RE Classes 2

Which of the following properties would qualify for a homestead exemption through Minnesota homestead law?

A primary residence on an acre lot

Jamal is a Minnesota homeowner. He's registering his land with the county court and has submitted an application. If all goes according to plan, what should Jamal have in his hand at the end of the process?

Certificate of title

Which of the following situations must be disclosed to the parties in a Minnesota transaction?

Data that contradicts an inspection report

A Minnesota seller who was going to provide financing was successfully sued by a buyer for $2,500. What was the seller in violation of?

Failure to provide the buyer with the contract for deed disclosure document

Jerome just finished working on a remodel for the Simmons family. If the Simmons refuse to pay him, what's the most drastic measure Jereome can legally take in Minnesota?

Foreclose on the property

Gerald purchased a property under a contract for deed arrangement. He missed some payments, received notice that the seller was going to terminate the contract, and today was evicted. Which of the following statements is most likely true?

Gerald received notice of default at least 60 days ago.

Melanie is a Minnesota buyer who has agreed to purchase Stan's property using a contract for deed. Who holds legal title to the property during the term of the loan?

Stan

A Minnesota subdivision project was registered by qualification. Which of the following must be true about the project?

The project has more than 100 lots or sales.

Bubba holds a real estate salesperson license in Minnesota. He's currently associated with Arnold, but wants to end his business relationship with Arnold. What are his options?

ubba needs to notify Arnold, then the broker must notify the commission of the termination within 10 days.

Caitlin purchased a Minnesota property for $350,000. She put down $70,000 and financed the remaining $280,000. How much deed tax did she owe for the purchase?

$1,155. Deed tax is the value of the property multiplied by .0033. So, $350,000 x .0033.

What is the maximum civil penalty that can be imposed for a license law violation in Minnesota?

$10,000

What's the Real Estate Education, Research, and Recovery Fund fee for an initial license applicant in Minnesota?

$30

Jaime purchased a property in Becker County for $350,000. She put down $70,000 and financed the remaining $280,000. How much mortgage registry tax did she owe for the purchase

$644. Remember, MRT is the amount financed multiplied by .0023. So, $280,000 x .0023.

A homestead property owner has failed to pay their taxes by May 15th. What penalty will be assessed on July 1?

1%

A Minnesota condominium building has 10 units. Fiona's unit is 3,000 square feet compared to the overall property's 20,000 square feet size. How much ownership interest does she have in the building's common areas?

15%

A homestead property owner has failed to pay their taxes by May 15th. What penalty will be assessed on June 1?

2%

A homestead property owner has failed to pay their taxes by May 15th. What penalty will be assessed during the month of May?

2%. Upon the due date, a penalty of 2% for homestead property (4% for nonhomestead property) is assessed.

Linda recently sold a Minnesota home that has an underground storage tank on the lot. She has ______ to register the change of ownership with MPCA.

30 Days

Joy is a new salesperson licensee in Minnesota. She received her license in the first year of the current renewal period. How many continuing education hours does she need to complete to renew her license?

30 hours

In Minnesota, how many continuing education hours are required for licensed salespeople and brokers?

30 hours every two years

Meaghan is now the proud owner of an abandoned property in Minnesota, with boarded up windows, trash piled throughout the property, and no utilities turned on. She purchased the property at a foreclosure sale. How long until Meaghan can take possession of the property?

5 Weeks

Which of the following would be considered an underground storage tank, according to Minnesota law?

A 200-gallon tank that holds 20 gallons below the surface of the ground

Benji is a landlord in Minnesota. In which of these situations could he charge a late fee for rent?

A 5% fee that's disclosed and agreed to in the lease agreement between Benji and the tenants

Which of the following properties is classified as residential real property in Minnesota?

A building with four studio apartments

The Minnesota statute on contracts mentions protective lists and who may be included on them. Which of the following individuals would be an inappropriate inclusion?

A consumer who received an advertisement related to the property

Which of the following agreements would be enforceable under Minnesota's statute of frauds?

A custom portrait valued at $500 that was delivered to and accepted by the recipient who is refusing to pay for it. Contracts for the sale of goods worth $500 or more must be in writing and have appropriate signatures to be enforceable. Some agreements can still be enforced without these items, such as when payment was made/accepted or when goods were received/accepted.

Minnesota law requires sellers to provide prospective buyers with a written disclosure of material facts related to the property's condition. Which of the following requires disclosure?

A homicide occurred on the property.

Which of the following best describes a contract for deed that may be used in Minnesota?

A legally binding, written contract between a property buyer and the seller that allows the buyer to pay for the property in installments

LuAnn is a Minnesota real estate licensee. Several of her former clients were awarded final judgments related to LuAnn's illegal trust fund conversion activities. Which statement best describes any recovery that could be paid out by the Real Estate Education, Research, and Recovery Fund to LuAnn's victims?

A maximum of $150,000 may be paid per claimant, per transaction, and $250,000 per licensee.

Which of the following best describes a "person" as defined in Minnesota license law?

A natural person, partnership, firm, corporation, or association, and its agents, directors, officers, and employees

Which of the following could qualify for a Minnesota homestead exemption?

A primary dwelling situated upon 150 acres of land

Which of the following statements best describes Minnesota agency disclosure requirements?

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 agency disclosure form

Assuming all of the following individuals are performing these activities for another and for a fee, who must hold a Minnesota real estate license in order to legally perform the activity?

A son selling his parent's house

In Minnesota, which of the following documents must you present to a potential seller client prior to entering into a listing agreement?

Agency Relationships in Real Estate Transactions form

Which of these is Minnesota broker Nancy NOT required to retain for six years?

Agency disclosure form with a consumer where no employment relationship was established and no services were performed

According to the standards of conduct, what disclosure must Minnesota licensees provide?

Agency relationships

Alex is seeking a limited broker's license in Minnesota. Which of the following statements must be true?

Alex will only engage in transactions as a principal. The commissioner can issue a limited broker's license that allows the individual to engage in transactions as a principal only or in mortgage loan (except residential loans) negotiations. Three years' real estate experience isn't required.

Which of the following actions would violate a Minnesota broker's responsibility to supervise personnel?

Allowing any unlicensed person to interpret information pertaining to the properties or contracts

Which of the following tanks must be registered with the Minnesota Pollution Control Agency?

An above-ground, 1,000-gallon tank that's used to store commercially used petroleum

Which of the following individuals would be in violation of Minnesota license law if performing the activity for a fee?

An unlicensed individual selling his brother's home. Generally, anyone performing real estate services for another and for compensation must hold a real estate license. There are exceptions for executors, franchises, and trustees.

Marshall is a Minnesota real estate broker. His listing agreement with Dolly included a six-month override clause. Which of the following people should NOT be included on the protective list Marshall provided?

Anne, a real estate licensee who regularly attends open houses in the area. A protective list related to a listing agreement should include names and addresses of prospective buyers with whom the licensee negotiated or to whom the licensee showed the property during the listing period.

Which of the following roles describes a licensed Minnesota broker who chooses to work under the supervision of another broker?

Associate broker

Salesperson Terry needs emergency surgery, but has several clients for whom he's actively working. Terry is prohibited from taking which action for his clients?

Authorizing his unlicensed assistant Barbara to work with them while he's in the hospital

Which of the following items is prohibited from being included in Minnesota listing agreements?

Automatic extension. Listing agreements must have a definite termination date, but the agreement can't include any provisions that would automatically extend that date.

Greater Lakes Townhome Association was formed in June 2004. Which statement best describes their participation in the Minnesota Common Interest Ownership Act?

Based on the date the association formed, participation is automatically required. Common interest ownership associations created after June 1, 1994 are automatically required to participate in this act. The same goes for condos, regardless of when they were formed. Single-family or townhome associations created before June 1, 1994 must opt in.

The Lake Superior Condominium Association was formed in June 1990. Which statement best describes their participation in the Minnesota Common Interest Ownership Act?

Based on the type of association, participation is automatically required.

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?

Because this is a homestead property and Susan is married to Todd, both Susan and Todd's signatures are required.

When it comes to protective lists in Minnesota, who bears the burden of demonstrating those on the list made an affirmative showing of interest during the listing agreement period?

Broker or Salesperson

In Minnesota, what's the one difference between broker and salesperson requirements for continuing education?

Brokers must take one hour per year of broker-specific CE.

Which of the following best describes a Minnesota condo owner's interest in the facility's common areas?

Condo owners have an undivided interest in common areas of equal scale to their unit's size compared to the whole property's size.

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?

Condo units

Wayne is a real estate salesperson in Minnesota. He notified his broker that he 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?

Continue practicing real estate while finding a new broker to associate with.

Adrian is the developer of a new condominium project. Under the Minnesota Uniform Condominium Act, she must do which of the following?

Create and record a declaration of condominium.

Which of the following is an allowed expenditure from Minnesota's Real Estate Education, Research, and Recovery Fund?

Creating a university real estate department and a position to chair that department

Which of the following actions can a broker in Minnesota legally take?

Depositing personal funds in a trust account to pay account service fees

Stephanie and Carter are married owners of a Minnesota property that they wish to claim as a homestead. Which of these statements is true?

Either Stephanie or Carter can claim the homestead. The exemption would apply to either or both of their debts.

During an investigation, what may Minnesota's commerce commissioner do?

Examine all business records, including sales reports.

Pria is a Minnesota real estate salesperson. She provided services to both a buyer and seller in the same transaction, but didn't represent either party. Which term best defines her role?

Facilitator

How does Minnesota's Real Estate Education, Research and Recovery Fund account get funded?

Fees from license applicants

In Minnesota, what's the rescission period after a purchaser receives a copy of the subdivision sales contract?

Five days

Dylan has gotten behind on her mortgage payments. Her mortgage doesn't include a power-of-sale clause. If her lender pursues a foreclosure sale, which process will most likely be used?

Foreclosure by action, which is a judicial process requiring court supervision

Robbie's lender notifies him of an impending foreclosure, and is told that his property will be sold at public auction. Six months after the auction occurs, Robbie receives a notice of eviction for which the lender had to petition a court. What does this describe?

Foreclosure by advertisement

Thomas is a builder in Minnesota. He regularly acquires land to construct residential, commercial, or industrial buildings with the intent to sell the property after construction is complete. He doesn't have a real estate license, but isn't violating any license laws. Which of the following is true?

He performs fewer than 25 transactions in a 12-month period.

Harry dabbles in real estate in Minnesota by buying and selling several properties for himself throughout the year. He's unlicensed and isn't represented by a real estate licensee in these transactions. The real estate commission hasn't knocked on his door yet, so which of the following is most likely true about Harry?

He's the principal in four or fewer transactions during a 12-month period.

Which of the following is true about special assessments in Minnesota?

Improvements for which special assessments are levied must benefit the properties they are levied against.

A Minnesota home warranty vendee notified the vendor of a defect with a window 10 months after the warranty date. What does the vendor need to do next?

Inspect the defect within 30 days of the notification.

Which of the following actions is the Minnesota commerce commissioner NOT empowered to perform?

Investigate a complaint that a licensee acted unethically.

Which of the following properties in Minnesota may be claimed as a homestead?

Isaac owns a property that sits on 160 acres and he uses it as his primary dwelling.

Katherine is a buyer in Minnesota. She made an offer on a property and provided earnest money payment on Tuesday. The seller accepted the offer on Wednesday. What happens to Katherine's earnest money?

It must be deposited by Monday

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?

Kenneth was screened and rejected due to a reason not listed on the screening fee disclosure.

Which of the following statements best describes "module training" related to Minnesota continuing education requirements?

Licensees must take 3.5 or 7.5 hours of module training every license year.

A Minnesota homeowner has just learned her property will receive a special assessment. This is likely because she ______.

Lives in a district that just had community improvements. Special assessments are applied to districts to pay for community improvements.

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?

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.

Which of the following classes was added to the Minnesota Human Rights Act?

Marital Status

Lynn wants to sell her Minnesota home, which includes a septic system that isn't large enough to serve the home. This issue is considered a(n):

Material adverse fact. A material adverse fact is something about the property that negatively affects the value of the property or would affect another party's decision about the terms of a contract or agreement.

What agency oversees the Underground Storage Tank Program in Minnesota?

Minnesota Pollution Control Agency

Which of the following Minnesota laws establishes the process for condominium creation and requires certain disclosure for purchasers of condominiums?

Minnesota Uniform Condominium Act

Oscar is a buyer in Minnesota who provided a promissory note to his real estate agent as earnest payment. Did his agent violate license law by accepting this as earnest payment?

No, as long as the licensee deposited the item with an authorized escrow agent.

hat two things must a Minnesota contractor include in a notice to a homeowner that the contractor reserves the right to lien the property in the event of nonpayment?

Notice of right to lien and notice that subcontractors will be paid

Which of the following best describes foreclosure by advertisement in Minnesota?

Notification of pending auction, public auction, notice of eviction

When a Minnesota salesperson transfers or terminates a license with the primary broker, what action must the broker take?

Notify the commissioner within 10 days

Paige is a Minnesota property owner. The entire amount of her property tax bill is due on May 15. What can we reasonably assume based on this fact?

Paige's tax bill was less than $100.

Preston is a condominium developer in Minnesota. He's just signed a sales contract with Brett to purchase one of the first units that will be completed. Which of the following statements must be true?

Preston provided Brett with a public offering statement at least 15 days ago.

Marshall is a Minnesota real estate broker. His listing agreement with Dolly included a six-month override clause. For the clause to be effective, what must Marshall do?

Provide Dolly with a protective list within 72 hours of the listing agreement's expiration.

Someone who, for another and for compensation, negotiates the sale of real property in Minnesota is a ______.

Real estate broker

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?

Require Petra to pay the full month's rent for the month she intends to leave.

Sally signed a lease for a unit in a new apartment building in Minneapolis. Her landlord, Jamal, deposited Sally's security deposit on August 4. When will the security deposit begin accruing interest?

September 1

Serena, a Minnesota broker, represents a seller client. A buyer made an offer on the seller's property, which was accepted 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?

Serena has a duty to disclose material facts she's aware of, including facts that contradict the inspection report.

Lorraine, a Minnesota 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?

She must keep listing agreements for six years, regardless of whether the transaction closed.

Clara is a real estate salesperson in Minnesota. She recently got married, changed her name, and moved to a new house with her spouse. Which of the following is true?

She must notify the commission within 10 days of the name and address change.

Rosie is sitting at the test center ready to pass her licensing exam with flying colors. Since she's sitting for the licensing exam, which of the following statements must be true?

She's completed Course 1 of the pre-licensing education program.

Porter owns a house that sits on 30 acres of land. He uses the property for vacationing, hunting, and other recreational purposes. He's paid off about a quarter of the mortgage, but is now in foreclosure. If the property is sold at a foreclosure sale, how long can Porter expect the statutory redemption period to last?

Six months

Which of the following might qualify for reimbursement from the Minnesota Petroleum Tank Release Cleanup Fund (Petrofund)?

Six years ago, Miles took corrective action to remove and clean up a leaking tank on his property, taking out a loan to cover some costs.

Arlene is the vendor in a contract for deed arrangement. The vendee is not making his monthly payments. What is the process Arlene can use to reclaim equitable title of the property?

Termination

Tessa was the victim of a Minnesota real estate licensee's fraudulent behavior. She was awarded a $10,000 final judgment in court and has gone through all proceedings, appeals, and means for seeking payment of the judgment. She's now seeking recovery from the Real Estate Education, Research, and Recovery Fund. What must be true?

Tessa must submit an application for recovery within one year of the date the final judgment was awarded.

What legislation is being violated if a Minnesota licensee refuses to show a property to a person because that person is homosexual?

The Minnesota Human Rights Act

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?

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.

What's Minnesota's mortgage registry tax based on?

The debt secured by a loan on the property

Which of the following is considered a "responsible person" per Minnesota license law?

The general partner of an LLP. A responsible person is a natural person who may be an officer of a corporation, partner of a partnership, general partner of an LLP, or the manager of an LLC.

Marjory is making a subdivided land offer to Samuel. Which of the following can we reasonably assume to be true?

The land has been registered or is exempt from registration with the Minnesota Department of Commerce.

A consumer received payment from the Minnesota Real Estate Education, Research, and Recovery Fund to satisfy a judgment against a Minnesota licensee. Which statement best describes the consequences the licensee faces?

The license will be suspended until the licensee pays back double the amount disbursed, plus interest

What type of Minnesota agreement accounts for commission to be paid and includes the seller's permission for marketing the property?

The listing agreement

Terrance is behind on his mortgage payments. He received a notice from his lender notifying him that he's in default, giving him options for addressing the default, and providing information about foreclosure prevention counseling. Terrance didn't take any action, and the lender initiated foreclosure by advertisement proceedings. The property was sold at auction six weeks ago. What is the statutory redemption period?

The period after the foreclosure sale during which Terrance could continue to occupy the home and buy it back

Murphy is behind on his mortgage payments. He received a notice from his lender notifying him that he's in default, giving him options for addressing the default, and providing information about foreclosure prevention counseling. Murphy didn't take any action, and the lender initiated foreclosure by advertisement proceedings. The property was sold at auction six weeks ago. What is the equitable redemption period?

The period between Murphy receiving the default notice and when the foreclosure sale was held

Jim and Judy's Minnesota home was sold at a foreclosure sale. The sale didn't net the amount needed to pay off what Jim and Judy owe, but the lender can't take action to recoup the shortage from the couple. Which of these statements is most likely true?

The property was sold using the foreclosure by advertisement process.

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?

The right to purchase her unit

Jared is a buyer in Minnesota who is working with an agent. He's made an offer on a property owned by Byron, who is also working with an agent. Byron accepted Jared's offer. Assuming there are no specific instructions in the purchase agreement, what happens to Jared's earnest money?

The seller's agent must deposit the earnest money within three business days.

Tina and Jack own a property in Minneapolis. They've gotten behind on their mortgage payments and their lender has begun foreclosure by action proceedings. Which of the following is most likely true?

Their mortgage instrument doesn't include a power-of-sale clause.

Which of the following is true of Minnesota agency disclosure forms?

They are only required for residential transactions.

homas 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?

Thomas included a notice of his right to file a lien in the original written contract before beginning work on the kitchen.

As a Minnesota real estate licensee, in which of these situations would you need to provide a consumer with the Agency Relationships in Real Estate Transactions form?

To a couple considering listing their home for sale

Jewel is planning to vacate the unit she's leasing in Greater Minnesota on November 30. What obligation does she owe the landlord?

To provide at least three days' notice so the landlord can take action to prevent plumbing or pipes from freezing, if needed

Penelope is a broker in Minnesota who supervises five associated licensees. Her license was revoked by the commission. What do her associated licensees need to do to continue practicing real estate?

Transfer their licenses to a new broker.

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.

Trust

The Minnesota Underground Storage Tank Program regulates what kind of storage tanks?

Underground storage tanks that hold 110 gallons or more

What is a subdivision, according to Minnesota's Subdivided Land Act?

Undeveloped land that is being divided into smaller lots

In which situation is the contract for deed disclosure required to be presented to a buyer in Minnesota?

When the buyer is not represented by either an attorney or a real estate licensee

When can a Minnesota licensee deposit personal funds into a trust account?

When the personal funds deposited are explicitly identified as either paying a service charge or maintaining a minimum balance.

Which of the following statements best describes how the abstract and Torrens land recording systems are used in Minnesota?

With the abstract system, these actions are recorded with the county. With the Torrens system, actions affecting ownership are registered with the court. The main difference between the two systems is how actions affecting ownership are handled. Actions are registered through the court using the Torrens system and are recorded with the county under the abstract system.

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?

Yes, Warren can cancel the contract without penalty within 15 days of receiving the public offering statement.

Trinity, a transgender female, feels that she's been discriminated against when a landlord denied her rental application, telling her, "Your credit's fine, but I need tenants who are easier to figure out." For housing purposes, is Trinity's gender identity a protected class under the Minnesota Human Rights Act?

Yes, as part of the protected class of sexual orientation.

A Minnesota licensee who's representing a seller splits the commission earned on a transaction with the broker representing the buyer. Is this compensation permitted?

Yes, commission-splitting among persons licensed to perform real estate activities is permitted with seller authorization.

Redmond owns a property in Minnesota that is the site of a petroleum release. The release took place before Redmond owned the property, but Redmond paid for the $200,000 clean-up, which took place last year. Can Redmond seek reimbursement for his costs?

Yes, since he's the current owner who took and paid for corrective action, Redmond can seek reimbursement.

Yolinda is preparing closing documents for the sale of Luis' St. Paul condo. Which of the following is true?

Yolinda is a closing agent.

Which of the following is a true statement about the mortgage registry tax (MRT) and deed tax in Minnesota?

he deed tax is applied to the full price paid for the property.

Piper just passed her Minnesota real estate licensing exam. When does her application need to be submitted to the commission?

within 12 months