgages. The buyer places security interest in the property on behalf of the seller. a) Land contract b) Purchase money mortgage

Land contracts and purchase money mortgages are two types of seller financing, but they have some differences. Read these items and determine if they apply to land contracts or purchase money mortgages. The buyer retains title. a) Land contract b) Purchase money mortgage

Landlords and tenants each have many obligations to hold up their end of the lease contract. Let's take a look at what each party is responsible for doing to ensure these duties are met. Pay rent in a timely manner a) Landlord Obligation b) Tenant Obligation c) Mutual Obligation

Landlords and tenants each have many obligations to hold up their end of the lease contract. Let's take a look at what each party is responsible for doing to ensure these duties are met. Use the premises for only legal purposes and conform to local law a) Landlord Obligation b) Tenant Obligation c) Mutual Obligation

Leon and Beth own 1/13 of a timeshare estate. They own weeks 20 and 21, and also weeks 40 and 41. These weeks are inheritable. What type of ownership is this? a) Estate for life b) Fee simple c) Leasehold estate d) Periodic estate

Let's apply the concept of proration to rent. Monthly rent for a property is $2,100. The tenant won't be moving into the property on the first of the month, so the entire rent isn't due. Instead, the lessor prorates the amount of the rent based on the number of days in the month the tenant will occupy the property. Assuming the tenant will occupy the property for 17 days (and also assuming a 30-day month), how much rent is due? a) $2,000 b) $1,190 c) $1,000 d) $866.67

Let's look at a few more scenarios on this and the next couple of slides. Seller Angela's property is assessed real estate taxes of $900 for the year. Closing is held on February 29th (that's right, it's a leap year). What amount does Angela owe for taxes accrued and not yet paid that will appear as a debit for the seller and a credit for the buyer at closing? Use the statutory year and assume that Angela owns the day of closing. a) $75 b) $150 c) $500 d) $750

Let's see how much of this title terminology stuck with you. Match the title procedure terms with their correct descriptions. We've attached a set of flashcards for you to practice with. A search of public records to provide a title commitment or abstract of title a) Abstract of title b) Title search c) Affidavit of title d) Marketable title e) Evidence of title f) Title insurance

Let's see how much you know about subdivisions and the terms associated with their development. Match each term to its description. Land divided into lots for development a) Subdivision plat b) Subdivision c) Plat book d) Demographics e) Development agreement

Let's see how these numbers play out. A buyer is purchasing a property for $120,000, which has an assessed value of $130,000. If the tax rate is $1.75 per $100, what will the buyer pay annually in taxes? a) $2,100 b) $2,275 c) $685.71 d) $742.86

Let's see how this translates to dollars and cents. Bob and Mary are financing $160,000 for a new home. Their lender will approve an interest rate of 6% if Bob and Mary pay two discount points at closing. How much is this? a) $4,800 b) $3,200 c) $1,600

Let's see if you can remember what rights are included in the bundle of rights. Match each right with its definition. Gives the owner the ability to use the property in any legal manner. a) Control b) Enjoyment c) Disposition

Let's see what you know about the types of title examinations and the terms involved in examining title. Match the title examination term to its description. Used to correct any errors found in the chain of title a) Title report b) Correction deed c) Limited search d) Title examination

Let's test what you just learned. Try matching the government power with the type of legal power it possesses. Lien a) Escheat b) Taxation c) Police power d) Eminent domain

Let's try another one, without your resources! The lender will charge a 1.5-point origination fee and 3.5 loan discount points. What will be the total due for points on a $110,000 loan? a) $1,500 b) $5,500 c) $300,000

Let's try your hand at some more fun deed terminology. Connect each deed term to its description. "Subject to all easements and restrictions of record" a) Signature of grantor b) Restrictions and exceptions c) Consideration d) Delivery and acceptance

Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom (with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace's death? a) Lucas b) Lucas and Tom c) Lucas, Monique, and Amy d) Lucas, Tom, Amy, and Monique

Many activities occur during a title closing, both prior to and at the closing itself. Match each activity to the time frame in which it occurs during the closing process. The seller is paid the purchase price balance. a) Prior to closing b) At closing

Marge is a licensee in a dual agency transaction with seller Steven and buyer Aida. In which of the following situations can Marge share what she knows with all parties without compromising her duty of loyalty? a) Alda tells Marge she wants to make an offer on Steven's property and asks Marge what she should offer, since Marge knows Steven's rock-bottom price. b) Alda tells Marge that she's hired an inspector to perform a property inspection. c) During the hime inspection, Marge hears the buyer tell the inspector several times, "That's no big deal. I can fix that." The buyer lists those as repairs she wants the seller to make. d) Steven tells Marge he can reduce his price, and Alda tells Marge she can increase her offer.

Marjory is making a subdivided land offer to Samuel. Which of the following can we reasonably assume to be true? a) Samuel is a real estate licensee b) the land has been registered or is exempt from registration with the MN Department of Commerce c) the land is improved or will be improved within two years form the date of sale d) the land is unimproved

Match each antitrust violation with its description. Control the preparation or submission of quotes on public contracts a) Production control b) Collusive bidding c) Discriminatory agreement

Match each contract type to the actions it enables once it's agreed to and signed. The selling agent's broker will pay the buyer agent's commission to the buying agent's broker. a) Sale agreement b) Brokerage agreement c) Listing agreement

Match each of the four types of easements with its characteristic. Permanent right to use another's land for the benefit of a neighbor a) Easement by necessity b) Easement appurtenants c) Easement by prescription d) Easement in gross

Match each of these terms with its corresponding definition. The process of paying a loan off over time a) Interest b) Amortization c) Principal d) Term

Match the definitions to their corresponding type of equity-related financing. As funds are drawn by the homeowner over time, the bank gains ownership of the property a) Home equity line of credit b) Reverse annuity mortgage c) Home equity loan

Match the description to these terms. Tom Jr. can own the property his parents transferred, but if he develops the land, his ownership will end. a) Life estate b) Fee on condition c) Fee simple determinable

Match the license type to the application requirements for that type. a) Broker b) Salesperosn c) Limited broker 18 years of age, 90 hours of education, 75% or higher on exam.

Match the percentage of funds to the source of financing to complete the 70/20/10 piggyback loan ratio and avoid paying PMI. 10% a) First mortgage b) Down payment c) Second mortgage

Match the statement to the type of mortgage to which it applies. Can be obtained for 0% down payment a) Conventional b) VA c) FHA

Match the status change to its decription a) incapacitation of broker b) terminaiton c) withdrawal d) transfer A licensee decides not to work with a specific broker, and the broker notifies the commissioner.

Match the type of consideration with its description. Cannot be measured in terms of money, such as love and affection a) Valuable consideration b) Good consideration

Mike began his presentation with some of the legislation and acts influencing lending. Match the regulation or act with its requirement. Requires lenders to demonstrate they serve the community's low- to moderate-income housing needs a) Truth in Lending Act b) Community Reinvestment Act c) RESPA d )Equal Credit Opportunity Act

Mike described a few mortgage lenders to Keira. Let's see how well you captured the information. Match these descriptions with the appropriate mortgage lender. Associations that accept savings deposits and offer loans a) Insurance companies b) Savings and loan associations c) Credit unions

Mike is a mortgage broker, and his role is different from that of a mortgage banker. Identify whether each of the following relates to a mortgage banker or mortgage broker. Doesn't lend money itself a) Mortgage Banker b) Mortgage Broker

Mike is a mortgage broker, and his role is different from that of a mortgage banker. Identify whether each of the following relates to a mortgage banker or mortgage broker. Works with multiple lenders to search for and negotiate the best deal a) Mortgage Banker b) Mortgage Broker

Nancy Owens finds herself in a breach of contract situation. Although the other party met some obligations, others weren't met. Nancy thinks it would cost more time and money to sue than it would to just accept the work that's been done and call it good. What remedy is Nancy going to pursue to address her breach of contract situation? a) Accept liquidated damages b) Accept partial performance c) Mutually rescind the contract d) Unilaterally rescind the contract e) Sue for damages f) Sue for specific performance

Next, let's focus on life estates. With these, someone's lifetime controls the duration of ownership or possession. Sarah inherited Hank's estate but failed to pay property taxes on the condominium, causing her eventual loss of the condo. a) Reversionary interest b) Act of waste c) Remainderman

Now let's look at what expenses the buyer is responsible for at closing and what is the purpose of each expense is. Connect each expense to its description. Covers the origination fee to the mortgage lender for servicing the loan a) State and local deed taxes b) Loan fees c) Appraisal / Credit report fees d) Attorney's fees e) Recording fees

Now that you have had a chance to familiarize yourself with the various methods of discharging a contract, let's see if you can recall the types of performance associated with each method. Connect each type of performance to its description. One party did not meet the terms of the contract in the specified timeframe, and must now do exactly what was agreed to in the contract. a) Impossibility of performance b) Specific performance c) Partial performance d) Substantial performance

Now that you know what a levy is, let's talk about the other things the government considers when determining the amount of property taxes. What is the formula for calculating property tax in Minnesota? a) Tax value × class rate b) Base tax - credits + levy + state tax c) Tax capacity - credits + levy + state tax d) Tax capacity × local tax rate

Now that you've correctly identified real estate characteristics by category, let's see if you can match each economic characteristic to its description. A land's value can be affected by the changes that are made to it a) Scarcity b) Improvements c) Permanence of investment d) Location or area preference

Now that you've read your resource you know all about leases during sales transactions, right? Then this question should be easy! What happens to a lease when a property changes hands? a) The lease is terminated. b) The lease continues.

One factor must exist for an action to become a violation. Which of the following must take place for a violation to occur? a) Intent b) Agreement c) Circumstance

One of the deeds discussed in the resource is commonly used to clear any clouds on a title. Which deed is this? a) Full covenant and warranty deed b) Quitclaim deed c) Executor's deed d) Referee's deed e) Bargain and sale deed

Pamela inherited a piece of property that has been in her family for generations. She wants to find the property's exact boundaries. What should contain this information? a) A fence company's records b) A legal description of the property c) A satellite image of the property d) Old family photos of the property

Paulo is a property manager for several large properties. Which type of agent is he in relation to the landlord/client? a) Dual b) General c) Limited/special d) Unlicensed

Paulo is a property manager for several large properties. Which type of agent is he in relation to the landlord/client? a) dual b) general c) limited/special d) unlicensed

Phil is a property manager, which means he serves as a ______ agent to his landlord/client. a) designated b) general c) special d) universal

Right before the closing meeting happens, what should the closing agent do to prepare? a) Order title insurance b) Order final loan documents c) Record the deed d) Distribute funds to the seller and brokers

Sarah wants to make sure Jerry understands Minnesota's Lake Superior Coastal Program, so it's important that he's able to identify the following terms. Match each term with the correct description. Land formations that direct the water from higher elevations to lakes, streams, and other bodies of water a) Coastal boundary b) Watershed c) Shoreland district

Serena, a MN broker, represents a seller client. A buyer made an offer on the seller's property, which was acceptable contingent upon a home inspection. After the inspection is performed, the buyer's agent provides a copy of the report, which doesn't include any mention of the roof leak Serena's client told her about. What obligation does Serena have? a) Serena doesn't need to disclose this fact because the buyer had an independent inspection performed b) Serena has a duty to disclose material facts she's aware of, including facts that contradict the inspection report c) Serena must receive written permission to disclose this fact to the buyer d) Serena owes her seller client the duty of confidentiality and shouldn't disclose this fact to the other buyer

Seth owns a property on a small island with six other property owners. Recently, Seth built a fishing pier along the water's edge; however, the pier is actually on his neighbor's property, which Seth has no rights to. What might this be an example of? a) Easement b) Encroachment c) Estate d) Eviction

Several water acts have been established to protect the quality of our nation's water supply. Do you know the purpose of each act? Match each statement with the correct text to indicate with which national water act it is associated. Prohibits discharging refuse into, altering the course of, excavating, filling, or changing the condition or capacity of any port, harbor, or channel without a license or permit, or building any wharf, pier, or other structure in any water outside established harbor lines without a permit. a) Clean Water Act b) Rivers and Harbors Act c) Coastal Zone Management Act

Sheila owns a timeshare that gives her ownership of the property for a certain number of weeks per year in perpetuity. What type of timeshare is this? a) Eternal timeshare b) Timeshare estate c) Timeshare in perpetuity d) Timeshare use interest

Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called ______. a) A lease option b) An act of waste c) An estate at sufferance d) A possessional prerogative

Specific public records are used to provide proof of title ownership. How familiar are you with these public records? Let's find out. Match each document to its purpose. Insures the policy owner against financial loss if the title to the real estate has defects a) Abstract of title b) Title insurance policy c) Deed d) Chain of title

States that aren't community property states are instead considered equitable distribution states, this includes Minnesota. When it comes to the distribution of marital assets as a result of divorce or annulment, what does equitable distribution mean? a) The court will distribute property equally (50-50) to each spouse b) The court determines a fair distribution of the property to each spouse, but that distribution may not be equal.

The Moores are purchasing a home for $300,000. They're financing $250,000. Their lender charges a loan origination fee of 1%. How much will they pay in loan origination fees at closing? a) $3,000 b) $2,500 c) $1,500 d) $1,000

The ________ Coastal Program regulates coastal property development and use policies in Minnesota. a) Building b) Lake Superior c) Waterfront d) Wetlands

The broker of Merit Realty in Duluth has become incapacitated. For how long may the temporary broker serve? a) 30 days b) 45 days c) 60 days d) Indefinitely

The closing meeting has occurred, but there are still several things that need to happen. Can you identify what's been completed, and what still needs to be done? Distribute funds to seller and brokers a) Completed b) Still Needs To Be Done

The closing meeting has occurred, but there are still several things that need to happen. Can you identify what's been completed, and what still needs to be done? Pay off existing loans a) Completed b) Still Needs To Be Done

The closing meeting has occurred, but there are still several things that need to happen. Can you identify what's been completed, and what still needs to be done? Record deed and loan documents a) Completed b) Still Needs To Be Done

The document Mike emailed Keira summarized the types of loans available. The loans vary slightly based on the type of property and who's obtaining financing. We'll group similar loans together when we review the options. Let's start with some general residential mortgage types. Match the type of mortgage with its description. Debt is paid off by making periodic payments consisting of interest and principal a) Adjustable rate b) Amortized c) Straight d) Growing equity

The resource mentions a few federal antitrust acts. Match the description to the appropriate act. Furthered the scope of other acts by prohibiting mergers that create monopolies or reduce competition. a) Sherman Act b) Clayton Act c) FTC Act

The right of first refusal process involves a specific order of events. Do you know what the order of events is? Which one of these is the LAST step in the process? a) The prospective purchaser asks for (and often pays a fee for) a right of first refusal. b) The holder of the right of first refusal must match the new party's offer, or allow the property to be sold/leased to the third party. c) At some point, the owner puts the property up for sale or lease. d) Another party makes an offer to the owner.

The three primary commercial lease categories vary, based mainly on how expenses, such as taxes, insurance, and maintenance, are handled. Match the commercial lease type category with its description. Landlord pays all expenses related to the property (not tenant) a) Net lease b) Gross lease c) Percentage lease

The two fiduciary duties that survive the termination of agency are ______. a) Accounting and reasonable skill and care b) Confidentiality and accounting c) Disclosure and confidentiality d) Obedience and loyalty

Thelma lived every last minute to the fullest, but sadly her time has come to an end. Who receives Thelma's share of the property? a) Children b) Remaining tenants c) As stipulated in the will

There are two formats for timshares. Which format is the most widely used? a) right-to-use b) fee simple

This resource introduced a few words related to eminent domain. Let's make sure we understand what they mean before we move on. Match the terms related to eminent domain with their definitions. When the government takes title to private property under eminent domain, or regulations remove the economic value of a private property a) Condemnation b) Eminent domain c) Taking

Travis is a new real estate licensee and is writing up his first offer to purchase for his buyer clients. Which of these statements is true? a) Real estate licensees don't have access to legal descriptions. b) Travis should include the legal description in the offer, because it provides a complete description of the property. c) Travis should not include the legal description on the offer to purchase, but he should include the address. d) bTravis shouldn't write up the offer to purchase; the client should.

Under which of the following circumstances can the state use its power of escheat? a) A property owner dies with a will in place. The property is distributed to heirs in accordance with inheritance law, but the heirs disagree with the will. b) A property owner dies without a will in place, and no heirs or creditors can be found. c) A property owner dies without a will in place, and the property is distributed to heirs in accordance with inheritance law.

Under which of the following circumstances would the client and agent most likely mutually agree to terminate a listing? a) A buyer approached the seller with a much higher offer than the current listing price. b) The agent and client don't agree on the best way to price, maintain, and market the property. c) The client has found a buyer and wants to avoid paying a commission. d) The client's cousin just became licensed and needs her first listing.

Use your resource to match some common types of deeds with their descriptions. Doesn't offer any warranties to the grantee a) Bargain and sale b) Quitclaim c) Referee d) Full covenant and warranty e) Executor

Using the 'Calculating Area and Length Cheat Sheet' in your resources, define these common land measurements. 5,280 feet a)Square mile b) Mile c) Square foot d) Yard e) Acre

We'll make this one a little trickier, but we'll give you back the 'Calculating Area and Length Cheat Sheet' if you need it. A parcel of land is being sold for $25,000 per acre. You have a client interested in purchasing 100,000 square feet. How much will this cost? a) $50,000 b) $57,392 c) $257,293 d) $2.5 million

Wells, rivers, lakes ... they each come with a set of water rights. Match the scenario with the water right it's describing. Todd just closed escrow on his dream home: an oceanfront property with its own private beach. a)Prior appropriation b) Littoral c)Riparian

What are the educational requirements for a primary brokers? a) primary brokers need additional training in management and supervision b) there are no special requirements for primary brokers c) specific continuing education is prescribed for primary brokers

What does REO stand for? a) Rebated estate object b) Real estate-owned c) Relative economized object d) Really effective ownership

What does the term "appurtenance" mean when applied to real property? a) The right to take products of the soil b) The inherent or automatic ownership rights that are the natural consequences of property ownership c) An addition or improvement made to a person's land without his or her consent d) The permission to do something on someone else's land without actually possessing any interest or ownership in the land.

What duty becomes essentially impossible when representing both the buyer and seller a) obedience b) loyalty c) disclosure d) confidentiality e) accounting f) reasonable skill and care

What information is on the amortization table? Match the items with their descriptions. Take a closer look at your resource if needed. Loan balance after payment is applied a) Scheduled payment/total amount b) Ending balance c) Interest d) Annual interest rate e) Principal f) Beginning balance

What is a lease agreement? a) An employment contract between an individual licensee and a tenant who is seeking property to lease with an option to buy b) A binding contract between an owner or landlord and a tenant for the tenant to possess the owner's/lessor's real property for a specified period of time, in exchange for a fee c) A binding oral agreement between a brokerage firm and the owner or landlord of a leased property d) A temporary, non-binding agreement between an owner or landlord and a tenant

What is the lease agreement's purpose? a) To identify the terms and conditions under which a seller will transfer a property to a buyer b) To identify the terms and conditions under which a landlord will lease a property to a tenant c) To identify the terms under which a listing agent will help a seller sell her property d) To identify the terms under which a buyer agent will help a buyer locate and purchase property e) To identify the terms and conditions under which a seller will transfer a property to the buyer

What is the legal effect on the purchase agreement if one of the contract contingencies is rejected or not met? a) The agreement has to be renegotiated. b) The contract is voidable. c) The party who failed to meet the contingency must pay a fine. d) The party who rejected the contingency must offer an alternative.

What is the primary purpose of license laws? a) raise salaries of licensed indiviuals b) protect consumers from unprofessional practices c) ensure the rights of real estate professionals d) fund public programs through licensing fees

What is the purchase agreement's purpose? a) To identify the terms and conditions under which a landlord will lease a property to a tenant b) To identify the terms and conditions under which a seller will transfer a property to the buyer c) To identify the terms under which a listing agent will help a seller sell his property d) To identify the terms under which a buyer agent will help a buyer locate and purchase property

What is the statute of limitations? a) A law that limits the number of statutes that can be displayed on a property's front lawn b) A law stating that if legal remedy is sought against a party the pursuer must bring court action within a specific period of time c) A law stating that if a buyer enters into a contract with a seller, the transaction must close within 60 days of the contract being signed d) A law stating that a person with a grievance has one year from the time the grievance occurred to bring a court action

What is true about broker continuing education in MN? a) The requirements are exactly the same as for salesperson b) The requirements are the same as for a salesperson with one additional requirement. c) Brokers must take more fair housing education than salesperson d) Brokers have three years to complete their renewal CE whereas salesperson have two

What's one of the required elements of a valid option contract? a) A range of sale prices for the property from which the optionee can choose b) The amount of consideration the optionee is paying the optionor c) The optionee's promise to buy the property d) The optionor's verbal assurance that the optionor won't sell the property to anyone else during the option period

What's the Real Estate Education, Research, and Recovery Fund fee for a MN license renewal applicant? a) $10 b) $20 c) $30 d) $50

What's the best way to avoid an unwanted implied agency agreement? a) Tells prospects that you're not their agent b) secure an agency agreement in writing before performing any acts of an agent

What's the chief function of licensing laws? a) Create career paths for real estate professionals b) Ensure that consumers are protected c) Generate funding for professional education and research d) Grow the economy through a pipeline of professionals

What's the purpose of PMI? a) To prevent the lender from having to provide the insurance itself b) To protect the lender in case of borrower default when the borrower has put down less than 20% c) To protect the borrower from being defrauded d) To insure the dwelling in the case of fire, flood, or other natural disasters

What's true about name and address changes of real estate licensees in MN? a) Address changes must be made in person at the Department of Licensing b) Address changes must be made within 10 days to the MN Department of Commerce c) Name and address changes must be made in person at the MN Department of Commerce within 20 dats of the change d) Name changes require a valid passport

Which duty requires the client to pay an agent upon completion of the agent's duties? a) Availability b) Compensation c) Indemnification d) Information

Which method of alienation is being used? Olivia has a beautiful home on the beach, but each year, she loses a little more land to the sea. a) Will b) Natural processes c) Court-ordered partitioning d) Foreclosure

Which method of alienation is being used? Marcia has to sell her house to the state, which is removing houses to widen a highway. a) Regulatory taking b) Eminent domain c) Deed d) Adverse possession

Which of the following actions can a broker in MN legally take? a) depositing earnest money in the broker's personal account b) depositing personal funds in a trust account to pay account service fees c) depositing property management fees in a trust account d) depositing rent collection in the building operating account

Which of the following actions can licensees take related to signs? a) They can only place signs on property they own. b) They can place signs on an owner's property with the owner's written consent. c) They can place signs on properties for which they are the listing agent, with or without the owner's permission. d) They can't place signs anywhere.

Which of the following are included in the transfer of real property unless specifically excluded in writing? a) Chattel b) Fixtures c) Personal possessions d) Personal property

Which of the following is a contract that exists based on an understanding or assumption, rather than on specifically defined terms? a) Express contract b) Implied contract c) Invalid contract d) Unilateral contract

Which of the following is a mortgage where the consumer cannot later claim that the lender did not comply with the ability to repay requirements? a) Qualified mortgage with ability to repay b) Qualified mortgage with a safe harbor status c) Qualified mortgage with cash payment option d) Qualified mortgage with the rebuttable presumption

Which of the following is an example of industrial real estate? a) Church b) Factory c) Orchard d) Shopping center

Which of the following is illegal compensation? a) Timeshare referral fee less than $150. b) Undisclosed compensation. c) Commission shared with another broker.

Which of the following loan transactions would be exempt from TILA disclosure requirements? a) Duplex, with office building used as collateral b) Grocery store, with personal funds used as collateral c) Hobby farm d) Vacation home

Which of the following prohibits lenders from discriminating based on protected class status? a) Community Reinvestment Act b) Equal Credit Opportunity Act c) RESPA d) Truth in Lending Act

Which of the following situations entitles Gary to commission with a 30-day protection clause? a) Buyers viewed the property 15 days after the listing expired and made an offer that was accepted. b) Buyers who viewed the property while it was listed with Gary made an accepted offer 10 days after the listing expired. c) Gary told his overseas cousin about the property, and his cousin returned to the U.S. 35 days after the listing expired to make an offer. d) The seller told a group of colleagues about the house 20 days after the listing expired, and one eventually came to see the house, which led to a contract.

Which of these figures represents the loan amount that Trish will receive from the bank? Trish has agreed to pay $310,000 for the home she wants. Her bank agreed to loan her 80% of the appraised value, which is $295,000. a) $120,000 b) $236,000 c) $248,000

Which of these is an encroachment? a) A path providing neighborhood access to a pond cuts through part of Bill's property. b) Jeff installed a sidewalk next to his driveway, six inches outside his property. c) The city seized a formerly private parcel of land for public use. d) The state took ownership of Dawn's property when no heirs could be located following her death.

Which of these is an example of group boycotting? a) Licensees don't socialize with one another. b) Two or more licensees or brokerages refuse to cooperate and split commissions with another licensee or brokerage. c) All licensees agree to follow the law. d) A full-service brokerage cooperates with a limited-service brokerage firm.

Which of these statements best describes the meaning of title? a) It's the legal document that shows proof of property ownership. b) It's the legal concept that one owns property. c) It's one of the rights found in the bundle of rights.

Which one of the following types of ownership termination allows each tenant to have a specific, divided portion (partition) of the property exclusively? a) Termination by division b) Termination of co-ownership by partition c) Termination of estate in severalty d) Termination of joint tenancies

Which type of agent is an escrow officer? a) General agent b) Limited agent c) Single agent d) Universal agent

Which type of deed contains the strongest and broadest form of title guarantee? a) A bargain and sale b) Full covenant and warranty c) Quit claim d) Special

Who can do these tasks a) broker b) salesperson c) both Must receive compensation through their broker

Who can do these tasks a) broker b) salesperson c) both Must work with a broker.

Who does a finder represent? a) Both the buyer and seller b) Neither the buyer nor seller c) The buyer d) The seller

Who may the commissioner investigate? a) anyone charged with business-related violations b) those licensed under laws administered by the Department of Commerce c) Any licensed professional in the state

Why did the implementation of TRID impact closing dates? a) Buyers must now be given at least seven days to review the Closing Disclosure. b) Certain financing changes may trigger a new three-day waiting period. c) Lenders must give buyers five working days to review the Closing Disclosure. d) Once the Closing Disclosure is issued, the loan underwriter must perform a final review and approval.

Why would a code of ethics provide minimum ethical expectations? a) Ethics are minimally applicable to real estate. b) It sets a baseline for ethical standards. c) Licensees are minimally ethical. d) Only minimum expectations apply.

With what type of loan do the principal and interest payments remain the same for the life of the loan? a) Balloon payment b) Fixed-rate c) Graduated mortgage d) Pledged-account

You called Brent with an update on the process. He's excited to be moving into his first home, and he's been buying new furniture and other furnishings. As his agent, what advice might you give him at this point? a) Pick items that really show your personality. That will make your house really feel like your home. b) It's important not to spend money on non-essentials at this point. c) Set a budget for yourself. It's easy to spend more money that you anticipate. d) Don't spend your down payment money. Open a credit line with the store if you need to.

You did a good job matching the economic characteristics with their descriptions. Let's see how you do with the physical characteristics. Match each physical characteristic to its description. The geographic location of a piece of land is fixed; it can never be changed. a) Uniqueness b) Immobility c) Indestructability

You don't need a license to sell subdivided lands if your sole job is to sell timeshares, you're supervised by a limited broker, and _____. a) the commerce commissioner granted special dispensation b) your limited broker maintains a roster of all staff selling timeshares c) You sell timeshares valued at less than $500,000 annually d) You've been selling for less than a year

You represent the buyer, and another licensee form your brokerage represents the seller in the same transaction. What type of agency relationship do you and the other licensee have with your clients? a) buyer agency b) dual-licensed dual agency c) seller agency d) single-licensed dual agency

You work for XYZ Realty under the supervision of broker Luke. Your buddy in the next county gave you a referral fee. The check came to your office in your name. You deposit it. Is this okay? a) No, because agents can only be paid directly if they're paid in cash. b) No, because all compensation must come through your broker. c) Yes, if the check is endorsed by your broker, as well. d) Yes, provided your broker knows about the check.

You're preparing to list a client's home, and you've got some comps that give you an estimated value of $265,000. Your clients have been in the home for seven years. They've put about $12,000 of improvements into the property, and have $130,000 left on their mortgage. Using these figures, how much equity do they have in the property? a) $147,000 b) $135,000 c) $123,000 d) $118,000

You've identified the covenants included in a warranty deed. Now let's define them. Match the covenant with its meaning (use the resource if you get stuck). Grantor has legal capacity to convey and has the title to convey a) Quiet enjoyment b) Right to convey c) Further assurances d) Warranty e) Seisin f) Against encumbrances

You've just helped Maribella and Antonio Vega purchase a new home. Which of the following should be recorded to ensure that someone else doesn't try to claim ownership of the same property? a) Certificate of occupancy b) Deed c) Purchase agreement d) Title

You've shown that you know the client's primary duties to the agent or broker, but do you know what each entails? Match each duty to its example. Emily likes her new clients, but she doesn't think they are telling her everything she needs to know about the property. a) Compensation b) Information c) Availability d) Indemnification

Your brokerage of 22 licensees is loosely organized into groups of four or five licensees each so that you always have coverage if you're sick, busy, or on vacation. Your group wants to place an ad in a local newspaper focusing on your combined years of experience. What's true of such an ad? a) The law prohibits group advertising. b) Group advertising must first be approved by your broker. c) Group advertising is fine as long as the brokerage name appears somewhere. d) The group name must appear below each licensee's name.

Your buyer client asks you the purpose of a financing contingency. Your response should be that it protects _________________. a) The bank b) The buyer c) The listing agent d) The seller

Your buyer client, Percy, wants to start searching for his dream house and knows he needs to obtain financing to accomplish that. What's his first step? a) Complete a loan application. b) Obtain a pre-qualification letter. c) Sign a purchase agreement. d) Write an offer.

Your friend and fellow broker from a competing firm, Theresa, is joining you at a cocktail fundraiser for a local arts organization. You both sit down at a table with drinks and appetizers. "I've been meaning to call you," says Theresa. "I heard a rumor that Brian Simpson's brokerage is booming, and he's cut his commission rate to 4.5%. He's undercutting everyone! I think you and I should collaborate and figure out how we can make a 4% commission work to be even more competitive." You mull over the possibility. What's your response? a) I like the idea of being more competitive in this market. Where should we start? b) It's tempting, but I think that might be illegal.

Your seller client has an offer for $300,000. If the agreed-upon commission is 5%, what is net to seller before any other costs are taken into account? a) $280,000 b) $285,000 c) $290,000 d) $295,000

Your seller client needs to sell as soon as possible. How should you respond if a prospective buyer asks you whether your seller is firm on price? a) "I don't know." b) "The seller believes the home is priced fairly. I suggest you write your highest and best offer." c) "The seller is highly motivated." d) "The seller would probably be willing to entertain any offer."

Your seller wants to net $100,000 after the 5% commission is paid. Assuming no closing costs, at what price does the home need to sell for the seller to net this amount? a) $105,163.16 b) $105,263.16 c) $105,363.16 d) $105,463.16

Although an agency relationship doesn't live on forever, there are some fiduciary duties that continue beyond the relationship. Which two of these duties live on after the agency relationship is over? (2) a) Loyalty b) Confidentiality c) Accounting

b, c

Contractors must provide homeowners with specific notice if they intend to attach a lien to a property. What two things must be included in this notice? (2) a) An itemized list of all parts and labor that the lien will cover b) The contractor's right to lien c) Notice that the lien will pay off any subcontractors who haven't been compensated d) The date the lien will be placed on the property

b, c

Guaranteed Sale Programs (GSP) aren't common, but when used, there are associated standards. Which two of the following are legal requirements when offering a GSP or related program? (2) a) Specific guaranteed amount of profit b) Details about what will happen to profits c) General terms and conditions

b, c

Let's look at some scenarios and determine whether the licensee acted appropriately. (2) Chris, a real estate broker, represents Beverly, a seller. Beverly tells Chris, "If you can get my house sold within 30 days, I'll pay you and the buyer's agent a $1,000 bonus." Is this legal? Hint: there may be more than one correct answer in this scenario. a)No. Bonuses are never legal. b) Yes, but it must be disclosed to all parties. c) Yes, but the fee must go through the brokers.

b, c

Most subdivision sales must be handled by licensed real estate salesperson or brokers. Which of the following tow people likely need a real estate license to sell subdivided land? (2) a) Rob sells timeshare condos full-time for his employer b) Jeanine sells new high rise condos parttime for her employer c) Oliver sells building lots in a new single family development

b, c

PMI may terminate, either automatically or by request, if certain criteria are met. Which of the following statements are true? Select all that apply. (2) a) Meredith closed on her home with a 20-year conventional mortgage in December 2015. She can terminate the PMI in 2025 because that's the midpoint of her amortization schedule, but she must request the termination in writing from her lender. b) Yvonne's a licensed real estate agent and has been making large payments on her conventional mortgage loan principal every time she earns a commission. She'll be able to request PMI termination when her LTV reaches 80%. c) Eileen borrowed $250,000 on a 30-year conventional mortgage loan. Based on her amortization schedule, her LTV will reach 78% next year. Market values have dropped considerably, though, and Eileen's actual LTV is still at about 83%. Eileen's PMI should still terminate automatically next year.

b, c

Select the two parts of zoning ordinances from these options. (2) a) The capital budgeting associated with each zone b) Text describing the zoning classifications and the uses permitted within them c) The zoning map that divides the area into designated districts, such as industrial, commercial, and residential d) Document signed by each member of the local government that they have reviewed and approved the zoning ordinances

b, c

Which of the following are distinguishing characteristics of PUD and MUD living?Select all that apply. (2) a) Zoned for residential only b) Zoned for a mix of residential and commercial c) Ownership profile varies depending on the type of housing d) Zoned for commercial only e) The owner owns no real estate but instead owns shares f) Designed specifically for older adults

b, c

Which of the following two real estate investments might be considered securities under MN Law? (2) a) part ownership of a horse farm b) stock in a company which owns investment property c) part ownership of a company with material rights d) local owner of a national office supply franchise

b, c

Which two of the following statements are true about RESPA? (2) a) RESPA stands for Real Estate Security Protection Act. b) RESPA ensures that consumers are provided specific disclosures when applying for a real estate loan. c) RESPA requires that lenders disclose all loan fees and the loan payment schedule to the borrower before the borrower commits to the loan. d) If a borrower doesn't receive documentation RESPA requires at the time of a loan application, the buyer's lender must mail the documentation to the borrower within two weeks of receiving the loan application.

b, c

You've identified acceptable formal descriptions. Now, can you recognize them when you see them? Which of the following descriptions are acceptable formal property descriptions? Select all that apply. (2) a) 1600 Pennsylvania Ave., Washington, DC 20500 b) Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds c) Beginning at a stake and stones about 30 feet from the center of the brook that runs across the road south westerly from the dwelling house of Jebediah Smith, deceased, now occupied by the widow Callie Thorton and in the west line of the highway leading by the dwelling house now occupied by the widow Callie Thorton ...

b, c

A notary does certain things to ensure that signers are who they say they are. What are they? Select all that apply. (3) a) Receipt b) Sign and date c) Notary seal d) Log activity

b, c, d

What does a contingency normally include? Select all that apply. a) The name of a back-up for the responsible party. (3) b) A deadline for the removal of the condition. c) The name of who is responsible for the accompanying actions or costs involved. d) The actions necessary to remove the condition.

b, c, d

Which of the following are required to apply for an appraiser trainee license? (3) a) 6 months of experience b) 75 hours of coursework c) supervisory appraiser d) passing score on trainee exam e) one completed appraisal f) 5 hours of USPAP coursework

b, c, d

Which three of the following are distinguishing characteristics of manufactured home living? (3) a) They are attached to a residential building. b) The owner may own both the structure and the land. c) The owner may own only the structure and pay a fee for land use. d) It is a free-standing residential building. e) The owner owns no real estate, but instead owns shares. f) It is designed specifically for older adults.

b, c, d

The building code addresses the method of construction, the materials used, and the safety and sanitary standards of a building. The code includes several standards. Which four of these are examples of these standards? (4) a) Appraisal amount b) Condition c) Occupancy d) Maintenance e) Rehabilitation f) Style of windows

b, c, d, e

What are the five essential elements of a valid real estate contract? (5) a) Notarized b) Offer and acceptance c) Consideration d) Legally competent parties e) Legal purpose f )Consent

b, c, d, e, f

Community property rights require married couples to acquire a title to real estate as community property, meaning they're both equal owners no matter who's named on the title. Which of the following states recognize community property? Select all that apply. (4) a) Minnesota b) Arizona c) California d) Ohio e) Idaho f) Louisiana

b, c, e, f

Lending is especially impacted by inflation. What two things are you likely to see during inflationary periods? Check your resource for clues. (2) a) Lower rates b) Higher rates c) No buyers d) Fewer buyers e) More buyers

b, d

On what two dates are property taxes due in Minnesota? (2) a) April 15 b) May 15 c) July 1 d) October 15

b, d

Once the court has determined that a will is legal, what two entities are responsible for distributing the estate's assets according to the terms of the will? (2) a) The state b) The executor c) A court-appointed mediator d) A court-appointed mediator administrator

b, d

Which two of the following are distinguishing characteristics of modular home living? (2) a) It is an attached residential building. b) The owner may own both the structure and the land. c) The owner may own only the structure and pay a fee for land use. d) It is a free-standing residential building. e) The owner owns no real estate but instead owns shares. f) It is designed specifically for older adults.

b, d

What can you recall about Fannie Mae and Freddie Mac? Which three of these are true? (3) a) They're government-owned enterprises. b) They're publicly traded. c) They're government agencies. d) They buy mortgages, package them, and resell them as mortgage-backed securities. e) They act as a link between banks, the government, and Wall Street.

b, d, e

Which of the following statements about groundwater are accurate? Select the three that apply. (3) a) Once groundwater is contaminated, it cannot be decontaminated. b) Groundwater is water that is accessible under the earth's surface. c) Private drinking wells are not affected by groundwater contamination. d) Groundwater forms the water table-the level at which the ground is saturated. e) Severe weather can result in contaminated water. f) Contaminated groundwater is not an issue in the United States.

b, d, e

Rhoda has power of attorney for her father, Winston, who is 85 and has a heart condition. Over the years, she's made recommendations to him about which properties he should buy and sell. She asks her father to please invest in her new restaurant, but Winston declines. He thinks it's too risky. Rhoda is furious and tells him that she will no longer take care of his financial matters. So Winston, with nowhere else to turn, gives her $20,000 as a loan, and he signs a contract under those terms. Later, Rhoda's restaurant fails. Winston goes to court to get his money back, but Rhoda produces a contract that says that the money was an investment, not a loan. Winston said that he thought he signed a contract that made the money a loan. Which of the following statements about this situation are true? Select all that apply. (2) a) Winston signed the contract of his own free will, so his consent was not invalidated. b) Rhoda had undue influence over her father, so Winston's consent was invalidated. c) Rhoda's power of attorney has no bearing on the financial dispute over her restaurant. d) Rhoda is innocent, and Winston should have read the contract more carefully. e) Rhoda's actions have given Winston the power to void the contract.

b, e

A four-bedroom, four-bath, 4,875-square-foot house was listed at $445,000. Andreas, the seller, accepted an offer that was 95% of the listing price. What price per square foot did he get for the house? a) $45.64 b) $82.15 c) $86.72 d) $93.00

A homeowner's association that was created after what year is required to participate in the Minnesota Common Interest Ownership Act (MCIOA)? a) 1974 b) 1984 c) 1994 d) 2004

A legal description can contain ______. a) County clerk's name b) Developer's name c) Metes and bounds d) Title abstract

A lender initiated a(n) ______ action against a borrower to recover money owed on the mortgage. a) Bankruptcy b) Eviction c) Foreclosure d) Lien

A newlywed couple comes to you asking for help with an option contract. What do you do? a) Thank them for coming and politely show them the door. b) Whip out an option contract and begin filling in the blanks. c) Advise them to seek the advice of a real estate attorney. d) Explain to them that a sales contract is a better option.

A real estate broker in Minnesota collected rent from several properties. Into which of the following accounts must those rents be deposited? a) Broker's business account b) Broker's personal account c) Broker's trust account d) Operating accounts for each of the properties

A specific, involuntary lien that is placed against property owners who have not paid their property taxes a) Deceased person's debt b) Corporation franchise tax lien c) Real property tax lien d) Mechanic's lien

According to the Minnesota statute, which piece of advertising information must be clearly and conspicuously displayed in all advertising? a) Licensee name b) No one item must be clearly and conspicuously displayed. c) Real estate brokerage name d) Team or group name

Adrian is the developer of a new condominium project. Under the Minnesota Uniform Condominium Act, she must do which of the following? a) Assist first-time buyers in obtaining loans. b) Complete the landscaping installation before selling any of the units. c) Create and record a declaration of condominium. d) Offer discounted units for low-income buyers.

Are you familiar with all of the documents to transfer a title? Although not required at every closing, a handful of documents are used at most closings. Connect each document to its purpose. Establishes proof of ownership and transfer of title a) Chain of title b) Abstract of title c) Deed d) Title insurance policy e) Survey

Arnie is a real estate salesperson in MN. He's leaving his current broker, Marisol, and is going to immediately associate with Manny. Which of the following statements is true? a) Manny must sign a transfer application for Arnie, then obtain a signature for Marisol, along with Arnie's license. Manny then must submit the application, license, and transfer fee to the commission. b) Manny needs to sign a transfer application for Arnie. When the commission receives the application, it will notify Marisol, who must return Arnie's license to the commission within 10 days. c) Marisol must sign a transfer application for Arnie and destroy his license. Then Manny must sign the transfer application and submit it to the commission, along with a transfer fee. d) Marisol needs to notify the commission of the termination within 10 days.

Arnie is a real estate salesperson in Minnesota. He's leaving his current broker, Marisol, and is going to immediately associate with Manny. Which of the following statements is true? a) Manny must sign a transfer application for Arnie, then obtain a signature from Marisol, along with Arnie's license. Manny then must submit the application, license, and transfer fee to the commission. b) Manny needs to sign a transfer application for Arnie. When the commission receives the application, it will notify Marisol, who must return Arnie's license to the commission within 10 days. c) Marisol must sign a transfer application for Arnie and destroy his license. Then Manny must sign the transfer application and submit it to the commission, along with a transfer fee. d) Marisol needs to notify the commission of the termination within 10 days.

As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to _____. a) coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer's favor b) explain to the buyer why it's unnecessary to have a professional inspection done a on new home c) review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license d) show properties the buyer might qualify for if he would put down more earnest money

As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to ______. a) Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer's favor b) Explain to the buyer why it's unnecessary to have a professional inspection done on a new home c) Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license d) Show properties the buyer might qualify for if he would put down more earnest money

As a real estate licensee, you'll need to know how the definitions of land, real estate, real property, and personal property differ. Let's find out if you know the differences. Match each term to its description. Permanent, man-made attachments that include such things as fencing, buildings, and walkways a) Land b) Real property c) Improvements d) Personal property e) Real estate

As with most contracts, there are many ways to terminate a lease. Mrs. Hudson has a lot of lease terminations, and a few other issues, to deal with. Match the correct lease termination term to the proper tenant scenario. The Suarez family has decided to move somewhere else when their lease ends on May 31. a) Abandonment b) Eviction c) Expiration d) Holdover tenant e) Mutual agreement

As you know, the seller is responsible for certain expenses at closing. What is the purpose of each expense? Connect each expense to its description. Results when properties change hands to someone outside of certain family members and other exempt parties a) Recording documents b) Deed preparation fee c) State and local deed taxes d) Attorney fees e) Broker commission f) Satisfaction of existing liens

Avoiding antitrust violations is critical. Which one of the following actions will help you avoid price fixing allegations? a) Consult with competitors to determine competitive pricing. b) Engage in discussions about fees with agents from other companies. c) Establish fees independently or as a company. d) Promote "industry rates" in conversations with consumers.

Before we begin, let's identify the steps we need to take in order to calculate a proration. Multiply the number of days in the time period by the daily rate a) Step One b) Step Two c) Step Three

Before we get into how the secondary mortgage market supports the primary mortgage market, let's review the key players in this market. Match these players with the loans they buy or insure. Mortgage-backed securities (MBSs); loans insured by a U.S. government agency a) Fannie Mae b) Freddie Mac c) Ginnie Mae d) Farmer Mac

Below are the remaining buyer's expenses. What is the purpose of each of these expenses? Connect each expense to its description. For the reserve funds that the buyer must put aside for property taxes a) Title insurance b) Mortgage insurance c) Tax reserves d) Inspections

Betty hired a contractor to replace her gutters. Within days, the gutters leaked and flooded her basement. She complained to the contractor, who replaced the gutters again. The next time it rained, the gutters leaked and flooded Betty's basement a second time. Frustrated, Betty decided to file a lawsuit against the contractor in an attempt to recover the money she lost. This is an example of ______. a) Accepting partial performance b) Rescinding the contract unilaterally c) Suing for damages and breach of contract d) Suing for specific performance

Bradley is acting as a finder for Emma. He's introduced her to Rachel, the other party in the transaction. Whom does Bradley represent? a) Both Emma and Rachel b) Emma c) Neither Emma nor Rachel d) Rachel

Brent is your buyer client and a first-time homebuyer. Despite every effort he's made to win the lottery, he'll be financing the purchase of his first home. You're about to review the financing steps with him. Which is the first financing step he must complete? a) Sign a purchase contract b) Complete a loan application c) Obtain pre-qualification or pre-approval letter

Bylaws outline a board's scope of power as well as the community's conditions, covenants, and restrictions (CC&Rs). Decide if the following statements are examples of a condition, covenant or restriction. Limitations imposed by a developer who wants to maintain specific subdivision standards a) Covenant b) Condition c) Restriction

Calculating the price per square foot is something you should know how to do. It's easy if you have the sale price and the square footage of the building. If you don't have the square footage, you'll need to get out that measuring tape again, so you can calculate square footage (which you've just demonstrated that you know how to do). Let's go through a scenario. After doing some research on local comparable properties, you find that most properties in the area of your new listing sell when they're priced between $190 and $200 per square foot. If the property you're listing measures 1,500 square feet—and you want to put it at the top of this price-per-square-foot range—at what price could the home be listed? a) $250,000 b) $285,000 c) $300,000 d) $315,000

Can a new licensee specialize in the sale of farm and ranch property? a) Not until the licensee has at least 5 years of experience in agricultural real estate b) Not until the licensee passes additional courses in agricultural real estate c) Yes, a new licensee can specialize in agricultural real estate d) Yes, as long as the new licensee has a degree in agriculture

Christy found a property that was for sale by owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Licensee Zelda helped Chris complete the necessary purchase documents and walked her through the process. What kind of agency exists? a) confirmed agency b) express agency c) implied agency d) verbal agency

Cletis and Marcie's loan is for $35,000 and their lender charges a 3% loan origination fee. How much will they pay in loan origination fees at closing? a) $3,000 b) $1,000 c) $1,050 d) $1,500

Connect each Minnesota regulatory authority with its proper description. Enforces the act at the state level a) Local government unit b) Board: Water & Soil Resources c) Dept. of Natural Resources

Connect each type of specific lien to its description. An action brought directly against the real property in response to unpaid property taxes a) Mechanic's lien b) Mortgage lien c) Real property tax lien

Creation of an easement varies with the type of easement. The resource attached to this slide contains a chart showing various Written agreement a) Easement by condemnation b) Easement by prescription c) Express easement d) Easement by necessity e) Implied easement

Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called _______. a) Developer standards b) New build standards c) Restrictive covenants d) Restrictive standards

Do you know how to perform each of the tests of property type? Match each test to its description. Can the item be removed without damaging what it's attached to? a) Relationship of the parties b) Adaptability of use c) Method of annexation

Do you know the difference between the performance of a contract and time is of the essence? What about partial performance? Let's find out. Choose whether each scenario describes the performance of a contract, partial performance, or the "time is of the essence" phrase. Jack Nimble and Jill Quick entered into an agreement to open a candlestick shop. True to her name, Jill completed everything she needed to do to meet her part of the contract well within the agreed upon time frame. Jack, on the other hand, didn't jump to it, and his failure to meet deadlines caused the two to lose the store. a) Performance of a contract b) Partial performance c) Time is of the essence

During closing, the attendees consummate a number of contracts. Do you know which parties are responsible for closing which contracts? Match these parties to the contract they're finalizing. Close on the mortgage loan commitment a) Agents' brokerage firms b) Seller and seller's agent c) Buyer and lender d) Buyer and title company rep.

Each stage of the property ownership life cycle can be affected by income tax issues. Match each income tax-related item to the correct term to indicate the stage of the property ownership life cycle it's associated with. Capital gains a) Acquisition b) Ownership c) Reversion

Each stage of the property ownership life cycle can be affected by income tax issues. Match each income tax-related item to the correct term to indicate the stage of the property ownership life cycle it's associated with. Seller's permitted exemption a) Acquisition b) Ownership c) Reversion

Elvin owns 150 acres of prime hunting land. Every year, he gets requests from private groups that would like to use his land for a day or two during hunting season. He sometimes grants these requests, but this year, he's decided to only use it himself with his friends. Which right in the bundle of rights says that he can say no to these requests? a) Control b) Enjoyment c) Exclusion d) Possession

For many consumers, a house payment won't be their only debt. They may also have car payments, student loans, and credit card debt. While the housing debt-to-income ratio looks at housing debt against the borrower's income, total debt-to-income takes into account all of a borrower's debt. What's the typical total debt-to-income ratio to qualify for a conventional loan? a) 28-30 b) 30-35 c) 33-36 d) 35-38

Great job with areas! Let's move on by discussing the linear measure of front foot, or frontage. Basically, this is the length of the property that abuts something, which could be a road, another property, or a stream. When might you encounter a front foot calculation? Here's an example: While running some errands, you bumped into a homeowner you worked with a few years back. He purchased a 500-foot by 500-foot piece of land along a dirt road. Turns out, the county is now planning to build a paved road through the area and is offering $25 per front foot. How much is this? a) $5,000 b) $10,000 c) $12,500 d) $6.25 million

Greg died of a heart attack on his 75th birthday, leaving no will. His wife is deceased, and the couple had no children. Greg's estate goes into probate, and the court determines which of Greg's heirs will inherit the family home. What method of alienation was used in this situation? a) Court-ordered partitioning of property b) Natural processes c) Law of descent d) Adverse possession

How familiar are you with the types of liens? Let's find out. Connect each type of lien to its description. If you're unsure as to the answers, don't hesitate to consult your resource. A specific, voluntary loan against a single property that uses the property as collateral for loan repayment. a) Judgment lien b) Estate/inheritance tax lien c) Mortgage lien d) Income tax lien

How is procuring cause related to a protection clause? a)The protection clause is invalidated if the licensee is the procuring cause. b)The protection period can be lengthened or shortened if the licensee is the procuring cause. c)The period of time in the protection clause is only applicable if the licensee is the procuring cause.

If a licensee is found guilty of a violation, what's the maximum civil penalty that can be assessed? a) $1000 b) $5000 c) $10000 d) $25000

If there's no will, which answer describes how the distribution of the estate is determined? a) The court decides who gets what. b) The court appointed administrator divides the assets equally among the remaining heirs. c) The assets are distributed according to the law of descent and distribution. d) Half of the assets go to the heirs and half go to the state.

If your real estate investment is considered a security, what must you do? a) insure it for more than face value b) pay special taxes on it c) register it as a security d) send notarized letters to all investors

In MN, license withdrawals without extenuating circumstances become effective how long after the receipt of a withdrawal request? a) 10 days b) 14 days c) 30 days d) 5 days

In MN, when should you present the agency disclosure form to a potential client? a) at every open house you hold b) at the first point of contact c) at the first substantive contact d) when you hear the words "I want to be your client"

In Minnesota, when may a referral fee be appropriate? a) If an unlicensed individual wants to provide one to a licensee. b) If it involves a timeshare transaction and is less than $500. c) If the recipient is licensed and the referral fee is directly related to a transaction. d) If the recipient is uninvolved in the given transaction.

In Minnesota, when should you present the agency disclosure form to a potential client? a) At every open house you hold b) At the first point of contact c) At the first substantive contact d) When you hear the words "I want to be your client."

In addition to placing requirements on lenders, borrowers also have some guidelines, such as the cut-off point for borrowers to rescind or cancel a new mortgage on a residence they already own. What is this cut-off point? a) At the time of the loan application b) One day after the loan closing c) Three days after the loan closing d) Five days after the loan closing e) One week after the loan closing f) At the loan closing

In the real estate business, whose primary role is it to provide clients with the information they need to make informed decisions about their own specific real estate interests? a) Home inspector b) Lender c) Real estate counselor d) Real estate educator

In the state of Minnesota, which agency issues permits for projects that are in or impact a shoreland district? a) Lake Superior Coastal Program b) MN Dept. of Environmental Protection c) Dept. of Natural Resources d) MN Dept. of Health

James is a real estate salesperson working on behalf of Tom, a real estate broker. The two of them only sell timeshares. Does James need a special license? a) Yes, because timeshare sales require a license unless selling your own unit. b) Yes, because James' salesperson license requires a corresponding timeshare license. c) No, real estate licensees can sell timeshares without the need for additional or special licensing.

Jasmine has a real estate license and provides rental services in Minnesota. Which of the following is considered a rental service? a) Entering into a listing agreement with a property owner b) Posting information about available rentals to her website c) Providing rental listings to Olivia, a consumer looking for an apartment to rent d) Publishing rental information in the newspaper

Jessica enters into a contract to acquire real property in return for some form of consideration. On the contract, Jessica is regarded as the ______. a) Agent b) Broker c) Buyer d) Seller

Katy's home that was listed for sale was destroyed by fire. Under which of these methods will her listing agreement terminate? a) Completion b) Expiration c) Force of law d) Mutual agreement

Kelly is purchasing a property that has an assessed value of $160,000. If the tax rate is 2.5%, what will Kelly likely pay annually in property taxes? a) $160 b) $400 c) $4,000 d) $40,000

Ken, Dale, and James were brothers who owned more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result was that the court gave each brother a designated set of acres to own. What did the court grant? a) Bifurcation b) Parcel c) Partition d) Severalty

Kennedy tends to be rather informal about her real estate business. Her daughter's teacher, Matt, tells Kennedy that he'd like her help selling his house. Kennedy agrees and tells Matt she'll perform all the tasks she'd perform for any listing, though she has no written agency agreement with Matt. Do Matt and Kennedy have a legal agreement? a) No. There's no signed agreement. b) No. Verbal agreements are illegal. c) Yes. Express agreements may be verbal and written. d) Yes. They have a verbal implied agreement.

Landlords and tenants each have many obligations to hold up their end of the lease contract. Let's take a look at what each party is responsible for doing to ensure these duties are met. Maintain the premises in a habitable condition for the duration of the lease a) Landlord Obligation b) Tenant Obligation c) Mutual Obligation

Let's practice what you just learned. If needed, we've provided the video and its transcript. A parcel of land is being sold for $3 per square foot. You have a client interested in purchasing 30,000 square feet. How much will this cost? a) $900 b) $9,000 c) $90,000

Let's see how much of this title terminology stuck with you. Match the title procedure terms with their correct descriptions. We've attached a set of flashcards for you to practice with. Seller's sworn statement assuring there are no other title defects not shown in the title search a) Abstract of title b) Title search c) Affidavit of title d) Marketable title e) Evidence of title f) Title insurance

Let's see how much you know about subdivisions and the terms associated with their development. Match each term to its description. Collection of written records used in legal subdivision descriptions kept at the county clerk's office a) Subdivision plat b) Subdivision c) Plat book d) Demographics e) Development agreement

Let's see if you can remember what rights are included in the bundle of rights. Match each right with its definition. Gives the owner the right to sell or convey the property a) Control b) Enjoyment c) Disposition

Let's see what you know about the types of title examinations and the terms involved in examining title. Match the title examination term to its description. Search and index of the public records that goes back fewer than 60 years, usually used for second mortgages or loan assumptions a) Title report b) Correction deed c) Limited search d) Title examination

Let's test what you just learned. Try matching the government power with the type of legal power it possesses. Governmental authority to do what's right for the public good a) Escheat b) Taxation c) Police power d) Eminent domain

Let's think back to the monthly payment we found using the amortization chart. The monthly payment was estimated to be $1,073.64. What is the debt service? Head back a slide if you need a reminder of what debt service is. a) $1,073.64 b) $10,736.40 c) $12,883.68

Let's try another one. A parcel of land is being sold for $25,000 per acre. You have a client interested in purchasing four acres. How much will this cost? a) $1,000 b) $10,000 c) $100,000 d) $1 million

Let's wrap up this lesson by tying the legal description to the deed. What is the purpose of including a legal description in a deed? a) To indicate that property is being transferred b) To provide evidence that something of value is being exchanged c) To provide a formal description of the item being transferred d) To identify any deed restrictions to which the property is subject

Licensees ______ clients and ______ customers. a) Advise, instruct b) Direct, guide c) Represent, assist d) Support, counsel

Lorraine, a MN broker, was engaged as a listing agent for a property. The home didn't sell during the contract period, and upon expiration Lorraine and the property owner went their separate ways. How long must she retain the listing agreement? a) Listing agreements don't need to be retained. b) She doesn't need to retain the listing agreement since the transaction never closed. c) She must keep listing agreements for 6 years, regardless of whether the transaction closed. d) She needs to keep the listing agreement for 6 months, since the transaction didn't close.

Louise has been a licensed salesperson in MN for several years. Which statement best describes her license renewal requirements? a) She can apply for an exemption from CE requirements based on the length of time she's been licensed. b) She must complete 15 hours of CE in approved courses every 24 month period c) She must complete 30 hours of CE in approved courses eery 24 month period d) She must complete 30 hours of CE in approved courses every three year period

Margo is the potential buyer of the property in an option contract. Margo is the ______. a) Optee b) Opter c) Optionee d) Optionor

Mary Croft is proud to own her first home. Which of the following terms represents the legal concept of her property ownership? a) Certificate of occupancy b) Deed c) Title d) Will

Match each antitrust violation with its description. Agree to provide or withhold services based on a consumer's protected class status a) Production control b) Collusive bidding c) Discriminatory agreement

Match each contract type to the actions it enables once it's agreed to and signed. The listing agent's broker receives the sales transaction commission in accordance with the listing agreement. a) Sale agreement b) Brokerage agreement c) Listing agreement

Match each of the four types of easements with its characteristic. Acquired through years of use a) Easement by necessity b) Easement appurtenants c) Easement by prescription d) Easement in gross

Match each of these terms with its corresponding definition. The amount actually borrowed a) Interest b) Amortization c) Principal d) Term The cost of borrowing money from someone els

Match the definitions to their corresponding type of equity-related financing. A lump-sum loan that must be repaid by the homeowner a) Home equity line of credit b) Reverse annuity mortgage c) Home equity loan

Match the description to these terms. Tom Jr. can keep the property his parents transferred to him as long as he remains unmarried. a) Life estate b) Fee on condition c) Fee simple determinable

Match the license type to the application requirements for that type. a) Broker b) Salesperosn c) Limited broker No experience or exam requirements.

Match the percentage of funds to the source of financing to complete the 70/20/10 piggyback loan ratio and avoid paying PMI. 20% a) First mortgage b) Down payment c) Second mortgage

Match the statement to the type of mortgage to which it applies. Requires mortgage insurance premium (MIP) a) Conventional b) VA c) FHA

Match the status change to its decription a) incapacitation of broker b) terminaiton c) withdrawal d) transfer A licensee requests the removal of current or pending status.

Mike began his presentation with some of the legislation and acts influencing lending. Match the regulation or act with its requirement. Requires written disclosure of estimated settlement costs to the borrower a) Truth in Lending Act b) Community Reinvestment Act c) RESPA d )Equal Credit Opportunity Act

Mike described a few mortgage lenders to Keira. Let's see how well you captured the information. Match these descriptions with the appropriate mortgage lender. Member-based cooperatives that provide credit for loans a) Insurance companies b) Savings and loan associations c) Credit unions

Mortgages may still, but only rarely, contain which of the following clauses? a) Alienation clause b) Amortization clause c) Prepayment penalty clause d) Underwriting clause

Mrs. Hudson just finished a rental inspection with a new tenant when a very upset tenant from the complex, Sharon, approached her. Sharon needs to move out of her apartment immediately to get away from her abusive boyfriend. Which of these conditions would she need to meet to be able to get an early release from her lease? a) Sharon needs to be under the age of 21. b) Sharon needs to testify in court. c) Sharon needs to secure an order of protection. d) Sharon needs to pay a fine.

Next, let's focus on life estates. With these, someone's lifetime controls the duration of ownership or possession. An elementary school will receive title to 20 acres of land upon the death of the life tenant, Teddy Jr. The elementary school is the ______. a) Reversionary interest b) Act of waste c) Remainderman

Now let's look at what expenses the buyer is responsible for at closing and what is the purpose of each expense is. Connect each expense to its description. If a buyer is obtaining financing, the buyer is required to have an appraisal performed a) State and local deed taxes b) Loan fees c) Appraisal / Credit report fees d) Attorney's fees e) Recording fees

Now that you have had a chance to familiarize yourself with the various methods of discharging a contract, let's see if you can recall the types of performance associated with each method. Connect each type of performance to its description. One or both parties have completed only a portion of the terms agreed to in the contract. a) Impossibility of performance b) Specific performance c) Partial performance d) Substantial performance

Now that you know what the MRT applies to, do you know its tax rate? a) .23 of the amount being secured b) .023 of the amount being secured c) .0023 of the amount being secured d) .25 of the amount being secured

Now that you're more familiar with the required elements of a deed, let's see how knowledgeable you are about deed terminology. Connect each deed term to its description. The persons conveying and receiving the title, respectively. a) Granting clause b) Legal description c) Grantor/grantee

Now that you've correctly identified real estate characteristics by category, let's see if you can match each economic characteristic to its description. Involves improvements, such as sewer, roads, and utilities, that are long-term, stable investments with relatively stable returns over time a) Scarcity b) Improvements c) Permanence of investment d) Location or area preference

Now that you've correctly identified what real property rights are, let's see if you know what they mean. Match each right to its description. Right to determine how, when, and whether the property is to be sold, leased, mortgaged, or transferred a) Control b) Possession c) Disposition d) Exclusion e) Enjoyment

Occasionally, you may be provided with a measurement that's in a different unit than you need. Suppose a legal description describes one of the property's boundaries as being 13.5 yards long, but you want to know what this is in feet. Since you know how many feet are in a yard (it's on your cheat sheet if you don't remember), you can convert the measurement to the unit you need. So, how many feet is this? a) 4.5 feet b) 36 feet c) 40.5 feet

Orla represents the seller, and Pardeep, an agent from a different firm, represents the buyer in the same transaction. What type of agency relationship does Orla have with her client? a) Buyer agency b) Dual-licensee dual agency c) Seller agency d) Single-licensee dual agency

Part of the loan application has the applicant provide details of assets and liabilities so a determination of net worth can be made. What do these terms mean? Items of value belonging to the borrower a) Liabilities b) Net worth c) Assets

Petra is being subjected to domestic abuse. She has provided a signed, written notice of lease termination to her landlord that includes the date she intends to vacate the property and the address where her security deposit can be sent. What else can her landlord legally do? a) Disclose Petra's new address to other tenants who request it. b) Keep Petra's security deposit because of the early lease termination. c) Require Petra to pay the full month's rent for the month she intends to leave. d) Require that Petra provide the name of her abuser so the landlord can protect other tenants.

Private mortgage insurance protects the lender in case the borrower takes which of the following actions? a) Chooses to prepay b) Decides to sell c) Defaults on the loan d) Refinances

Property owners may keep, sell, or lease their rights. Which of the following do those rights include? a) Collusion b) Encroachment c) Profit and license d) Tax-free status

Provides for shopping areas a) Downtown district b) Residence district c) Commercial district d) Office residence district e) Industrial district

Put yourself in the lender's shoes for a moment. Which borrower's net worth is the most favorable? a) Borrower A's assets are equal to her liabilities. b) Borrower B's liabilities are twice as much as his assets. c) Borrower C's assets are twice as much as her liabilities.

Randall's clients, Carma and Trent, are looking for a mountain cabin. They tell Randall they'll pay him a $2,000 finder's fee if he finds the cabin that checks all of their boxes, and they close on it. Randall finds a likely candidate that's an FSBO, and negotiations begin. What circumstance is required for Randall to receive the finder's fee? a) Another licensee must represent the seller. b) Carma and Trent must disclose the finder's fee payment to the seller. c) Carma and Trent must pay the finder's fee to Randall's broker. d) Randall must disclose the finder's fee to the seller and must be paid outside closing.

Regular mortgage financing is available for this type of housing. a) Manufactured home b) Mobile home c) Modular home d) Triple wide

Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building? a) As a joint tenant with rights of survivorship b) As a tenant in common with Oliver's heirs c) In severalty d) In trust

Rory is the primary broker at T & C Realty. She hired a non-licensed records manager, Sandra, to implement a new electronic documentation system, as well as design a filing and retrieval system for paper contracts. Sandra mistakenly disposed of some paper contract before their six year legal retention period had passed. Now the commission is auditing and the contracts aren't there. Who's responsible for this mistake? a) No one, since the disposition wasn't intentional and represents an honest mistake b) Sandra, since she was hired for her records expertise and make the mistake c) Rory, since she has responsibility for all records and documentation as the primary broker d) The salesperson employed by the brokerage, since they should have kept their own copies of all contracts filed centrally

Sam decided to build a swimming pool in his yard. He built it one foot inside his neighbor's property. What is this an example of? a) Easement b) Eminent domain c) Encroachment d) Necessity

Sam has a mortgage that has a static interest rate, but monthly payments that increase over time according to a set schedule. What type of mortgage does Sam have? a) Adjustable rate b) Amortized c) Growing equity d) Straight

Sarah wants to make sure Jerry understands Minnesota's Lake Superior Coastal Program, so it's important that he's able to identify the following terms. Match each term with the correct description. Areas within 1,000 feet of the lake's ordinary high water level a) Coastal boundary b) Watershed c) Shoreland district

Several water acts have been established to protect the quality of our nation's water supply. Do you know the purpose of each act? Match each statement with the correct text to indicate with which national water act it is associated. Designed to "preserve, protect, develop, and, where possible, to restore or enhance the resources of the nation's coastal zone." a) Clean Water Act b) Rivers and Harbors Act c) Coastal Zone Management Act

Someone who, for another and for compensation, negotiates the sale of real property in MN is a ________. a) agent b) limited broker c) real estate broker d) responsible person

Specific public records are used to provide proof of title ownership. How familiar are you with these public records? Let's find out. Match each document to its purpose. Used to establish proof of ownership a) Abstract of title b) Title insurance policy c) Deed d) Chain of title

That was a basic one. You may often work with a seller who still owes on a mortgage. Let's see how this factors in. A seller still owes $45,000 on her mortgage but wants to net $50,000 after the mortgage and 5% commission are paid. What's the minimum the house must sell for to net the seller the desired amount? a) $47,368 b) $52,631 c) $100,000 d) $102,500

The Lake Superior Condominium Association was formed in June 1990. Which statement best describes their participation in the Minnesota Common Interest Ownership Act? a) Based on the date the association formed, participation is automatically required. b) Based on the date the association formed, the association must opt in to participate. c) Based on the type of association, participation is automatically required. d) Based on the type of association, the association must opt in to participate.

The Wilsons hired Gary to build an addition onto their house in Minnesota. Gary subcontracted out the electrical work to Oliver. Within how many days must Gary and Oliver deliver lien notices to the Wilsons? a) Both Gary and Oliver have 10 days from the original contract date. b) Both Gary and Oliver have 45 days from the original contract date. c) Gary has 10 days from the original contract date, and Oliver has 45 days from the date he first provides labor or materials. d) Gary has 45 days from the original contract date, and Oliver has 120 days from the date he first provides labor or materials.

The buyer you're working with doesn't want to enter into an agency relationship. However, the buyer begins to rely more and more on your advice and, indeed, implied agency has begun! You could have avoided this issue by providing appropriate disclosures, but now that you've created implied agency, what should you do? a) create an estoppel agreement with the buyer b) disclose to all sellers your relationship with the buyer c) ratify the implied agreement by getting a signed agency agreement d) terminate the agency relationship

The buyers couldn't come to an agreement with the seller about non-safety-related items found during the home inspection that the buyers wanted to be fixed, but that the seller wasn't willing to address. Having arrived at an impasse with neither party willing to negotiate, the parties agreed to cancel the contract. What remedy are the buyers and the seller pursuing for their breach of contract situation? a) Accept liquidated damages b) Accept partial performance c) Mutually rescind the contract d) Unilaterally rescind the contract e) Sue for damages f) Sue for specific performance

The document Mike emailed Keira summarized the types of loans available. The loans vary slightly based on the type of property and who's obtaining financing. We'll group similar loans together when we review the options. Let's start with some general residential mortgage types. Match the type of mortgage with its description. Only interest is paid until the end of the loan term, when the principal is repaid in full a) Adjustable rate b) Amortized c) Straight d) Growing equity

The expiration date for licensees is the same for everyone in the expiration year. What is that date? a) Jan 1 b) June 15 c) June 30 d) Sept 15

The residents of Blair Avenue are a close-knit bunch. They're all young couples with small children, and they don't want this dynamic to change when two of the couples have to move. Those couples sign an agreement promising not to sell to anyone without kids or to anyone over the age of 50. The contract can't be enforced because it's missing ______. a) Consideration b) Legally competent parties c) Legal purpose d) Offer and acceptance

The resource mentions a few federal antitrust acts. Match the description to the appropriate act. Created an agency to investigate and stop unfair competitive practices. a) Sherman Act b) Clayton Act c) FTC Act

The rivalry between Jack and Joe seems so petty in light of Joe's recent passing (not at the hands of Jack). Who receives Joe's share? a) Children b) Remaining tenants c) As stipulated in the will

The secondary mortgage market serves a very important role in real estate finance. Which of these statements best describes that role? a) The secondary market funds junior mortgages. b) The secondary market makes loans to less creditworthy consumers. c) The secondary market purchases loans from primary lenders and helps keep credit available to loan originators. d) The secondary market regulates lenders in the primary market.

The three primary commercial lease categories vary, based mainly on how expenses, such as taxes, insurance, and maintenance, are handled. Match the commercial lease type category with its description. Tenant pays a base rent plus a percentage of gross sales a) Net lease b) Gross lease c) Percentage lease

Thelma, Sidney, and Shirley meet at the Crusty Acres Retirement Center. Tired of unsalted oatmeal and an 8:30 p.m. curfew, they decide to "ditch this joint," pool their resources, and buy a "happenin' little condo uptown." Because they want to ensure that no one is displaced from the condo in the event of one owner's death, they decide to hold title in such a way that if any of them dies, the others own the deceased person's shares. How should they hold title? a) Estate in Severalty b) Tenancy in Common c) Joint Tenancy d) Tenancy by the Entirety

There are only a couple of allowable reasons why Rachel might commingle the brokerage's money with client funds in her trust account. Which of these is one of those acceptable reasons? a) If Rachel is related to one of the parties b) If the interest is higher than her personal account c) If the bank requires her to maintain a minimum balance d) If she wants to send extra money to the state commerce commissioner

This resource introduced a few words related to eminent domain. Let's make sure we understand what they mean before we move on. Match the terms related to eminent domain with their definitions. The power of the government to take private land for public use a) Condemnation b) Eminent domain c) Taking

Thomas is a contractor in Minnesota who remodeled a kitchen for a homeowner. The homeowner paid for half the cost when work began two months ago, but failed to pay the remaining balance when the job was done. Thomas filed a mechanic's lien. Which of the following must be true? a) It's been fewer than 30 days since Thomas finished the work and the remaining balance was due. b) Thomas delivered a notice of his right to file a lien separately from the original written contract within 14 days of the original contract date. c) Thomas included a notice of his right to file a lien in the original written contract before beginning work on the kitchen. d) Thomas provided notice of his right to file a lien within 10 days of nonpayment after he completed the remodel.

Three frequently confused terms are valid, invalid, and voidable. Select the correct term for each example. A contract may be cancelled for one of a number of reasons a) Invalid b) Valid c) Voidable

Timeshare ownership can take several forms. How familiar are you with how these forms differ? Let's find out. Connect each timeshare term to its description. Gives the purchaser the right to possess the property at given times for a given duration, but does not convey ownership a) Vacation ownership b) Campground membership c) Timeshare use d) Timeshare estate

Tom Knicks, who was in the process of buying a home, died suddenly before he had a chance to close on the deal. Tom's heirs were required to meet the terms of the contract. This is an example of ______. a) Specific performance b) Substantial performance c) Operation of law d) Partial performance

Under the Minnesota statute of frauds, which of the following agreements would NOT be enforceable? a) A buyer and seller have both signed a written agreement to transfer ownership of a parcel of land near the lake for $40,000. b) A custom table valued at $500 was delivered to and accepted by the recipient, who is refusing to pay for it. A signed, written agreement was not in place. c) A homeowner and landscaper entered into a verbal agreement for $1,500 in plants and labor, but the landscaper backed out before any goods or money changed hands. d) An artisan had a written purchase order for a $1,000 custom stained glass that includes a family's unique surname. The work is done, but the artist hasn't delivered it because the family is refusing to pay.

Use your resource to match some common types of deeds with their descriptions. Gives ownership of a foreclosed property to the highest bidder a) Bargain and sale b) Quitclaim c) Referee d) Full covenant and warranty e) Executor

Using the 'Calculating Area and Length Cheat Sheet' in your resources, define these common land measurements. 144 square inches a)Square mile b) Mile c) Square foot d) Yard e) Acre

Valerie is converting an existing building into a new condominium project. Under Minnesota law, she must ______. a) Give all current tenants at least 180 days to vacate the premises b) Offer at least 20% of the units to existing tenants c) Provide blueprints showing the size, boundaries, and location of each unit d) Provide consumers with a public offering statement at least seven days before signing a sales contract

Wayne is a real estate salesperson in MN. He notified his broker that the no longer wishes to be associated with her, she then notified the commission in writing within 10 days. Which of these is NOT an option for Wayne? a) allow the license to expire without transferring to a new broker b) apply for a new license if he doesn't transfer to a new broker within the license renewal period c) continue practicing real estate while finding a new broker to associate with d) transfer his license to a new broker within the license renewal period

We've introduced a lot of easement-related terms, and there are a few more worth knowing. We included all of these terms in the flashcards attached to this slide. Match these terms with their definitions. Easements fall into this category a) Possessory rights b) Party wall c) Non-possessory rights

Wells, rivers, lakes ... they each come with a set of water rights. Match the scenario with the water right it's describing. Who knew the small creek flowing along the edge of your backyard would be the prime setting for many hours of father/son bonding? a)Prior appropriation b) Littoral c) Riparian

What does "refusal to deal" mean? a) Excluding business based on the company's identification as a protected class b) Limiting the production of goods or services in order to control their market rates c) Not working with someone unless they agree to work with (or not work with) a specified third party d) Refraining from submitting a quote on a public contract in an effort to control the contract award

What does legal purpose mean? a) To be legal, contracts must involve a lawyer. b) Only contracts that state a purpose are legal. c) Contracts must be written for a lawful objective. d) As long as a contract has a purpose section and that purpose has been completed, the contract is legal.

What information is on the amortization table? Match the items with their descriptions. Take a closer look at your resource if needed. Amount of payment that will be paid toward interest a) Scheduled payment/total amount b) Ending balance c) Interest d) Annual interest rate e) Principal f) Beginning balance

What is a mortgage-backed security, or MBS? Take another look at the video in your resources as needed. a) A type of loan issued to consumers when a property is being used as collateral b) A property with a loan that includes mortgage insurance c) A pool of mortgages sold to investors d) An institution that makes mortgages available to the public

What is a short sale? Use your resource and choose the best description of a short sale. a) Occurs when a property doesn't receive an acceptable bid in a foreclosure sale and the bank takes ownership of the property b) Occurs every time a one-story house or single family home is sold in an urban residential market c) Occurs when the property's market value is less than the amount which is due on the mortgage d) Occurs when the borrower defaults on the mortgage loan and the lender moves to recoup costs owed by forcing a property sale

What is market allocation? See if you can select the correct definition from this list. a) An increase in competition occurs in a single sector of the market. b) A licensee refers business in a specific market outside her area of expertise to other licensees. c) A group of licensees from separate firms agree not to compete for business with each other in specific markets, and they divide the markets accordingly.

What is the buyer agency agreement's purpose? a) To identify the listing agent/seller agency relationship's terms b) To identify the listing agent/buyer agency relationship's terms c) To identify the buyer agent/buyer agency relationship's terms

What is the statute of frauds? a) A symbol of justice that depicts the legal system as always vigilant against deception b) A federal law that requires all acts of fraud to be documented c) An old English law that identified the degree of punishment meted out for acts of forgery d) A law requiring contracts conveying ownership in real property to be in writing to be enforceable

What is the statute of limitations in Minnesota for a party to a contract to sue the other party for breach of contract? a) Two years b) Four years c) Six years d) Eight years

What kind of tax could be levied on property owners for a public project that benefited the property owners only in that district? a) Income tax b) Sales tax c) Special assessment tax d) Transfer tax

What might the government do if property owners fail to pay taxes on their property? a) Do nothing. b) Evict those living on the property. c) Place a lien on the property. d) Take ownership of the property.

What type of language should be used to write contracts? a) Boilerplate language b) Legal phrases in Latin where necessary c) Plain language d) Precise real estate jargon

What's meant by "minimum ethical standards"? a) Commission levels shouldn't rise above the minimum standards. b) Commissions set below these standards would be unethical. c) Licensees should strive to act at least at that level, and more if possible. d) Licensees should strive to do no more than the minimum required.

What's the best definition of legal purpose? a) Attorney consideration b) Mentally capable of entering into a contract c) Written for a lawful objective d) Written for an illegal purpose

When Mark and Chrissy discovered that the seller of their recently purchased home had committed title fraud, they were told their title insurance policy wouldn't cover the legal costs to clear the title to their property. What's the most likely reason for this? a) The title company was a scam organization. b) They didn't purchase lender's title insurance. c) They didn't purchase owner's title insurance. d) They failed to make payments on their title insurance.

When a licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? a) the licensee isn't permitted to list other properties for sale b) the licensee is permitted to list other properties for sale as long as they're not competing properties c) the licensee is permitted to list other properties for sale, even if they're competing propeties d) the licensee must list the seller's property only for the first 90 days, after which the licensee may list other properties

When calculating loan-to-value ratios, which of the following will be used by the lender? a) The appraisal value b) The greater of the sales price or appraisal value c) The lesser of the sales price or appraisal value d) The sales price

When can specific performance be enforced under a sales contract? a) Both parties have fully met the terms of the contract. b) One or both parties have completed only a portion of the terms agreed to in the contract. c) One party didn't meet the terms of the contract in the specified timeframe, and is now being required to do exactly what was agreed to in the contract. d) The parties to a contract can't legally or practically do what they've agreed to do due to circumstances out of their control.

When working with a client on a real estate sale, a real estate licensee is usually acting as which type of agent? a) designated b) general c) special d) universal

Where will you find official documentation about the licensing of real estate professionals? a) Code of conduct b) Ordinances c) State statutes and regulations d) Zoning codes

Which act created an agency to investigate antitrust practices? a) Attorney General Act b) Clayton Act c) Federal Trade Commission Act d) Sherman Antitrust Act

Which agency prohibits unfair acts, practices, or methods of competition, and enforces federal antitrust and consumer protection laws nationally? a) Attorney general's office b) Consumer Reports c) Federal Trade Commission d) National Bar Association

Which group ensures that community growth is controlled and orderly? a) HOA b) Master commission c) Planning board d) Zoning board of appeals

Which local land use group has the dual focus of livability and quality of life? a) HOA b) Master commission c) Planning board d) Zoning board of appeals

Which method of alienation is being used? Eric and Amy were divorcing and couldn't agree how to divide their assets. The court stepped in and made the decision for them. a) Will b) Natural processes c) Court-ordered partitioning d) Foreclosure

Which method of alienation is being used? Jan wants her daughter to have her house, so she has a lawyer draft a sales agreement and she sells it to her for $1. a) Regulatory taking b) Eminent domain c) Deed d) Adverse possession

Which of the following defines a subdivision? a) A map showing the location of districts throughout the municipality b) A survey of the social and economic statistics of the land c) A tract of land divided into lots or plots and used for building purposes d) A transition area between uplands and aquatic habitats

Which of the following individuals would be in violation of Minnesota license law if performing the activity for a fee? a) An company selling a new franchise store b) An unlicensed executor selling a property to comply with probate proceedings c) An unlicensed individual selling his brother's home d) An unlicensed trustee selling a property as part of a foreclosure proceeding

Which of the following ratios are among those acceptable in a piggyback financing arrangement? a) 90/10/0 b) 85/10/5 c) 80/10/10

Which of the following statements best describes MN agency disclosure requirements? a) a real estate broker or salesperson shall provide to a consumer in the sale and purchase of a commercial real property transaction at the first substantive contact whit the consumer an agency disclosure form b) a real estate broker or salesperson shall provide to a consumer in the Saale and purchase of any real property transaction at the first substantive contact with the consumer an agent disclosure form c) a real estate broker or salesperson shall provide to a consumer in the sale and purchase of a residential real property transaction at the first substantive contract with the consumer an agency disclosure form d) a real estate broker or salesperson shall provide to a consumer in the sale and purchase of a residential real property transaction at the first substantive contact with the consumer an oral or written agency disclosure

Which of the following would be considered personal property? a) Built-in microwave b) Custom curtains c) Free-standing TV d) In-ground pool

Which of these groups of protected classes is included in the NAR Code of Ethics' definition of discriminatory behavior? a) National origin and religion only b) Race and color only c) Race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity d) Sex, age, and marital status only

Which of these is the best meaning for "assignment of contract"? a) To assign a salesperson to work with a buyer to write up a contract b) To identify a primary and secondary buyer in a contract in case the first buyer decides to back out c) To substitute a new party for one of the original parties stated in the contract d) To take a signed contract and apply it to an investment property

Which one of the following statements about community property rights is true? a) All 50 states have community property rights. b) Community property rights are illegal in all 50 states. c) Nine states have community property rights. d) Only nine states out of 50 do not have community property rights.

Which option is true if a deed is not recorded after closing? a) The buyer must pay a fine to the seller. b) The entire closing is void. c) The property's legal ownership can be challenged. d) The title never changes hands from the seller to the buyer

Which type of easement is commonly seen when land is landlocked with no access to roads? a) Easement by grant b) Easement by implication c) Easement by necessity d) Easement by prescription

Which type of zoning classification regulates the intensity of use in an area that typically includes warehouse and manufacturing? a) Agricultural b) Commercial c) Industrial d) Residential

While the video didn't talk about calculating perimeters, this topic is covered in the 'Calculating Area and Length Cheat Sheet,' which is attached to this slide for your reference. Match these formulas to the appropriate shape on how to calculate the perimeter of each. Add lengths of each side a) Rectangle b) Square c) Triangle

Who can do these tasks a) broker b) salesperson c) both Conducts real estate brokerage activies

Who's responsible for disbursing escrow funds? a) The seller's agent b) The buyer's agent c) The escrow agent d) The mortgage company

Why were activities that encourage monopolies to form made illegal? a) They are profit-driven. b) They increase advertising expenses. c) They limit consumer choice. d) They reduce advertising expenses.

Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned? a) It's a joint tenancy. b) It's held as a tenancy in common. c) It's owned as an estate in severalty. d) There isn't enough information to tell.

With which type of lease will you hear the term "break-even point"? a) Gross lease b) Net lease c) Percentage lease

You built the formula. Let's play with some numbers now. Your seller wants to net $47,500 after the 5% commission is paid, but before other closing costs are figured in. At what price does the home need to sell for the seller to net this amount? a) $45,125 b) $47,500 c) $50,000 d) $52,500

You did a good job matching the economic characteristics with their descriptions. Let's see how you do with the physical characteristics. Match each physical characteristic to its description. While improvements may deteriorate over time, the land itself can't be destroyed. a) Uniqueness b) Immobility c) Indestructability

You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. Assuming that time machines don't actually exist (for now), what type of contract is this? a) Enforceable b) Unilateral c) Void d) Voidable

You're at the office supply store. You have three items in your cart: a ream of paper, a toner cartridge, and a package of pens. The clerk forgets to ring up your package of pens, which costs $2.79. You're already on your way to the car when you glance at the receipt and notice the error. You stop and think for a moment. It's only $2.79, and no one will ever know—after all, you aren't shoplifting or anything. There's quite a long line at the checkout, and the customer service desk is vacant. No chance of a short-cut there. Drat! What should you do? a) Do a little mental victory dance that you got something for free. After all, you haven't broken the law—it was "given" to you. b) Rationalize the situation by telling yourself something like, "I've spent so much money in this store. They owe me a freebie." c) Wait in line, notify the clerk of the error, and pay for it.

You're doing great! Now that we've seen how to calculate commission for a single transaction, let's see how you can use the commission formula as a planning tool. Suppose you're gearing up for the next quarter. You really want to push yourself to improve on the results from last quarter. You set a target of $21,000 in total commission for the quarter. Assuming the average total commission rate is 6% for each sale and you'll likely split that evenly with the person representing the other party in the transaction, what is the total value in sales you must reach to hit your target? a) $350,000 b) $600,000 c) $700,000

You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben? a) No, because agents can't share information with their clients b) No, because it's hearsay c) No, because you can't share one client's confidential information with another client d) Yes, because Ben is your client and has a right to know

You're working on a new listing. The property has a beautiful patio, and you want to include the patio's size in the property's listing information. The patio is 15 feet wide by 25 feet long. What's the area? a) (2 × 15 feet) + (2 × 25 feet) = 80 feet b) 4 sides × 15 feet = 60 feet c) 15 feet × 25 feet = 375 square feet d) (.5 × 15 feet) × 25 feet = 187.5 square feet

You've got the MRT rate down, but what about the deed tax? What's its rate? a) .0023 of the amount being secured b) .0030 of the amount being secured c) .0033 of the amount being secured d) .0035 of the amount being secured

You've identified the covenants included in a warranty deed. Now let's define them. Match the covenant with its meaning (use the resource if you get stuck). Grantor will correct any defects in the title being conveyed a) Quiet enjoyment b) Right to convey c) Further assurances d) Warranty e) Seisin f) Against encumbrances

You've shown that you know the client's primary duties to the agent or broker, but do you know what each entails? Match each duty to its example. Andy has two offers that he wants to share with his seller clients, but they aren't answering their phone or responding to texts. a) Compensation b) Information c) Availability d) Indemnification

The Subdivided Land Act addresses which of the following four components of subdivisions? (4) a) budgets b) governance c) public offering statements d) reporting e) recession periods f) sales contracts

c, d, e, f

A Minnesota subdivision project was registered by qualification. Which of the following must be true about the project? a) The land is being offered or sold by the federal or state government. b) The project has 100 or fewer lots or sales. c) The project has been granted a HUD exemption. d) The project has more than 100 lots or sales.

A consumer is moving to a new area and uses social media to try to line up a real estate professional to help him find a new home. He asks how much he'll need to pay his licensee. One firm he contacts tells him that all licensees in the area charge at least 2%. What antitrust violation does this imply? a) A tie-in arrangement b) Group boycotting c) Market allocation d) Price fixing

A group of 26 different families have shared ownership of a vacation condominium. Each family spends two weeks annually at the condominium. Legally, the condominium is considered a ______. a) Co-op b) Foreclosure unit c) Rental property d) Timeshare property

A licensee wishes to place a sign in the yard of a new listing he's pursuing. What must be in place before that sign hits the ground in Minnesota? a) An independent contractor agreement b) A signed agency disclosure c) A signed buyer agency agreement d) A signed listing agreement

A listing broker in Minnesota received a commission check from the seller at closing. The broker would be committing a license law violation if he were to deposit the check in a ______ account. a) Business b) Operating c) Personal d) Trust

A parcel of land measures one half mile by 3,000 feet. If price per acre is $4,200, what's the list price for this parcel? Round to 10ths of an acre for your calculation. a) $1,527,273 b) $752,066 c) $756,000 d) $763,560

A property is 330 feet long by 100 feet wide. How many square feet is the property? a) 10,300 b) 30,000 c) 3,300 d) 33,000

A real estate licensee and his client fulfill the listing agreement, and the agency relationship is terminated. At what point did the agent's fiduciary duty of confidentiality to this client terminate? a) After 30 days b)After one year c) Immediately d) Never

A specific, involuntary lien placed by contractors or subcontractors against a non-paying client's property a) Deceased person's debt b) Corporation franchise tax lien c) Real property tax lien d) Mechanic's lien

A subdivision that consists of common property and improvements that are owned and maintained by an owners association is called what? a) Converted-use property b) Cooperative c) Modular home d) Planned unit development

According to the NAR Code of Ethics, which statement most accurately describes a licensee's responsibility related to written offers on a listing? a) A licensee is only required to present formal written offers that are equal to or more than the listing price. b) A licensee is only required to present formal written offers within a certain range of the listing price of the property. c) All formal written offers the licensee receives must be presented to the owner unless the owner has accepted a previous offer. d) All formal written offers the licensee receives must be presented to the owner until closing or execution of a lease unless the client waives this obligation in writing.

Acme Development Corporation wants to build a planned unit development for seniors. What do they need to file with the planning board? a) A list of all intended residents b) A list of restaurants in the development c) A request for a zoning variance d) Detailed plat maps with all uses defined

Allentown sits on the river, and its many bridges need repair. Which police power is Allentown likely to use in order to fund improvements to its bridges? a) Condemnation b) Escheat c) Taking d) Taxation

Amara was found guilty of refusing to deal when several former clients came forward stating she found a way to cancel their agreements when they wouldn't use her mortgage banker friend as their lender. Amara claimed that she didn't realize this was an antitrust violation, but the judge found her guilty in a civil action, levied a $25,000 fee, and ordered her to give up her license for 24 months. Amara paid the fee but didn't stop selling. What is the maximum monetary penalty that she could receive now? a) $25,000 b) $50,000 c) $75,000 d) $100,000

Appraisals in MN must disclose which of the following before they perform any appraisal services? a) How long it will take to complete the appraisal b) The number of similar properties appraised in the last three years c) When the appraiser was licensed to perform appraisals in the state d) Who requested the appraisal, and why

Are you familiar with all of the documents to transfer a title? Although not required at every closing, a handful of documents are used at most closings. Connect each document to its purpose. Insures the policy owner against financial loss if the title to the real estate has defects a) Chain of title b) Abstract of title c) Deed d) Title insurance policy e) Survey

As a court appointed guardian, Marion serves as which type of agent? a) appointed b) general c) special d) universal

As a real estate licensee, you'll need to know how the definitions of land, real estate, real property, and personal property differ. Let's find out if you know the differences. Match each term to its description. Everything that's not real property a) Land b) Real property c) Improvements d) Personal property e) Real estate

As with most contracts, there are many ways to terminate a lease. Mrs. Hudson has a lot of lease terminations, and a few other issues, to deal with. Match the correct lease termination term to the proper tenant scenario. James hasn't paid rent this month or renewed his lease agreement, and he refuses to leave. a) Abandonment b) Eviction c) Expiration d) Holdover tenant e) Mutual agreement

As you know, the seller is responsible for certain expenses at closing. What is the purpose of each expense? Connect each expense to its description. Can be paid separately to the seller's lawyer; if paid from the closing proceeds, it shows up as a debit a) Recording documents b) Deed preparation fee c) State and local deed taxes d) Attorney fees e) Broker commission f) Satisfaction of existing liens

Assuming that dual agency is legal where these scenarios occur and that the licensees' brokerages permit it, which of these situations demonstrates illegal dual agency? a) Jarrod represents the seller, Juan. A buyer, Alaina, approaches Jarrod about representing her in the purchase of Juan's house. Jarrod obtains Juan and Alaina's consent to dual agency. b) Kady's firm uses representation agreements that, when signed, provide consent to dual licensee dual agency. Kady's buyer makes an offer on one of Kady's colleague's listings. c) Levi's customer, Renee, wants to make an offer on Levi's seller client's home. Levi explains that he represents the seller but then presents Renee's offer to his client. d) Tom is holding an open house for his client. Ruby, a buyer, says she wants to make an offer. She details her situation; Tom waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.

At what point does an option contract become binding for both parties? a) Once the optionee pays the option fee b) Once the optionor agrees to sell the property to the optionee c) As soon as both parties sign the option contract d) Once the optionee exercises the option

Bartholomew was a practicing real estate licensee in MN, but spent some time dabbling in other careers for a few years before deciding to get back into real estate. He's studying to take the licensing examination again. Which of the following is most likely true? a) He kept his license active even though he wasn't practicing real estate b) He was a real estate salesperson and is now applying for a broker license c) He was unlicensed for less than a year d) It's been at least two year since his last renewal deadline

Before we get into how the secondary mortgage market supports the primary mortgage market, let's review the key players in this market. Match these players with the loans they buy or insure. Agricultural and rural loans a) Fannie Mae b) Freddie Mac c) Ginnie Mae d) Farmer Mac

Below are the remaining buyer's expenses. What is the purpose of each of these expenses? Connect each expense to its description. Have to do with house safety and will have been paid prior to closing and will therefore not appear on the closing statement a) Title insurance b) Mortgage insurance c) Tax reserves d) Inspections

Billy buys Randy's home, and specifies in the sales contract that the outdoor grill must stay with the home. Randy ends up taking the grill when he moves out. If Billy wants to sue Randy for taking the grill, Minnesota's statute of limitations states that he must do so within ________. a) Six days b) Six hours c) Six weeks d) Six years

Boris bought a property with a purchase price of $300,000. He had a down payment of $10,000 and financed the difference. How much MRT is owed for the purchase? a) $990 b) $690 c) $957 d) $667

Clara is a real estate salesperson in MN. She recently got married, change her name, and moved to a new house with her spouse. Which of the following is true? a) Her broker must note the name change on Clara's existing license b) She can't practice real estate until she receives a license in her new name c) She must notify her broker within 10 days of the name and address change d) She must notify the commission within 10 days of the name and address change

Creation of an easement varies with the type of easement. The resource attached to this slide contains a chart showing various Land is landlocked with no access to roads a) Easement by condemnation b) Easement by prescription c) Express easement d) Easement by necessity e) Implied easement

Darcy and her buyer client Josh are reviewing Josh's offer before they submit it to the seller. Which one of these actions may Darcy take without potentially crossing into the unauthorized practice of law? a) Draft her own offer form. b) Strike through any paragraphs Josh doesn't like, even the ones required by federal or state law. c) Tell Josh that hiring an attorney to review the contract would be a waste of money since Darcy is perfectly qualified to explain the legal ramifications of the contract terms. d) Use standard, approved language in contingencies, addenda, and additional provision areas.

David is an active duty member of the U.S. Air Force. Assuming he and the property meet the qualifications, which type of mortgage may be the best option for him? a) A conventional loan b) A Ginnie Mae-originated loan c) An FHA loan d) A VA-guaranteed loan

During closing, the attendees consummate a number of contracts. Do you know which parties are responsible for closing which contracts? Match these parties to the contract they're finalizing. Close on the title insurance contract a) Agents' brokerage firms b) Seller and seller's agent c) Buyer and lender d) Buyer and title company rep.

Elizabeth's property is encumbered by an easement in gross with which of these entities? a) The neighbor who constructed his new backyard fence six inches across Elizabeth's property line b) The owner of the empty lot down the street that Elizabeth uses as a vegetable garden with the owner's permission c) The resident of the adjoining property to whom Elizabeth has given permission to store some items in her gardening shed d) The utility company that needs to access the power line that crosses a corner of Elizabeth's land

Eva, Stella, and Lynn owned a vacation home two blocks from the beach. Sadly, Stella passed away over the winter, so when summer arrived, Eva and Lynn shared the home with Stella's nephew Drew, to whom Stella willed her share of the property. What type of ownership is this? a) Estate in severalty b) Joint tenancy c) Tenancy by the entirety d) Tenancy in common

First, let's get the basics out of the way. You may have heard of foreclosures before, but what exactly is a foreclosure? Select the option you think best describes a foreclosure sale. a) It occurs when a property doesn't receive an acceptable bid in a foreclosure sale and the bank takes ownership of the property. b) It occurs when the market value of the property is less than the net proceeds the borrower will get from a sale. c) It occurs every time a one-story house or single family home is sold in an urban residential market. d) It occurs when the borrower defaults on the mortgage loan and the lender moves to recoup costs owed by forcing a property sale.

Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby, Of these four parties, who will pay the earnest money? a) Brandon b) Greta c) Nelson d) Rigby

Hank works for an organization that lends specifically to investors who want to avoid conventional financing. What type of lender does Hank work for? a) Savings and loan b) Commercial bank c) Credit union d) Investment group e) Insurance company

How familiar are you with the types of liens? Let's find out. Connect each type of lien to its description. If you're unsure as to the answers, don't hesitate to consult your resource. The IRS places a general, involuntary lien against a property for due and unpaid taxes. a) Judgment lien b) Estate/inheritance tax lien c) Mortgage lien d) Income tax lien

How long does the borrower have to pay private mortgage insurance? a) 12 years b) 20 years c) Until 50% of the original loan is paid off d) Until the borrower reaches a 22% equity position

If there's no state or local building code to cover a specific situation, what code must the builder abide by? a) The Builder Code of 1912 b) The builder's own c) The Development Code of 1986 d) The federal building code

If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients? a) buyer agency b) dual-licensed dual agency c) seller agency d) single-licensed dual agency

If you're going to apply for either a salesperson's or broker's license, you must do so within a certain amount of time after passing your exam. How much time do you have? a) 30 days b) 90 days c) 180 days d) 365 days

In the real estate business, whose primary role is it to make improvements to land? a) Home inspector b) Property manager c) Real estate appraiser d)Real estate developer

In the real estate business, whose primary role is it to provide training to individuals who want to obtain their real estate license or who need to keep their license current? a) Real estate attorney b) Real estate broker c) Real estate counselor d) Real estate educator

In the real estate business, whose primary role is to make improvements to land? a) home inspector b) property manager c) real estate appraiser d) real estate developer

In which of the following situations can you sell timeshares without a real estate license? a) When the timeshare was constructed more than five years ago b) When the total value of the property is under $1 million c) When you're selling them for a friend or relative d) When you're selling your own timeshare

Jack works for a great company creating online training for individuals who want to obtain their real estate license or need to keep their license current. What is Jack's profession? a) Real estate attorney b) Real estate broker c) Real estate counselor d) Real estate educator

Jacqueline found a ready, willing, and able buyer for her client's condo, with a sales price of $20,000 more than the asking price. However, the appraisal came in just under the asking price. Which number will the lender use to calculate the loan-to-value ratio? a) A middle point between the two numbers b) A weighted average based on the sales price, appraisal amount, and recent sales c) The larger number, as a buyer has already been found d) The smaller number

Jameis is a landlord in Minnesota who charged a screening fee to each of these applicants. Which of these applicants' screening fees is Jameis required to return? a) Gilbert was screened and rejected due to a reason listed on the screening fee disclosure. b) Jane was screened and offered the rental unit. She accepted the offer. c) Joel was screened and offered a rental unit. He rejected the offer. d) Kenneth was screened and rejected due to a reason not listed on the screening fee disclosure.

Jamie owns a lakeside home. Over a period of years, the water has receded quite a bit, doubling the size of the sand beach on his property. What's the name of this process? a) Accretion b) Erosion c) Exclusion d) Reliction

Janet gives Warren, the buyer of a condominium in her new Minnesota development, a copy of the public offering statement two weeks after he enters into a contract to buy the unit. Five days after receiving the statement, Warren decides to cancel the contract. Can he do this? a) No, Warren has already signed a sales agreement. b) No, Warren is past the three-day period permitted to cancel a sales agreement. c) Yes, Warren can cancel the contract but may be required to forfeit any earnest money he submitted. d) Yes, Warren can cancel the contract without penalty within 15 days of receiving the public offering statement.

Jeanine has an exclusive right-to-sell agreement with her listing agent, Tera. Which of these statements about Tera's compensation is true? a) A protection clause in any listing agreement guarantees that Tera will be compensated if she or another listing agent sells the property. b) A protection clause in the exclusive right-to-sell agreement guarantees that Tera will be compensated no matter who sells the property. c) The exclusive right-to-sell agreement guarantees procuring cause, which means that no matter what Tera does, there will never be any question about who initiated the uninterrupted chain of events the led to the sale. d) The exclusive right-to-sell agreement means that, under contractual obligation, the broker will be paid no matter who brings the buyer to the transaction.

Jennifer is completing an application to be licensed as a trainee appraiser. Her uncle, a licensed appraiser, has agreed to supervise her, and she passed the trainee exam with a score of 90%. She's be 19 in two weeks, and over the last 6 months she's been doing general appraisal education, including the 15 hour USPAP course. Does Jennifer have everything she needs to submit her application? a) Yes, she has completed all trainee licensing requirements. b) No, she hasn't documented the required experience. c) No, she must be 21 to apply or have a real estate related degree d) No, she also needs to complete 6 hours of supervisor/trainee education

Kenneth plans to shop around for his mortgage loan to be sure he's getting the best interest rate and terms. What lender-provided document outlines loan rates and fees so he can make comparisons? a) Kenneth's settlement statement details all closing costs, so he can use it to compare lender loan products. b) The buyer's net sheet provides all the figures necessary for comparing loan products. c) The Closing Disclosure discloses all loan costs, so he can compare costs between lenders. d) The Loan Estimate permits Kenneth to comparison shop.

Lauren had a listing agreement with Florence, a MN real estate broker. After Lauren's agreement with Florence ended, she re-listed her home with Jamal and sold the property within two months. Florence is seeking compensation from Lauren because the property sold to a buyer that shows interest when the property was listed with Florence. Which of the following could allow Florence to receive compensation? a) The buyer's name was on an open house sign in sheet. b) The buyer's name was on the protected list provided to Lauren 10 days after contract expiration. The contract included a three month override clause. c) The buyer's name was on the protected list provided to Lauren three days after contract expiration. The contract included a one year override clause. d) The buyer's name was on the protected list provided to Lauren two days after contract expiration. They contract included a three month override clause.

Lauren had a listing agreement with Florence, a Minnesota real estate broker. After Lauren's agreement with Florence ended, she re-listed her home with Jamal and sold the property within two months. Florence is seeking compensation from Lauren because the property sold to a buyer that showed interest when the property was listed with Florence. Which of the following could allow Florence to receive compensation? a) The buyer's name was on an open house sign-in sheet. b) The buyer's name was on the protected list provided to Lauren 10 days after contract expiration. The contract included a three-month override clause. c) The buyer's name was on the protected list provided to Lauren three days after contract expiration. The contract included a one-year override clause. d) The buyer's name was on the protected list provided to Lauren two days after contract expiration. The contract included a three-month override clause.

Let's put the ratio into practice. You have an appointment to meet with Ramon and Willis, a young couple who are in the early stages of the homebuying process. They earn a gross monthly income of $3,600 and a net income of $2,900. The lender the couple is working with is conservative and only funds loans at the low end of the housing debt-to-income ratio. How large of a house payment can Ramon and Willis afford (according to their lender)? a) $725 b) $800 c) $850 d) $900

Let's see how much of this title terminology stuck with you. Match the title procedure terms with their correct descriptions. We've attached a set of flashcards for you to practice with. Title to property is free and clear of liens and only subject to loan payoff and any taxes owed a) Abstract of title b) Title search c) Affidavit of title d) Marketable title e) Evidence of title f) Title insurance

Let's see how much you know about subdivisions and the terms associated with their development. Match each term to its description. Social and economic make-up of a community a) Subdivision plat b) Subdivision c) Plat book d) Demographics e) Development agreement

Let's see what you know about the types of title examinations and the terms involved in examining title. Match the title examination term to its description. Search of the public records that goes back at least 60 years to index the chain of title owners in a process called adversing the title a) Title report b) Correction deed c) Limited search d) Title examination

Let's test what you just learned. Try matching the government power with the type of legal power it possesses. Involuntary title conveyance for the public good a) Escheat b) Taxation c) Police power d) Eminent domain

Let's try a slightly more difficult calculation. This time, seller Ricky's property is assessed real estate taxes of $1,400 for the year. Closing is held on August 15. If Ricky owns the day of closing, what is the amount that Ricky owes for taxes accrued and not yet paid based on the statutory year? a) $800.05 b) $816.69 c) $871.15 d) $875.04

Let's try your hand at some more fun deed terminology. Connect each deed term to its description. When accomplished, the title is transferred from the grantor to the grantee a) Signature of grantor b) Restrictions and exceptions c) Consideration d) Delivery and acceptance

Licensee Dionne pointed out to her buyer client the items that would be considered real property. What is one of the key characteristics of an item that is real property (also known as a fixture)? a) Internal or external to the house b) Made of the same material as an interior or exterior wall c) Over or under a certain value d) Permanently affixed to the property

MN brokers can use personal funds in trust accounts for which reason? a) to earn more interest for the housing fund b) to earn more interest personally c) to offer commission rebates d) to pay administration service fees

Madge and Steve are married when they purchase a townhouse. They take ownership under this type of tenancy, which has the right of survivorship. That means if Steve dies, Madge becomes the sole owner of the townhouse. Likewise, if Madge dies, Steve becomes the sole owner. Neither may pledge his or her interest in the property to another without the other spouse joining in the deed. If Madge and Steve divorce, their tenancy would end automatically by divorce decree, and they would become tenants in common. What type of ownership do Madge and Steve have? a) Estate in severalty b) Tenancy in common c) Joint tenancy d) Tenancy by the entirety

Marissa, a new licensee, has some questions. Which of the following questions can the association of REALTOR(R) in her state help her answer? a) How do I choose an educator for my post-licensing education requirements? b) What kinds of records do I need to keep, and for how long? c) What steps do I have to take to become a principal broker? d) Where can I go to find marketing data on my area so I can advertise more effectively?

Marsha leases a ranch house in a bedroom community. When the owner decided to sell the house, Marsha was given the opportunity to purchase it but declined. What does Marsha have? a) Lease with obligation to buy b) Lease with option to buy c) Option contract d) Right of first refusal

Match each of the four types of easements with its characteristic. Right to use the land (not necessarily an adjoining property) a) Easement by necessity b) Easement appurtenants c) Easement by prescription d) Easement in gross

Match each of these terms with its corresponding definition. The length of the loan a) Interest b) Amortization c) Principal d) Term

Match the status change to its decription a) incapacitation of broker b) terminaiton c) withdrawal d) transfer A licensee wants to work under another broker during the remainder of an existing license period.

Members of the NAR or local associations of REALTORS® must ______ to belong to the organization. a) Be initiated b) Be nominated c) Pass a test d) Pay an annual membership fee

Mike began his presentation with some of the legislation and acts influencing lending. Match the regulation or act with its requirement. Prohibits lenders from discriminating based on protected class a) Truth in Lending Act b) Community Reinvestment Act c) RESPA d )Equal Credit Opportunity Act

Mix of residential living with office space and small retail space a) Downtown district b) Residence district c) Commercial district d) Office residence district e) Industrial district

Monty retired 10 years ago and would like to see the world, but his retirement account won't support his desire to travel. Monty heard of a loan that would allow him to take advantage of the equity in his home by getting monthly payments from the bank by using his house as collateral. What is this type of loan called? a) Adjustable rate mortgage (ARM) b) Home equity line of credit (HELOC) c) Home equity loan d) Reverse annuity mortgage (RAM)

Ned represents Sofia in the sale of her townhouse. Luciana represents Sofia's buyer, Arturo. What is Luciana's responsibility to Sofia? a) assist Sofia in the performance of tasks that Sofia needs to accomplish in order to get to a successful closing b) contact the tax assessor's office for an estimate of the real property taxes c) disclose that the buyer is a registered sex offender d) disclose that the buyer will not have the funds for the down payment unless he sells his current home

Now let's look at what expenses the buyer is responsible for at closing and what is the purpose of each expense is. Connect each expense to its description. Can be paid separately to the buyer's lawyer; if it is paid as part of closing, it appears as a debit on the closing statement a) State and local deed taxes b) Loan fees c) Appraisal / Credit report fees d) Attorney's fees e) Recording fees

Now let's take a closer look at each of the essential elements, beginning with legally competent parties. What is a legally competent party? a) A party at which there are no illegal substances b) A party who knows how the legal system works c) A party who has a lot of experience in drawing up contracts d) A party who has the legal and mental capacity to enter into a contract

Now that you have had a chance to familiarize yourself with the various methods of discharging a contract, let's see if you can recall the types of performance associated with each method. Connect each type of performance to its description. One party has met most—but not all—of the terms specified in the contract, and may be required to pay damages for the terms not met. a) Impossibility of performance b) Specific performance c) Partial performance d) Substantial performance

Now that you've correctly identified real estate characteristics by category, let's see if you can match each economic characteristic to its description. A property's value is impacted by where it's situated and how interested people are in buying or living in the area a) Scarcity b) Improvements c) Permanence of investment d) Location or area preference

Parker entered into a contract with seller Derrick to buy Derrick's home. Before finalizing the sale, Parker had a change of heart and decided to renounce all worldly possessions. He no longer wanted to buy Derrick's home. With Derrick's approval, Parker is released and Parker's brother, Tom, takes Parker's place as the buyer in the purchase contract. Of what is this an example? a) Assignment b) Fraud c) Misrepresentation d) Novation

Rachel loves convenience. As you can imagine, she was thrilled when she was able to finance her mortgage through the same institution where she deposits her payroll checks. Which of these most likely financed Rachel's mortgage? a) Insurance company b) Investment group c) Mortgage broker d) Savings and loan

Rick Tynes is tired of waiting for his subcontractor to get his part of the deal done. The agreed-upon deadlines have come and gone, and Rick is losing money waiting for the subcontractor to come through. If the subcontractor isn't going to honor his commitments, neither is Rick. There's no point in throwing good money after bad by suing the subcontractor. He's just going to consult with his attorney and then terminate this contract and be finished with the whole ordeal. What remedy is Rick pursuing to address his breach of contract situation? a) Accept liquidated damages b) Accept partial performance c) Mutually rescind the contract d) Unilaterally rescind the contract e) Sue for damages f) Sue for specific performance

Ron's company leased a building so that it could build an escape room experience. After operating for two years, attendance (and thus its profits) started to drop significantly, so it decided to close the location. When the workers started taking down the installation, they realized that some of the structures would damage the walls if they were to try to remove them. Which of these is true about these trade fixtures? a) If Ron leaves them in place and the lease expires, he has three months to remove them. b) Ron is required to leave the fixtures if they're attached. c) Ron is required to take the fixtures and return the premises to its original condition. d) Ron may take the fixtures as long as he repairs any damage caused by removal.

Ryan is an unlicensed individual acting as a finder for Rachel. What happens if he performs duties beyond just introducing the buyer and seller, such as negotiating a deal? a) An agency relationship is created. Ryan can face disciplinary action if an agency is formed without proper agency disclosures. b) Nothing. Ryan is not a licensee, so he doesn't face any repercussions from the real estate commission. c) Ryan can get in trouble for acting as a dual agent. d) Ryan could face penalties for acting as a real estate licensee without having a real estate license.

Shakira is attending an association meeting when, in a small group breakout, her group begins discussing how to deal with the new kid in town: a real estate firm that charges a flat $500 to list properties, then lets the sellers fend for themselves. Why should Shakira leave the discussion? a) She needs to get to work developing this model for herself. b) The group seems bent on creating a tie-in arrangement. c) This conversation seems to be turning into a discussion of market allocation. d) This conversation sounds like it might become an antitrust violation.

Sima purchased a cooperative. When the sale goes through, what will she own? a) An option to purchase b) A stock portfolio c) Real estate d) Shares in a corporation

Specific public records are used to provide proof of title ownership. How familiar are you with these public records? Let's find out. Match each document to its purpose. Establishes path and proof of ownership a) Abstract of title b) Title insurance policy c) Deed d) Chain of title

Stacey's lengthy military service makes her uniquely eligible for a(n) ________. a) FHA loan b) Piggyback loan c) Subprime loan d) VA loan

Stacey, a buyer, is working with Rebecca, a licensee, ink a state that doesn't recognize or permit implied agency. Rebecca doesn't represent Stacey, however, and is performing only ministerial tasks for her. Which of the following statements about this situation is correct? a) Rebecca can't work with Stacey without an agency agreement b) Rebecca is acting in an agency capacity for Stacey c) Stacey is Rebecca's client d) Stacey is Rebecca's customer

Subdivision development is often guided by how the land is zoned, and also by the subdivision regulations set forth by the ______. a) County clerk b) Department of health c) Department of state d )Planning commission

The Department of Commerce Licensing Unit administers which of the following? a) Consumer complaint system b) Licensing exams c) Mediation requests d) Renewal applications

The Golden Rule ______. a) Doesn't apply to business situations b) Is exclusive to religious individuals c) Is rarely needed d) Provides a guideline for all personal and professional ethical situations

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____. a) Condemnation b) Eminent domain c) Escheat d) Inverse condemnation

The document Mike emailed Keira summarized the types of loans available. The loans vary slightly based on the type of property and who's obtaining financing. We'll group similar loans together when we review the options. Let's start with some general residential mortgage types. Match the type of mortgage with its description. Interest rate remains the same, but monthly payments increase over time according to a set schedule a) Adjustable rate b) Amortized c) Straight d) Growing equity

The duty of _____ requires licensees to provide both clients and customers with quality, knowledgeable, and prudent service, and live up to the trust placed in them. a) confidentiality b) loyalty c) obedience d) reasonable skill and care

The duty of ______ requires licensees to provide both clients and customers with quality, knowledgeable, and prudent service, and live up to the trust placed in them. a) Confidentiality b) Loyalty c) Obedience d) Reasonable skill and care

The state has seized a strip of Marge's land. It's relatively small but goes right through her sheep pastures. She just found out that the state will use it for a six-lane highway. She's pretty sure that the value of her land is going to plummet, and she can't figure out how to use it as pastureland anymore. What kind of involuntary alienation is she dealing with? a) Court-ordered partition of property b) Escheat c) Foreclosure d) Regulatory taking

There are several essential elements to a deed. Which of the following must be included in a deed? a) Both the grantee's signature and the legal description b) Grantee's signature c) Haberdasher clause d) Legal description

Timeshare ownership can take several forms. How familiar are you with how these forms differ? Let's find out. Connect each timeshare term to its description. Pieces of real estate owned by multiple, unrelated individuals who occupy the dwelling unit in one- to two-week intervals during the year a) Vacation ownership b) Campground membership c) Timeshare use d) Timeshare estate

To whom should you refer your clients for specific advice about income taxes? a) Church leaders b) County attorney c) Managing broker d) Tax professional

Trish is a homebuyer. She has agreed to pay $310,000 for the home she wants. She deposited $15,000 as earnest money. Her bank agreed to loan her 80% of the appraised value of $295,000. In addition, the settlement costs she's required to pay amount to 5% of the purchase price. We're going to calculate how much additional money Trish needs to bring to closing. Which of these would be a good place to start? a) Calculate the difference between purchase price and settlement costs. b) Calculate 5% of $295,000. c) Figure out why Trish's agent doesn't renegotiate the purchase price based on the appraised value. d) Calculate the loan amount that Trish will receive from the bank.

Upon the death of a joint tenant, to whom will that person's interest in the joint tenancy pass? a) The decedent's heirs b) The remainderman c) The state, unless there is a will d) The surviving joint tenants

Use your resource to match some common types of deeds with their descriptions. Strongest and broadest form of guarantee of title a) Bargain and sale b) Quitclaim c) Referee d) Full covenant and warranty e) Executor

Using the 'Calculating Area and Length Cheat Sheet' in your resources, define these common land measurements. Three feet a)Square mile b) Mile c) Square foot d) Yard e) Acre

Victor bought a property from Yolanda for $200,000. Under the terms of a land contract, Victor agreed to pay Yolanda in monthly installments of $4,000 over the course of 50 months. Until Victor pays Yolanda the $200,000, who retains the title? a) A trustee b) Victor c) Victor's beneficiary d) Yolanda

What acronym can be used to remember an agent's fiduciary duties? a) CARE OF b) DUE CARE c) FAR GONE d) OLD CAR

What can buyers do to protect themselves from title issues when purchasing property? a) Ensure the seller's name is on the deed. b) File a lis pendens claim at the court before buying the property. c) File a security agreement at the county clerk's office. d) Purchase title insurance.

What do riparian rights give landowners the ability to do? a) Drill an agricultural water well. b) Prohibit others from using the water. c) Use a pond adjacent to the property. d) Use a river running through the property.

What does CC&R stand for? a) Carparks, curbs, and roadways b) Conditions, consideration, and reports c) Condominiums, cooperatives, and residential housing d) Covenants, conditions, and restrictions

What does the parol evidence rule say about contracts? a) All contracts, commitments, and agreements for the sale of real property must be in writing. b) A sales contract must contain the essential elements of a contract for it to be enforceable. c) In order for a real estate agreement to be enforceable, it must be in writing and signed by both parties. d) The terms agreed to in a written contract are the only terms relating to that contract.

What does the parol evidence rule state? a) All contracts, commitments, and agreements for the sale of real property must be in writing. b) An Agreement of Sale must contain the essential elements of a contract for it to be enforceable. c) For a real estate agreement to be enforceable, it must be in writing and signed by both parties. d) In most cases, a written agreement is the final and comprehensive expression of the parties' agreement. It generally prohibits introducing oral or written evidence that contradicts that agreement.

What does the phrase "time is of the essence" mean with regard to a real estate contract? a) The parties need to decide quickly if they want to enter into a contract. b) The contract must be timestamped by a notary. c) The parties have all the time they need to fulfill the terms of the contract. d) The parties agree to proceed in good faith and not unduly delay the process.

What happens if a person without a real estate license is acting as a finder and performs duties beyond just introducing the buyer and seller, such as negotiation or advising? a) An agency relationship is created. The individual can face disciplinary action if an agency relationship is formed without proper agency disclosures. b) Nothing. The person is not a licensee and doesn't face any repercussions from the real estate commission. c) The individual can get into trouble for acting as a dual agent. d) The individual could face penalties for acting as a real estate licensee without having a real estate license.

What information is on the amortization table? Match the items with their descriptions. Take a closer look at your resource if needed. Rate of interest for the loan a) Scheduled payment/total amount b) Ending balance c) Interest d) Annual interest rate e) Principal f) Beginning balance

What is a buyer agency agreement? a) An employment contract between an individual licensee and a potential property buyer b) A binding oral agreement between a brokerage firm and the potential property buyer c) A temporary, non-binding agreement between a potential property buyer and an individual licensee d) A binding, written contract between the potential property buyer and a broker

What is a contract for deed, also known as an installment sales contract or installment land contract? a) A contract between an office property manager and a contractor to deliver and install office equipment at the site in accordance with the contract schedule b) An incentive plan between a brokerage and a real estate licensee to bring in a specified number of sales contracts per month c) An agreement between a commercial property investor and potential buyers to purchase units on an installment plan d) A contractual agreement in which the buyer pays the seller the purchase price over time in a series of installments until the buyer has paid the contract in full, and the seller turns over the deed to the buyer

What is a good way to avoid the risks associated with dual agency? a) Call one party a customer, even if you have to offer some agency services to both parties. b) Have both parties sign a waiver. c) Have only one party agree to the dual agency situation; represent the other party as an undisclosed dual agent. d) Refer one party to another agent.

What is a listing agreement? a) An employment contract between an individual licensee and the seller of a property b) A binding oral agreement between a brokerage firm and the seller of a property c) A temporary, non-binding agreement between a seller of a property and an individual licensee d) A binding, written contract entered into by the seller of a property and the seller's listing agent (on behalf of the broker).

What is a purchase agreement? a) An employment contract between an individual licensee and a client b) A binding oral agreement between a potential property buyer and the property seller c) A temporary, non-binding agreement between a potential property buyer and the property seller d) A binding, written contract entered into by a potential property buyer and the property seller

What is a subdivision, according to MN's Subdivided Land Act? a) any mixed-use development with residential and commercial property included b) a residential area operating under a common homeowners' covenant c) a residential community with single family and multi family dwellings d) undeveloped land that is being divided into smaller lots

What type of ownership interest needs to be disclosed in writing to all parties? a) Only property held directly by the licensee b) Only property held directly or indirectly by the licensee c) Only property held directly or indirectly by the licensee or by the licensee's immediate family member d) Property held directly or indirectly by the licensee, the licensee's immediate family member, the licensee's firm, or a member of the licensee's firm

What type of police power allows cities to identify specific uses for an area? a) Condemnation b) Eminent domain c) Escheat d) Zoning

What type of timeshare involves a buyer agreeing to pay a one-time purchase price and an annual maintenance fee, and in return selecting an accommodation time and having the right to use the unit for a specified number of years? a) Lifelong b) Permanent c) Renewable d) Vacation

What's another name for an escrow account? a) Closing fund b) Locked account c) Savings account d) Trust account

What's another name for an escrow account? a) closing fund b) locked account c) savings account d) trust account

What's another name for the Homeowner's Protection Act? a) HOPA b) The Home Safe Act of 1998 c) The PMI Act of 1997 d )The PMI Act of 1998

What's consideration with regard to a contract? a) The parties receive a copy of the contract for their records. b) The parties carefully consider if they will accept the other party's offer. c) A buyer decides to rescind an offer. d) Something of value is given in exchange for something of value.

What's the best definition of real property? a) Artificial attachments to land that include things such as fencing, buildings, and walkways b) Earth, soil, and air c) Land, plus all things permanently attached to it naturally or artificially d) Real estate, plus all of the interests, benefits, and rights included in ownership

What's the purpose of PMI? a) Insure the dwelling in the case of fire, flood, or other natural disasters b) Prevent the lender from having to provide the property insurance itself c) Protect the borrower from being defrauded d) Protect the lender in case of borrower default when the borrower has put down less than 20%

What's true about getting a real estate license to sell subdivided lands in MN? a) a special subdivision sales license process in in place b) licenses are only needed to sell timeshare interests c) subdivision developers can distribute a limited number of licenses to employees d) the normal real estate license process applies

When a city is determining zones, what should be followed? a) Construction standards b) Federal zoning codes c) State zoning codes d) The comprehensive plan

When a contract has been breached, the wronged party may attempt to sue for punitive damages, which are ______. a) An agreed-upon amount that the buyer will pay the seller if the buyer breaches the contract b) Compensation for actual loss based on the contract's value c) Non-monetary damages d) Payments in excess of any compensatory damages

When accepting compensation, which of the following statements is most accurate, according to the NAR Code of Ethics? a) A licensee shall not accept compensation directly from more than one party to a transaction. b) A licensee shall not accept compensation from anyone. c) A licensee shall not accept compensation from more than one party to a transaction without consent from the client. d) A licensee shall not accept compensation from more than one party to a transaction without the consent of all parties.

When certain activities are conducted in wetland areas, permits are required. In Minnesota, what regulatory authority issues these permits? a) Board of Water and Soil Resources b) Department of Environmental Quality c) Department of Natural Resources d) Local government units

When someone dies intestate with no heirs, the real property owned by that person may be taken by the state through _______. a) Bulldozer b) Descent c) Eminent domain d) Escheat

Where, and by when, must a MN licensee provide notification of an address change? a) To the attorney general, within 20 days b) To the Department of Licensing, within 30 days c) To the licensing bureau, within 30 days d) To the MN Commerce Department, within 10 days

Which entity typically enforces the code restrictions and licensing and insurance requirements for contractors, thereby enforcing the building code? a) Builder/developer b) Department of Environmental Conservation c) Department of Health d) Local building department

Which fiduciary duty requires agents to provide their clients with quality, knowledgeable, and prudent service, and live up to the trust that is placed in them? a) confidentiality b) loyalty c) obedience d) reasonable skill and care

Which method of alienation is being used? Al lived in a shed behind Ed's house for 10 years. Ed lists the house for sale; Al claims the shed and the property it sits on are his. a) Regulatory taking b) Eminent domain c) Deed d) Adverse possession

Which method of alienation is being used? Sam fell behind on his mortgage payments, and eventually the bank stepped in and forced the property to be sold. a) Will b) Natural processes c) Court-ordered partitioning d) Foreclosure

Which of the actions does the secondary mortgage market commonly take? a) Issues loans to consumers b) Regulates lending institutions c) Oversees the Fed d) Purchases loans from lending institutions

Which of the following actions is against the NAR Code of Ethics? a) Including the brokerage name and main phone number, in addition to a licensee's own name and phone number on an advertisement b) Making a reasonable effort to ensure all parties to a written agreement have a copy of the agreement c) Preparing a written agreement that accurately states a purchase price d) Preparing a written agreement that falsely states a purchase price

Which of the following best describes a home equity line of credit? a) loan in which the lender makes payments to the homeowner for a specified period of time and gains equivalent ownership b) A temporary (usually 90-day) loan that provides funds in addition to an existing loan until permanent financing can be obtained c) Funds received in one lump sum and frequently used for home renovations, to fund a college education, or for other major purchases d) Used as an open-end account similar to the revolving credit of a credit card from which borrowers can take advances, repay money, and even borrow money again

Which of the following conditions will legally void a subdivision sales contract in Minnesota? a) The buyer is unhappy with other homes being built in the subdivision. b) The buyer's financing fell through. c) The per-lot cost has dropped significantly from the initial sale. d) The subdivision was never properly registered.

Which of the following could be a valid deed? a) A napkin with both parties' signatures and an oral agreement to sell the land b) An oral agreement between two trusted individuals c) An oral agreement between two trusted individuals and witnesses d) A written document containing all of the required elements and adhering to all document formatting requirements

Which of the following fiduciary duties is owed to both clients and customers? a) accounting b) confidentiality c) obedience d) prompt presentation of all written offers and counter-offers

Which of the following is a legitimate reason to terminate a buyer agency agreement? a) It's a seller's market. b) The buyer agent's spouse dies suddenly. c) The buyers aren't happy with the price of homes. d) The term of the agreement has expired.

Which of the following is an example of a fee simple freehold estate? a) You are entitled to possess the property for two years. b) You pay rent. c) Your heirs cannot inherit the property. d) Your ownership can be passed on to your children.

Which of the following is an example of price fixing? a) A brokerage requires all licensees to offer a fair cooperative brokerage fee. b) Three brokerages agree to purchase office supplies together to obtain a bulk discount. c) Twelve brokerages discuss compensation of associated independent contractor licensees. d) Two brokerages determine a standard commission rate.

Which of the following is the process the lender uses to evaluate whether to make the loan? a) Application b) Appraisal c) Commitment d) Underwriting

Which of these choices describes novation? a) One party to a contract neglects to complete an obligation, but the other party agrees to go forward with the contract. b) A contract is completed (executed), and the same parties later enter into a new contract with similar terms. c) A contract's terms are completed ahead of schedule, and the parties receive a congratulatory gift. d) The rights and obligations of an original party to an existing contract are taken by another party, creating a new contract.

Which of these has examples of antitrust violations common to real estate? a) Fraud, concealment, and misrepresentation b) Profiteering, racketeering, and domineering c) Puffery, hyperbole, and exaggeration d) Tie-in arrangements, market allocation agreements, and group boycotting

Which of these is likely considered a security under MN law? a) gold coin b) life insurance policy c) lottery ticket d) treasury bond

Which of these statements about the homeowner's right of redemption is true? a) Homeowner right of redemption applies to foreclosures, short sales, and REOs. b) Only foreclosures are subject to homeowner's redemption rights. c) Right of redemption timelines are longer for foreclosures than they are for short sales. d) Rights of redemption window with REOs may have expired.

Which of these statements about voluntary alienation is true? a) There is no such thing. By definition, all cases of alienation are involuntary. b) Voluntary alienation is unlawful. c) Voluntary alienation may only occur through documents signed by a notary. d) Voluntary alienation occurs when the property owner decides who will acquire the property.

Which one of the following options best describes a sales contract? a) A legally binding, oral contract between a property's potential buyer and a listing agent b) A legally binding, oral contract between a property's potential buyer and seller c) A legally binding, written contract between a property's potential buyer and a listing agent d) A legally binding, written contract between a property's potential buyer and seller

Which one of these is the method by which the secondary mortgage market makes money? a) Loan origination fees b) Servicing loans c) Interest payments d) Package and sell loans e) Discount points

Which option must be included on a deed for it to be valid? a) County judge's and sheriff's signatures and approval b) List of all living neighboring property owners c) Name of next of kin for inheritance purposes d) Names of grantor/grantee

Which statement most accurately describes a licensee's responsibility related to written offers on a listing, according to the NAR Code of Ethics and Standards of Practice? a) A licensee is only required to present formal written offers that are equal to or more than the listing price. b) A licensee is only required to present formal written offers within a certain range of the listing price of the property. c) All formal written offers received by the licensee must be presented to the owner, unless the owner has accepted a previous offer. d) All formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waives this obligation in writing.

Which type of antitrust violation occurs when the providing of one service is made dependent on the customer or client obtaining another recommended service? a) Group boycotting b) Market allocation c) Price fixing d) Tie-in arrangement

Which type of lender specializes in taking in savings deposits and then lending money out to consumers through mortgages and other loans? a) Credit union b) Mortgage banker c) Mortgage broker d) Savings and loan

While any distressed property can have title transfer issues, why is an REO less likely to be subject to unpaid tax liens? a) Buyers who purchase REO properties are required to include back property taxes in their purchase. b) County and local governments are required to abate unpaid property taxes on REOs. c) Lenders have already forced homeowners to pay unpaid property taxes during the foreclosure process. d) Lenders want REO properties to sell quickly, so they're likely to have resolved unpaid tax lien issues.

Who should review the settlement statement before closing? a) Only the buyer b) Only the seller c) The buyer and the lender's attorney d) The buyer and the seller

Why is it important that the legal description appears in real estate documents? a) It defines the duties an agent owes a client. b) It details the terms for a lease. c) It outlines all of the terms of a real estate purchase. d) It precisely locates the property and its boundaries.

You know how the secondary mortgage market makes money, but which entity buys its loans? a) Primary mortgage market b) Thrifts c) The Fed d) Investors

You're a buyer's agent, meeting with the buyer and the buyer's lender, Chuck, who is a ______ the transaction. a) Client in b) Customer in c) Person to whom you owe fiduciary duties in d) Third party to

You're probably getting pretty tired of listening to us talk about taxes. Trust us, you're almost there! Just a few more questions, though. What is a tax levy? a) A change in tax payment requirements b) A written document itemizing how taxes are spent c) When the government seizes property due to default d) A tax that's applied to satisfy budgetary needs

You've identified the covenants included in a warranty deed. Now let's define them. Match the covenant with its meaning (use the resource if you get stuck). Grantor defends title to the grantee against all others' lawful claims a) Quiet enjoyment b) Right to convey c) Further assurances d) Warranty e) Seisin f) Against encumbrances

You've shown that you know the client's primary duties to the agent or broker, but do you know what each entails? Match each duty to its example. While showing her buyer clients a property, one of Nancy's clients slipped on the driveway and broke his arm. a) Compensation b) Information c) Availability d) Indemnification

Agnes Sherwood is tired of the bad attitudes and shoddy workmanship she's seeing these days. She contracted to have her gutters fixed and paid the gutter company good money, but she's still getting water in her basement from her gutters leaking. There's no way she's letting guys from that same company back onto her property to mess it up even more. She's taking this to court, by golly! What remedy is Agnes pursuing to address her breach of contract situation? a) Accept liquidated damages b) Accept partial performance c) Mutually rescind the contract d) Unilaterally rescind the contract e) Sue for damages f) Sue for specific performance

Are you familiar with all of the documents to transfer a title? Although not required at every closing, a handful of documents are used at most closings. Connect each document to its purpose. Proves that no encroachments exist with the property a) Chain of title b) Abstract of title c) Deed d) Title insurance policy e) Survey

As a real estate licensee, you'll need to know how the definitions of land, real estate, real property, and personal property differ. Let's find out if you know the differences. Match each term to its description. Land, plus all things permanently attached to it, naturally or artificially a) Land b) Real property c) Improvements d) Personal property e) Real estate

As with most contracts, there are many ways to terminate a lease. Mrs. Hudson has a lot of lease terminations, and a few other issues, to deal with. Match the correct lease termination term to the proper tenant scenario. The Crane family's lease isn't up for several months, but they have asked Mrs. Hudson to let them out of their lease early, and she agreed. a) Abandonment b) Eviction c) Expiration d) Holdover tenant e) Mutual agreement

As you know, the seller is responsible for certain expenses at closing. What is the purpose of each expense? Connect each expense to its description. Usually paid by the seller to the seller agent's broker, who then pays the cooperating broker representing the buyer a) Recording documents b) Deed preparation fee c) State and local deed taxes d) Attorney fees e) Broker commission f) Satisfaction of existing liens

Creation of an easement varies with the type of easement. The resource attached to this slide contains a chart showing various Land is landlocked with no access to roads Conduct of the parties a) Easement by condemnation b) Easement by prescription c) Express easement d) Easement by necessity e) Implied easement

Let's see how much of this title terminology stuck with you. Match the title procedure terms with their correct descriptions. We've attached a set of flashcards for you to practice with. Proves ownership of the property a) Abstract of title b) Title search c) Affidavit of title d) Marketable title e) Evidence of title f) Title insurance

Let's see how much you know about subdivisions and the terms associated with their development. Match each term to its description. Contract between the city and the developer a) Subdivision plat b) Subdivision c) Plat book d) Demographics e) Development agreement

Now let's look at what expenses the buyer is responsible for at closing and what is the purpose of each expense is. Connect each expense to its description. Pays for the filing of the deed and for the new mortgage a) State and local deed taxes b) Loan fees c) Appraisal / Credit report fees d) Attorney's fees e) Recording fees

Now that you've correctly identified what real property rights are, let's see if you know what they mean. Match each right to its description. Right to possess the property without harassment or interference a) Control b) Possession c) Disposition d) Exclusion e) Enjoyment

Provides space for the manufacturing, processing, and packaging of goods and materials a) Downtown district b) Residence district c) Commercial district d) Office residence district e) Industrial district

Use your resource to match some common types of deeds with their descriptions. Conveys real property from a decedent's estate to a buyer a) Bargain and sale b) Quitclaim c) Referee d) Full covenant and warranty e) Executor

Using the 'Calculating Area and Length Cheat Sheet' in your resources, define these common land measurements. 43,560 square feet a)Square mile b) Mile c) Square foot d) Yard e) Acre

What information is on the amortization table? Match the items with their descriptions. Take a closer look at your resource if needed. Amount of payment that will be applied to the loan balance a) Scheduled payment/total amount b) Ending balance c) Interest d) Annual interest rate e) Principal f) Beginning balance

You've identified the covenants included in a warranty deed. Now let's define them. Match the covenant with its meaning (use the resource if you get stuck). Means the grantor holds the title specified in the deed a) Quiet enjoyment b) Right to convey c) Further assurances d) Warranty e) Seisin f) Against encumbrances

As you know, the seller is responsible for certain expenses at closing. What is the purpose of each expense? Connect each expense to its description. The money the seller owes the mortgage lender and is deducted from the seller's proceeds, and then paid to the lender a) Recording documents b) Deed preparation fee c) State and local deed taxes d) Attorney fees e) Broker commission f) Satisfaction of existing liens

Let's see how much of this title terminology stuck with you. Match the title procedure terms with their correct descriptions. We've attached a set of flashcards for you to practice with. Protects the buyer from defects in the title a) Abstract of title b) Title search c) Affidavit of title d) Marketable title e) Evidence of title f) Title insurance

Mark Strong thought he had bought and closed on a nice bit of property, but the seller has refused to deliver the title to him. Mark met his obligations per his written contract with the seller, and the seller met all but one—handing over the title. Mark isn't going to let the seller get away with this. He's going to get his title, even if it means going to court. What remedy is Mark pursuing to address his breach of contract situation? a) Accept liquidated damages b) Accept partial performance c) Mutually rescind the contract d) Unilaterally rescind the contract e) Sue for damages f) Sue for specific performance

What information is on the amortization table? Match the items with their descriptions. Take a closer look at your resource if needed. Loan balance prior to the monthly payment being applied a) Scheduled payment/total amount b) Ending balance c) Interest d) Annual interest rate e) Principal f) Beginning balance

You've identified the covenants included in a warranty deed. Now let's define them. Match the covenant with its meaning (use the resource if you get stuck). No encumbrances against the title, except those in public record a) Quiet enjoyment b) Right to convey c) Further assurances d) Warranty e) Seisin f) Against encumbrances

Affected or Unaffected Some activities that real estate licensees perform are affected by license laws, and others are not. Which would be likely be affected? Required education

Affected

Read each scenario and decide if it is an example of severance or annexation. Jessica and Harriet, two elderly sisters, plant two small flowering shrubs in their backyard. Severance/Annexation

Annexation

Read each scenario and decide if it is an example of severance or annexation. Sam wants a walkway from the house to the detached garage, so he constructs a path from the loose stones on his property. Severance/Annexation

Annexation

Your resource lists several assets and liabilities that borrowers may note on their loan application. Sort these into the appropriate category. Cash Assets/Liabilities

Assets

In addition to allowing homeowners some nice property tax breaks, homestead law also grants some other benefits to those who qualify. What are they? Protects the property from forced sale to satisfy personal loans and credit card debt. Benefit/Not a Benefit

Benefit

In which of these circumstances could a real estate licensees prepare a BPO? For a bank originating a loan for a mortgage on the property

Can't

Universal or Designated Agent Appointed by the brokerage's broker to represent one party in an in house transaction

Designated

Universal or Designated Agent Designated to perform fiduciary duties to a client

Designated

Universal or Designated Agent Known also as an appointed agent or assigned agent

Designated

Dual agency or not You represent the buyer and seller in the same transaction

Dual

Dual agency or not You represent the buyer in a transaction and another agent from your firm represents the seller in the same transaction

Dual

True or false about license renewal requirements. The initial license for a salesperson is effective for three years.

False

Which of the following statements about penalties are true? Violations are considered felonies, and they may carry criminal penalties.

False

Formal

General or Special Agent Enters into contracts on the client's behalf

General

Indicate whether each compensation scenario is legal under Minnesota law. At closing, James' buyer is informed for the first time that there is a settlement fee of $250. Legal/Illegal

Illegal

Indicate whether each compensation scenario is legal under Minnesota law. James accepts a referral fee from broker Tina after his cousin in another state buys Tina's listing. Legal/Illegal

Illegal

Indicate whether each compensation scenario is legal under Minnesota law. The title company issues a check directly to salesperson James. Legal/Illegal

Illegal

The Wangs now want to know how they can pay for their $240 assessment. Determine whether the following are options for paying the assessment cost. Pay the amount over time. Is an Option/Isn't an Option

Is an Option

Can you identify what some of the common problems might be for an REO property? Clouds on title Issue/Not an issue

Issue

Can you identify what some of the common problems might be for an REO property? Delays due to an internal audit of the title Issue/Not an issue

Issue

What needs to happen for a title to be considered transferred? The grantee is presumed to have accepted the deed. Must Happen/Doesn't Happen

Must Happen

What needs to happen for a title to be considered transferred? The grantor must deliver the deed directly to the grantee or the grantee's agent. Must Happen/Doesn't Happen

Must Happen

MN Law requires that specific information be kept in trust account records. Indicate whether Rachel must keep the following dates to comply with the law. Date and/or check number of disbursements.

Must keep

MN Law requires that specific information be kept in trust account records. Indicate whether Rachel must keep the following dates to comply with the law. Date of each deposit.

Must keep

As a buyer's agent, you'll perform certain tasks for your client. Which of the following are tasks you should perform? Ensure the buyer understands the importance of due diligence, including a professional inspection of the property.

Perform

Lenders want borrowers' business, but they can't say whatever they want to get that business. Certain statements are permitted, whereas others may be violations of TILA and require additional disclosure. Review the statements and determine which are permitted and which are violations if not accompanied by other terms. "For a good mortgage, call Mike!" Permitted/Violation

Permitted

Here are a few final items to consider. Indicate whether the following items are personal property or real property. Above-ground pool Personal property/Real property

Personal

While there are many regulations in place to curb predatory practices, you or your clients may still encounter them from time to time. These practices are highlighted in the resource. Which of these lender actions are considered predatory? Disclosing only a portion of the fees to the borrower Predatory/Not Predatory

Predatory

While there are many regulations in place to curb predatory practices, you or your clients may still encounter them from time to time. These practices are highlighted in the resource. Which of these lender actions are considered predatory? Encouraging a borrower to keep refinancing to earn money from the fees Predatory/Not Predatory

Predatory

Purchase Title Insurance

Here are a couple more items to consider. Indicate whether the following items are personal property or real property. Door knocker engraved with your last name Personal property/Real property

Real

Here are a few final items to consider. Indicate whether the following items are personal property or real property. Bathroom towel rods Personal property/Real property

Real

There are valid reasons why a developer might place restrictive covenants/deed restrictions on the homes within a subdivision. Identify each of these options as either a reason, or not a reason, for deed restrictions. To keep owners from operating businesses out of their homes Reason/Not a Reason

Reason

Which of the following are broker supervisory responsibilities under MN law? Review trust account documentation

Responsibility

Review

Let's take a moment to review. Identify which of the following are rights for real property owners. Air

Right

For each of the following license requirements, indicate whether it applies to a broker or a salesperson. 90 total hours of education.

Salesperson

For each of the following license requirements, indicate whether it applies to a broker or a salesperson. No experience required.

Salesperson

Here are a few more for you to match your closing cost wits against. Match each expense item to who is responsible for paying it at closing. Recording documents to clear title Seller/Both/Buyer

Seller

Now let's see if you can sort out who pays for what at the closing table. Match each expense item to who is responsible for paying it at closing. Listing Agent's commission Seller/Both/Buyer

Seller

Now let's see if you can sort out who pays for what at the closing table. Match each expense item to who is responsible for paying it at closing. Satisfaction of existing liens Seller/Both/Buyer

Seller

You know what a contract for deed is, but do you know the advantages and disadvantages of such an agreement for both the buyer and the seller? Let's find out. Connect each statement to its corresponding advantage or disadvantage. If the buyer is unable to make the payments, the seller can keep all the proceeds received up to that point and repossess the property. Buyer Advantage/Seller Advantage

Seller Advantage

The buyer and seller have a lot of tasks to cross off their lists before going to closing. Can you identify which items are the buyer's responsibility and which are the seller's responsibility? Clear up any title issues Buyer's responsibility/Seller's responsibility

Seller's

The buyer and seller have a lot of tasks to cross off their lists before going to closing. Can you identify which items are the buyer's responsibility and which are the seller's responsibility? Make all negotiated repairs Buyer's responsibility/Seller's responsibility

Seller's

Now let's stretch your subdivision regulation knowledge. Determine which items are subdivision regulations, and which are not. Minimum lot size specifications Subdivision Regulation/Not a Subdivision Regulation

Subdivision

Now let's stretch your subdivision regulation knowledge. Determine which items are subdivision regulations, and which are not. Single or multi-family dwelling regulations Subdivision Regulation/Not a Subdivision Regulation

Subdivision

Now let's stretch your subdivision regulation knowledge. Determine which items are subdivision regulations, and which are not. Specifications for street widths, curbs, and drains Subdivision Regulation/Not a Subdivision Regulation

Subdivision

Now let's stretch your subdivision regulation knowledge. Determine which items are subdivision regulations, and which are not. Specified minimums for house placement setback from property lines Subdivision Regulation/Not a Subdivision Regulation

Subdivision

Risk management techniques can be implemented to avoid antitrust violations. Which of these are techniques brokerages or licensees could use? Design policies to prohibit antitrust activities within the policies and procedures manual.

Technique

Risk management techniques can be implemented to avoid antitrust violations. Which of these are techniques brokerages or licensees could use? Discuss antitrust scenarios at staff meetings.

Technique

Risk management techniques can be implemented to avoid antitrust violations. Which of these are techniques brokerages or licensees could use? If you're the managing broker, deal swiftly and firmly with firm members who violate antitrust law, and make it clear that you will do so.

Technique

Risk management techniques can be implemented to avoid antitrust violations. Which of these are techniques brokerages or licensees could use? Notify your sponsoring broker if you witness an antitrust violation (and document it).

Technique

Risk management techniques can be implemented to avoid antitrust violations. Which of these are techniques brokerages or licensees could use? Participate in or conduct internal training programs educating firm members about what is and isn't allowed.

Technique

You've defined a tie-in arrangement. Now can you recognize it when it happens? In these scenarios, decide if the licensees are promoting tie-in arrangements or not. Bill tells a client that if she chooses to finance her mortgage through Alamo Bank & Trust, he'll take 1% off her commission rate.

Tie-in

You've defined a tie-in arrangement. Now can you recognize it when it happens? In these scenarios, decide if the licensees are promoting tie-in arrangements or not. Susan agrees to work with a client, but only if he agrees not to do business with Peak Mortgage.

Tie-in

Do you know the difference between a title and a deed? Match each term to its definition. A legal concept meaning ownership Title/Deed

Title

Certain loan features are considered toxic and aren't permitted for qualified loans. Review these items and determine whether or not they're toxic. 40-year loan term Toxic/Not toxic

Toxic

Affected or Unaffected Some activities that real estate licensees perform are affected by license laws, and others are not. Which would be likely be affected? Commission maximums

Unaffected

Affected or Unaffected Some activities that real estate licensees perform are affected by license laws, and others are not. Which would be likely be affected? Membership in civic organizations

Unaffected

Affected or Unaffected Some activities that real estate licensees perform are affected by license laws, and others are not. Which would be likely be affected? Work schedules

Unaffected

Universal or Designated Agent Considered an uncommon role for a real estate agent

Universal

Lenders want borrowers' business, but they can't say whatever they want to get that business. Certain statements are permitted, whereas others may be violations of TILA and require additional disclosure. Review the statements and determine which are permitted and which are violations if not accompanied by other terms. "30-year mortgages available at 5% annual percentage rate with $1,000 down." Permitted/Violation

Violation

Lenders want borrowers' business, but they can't say whatever they want to get that business. Certain statements are permitted, whereas others may be violations of TILA and require additional disclosure. Review the statements and determine which are permitted and which are violations if not accompanied by other terms. "Loans available at 5% annual percentage rate with $0 down." Permitted/Violation

Violation

Review the following scenarios and determine whether an antitrust violation has taken place. Andy gives his client Drew a list of mortgage companies from which to choose, but mentions that he wouldn't work with Company X because it's a Latino-owned business.

Violation

Which of these actions would be a way to mitigate the effects of title issues, and which would not? Initiate an action to quiet title Way to Mitigate/Not a Way to Mitigate

Way to Mitigate

A buyer agency agreement can be terminated for any number of reasons. Read each scenario and identify whether or not it would be considered a valid reason for termination. The buyers, Carmen and Anna Ruiz, were able to locate and purchase the home of their dreams with the assistance of their buyer agent, Karen Hoffmeir. Settlement went great and they move in next week. Yes/No

Yes

A contract for an illegal purpose is ______. a) Void b) Negotiable c) Executed d) Executory

A general, involuntary lien placed against a deceased person's estate if there are unpaid debts a) Deceased person's debt b) Corporation franchise tax lien c) Real property tax lien d) Mechanic's lien

A married couple in Minnesota own a property as joint tenants. Unless otherwise agreed, what happens automatically when the couple divorces? a) Joint tenancy is voided. b) The couple become joint tenants in the entirety. c) The property reverts to the husband d) The property reverts to the wife.

Charlie and Wendy are purchasing a property with a sales price of $350,000. They'll be financing $335,000. What is their LTVR? a) 95.7% b) 104% c) 10.4%

Connect each Minnesota regulatory authority with its proper description. Administers the act at the city and county levels a) Local government unit b) Board: Water & Soil Resources c) Dept. of Natural Resources

Many activities occur during a title closing, both prior to and at the closing itself. Match each activity to the time frame in which it occurs during the closing process. The buyer obtains a binder for insurance coverage on the new home. a) Prior to closing b) At closing

What are emblements in real estate? a) Cultivated crops b) Detached fixtures c) Free-standing plants d) Open spaces

What do you think a wetland is? Identify the descriptions that 'could be wetlands' or are 'not wetlands.' Use both resources if you're having any trouble. A swamp, marsh, or bog a) Could be wetlands b) Not wetlands

Which of the following are license application requirements for a prospective licensed residential appraiser? (2) a) 150 education hours b) 200 education hours c) associate's degree d) bachelor's degree e) 1000 experience hours

a, e

Which two of these are distinguishing characteristics of co-op living? a) Attached residential building b) The owner owns both the structure and the land c) The owner owns a unit within the structure, but not the land d) Free-standing residential building e) The owner owns no real estate but instead owns shares f) Designed specifically for older adults

a, e

"I, Sue Casa, hereby convey this property ..." is an example of what part of a contract? a) Acknowledgment b) Granting clause c) Habendum clause d) A grantee

Funds kept in escrow are released when the buyer, seller, and their lenders are satisfied that all _______ have been met. a) due dates b) conditions c) payments d) parties

Now that you're more familiar with the required elements of a deed, let's see how knowledgeable you are about deed terminology. Connect each deed term to its description. Can be accomplished by either a metes-and-bounds description or referencing another official document, such as a plat. a) Granting clause b) Legal description c) Grantor/grantee

Now that you've correctly identified what real property rights are, let's see if you know what they mean. Match each right to its description. Right to occupy the property a) Control b) Possession c) Disposition d) Exclusion e) Enjoyment

Pamela is a primary broker in Minnesota. She's not planning to renew one of her associated salesperson's licenses. What must she do? a) Notify the commission in writing within 30 days. b) Notify the salesperson in writing at least 30 days before June 15 of the renewal year. c) Notify the salesperson within 30 days of her decision. d) Wait until the license expires, then return it to the commission.

Part of the loan application has the applicant provide details of assets and liabilities so a determination of net worth can be made. What do these terms mean? The difference between assets and liabilities a) Liabilities b) Net worth c) Assets

Portia is a salesperson in Minnesota representing a buyer. To whom must she provide copies of documents related to the transaction? a) Her buyer client only b) Interested parties c) Only to her broker for retention purposes d) The seller

Purely for residential purposes a) Downtown district b) Residence district c) Commercial district d) Office residence district e) Industrial district

Quinn is a licensed broker in Minnesota. She's getting ready to submit a salesperson licensing application for Rachel. Which pre-licensing courses must Rachel have completed to get to this point? a) Completion of Course 1 b) Completion of Courses 1, 2, and 3 c )Completion of Courses 1, 2, and 3 plus 30 hours of continuing education d) Completion of Courses 1 and 2

Ramon and Willis have other debt that equals $296 per month. With a gross income of $3,600, and assuming they've found a lender that uses the high end of the total debt-to-income ratio, what's the maximum house payment they can afford? a) $900 b) $1,000 c) $1,100 d) $1,296

Regarding restrictive covenants/deed restrictions, to what does the doctrine of laches refer? a) Creation b) Enforcement c) History d) Types

Robert is the general contractor for a home being constructed in a new development. The foundation has been poured, and he's working with the homeowners to make some decisions that weren't identified in the blueprints he's working from. Which of the following details are guided by local building codes? a) Material used for shingles b) Number and type of electrical breakers c) Number and type of windows per square foot d) Placement of gas range in the kitchen

Sally's a first time homebuyer. She's a little nervous about finding a good real estate licensee to help her she's read about a lot of scams out there. Which of the following provides protection for consumers like Sally? a) Criminal courts b) License laws c) Real estate education provides d) The U.S. Constitution

Sean has been acting as the buyer's representative by identifying listings, showing properties, and negotiating offers. What can we reasonably assume? a) Either an oral or written agreement is in place. b) A signed broker's broker agreement is in place.

This type of loan is temporary in nature, usually 90 days, and provides funds in addition to an existing loan until permanent financing can be obtained. a) Blanket b) Bridge c) Fixed-rate d) Growing equity

Three frequently confused terms are valid, invalid, and voidable. Select the correct term for each example. A contract that includes all necessary elements and is signed by all parties a) Invalid b) Valid c) Voidable

Timeshare ownership can take several forms. How familiar are you with how these forms differ? Let's find out. Connect each timeshare term to its description. Buyers agree to a one-time purchase price and an annual maintenance fee a) Vacation ownership b) Campground membership c) Timeshare use d) Timeshare estate

We've introduced a lot of easement-related terms, and there are a few more worth knowing. We included all of these terms in the flashcards attached to this slide. Match these terms with their definitions. Constructed on boundary line separating two properties a) Possessory rights b) Party wall c) Non-possessory rights

What do you think a wetland is? Identify the descriptions that 'could be wetlands' or are 'not wetlands.' Use both resources if you're having any trouble. A rocky outcrop next to a mountain stream a) Could be wetlands b) Not wetlands

What does "performance of a contract" mean? a) Take steps to prepare a contract. b) Meet all of the terms of a contract. c) Capture the terms of a contract in writing. d) Meet at least some of the terms of a contract.

What's the term for a title examination that searches title history going back fewer than 60 years? a) Correction deed b) Limited search c) Title examination d) Title report

What's the typical high end of the housing ratio to qualify for a conventional loan? a) 25 b) 28 c) 30 d) 32

What's the typical low end of the housing ratio to qualify for a conventional loan? a) 22 b) 25 c) 28 d) 30

When the lender gathers all kinds of information about the borrower's assets, debts, income, employment history, and pulls their credit report, the buyer is ___________________. a) Approved b) Making an application for a loan c) Preparing for the closing d) Prequalified

You're probably familiar with the terms "lease with option to buy" and "right of first refusal," but do you know the difference between the two options? Let's find out. Identify each statement as either "lease with option to buy" or "right of first refusal." With this option, the holder must wait until an event occurs (another offer is made on the property by a third party) and then must decide whether to exercise the option, or let the property go. a) Lease with option to buy b) Right of first refusal

A Minnesota listing agreement includes an override clause. To be effective, how soon after the agreement's expiration must the licensee provide the seller with a protective list? a) Within 24 hours b) Within 48 hours c) Within 72 hours d) Within 96 hours

A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. What's the total amount the borrower will pay back over the life of the loan? a) $250,000.00 b) $30,640.65 c) $367,687.80 d) $735,375.60

A community that undertakes a comprehensive master plan is ______. a) Making a much bigger deal out of planning than necessary b) Overlooking the community's economic and physical assets c) Taking the first step in urban planning d) Using the zoning map as the basis

A contract for an illegal purpose is ______. a) Fraud b) Valid c) Void d) Voidable

Deirdre lost her job, and the bank foreclosed on her condo. Which of the following of her outstanding debts will the bank pay first? a) Credit card balance b) Medical bills c) Property taxes d) Student loan

How do you calculate the daily rate for annual taxes using a calendar year? a) Divide by 12 b) Divide by 360 c) Divide by 365 d) Multiply by 12

How many feet are in a mile? a) 2,400 b) 320 c) 5,280 d) 6,044

Ideally, what guides real estate licensees' behavior? a) Ethics and compensation b) Laws and compensation c) Laws and ethics d) Motives and ethics

Jane's offer of $310,000 was accepted, but the appraisal just came in at $300,000. Jane plans to finance $250,000. What's the loan-to-value ratio? a) 81% b) 82% c) 83% d) 97%

Jenson signed a seller agency agreement with Susan. Right before closing, a hurricane destroyed the property. What happened to Jenson and Susan's agreement? a) It's terminated once the specified term in the agency agreement expires. b) Jenson and Susan can mutually agree to terminate the agreement. c) The agreement terminates by force of law. d) The client can revoke the agreement but may be considered in breach of contract.

Jess has permission to live on his father's property as long as Jess' grandmother is alive. This is an example of which type of life estate? a) Conventional b) Life estate with remainder c) Pur autre vie d) Reversionary

Let's try your hand at some more fun deed terminology. Connect each deed term to its description. Compensation for the transfer of the property a) Signature of grantor b) Restrictions and exceptions c) Consideration d) Delivery and acceptance

The client owes the agent the primary duties of compensation, ______, indemnification, and availability. a) Inclusion b) Indulgence c) Information d) Insight

When homebuyers agree to open an escrow account for their mortgage, the mortgage lender uses the money to pay _______. a) escrow fees b) insurance and principal c) taxes and insurance d) taxes and principal

When working with a client on a real estate sale, a real estate licensee is usually acting as which type of agent? a) Designated b) General c) Special d) Universal

Which of the following is a possible title issue with a real estate-owned transaction? a) Evictions of existing tenants b) Foreclosure process delays c) Internal audit delays d) Unpaid liens against the title

Which of the following is required before a prospective Minnesota salesperson applicant can submit a licensing application? a) 2,000 hours of real estate field experience b) Completion of Course 1 c) Completion of Courses 1, 2, and 3 d) Completion of Courses 1 and 2

Which of the following is true about commission payments? a) They must always be issued to licensees by their registered brokers, with no exceptions. b) They must always be issued to licensees by their registered brokers, unless the broker verbally authorizes otherwise. c) They must always be issued to licensees by their registered brokers, unless the broker authorizes otherwise in writing. d) They may be issued in the form of a rebate from an unlicensed individual.

Which of the following is true about tie-in arrangements? a) They involve market allocation. b) They involve price fixing. c) They're an antitrust violation. d) They're a type of mortgage fraud.

Why was the Minnesota Common Interest Ownership Act created? Select the two answers that apply. (2) a) To establish the process for common interest community creation. b) To establish a cap on the price of homes in a common interest community. c) To give association boards the power to amend community rules without residents' approval. d) To keep association boards accountable.

c, d

An 800-square-foot rectangular building sells for $75,000. What's the cost per square foot? a) $187.50 b) $46.88 c) $60.50 d) $93.75

How long is the appraiser licensing period in MN? a) 5 years b) 1 year c) 3 years d) 2 years

Now that you've correctly identified what real property rights are, let's see if you know what they mean. Match each right to its description. Right to refuse other interests in your property a) Control b) Possession c) Disposition d) Exclusion e) Enjoyment

Robert and Sarah enter into a contract for Sarah to purchase Robert's home. Robert decides he doesn't want to sell, and is elated when he finds out that Sarah's only 17 years old. Can Sarah force Robert to sell? a) No, because Sarah can't legally enter into a contract. b) No, she can purchase the house if Robert doesn't object, but can't do so if he objects. c) Yes, as long as she gets a legally competent party to co-sign the contract with her. d) Yes, Sarah can require that Robert fulfill the contract terms.

When are property taxes due in Minnesota? a) April 15 b) July 1 c) June 30 d) May 15

Which of the following is an advantage of condominium ownership? a) No HOA dues b) No neighbors c) No shared walls d) No yard work

You've identified the information that is needed to calculate commission and showed how those pieces come together in the commission formula. Let's go a step further and play around with some numbers a bit. (You may need a calculator for this one.) You have a property listed at $160,000. The commission rate listed in the listing agreement is 6%, which you will split evenly with the buyer's representative. What does the property sell for if you earn a commission of $4,500? a) $164,500 b) $169,000 c) $75,000 d) $150,000

You've just learned that your buyer, Kirk, can't obtain a qualified mortgage for his dream home because his debt-to-income ratio would be above the threshold. What is Kirk's best option? a) Get a sub-prime loan. b) No options here; Kirk will need to wait until his debt-to-income ratio meets qualified lending standards. c) Offer a shared equity situation with the lender. d) Pay off his other debt and/or increase monthly income.

Ver todos los conjuntos de estudio

Real Estate Course 1 (1/2)

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