Final Exam STATE portion
The last day of the property tax year in Minnesota is
December 31
T or F The fact that a property was occupied by a person with AIDS is a material fact that must be disclosed
False ; not material fact = no disclosure
T or F A written Facilitator Services Agreement is required by Minnesota law
False ; not required but recommended
A developer has purchased a tract of land to create a subdivision. According to the Minnesota Subdivided Lands Act, the developer must do all of the following
File a public offering statement with the commissioner and provide a copy for each buyer, conduct the sale of parcels using only licensed Minnesota real estate agents, register the subdivision with the commissioner of commerce
The interest penalty on unpaid real estate taxes increases based on which of the following time intervals?
Monthly
The highest bidder at a mortgage foreclosure sale would be given which of the following?
Sheriffs certificate of sale
T or F Taxes are due May 15 and October 15
True
Gary and Mary own a cabin together. Mary dies and her interest in the cabin goes to her sister, Tina. Describe Mary's and Gary's form of ownership in the cabin.
tenancy in common
Karen sold her real estate to Lisa on a contract for deed. Lisa lost her job and is now in default, as she is unable to make payments to Karen. Karen's course of action to regain equitable title is to
terminate the contract
The Minnesota mortgage registry tax is computed as
0.23% of the mortgage about and paid by the mortgagor at closing
The Minnesota State deed transfer tax is computed as
0.33% times the sales price and paid by the seller at closing
Minnesota's Common Interest Ownership Act provides that when a buyer who does not receive a copy of the disclosure statement at least 10 days before signing a purchase agreement, the buyer has the right to rescind the agreement within......days after receiving the statement
10 days
Under the Statutory New Home Warranty law, the implied warranty of being free from defects caused by faulty installation of plumbing, electrical, heating, and cooling systems is in effect for
2 years
A seller who fails to make a required disclosure and was aware of the condition of real property is liable to the buyer in a civil action for what time period?
2 years from the date of closing
The penalty rate for late recordation of a contract for deed in the state of Minnesota is
2% of the sales price
Real estate property taxes are due on May 15 and October 15 each year or within.......days after the postmark on the tax statement, whichever is later.
21 days
Upon lease expiration and obtaining possession, the landlord discovers the tenant has caused some damage and left personal property the landlord wishes to dispose of. Within how many days must the landlord return the deposit with an explanation and give the tenant notice of the intent to dispose of the personal property?
21 days for the deposit and a 14-day notice to dispose of the personal property
A certificate of Compliance for an existing septic system is valid for..
3 years
How long is the redemption period for a property tax lien on real estate that is classified as non-homestead?
3 years
A contract for deed must be recorded in the county recorder's office within what time frame of entering the contract for deed?
4 months
Before foreclosure, a notice of default and foreclosure sale must be personally delivered to the borrower........before the foreclosure sale if property
4 weeks
Which of the following properties would have a 12-month statutory redemption period?
45-acre parcel
If property is covered by the Subdivided Lands Act, a buyer (lessee) has a.....day right of rescission
5 day
What is the minimum period for statutory redemption in Minnesota?
5 weeks
How long is the redemption period for a property tax lien on real estate that is classified as homestead?
5 years
Lincoln borrowed $90,000 from a lender to purchase his home, which is situated on a 1-acre lot in a residential subdivision. Three years after the loan was originated, Lincoln defaults on the mortgage, which has a current balance of $87,000. Should the lender foreclose, Minnesota law requires a ______ statutory redemption period after the sheriff's foreclosure sale.
6 month
The statutory redemption period is the mortgagor's right to redeem the property after a sheriff's sale. In most Minnesota foreclosures, the statutory redemption period is
6 months
To enforce the Statutory New Home Warranty, the homeowner must report to the contractor in writing within how long after the homeowner discovers the defect?
6 months
A foreclosure by advertisement requires a consecutive publication of notice of default and impending foreclosure sale of property for......before the sale can take place
6 weeks
When a buyer on a contract for deed is in default, the buyer will be given a ....... equitable redemption period once proper notice of default has been served
60-day
Which document would sever all joint tenancy ownership of real estate between married persons?
Decree of dissolution
What is considered common elements of a common interest community?
Elevators, general parking stalls, hallways
T or F If a licensee receives a civil judgement involving fraud, the licensee must notify the commissioner of commerce in writing within five days
False ; 10 days
T or F When purchasing a CIC property, buyers have a five-day right of rescission after receipt of all disclosures
False ; 10-day right of rescission
T or F In a foreclosure by advertisement, the advertisement requires three weeks of consecutive published notices
False ; 6 weeks
T or F If three walls are located on a property for sale, only one must be disclosed
False ; all wells must be disclosed
T or F The equitable redemption period in Minnesota is one year
False ; as long as the vendor allows
T or F The buyer representation agreement can be signed at any time during the transaction
False ; before writing an offer
T or F Advertising must clearly and conspicuously display the name of the salespeson
False ; brokerage name
T or F The agent must sign the dual agency and consent provision in the purchase agreement
False ; doesn't sign but signs off on it in representation
T or F A landlord may never enter a dwelling without prior notice
False ; enter for emergency, tenants safety, to comply with law enforcement
T or F A licensee may approach a consumer who is already represented by another brokerage and discuss terms of future representation
False ; if initiated by the consumer
T or F A person who sells 10 properties in a 12-month period without licensee representation doesn't require a real estate license
False ; only four or fewer
T or F Only the salesperson may receive commissions or fees from buyers, sellers, landlords, or tenants
False ; only the brokerage
T or F The department of commerce and the commissioner of commerce arbitrate disputes between licensees
False ; they do not arbitrate disputes
T or F The warranties provide for under Statutory New Home Warranty Law end when the homeowner sells the home
False ; transfer to subsequent owners
T or F The broker must give a protective list to the client within 24 hours after the expiration of the representation agreement
False ; within 72 hours
T or F A verbal lien notice must be provided to the property owner
False ; written lien
The county sheriff may be asked to conduct which of the following as a result of a mortgage default?
Foreclosure sale
Ownership of a condominium is BEST described as
Freehold ownership of the unit and tenants in common ownership of the common elements.
What property classification is eligible for a 1031 tax-deferred exchange?
Property held for use as investment property and in trade or business
The Minnesota Subdivided Lands Act would apply to? (examples)
The sale of 25 lots sold in Minnesota but located in Colorado, the sale of an interest in a time-share, the sale of some cooperatives
Which type of property is almost exclusively offered for sale in a vacation, recreational, or resort area?
Time-share
A registered property survey and a certificate of title are MOST likely to be associated with which of the following?
Torrens property
T or F A brokerage must maintain and interest-bearing trust account
True
T or F A contract for deed may also be called an installment sale
True
T or F A person who wishes to remove an underground storage tank containing hazardous substances must notify the Minnesota Pollution Control Agency at least 10 days before removal
True
T or F A person wishing to become licensed as a real estate salesperson must be 18 years of age or older at the time of application.
True
T or F According to the Minnesota Statue of Frauds, a lease of one year or less doesn't have to be in writing to be enforceable, regardless of the type of property
True
T or F Agency Relationships in Real Estate Transactions disclosure form is not a contract
True
T or F All licenses expire on June 30
True
T or F Before showing a property a licensee must disclose any ownership interest in the property offered for sale
True
T or F Homestead status protects homeowners from the forced sale of their primary residence by unpaid creditors holding civil judgements
True
T or F In the Torrens system, the property owner applies to the district court to register the land and obtain a Certificate of Title
True
T or F Minnesota adds the protected classes of marital status, sexual orientation, and public assistance
True
T or F Primary broker may be charged with failure to supervise for licensee violations
True
T or F Primary brokers must notify the commissioner within 10 days when they wish to terminate a salesperson's license
True
T or F Private trustees managing or selling truer-owned properties are not exempt from licensure
True
T or F Real estate salesperson licenses are held and renewed by the brokerage
True
T or F State deed tax is paid to county treasurer by the seller when deed is recorded
True
T or F The commissioner may deny a license application if a person files a misleading application
True
T or F The real estate education, research, and recovery fund has a recovery maximum of $150,00 per transaction
True
T or F Two or more grantees on the deed will be considered tenants in common tenants in common with equal shares unless the deed specifically states otherwise
True
T or F When selling a residential property to a current tenant of the property, the seller disclosure is not required
True
T or F The Statutory New Home Warranty Law covers defects caused by noncompliance with building standards
True
T or F The statutory redemption period is six months for most properties
True ; can be 12 if more than 1/3 paid
Minnesota PCA regulations cover petroleum stored in
aboveground residential motor fuel tanks of more than 1,100 gallons
The seller must disclose the existence, location, and the status of all capped and current well on a property
before accepting or signing an offer
Which of the following is NOT eligible for a 1031 tax-deffered exchange?
buy-fix-sell property
an owner of a property with a Torrens title would receive
certificate of title
a land contract is also referred to as
contract for deed
Maria has purchased a home using contract for deed form of financing. According to Minnesota law, the contract for deed must be recorded in
county recorder's office
Upon graduating from college, Mary received ownership of a lake lot as a gift. Mary is the only person who has ownership of the property. How does Mary hold title?
estate in severalty
A seller's property disclosure on residential real estate is required
for a bank selling a bank-owned home acquired in foreclosure
The type of foreclosure that would not require a court action in order for the lender to conduct foreclosure proceedings is
foreclosure by advertisement
A property owner is connected to city sewer and water and receives regular billing statements from the city fr these services. Should the homeowner fail to make payment for such services, Which of the following is TRUE?
it could result in a special assessment lien on the property by the city
vendors will convey which form of title upon final payment of all funds required in a contract for deed?
legal title
A landlord who takes a security deposit
must pay interest of 1% starting the first month after receipt
the seller of a property containing a leaking storage tank must
record an affidavit with the county recorder
Who is responsible for disclosing the existence of wells and sewer systems?
seller
The interest penalty charged on unpaid property taxes is affected by which of the following?
the date the property owner pays the tax
The seller must indicate in a well disclosure statement which of the following?
the location of all known wells on the property and whether or not each is in use, not in use, or has been sealed
Tracy has entered into a verbal contract with Tony to construct a patio next to her home. Tony wants to secure his right to place a mechanic's lien on the property if he is not paid for his labor and materials. According to Minnesota law, Tony must provide tracy with which notice to secure his rights?
written notice