wrong answers MN Course 1 and 3
Which option describes a real property tax lien? General and involuntary General and voluntary Specific and involuntary Specific and voluntary
Specific and involuntary
With a straight mortgage, what type of payments are made up until the end of the loan term? Insurance Interest Points Principal
Interest
Portia is a salesperson in Minnesota representing a buyer. To whom must she provide copies of documents related to the transaction? Her buyer client only Interested parties Only to her broker for retention purposes The seller
Interested parties
Glenn is purchasing a home for $400,000. The property appraised at $415,000 and Glenn is financing $300,000. What's the loan-to-value ratio?
75
Sophie received title to her grandmother's farm last spring. For almost 100 years, Sophie's family has kept cows and goats on the 120-acre property. The deed came with a caveat: Sophie is never to raise pigs on the farm. If she does, then the property is transferred to her brother. What did Sophie's grandmother create? Abatement Condition Covenant Restriction
Condition
In a real estate transaction, which of the following is established when the parties enter into an agreement voluntarily with a full understanding of the contract terms?
Consent- Consideration Legal competency Legal purpose
What is the one of most common types of indexing system for recorded documents? Good practice index Grantor index Property sale index Tract index
Grantor index
Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty
Joint tenancy- provides equal ownership shares with undivided possession rights and requires four ownership unities: time, title, interest, and possession. Joint tenancy includes the right of survivorship.
Which of the following scenarios constitutes illegal licensee compensation in Minnesota? Carrie's broker made her commission check out to "Shoe Gal, LLC," her sole-proprietor company. Miranda's seller client reimbursed Miranda for the special signage she paid for when marketing his property. Per the listing agreement, Charlotte's broker shared her listing commission with the buyer agent's broker. Samantha's broker paid an out-of-state broker a referral fee after he sent a local client Samantha's way.
Miranda's seller client reimbursed Miranda for the special signage she paid for when marketing his property.
Serena hired Jasper to create a family tree painting for her new home's foyer for $500. Before they put anything in writing, Jasper completed the painting. He won't deliver it to Serena because she doesn't want to pay for the artwork. Is the contract enforceable?
No, the contract isn't enforceable because Jasper didn't deliver the goods. No, the contract wasn't in writing or signed by the appropriate parties. Yes, an unwritten contract can still be enforced if the goods are created specifically for the buyer and can't be sold to others.- Yes, because contracts for goods valued at $600 or less aren't required to be in writing to be enforceable.
Which group ensures that community growth is controlled and orderly? HOA Master commission Planning board Zoning board of appeals
Planning board
Conrad just closed on the house he's buying to fix up. Why should he follow up to be sure the deed has been recorded? He can't legally make any improvements to the property until the deed is recorded. He doesn't legally own the house until that occurs. Recording provides actual notice that he owns the property. Recording provides constructive notice that he owns the property.
Recording provides constructive notice that he owns the property.
What is a good way to avoid the risks associated with dual agency? Call one party a customer, even if you have to offer some agency services to both parties. Have both parties sign a waiver. Have only one party agree to the dual agency situation; represent the other party as an undisclosed dual agent. Refer one party to another agent.
Refer one party to another agent.
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? Accretion Erosion Exclusion Reliction
Reliction
Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law? Disclosing in writing to all parties in a transaction that the licensee isn't a licensed attorney, so there's no licensee liability Having a designated broker review and notarize all completed contracts Having a designated broker write all contracts from scratch to make them specific to each transaction Using approved fill-in-the-blank forms
Using approved fill-in-the-blank forms
Discounted cash flow analysis is a form of what? Direct capitalization Present value Residual capitalization Yield capitalization
Yield capitalization
Which of these statements about selling manufactured/mobile homes is true? Mobile homes can't be listed on the MLS You can't sell mobile homes You need a broker or sales person license to sell mobile homes You need a special license to sell mobile homes
You need a broker or sales person license to sell mobile homes
You've just purchased a rural property, and the attorney at the closing tells you, "You have a dominant estate." What does that mean to you? The property comes with an easement in gross granted to the utility company. You'll be using an easement across your neighbor Jim's property. Your property has an easement granted to your neighbor Jim, allowing him to cross your property to access his land. Your property has direct access to a road and doesn't require an easement.
You'll be using an easement across your neighbor Jim's property.
When a city is determining zones, what should be followed?
Construction standards Federal zoning codes State zoning codes The comprehensive plan-
You've just received a trio from a title company. It contains an assessor's map, property profile, and one other item. What is it? Deed Marketing report MLS listing Tax record
Deed
An appraiser calculates the market rent for an eight-unit apartment building as $1,000 per room per year. Each unit has three rooms. The property owner lives in one of the units. There are no other sources of income. What is the potential gross income for this property?
$21,000 $24,000- $5,000 $8,000
A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. What's the total amount of interest he'll pay over the course of the loan?
$608,292.40
What's the Real Estate Education, Research and Recovery Fund fee for a Minnesota license renewal applicant?
20
Charles is selling his property to Seth. Charles is financing part of the transaction for Seth, who will make payments to Charles while Charles retains the property title. What is this an example of? A land contract An assumable mortgage A straight-term loan A wraparound mortgage
A land contract
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 scenarios requires disclosure? A foreclosed property has a leak in the roof. A newly constructed home had to be repaired after it suffered minor smoke damage when a wastebasket caught fire after a contractor threw a lit cigarette into it. An investor is selling a property on which a suicide occurred to his grandson. A person is selling his property, which has a septic system, to a newly married couple.
A person is selling his property, which has a septic system, to a newly married couple.
Which of the following situations must be disclosed to the parties in a Minnesota transaction?
A prior occupant who had AIDS Data that contradicts an inspection report- Registered sex offenders in the neighborhood Reported ghost sightings
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 bank employee selling a piece of land owned by the employer as part of his or her employment duties A cemetery salesperson selling a burial plot A son selling his parent's house A trustee selling property as part of a court order
A son selling his parent's house
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?
Adjustable rate mortgage (ARM) Home equity line of credit (HELOC) Home equity loan Reverse annuity mortgage (RAM)-
The act of transferring ownership of a property is known as _______. Accession Alienation Devising Granting
Alienation
A cabin has 120 feet of lake frontage. The cabin owner's ability to access the lake is based on ______.
An aquifer An easement Littoral rights- Riparian rights
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? An iron rod with a surveyor's cap An "X" painted on the ground A rock with a surveyor's mark etched in it A small copper sign labeled "monument"
An iron rod with a surveyor's cap
Shannon and Rene are sisters who entered into a contract to buy an income property. The sisters got into a dispute, and Shannon wants out of the deal. However, their uncle Jerry wants to replace Shannon on the contract. Shannon agrees to the substitution so they go ahead and do it. If Jerry fails to live up to his obligations under the contract though, Shannon will be held responsible. Of what is this an example?
Assignment
The person named as the recipient of real property in a will is called the _______.
Beneficiary Devisee- Grantee Trustee
What's a lease with an expense stop clause considered? Benefit to the lessee Benefit to the lessor Rent-to-own lease Type of rental deposit
Benefit to the lessor
Which agency, along with other agencies, regulates wetland activities in Minnesota?
Board of Water and Soil Resources--- Department of Health Department of Natural Resources Department of the Interior
Licensee Randy has a written listing agreement with Brent, a seller. The buyer is Tim. Who is Randy's client?
Both the seller (Brent) and the buyer (Tim) Randy's broker The buyer (Tim) The seller (Brent)---
If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients?
Buyer agency Dual-licensed dual agency Seller agency Single-licensed dual agency -
Which of the condition ratings below indicates that the improvements have substantial damage or deferred maintenance with severe deficiencies affecting the safety, soundness, or structural integrity of the improvements?
C1 C3 C4 C6-
Whose role is it to develop the comprehensive master plan?
City or town council members Mayor Planning board members- Tax assessor
Where will you find official documentation about the licensing of real estate professionals?
Codes of conduct Ordinances State statutes and regulations- Zoning codes
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?
Complete a loan application. Obtain a pre-qualification letter.-- Sign a purchase agreement. Write an offer.
Licensed residential appraisers in Minnesota can appraise properties with which of the following limits?
Complex property transactions valued at less than $1 million Complex property transactions valued at less than $250,000- Property transactions of any value, provided they don't require a net capitalization analysis Property transactions of any value, provided they're not comple
Regular home financing is not available for this type of dwelling.
Condominium Manufactured home- Modular home Single-family home
The legal concept of having ownership of real property is called ______.
Conveyance Possession Right to exclusion Title-
What are emblements in real estate?
Cultivated crops- Detached fixtures Free-standing plants Open spaces
Which of the following describes amortized debt? Debt that increases over time, but allows early payments to remain low Debt that's paid off by making periodic payments Debt with an amortized interest feature Debt with an amortized principal feature
Debt that's paid off by making periodic payments
Carmen was hired by the Navarreses to build a walk-in closet. She included a lien notice in the original contract. The Navarreses have provided final payment. What does Carmen need to do to remove the lien associated with this contract? Deliver a lien wavier to the Navarreses. File with the court to have the lien recorded. Nothing, she didn't deliver the lien notice separate from the original contract, so no lien is attached. Provide a receipt within 10 days.
Deliver a lien wavier to the Navarreses.
Which of the following actions can a broker in Minnesota legally take? Depositing earnest money in the broker's personal account Depositing personal funds in a trust account to pay account service fees Depositing property management fees in a trust account Depositing rent collections in the building operating account
Depositing personal funds in a trust account to pay account service fees
Michael and Carla have baseboard heating in their older home, which requires no ductwork or boiler. What type of heating system do they have? Electric heating Forced air furnace Hot water steam system
Electric heating
What type of rights to the property does a Minnesota seller have during the contract for deed process?
Equitable title rights Legal title rights- Partial title rights Restricted title rights
Which of the following is a general, involuntary lien placed to ensure payment of taxes when someone dies? Estate and inheritance Income tax Judgment Lis pendens
Estate and inheritance
Which of the following describes an estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other?
Estate at will- Estate for years Leasehold estate Life estate
Which of the following has the legal effect of preventing a person from making a claim based on her prior behavior or statements?
Estoppel--- In rem proceeding Ratification Reaffirmation
What type of title insurance covers defects of an incorrect survey and boundary encroachments?
Extended title insurance- Homeowners insurance Standard title insurance Title survey and boundary insurance
Why are new condominiums an issue with FHA loans? FHA doesn't loan on condominiums. FHA requires 50% of the units to be under contract FHA requires HOA boards to submit monthly reports to the lender. FHA won't loan if HOA fees are more than $200 per month.
FHA doesn't loan on condominiums. FHA requires 50% of the units to be under contract- FHA requires HOA boards to submit monthly reports to the lender. FHA won't loan if HOA fees are more than $200 per month.
If Acme Bank, a primary lender, wants to sell its loans on the secondary market, it would be easier for it to do so if its loans meet ______. Fannie Mae and Freddie Mac guidelines FDIC guidelines FHA guidelines VA guidelines
Fannie Mae and Freddie Mac guidelines
Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have?
Flat fee one payment Graduated lease Gross lease- Net lease Percentage lease
Which physical characteristic of land addresses the concept that while improvements may deteriorate over time, the land itself cannot be destroyed?
Immobility Indestructibility- Permanence of investment Uniqueness
Martha is completing an addendum for her client. She should make sure that it's written ______.
In block type In cursive Using legalese Using standardized language-
Which of the following best explains how the statute of frauds protects consumers? It doesn't allow people to own land unless they can afford it. It provides requirements that certain contracts have to meet to be legally enforceable. It puts a limit on how much interest financial institutions can charge. It states that all real property sales must involve lawyers.
It provides requirements that certain contracts have to meet to be legally enforceable.
Which of these statements is NOT true about a specific lien? It may allow the creditor to sell the property through a court sale (foreclosure) and be repaid from the proceeds of the sale. It prevents the debtor from transferring the property until the debt has been repaid. It's a lien against a single property rather than a person. It's always involuntary.
It's always involuntary.
Which of these is the best definition of real estate? Everything that's not real property Land, plus all things permanently attached to it naturally or artificially Real property, plus all of the interests, benefits, and rights included in ownership The earth's surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects
Land, plus all things permanently attached to it naturally or artificially
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?
Listing agreements don't need to be retained. She doesn't need to retain the listing agreement since the transaction never closed. She must keep listing agreements for six years, regardless of whether the transaction closed.- She needs to keep the listing agreement for six months, since the transaction didn't close
In Minnesota, approval for regulated activities in wetlands must be obtained from which entity? Department of Health Local government units Urban planners Zoning Board of Appeals
Local government units
Which of the following does an appraiser take into consideration when determining site value? Location Location, amenities, and improvements Location and amenities Location and improvements
Location and amenities
If an item is permanently attached to a property, a court would most likely consider it a fixture if it passes which of the following tests? Adaptability of the item to the land's use Agreement of the parties Method of annexation Relationship of the parties
Method of annexation
What's the lowest pressure at which plumbing will still function? Applied pressure Ideal pressure Maximum pressure Minimum pressure
Minimum pressure
What agency oversees the Underground Storage Tank Program in Minnesota? Division of Water Quality Hazardous Waste Board Minnesota Pollution Control Agency Underground Storage Tank Agency
Minnesota Pollution Control Agency
Regular mortgage financing is available for this type of housing. Manufactured home Mobile home Modular home Triple wide
Modular home
What's the experience requirement for an appraiser trainee? No experience required One supervised appraisal Six months of experience Three completed appraisals
No experience required
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 broker provides written permission for the licensee to accept a promissory note. No, as long as the licensee deposited the item with an authorized escrow agent. Yes, since licensees can only accept cash, checks, or other depositable items as earnest payment. Yes, since licensees must first get commissioner permission before accepting nondepositable items.
No, as long as the licensee deposited the item with an authorized escrow agent.
Pamela is a primary broker in Minnesota. She's not planning to renew one of her associated salesperson's licenses. What must she do? Notify the commission in writing within 30 days. Notify the salesperson in writing at least 30 days before June 15 of the renewal year. Notify the salesperson within 30 days of her decision. Wait until the license expires, then return it to the commission
Notify the salesperson in writing at least 30 days before June 15 of the renewal year.
a legal instrument used to replace one obligation or party with another in a contract.
Novation
When can specific performance be enforced under a sales contract? Both parties have fully met the terms of the contract. One or both parties have completed only a portion of the terms agreed to in the contract. 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. The parties to a contract can't legally or practically do what they've agreed to do due to circumstances out of their control.
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.
Government agencies usually become involved during which phase of an environmental assessment? Phase III: Clean-up Phase I: Investigation Phase II: Testing Phase IV: Management
Phase III: Clean-up
What factors directly affect an adjustable rate mortgage? Amortization tables, index, and rate Index, tax basis, and margin Rate, index, and margin Rate, loan-to-value ratio, and index
Rate, index, and margin
Condominiums involve what type of ownership? Borrowed property Personal property Real property Temporary property
Real property
Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property? Ensure that Cheng signs the deed. Ensure that he signs the deed. Purchase title insurance. Record the deed in his name.
Record the deed in his name.
Which of these statements about the homeowner's right of redemption is true? Homeowner right of redemption applies to foreclosures, short sales, and REOs. Only foreclosures are subject to homeowner's redemption rights. Right of redemption timelines are longer for foreclosures than they are for short sales. Rights of redemption window with REOs may have expired.
Rights of redemption window with REOs may have expired.
In which form of co-ownership is a person's ownership inheritable? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty
Tenancy in common
Your buyer client asks you the purpose of a financing contingency. Your response should be that it protects _________________.
The bank The buyer- The listing agent The seller
Before closing, evidence of an owner's title insurance policy should be provided to which of the following parties? The appraiser The buyer The seller The title company
The buyer
Who or what entity is responsible for determining the validity of a will as part of the probate process? A court-appointed administrator The court The decedent's heirs The executor of the will
The court
Which of the following is a true statement about the mortgage registry tax (MRT) and deed tax in Minnesota? The deed tax is applied to the full price paid for the property. The deed tax is based on the amount of debt secured by a mortgage on the property. The mortgage registry tax applies to properties secured with financing or where the buyer pays cash. The mortgage registry tax is a percentage of the full price paid for the property.
The deed tax is applied to the full price paid for the property.
If there's no state or local building code to cover a specific situation, what code must the builder abide by? The Builder Code of 1912 The builder's own The Development Code of 1986 The federal building code
The federal building code
Jewel is planning to vacate the unit she's leasing in Greater Minnesota on November 30. What obligation does she owe the landlord? To insulate any necessary plumbing or pipes to prevent freezing To provide 30 days' written notice that she's terminating her lease To provide at least three days' notice so the landlord can take action to prevent plumbing or pipes from freezing, if needed To sublease the unit to another party before she vacates the property
To provide at least three days' notice so the landlord can take action to prevent plumbing or pipes from freezing, if needed
In which of the following situations can you sell timeshares without a real estate license? When the timeshare was constructed more than five years ago When the total value of the property is under $1 million When you're selling them for a friend or relative When you're selling your own timeshare
When you're selling your own timeshare
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? No, because Sarah can't legally enter into a contract. No, she can purchase the house if Robert doesn't object, but can't do so if he objects. Yes, as long as she gets a legally competent party to co-sign the contract with her. Yes, Sarah can require that Robert fulfill the contract terms.
Yes, Sarah can require that Robert fulfill the contract terms.
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? No, a licensee shall not pay a commission, compensation, referral fee, BPO fee, or other valuable consideration for the performance of any acts requiring a real estate license. No, a real estate broker or real estate salesperson shall not offer, pay, or give, and a person shall not accept, any compensation or other thing of value from a real estate broker or real estate salesperson. Yes, commission-splitting among persons licensed to perform real estate activities is permitted with seller authorization. Yes, commission-splitting is permitted if authorized in writing by the real estate broker representing the seller.
Yes, commission-splitting among persons licensed to perform real estate activities is permitted with seller authorization.
Loans for ______ purposes don't require TILA disclosure. Business Consumer Housing Personal
business
The Simpsons are buying the Martins' house for $415,000, and closing is set for March 15. The Martins have a loan balance of $230,000 at a rate of 4.7% and have prepaid property taxes ($2,506) and insurance ($1,400), and they also have mortgage interest to consider. Using a 365-day proration method, calculate the prorated amount the Simpsons will owe the Martins at closing. Assume February has 28 days this year. The sellers own the day of closing.
$1,997.62
Tess has $385 in monthly non-housing debt obligations, and her anticipated mortgage payment is $1,103. Her gross income is $7,598, and her net income is $5,815. What's her total DTI (debt-to-income ratio)?
19.58
According to the Minnesota statute of frauds, a lease for real estate must be in writing and signed by the person who will be charged with the promise/agreement, or by someone who is legally authorized to sign for that person, to be enforceable. This requirement applies to a lease with a term of longer than ______.
1 year
Which of these is NOT one of the ways in which an agency relationship may be terminated without penalty for either the agent or the principal? Delaney signed a buyer's representation agreement with Martha. After Delaney made an offer on a house, she changed her mind and terminated the agency agreement. Martha listed Sonja's home for sale. Martha helped Sonja negotiate an offer and performed the other tasks required of her. The closing has taken place. Phyllis listed her home with Brad. Brad put the property on the MLS, but Phyllis hasn't heard from him in more than two months. Richard listed Ole's ski chalet for sale. Two weeks later, an avalanche destroyed the property.
Delaney signed a buyer's representation agreement with Martha. After Delaney made an offer on a house, she changed her mind and terminated the agency agreement.
What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific property?
Designated General- Special Universal
Sam and Monique knew that the old industrial site that they purchased needed some environmental cleanup, but they don't have the cash and put cleanup on hold. The EPA hired its own crew to deal with groundwater issues because of industrial solvents and billed Sam and Monique $164,000 when the job was complete. If Sam and Monique don't pay the bill, which one of the following could happen? Sam and Monique will forfeit their ownership rights to the site and will be forced to foreclose. The EPA can seek damages in court for up to three times the actual cleanup costs. The EPA will have to find the former owners of the site and bill them. The EPA will have to fund the cleanup itself.
The EPA can seek damages in court for up to three times the actual cleanup costs.
If property is held by two or more owners as tenants in common, the interest of a deceased co-owner will pass to ______. The heirs of the deceased The remaining owner or owners The state by eminent domain The surviving owner and the deceased owner's heirs
The heirs of the deceased
Marvin, a broker for PDQ Realty, died unexpectedly. The Department of Commerce will allow a licensee to serve as temporary broker as long as ______. The licensee has a broker's license and serves in the temporary capacity for no more than 120 days The licensee has at least three years of experience, even if the licensee doesn't hold a broker's license The licensee is already a member of the brokerage The license is related to the former broker
The licensee has at least three years of experience, even if the licensee doesn't hold a broker's license
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? The listing expires and is automatically terminated. Trina can't extend the listing agreement, so she'll have to list with another brokerage firm. Trina owes Avalon whatever compensation was noted in the listing agreement. Trina's agent may still try to sell the property.
The listing expires and is automatically terminated.
Jenna is licensed to appraise all property types in Indiana. She's involved in the purchase of a Minnesota manufacturing facility by a federal agency that intends to transform it into a training and testing facility. She's been asked to appraise the factory. What type of license should she apply for? Certified general appraiser Licensed general appraiser Temporary practice appraiser Trainee appraiser
temporary practice appraiser
