CE Second Practice exam
Clint is interested in making an offer on a house with hardwood floors that will need to be replaced. The hallway is 18' x 6'. The kitchen is 20' x 30'. The living room is 25' x 45'. Two bedrooms are 12' x 16', and the master bedroom is 14' x 20'. If the cost of the flooring is $5.48 per square foot, and the cost of installation is $1.49 per square foot, how much can Clint plan to spend to replace the floors? $13,683.56 $16,065.85 $16,309.80 $17,404.09
$17,404.09 First, find the area of each room and add them together to get the total square footage. 108 + 600 + 1125 + 192 + 192 + 280 = 2,497 square feet. The total cost of the flooring per sq. ft. is $5.48 + $1.49 = $6.97. 2,497 x $6.97 = $17, 404.09.
The cost of a parcel of land is 50 cents per square foot. Candace wants to purchase one acre. How much will this cost? $21,780 $43,560 $500 $5,000
$21,780
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? $250,000.00 $30,640.65 $367,687.80 $735,375.60
$367,687.80 To find the total amount paid back, multiply the monthly payment ($2,042.71) by the total number of payments (180 = 12 payments/year x 15 years). The total paid back is $367,687.80.
If you have an 800-square-foot rectangular building and it sells for $75,000, that equates to ______ per square foot. $187.50 $46.88 $60.50 $93.75
$93.75
Assuming that the seller pays for the date of closing, if closing is July 7, how many days will the seller be responsible for paying using a statutory year? 150 days 180 days 187 days 189 days
187 days
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)? 14.51% 18.96% 19.58% 25.58%
19.58%
Clarisse is sitting for the Minnesota licensing exam. How many hours of pre-licensing education must she have completed in order to do this? 120 hours 30 hours 60 hours 90 hours
30
What's the most common ratio for borrowers who use split, or piggyback, mortgages? 75/15/10 80/10/10 80/20 90/10
80/10/10
Margie needs to know the square footage for the first floor of the condo her client is interested in buying. The kitchen is 10 feet by 15 feet, the living/dining combo is 20 feet by 25 feet, and the office and bedroom are each 10 feet by 10 feet. What's the total square footage? 2,200 square feet 3,000 square feet 750 square feet 850 square feet
850 square feet Find the area of each room to get its square footage, then add the square footage of all four rooms. Kitchen = 150 sq. ft.; living/dining = 500 sq. ft.; office = 100 sq. ft.; and bedroom = 100 sq. ft. = 850 square feet.
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 An oral agreement between hunting buddies for one to purchase a cabin from the other for $500 An oral agreement to purchase $1,000 worth of window treatments in a variety of standard sizes A written agreement to pay $15,000 for cabinetry signed by the carpenter, but not the purchaser
A custom portrait valued at $500 that was delivered to and accepted by the recipient who is refusing to pay for it
What is a watershed? A land formation that directs water from higher elevations into lakes and other bodies of water A manmade system that diverts flood water away from residential areas A naturally formed water reservoir The area between the shoreline and the point where construction doesn't need a DNR permit
A land formation that directs water from higher elevations into lakes and other bodies of water
_____ is a fee that a lender charges for the processing of a loan. A discount point A loan origination fee Interest Usury
A loan origination fee
Which of the following properties would qualify for a homestead exemption through Minnesota homestead law? A 200-acre ranch A primary residence on an acre lot A second home A second home in the city on a three-quarter-acre lot
A primary residence on an acre lot
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 commercial real property transaction at the first substantive contact with the consumer an agency disclosure form A real estate broker or salesperson shall provide to a consumer in the sale and purchase of any real property transaction at the first substantive contact with the consumer an agency disclosure form 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 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
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
If a private individual tries to lay claim to someone else's property because he has been living on and using the property as his own for an extended period of time, the individual may acquire the property through _______. Adverse possession Conveyance Descent Escheat
Adverse possession
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? Agency Relationships in Real Estate Transactions form Listing agreement Purchase Agreement Seller's disclosure notice
Agency Relationships in Real Estate Transactions form
What feature do most adjustable rate mortgages have? Allows borrowers to convert to a fixed-rate during a specific period of the mortgage Gives buyers the option to increase their interest rate in return for cash lump sum Permits buyers to refinance in five years Requires buyers to pay points to buy down their interest rate
Allows borrowers to convert to a fixed-rate during a specific period of the mortgage
Which of the following is more likely to act as a closing agent? An attorney or title company representative The broker The lender The seller
An attorney or title company representative
What is an environmental impact statement? A long-term study measuring humans' effects on the environment An annual statement from the EPA on the overall health of the environment An in-depth analysis of the potential effect a development plan will have on the environment A report on the current levels of toxins in the air
An in-depth analysis of the potential effect a development plan will have on the environment
Which of the following refers to rights that come with the land? Adverse possession Appurtenance Lis pendens Servient
Appurtenance Appurtenance conveys a sense of attachment and belonging. It includes the inherent or automatic rights that are the natural consequences of property ownership and that go with the land when the property is transferred.
What are improvements with regard to property? Another name for a building permit Artificial attachments to land that include items such as fencing, buildings, and walkways Natural fixtures that are part of the land and that enhance its value The right to increase the value of a property
Artificial attachments to land that include items such as fencing, buildings, and walkways
When completing a loan application, applicants must list any items of value they own. What's another term for these items? Assets Disclosures Liabilities Net proceeds
Assets
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. Of what is this an example? Assignment Fraud Mutual mistake Novation
Assignment
Prior to signing the closing documents, what should the parties have already done? Assured themselves that the conditions and contingencies of the purchase agreement have been met Moved locations Paid the balance of the purchase price to the seller Paid the title representative for the closing
Assured themselves that the conditions and contingencies of the purchase agreement have been met
Property with ownership by more than one person is known as ______. Co-ownership Dual ownership Estate by severalty Property partnership
Co-Ownership Property with ownership by more than one person is known as co-ownership.
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 complex
Complex property transactions valued at less than $250,000
The Baxters are looking at a $425,000 home. They have $90,000 in savings to use as a down payment. What loan type(s) would likely be the best option for them? Conventional FHA FHA, VA, or conventional VA
Conventional A $90,000 down payment would be a little more than 20% down ($90,000 ÷ $425,000 = 0.212, or 21.2%). The Baxters should qualify for a conventional loan with that much to put down on the home, and will avoid having to buy mortgage insurance.
Matthew Sorkin owns his home. Which of the following is the term for the legal document showing that property ownership was transferred to him? Certificate of occupancy Deed Purchase agreement Title
Deed (A deed is the legal document showing property ownership has been transferred from one party to another.)
A ________ is a limitation on the use of land that appears in the deed itself. Building permit Deed restriction Doctrine of laches Restrictive covenant
Deed restriction Deed restrictions are written into a property's deed and can take the form of conditions, covenants, and restrictions.
What can borrowers "buy" to help lower their loan's interest rate? Discount point Interest point Loan origination point Volume point
Discount point A discount point allows you to buy down your interest rate, which can lower your monthly payment.
Margot doesn't really want to include Friend and Lend on the list of mortgage companies she gives to buyers because the owner is a Syrian immigrant and a Muslim. If she doesn't, what is she guilty of? Collusive bidding Discriminatory acts and agreements Production control Refusal to deal
Discriminatory acts and agreements
To provide sellers with assurance they won't back out of the sale, buyers may offer a financial deposit that will be kept in escrow until the conditions are met at closing. What's this deposit called? Earnest money Principal money Soft money Spending money
Earnest money
A part of your property is used by the local utility company to maintain its power lines. What's this an example of? Easement Eminent domain Encroachment Illegal use
Easement
Which of the following best describes a marketable title? Conveys ownership of the property. Ensures the title to property is free and clear of liens and only subject to loan payoff and any taxes owed. Protects the buyer from defects in the title. Provides a title commitment or abstract of title via a search of public records.
Ensures the title to property is free and clear of liens and only subject to loan payoff and any taxes owed.
Which of the following prohibits lenders from discriminating based on protected class status? Community Reinvestment Act Equal Credit Opportunity Act RESPA Truth in Lending Act
Equal Credit Opportunity Act
A home equity line of credit (HELOC) is based on the homeowner's available ______. Cash Credit Equity References
Equity
There are three types of listing agreements. They are _______, exclusive agency, and open listing. Exclusive right-to-sell Full listing Online only listing Private listing
Exclusive right-to-sell
In which of the following types of contracts has one or more of the contract's terms yet to be completed? Bilateral contract Executed contract Executory contract Unilateral contract
Executory contract
Lauren obtained a loan that's insured and that only required a down payment of 3.5%. Which of these is most likely the type of loan Lauren has? Conventional FHA Home equity line of credit VA
FHA
After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title? File a suit to quiet title. File suit against the lender. File suit against the seller. Have a second title search performed.
File a suit to quiet title.
Bindy received a loan based on the amount of equity she had in her house. She used this lump sum to fund her daughter's college education. What type of loan did she get? Conventional Convertible Home equity Scholastic interest
Home equity
Conveyance of property by escheat is an example of _______ alienation. Hereditary Involuntary Unlawful Voluntary
Involuntary
Why is asbestos an environmental issue? It causes brain clouds. It causes chronic lung disease. It causes depression. It takes up space in a landfill.
It causes chronic lung disease.
Why was the refrigerant known as Freon® banned under the Clean Air Act? It depletes the ozone. It is not an effective coolant. It is too costly to manufacture. The patent was not renewed.
It depletes the ozone.
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 Friday. It must be deposited by Monday. It must be deposited by Thursday. It must be returned to Katherine by Thursday.
It must be deposited by Monday.
In order for Minnesota homeowners to qualify to homestead their residence, which of the following must be true? It must be their primary residence. The home's assessed value must be higher than the market value. The home's value must be $50,000 or less. The title must be held in the name of only one person.
It must be their primary residence.
What's inverse condemnation? It occurs when a property owner dies without a will, heirs, or creditors. It occurs when government actions deprive a property owner of the value of the property without offering just compensation. It occurs when municipalities pass enabling acts. It occurs when the government places a lien on a property due to failure to pay taxes.
It occurs when government actions deprive a property owner of the value of the property without offering just compensation.
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 statements best describes the meaning of title? It's one of the rights found in the bundle of rights. It's the legal concept that one owns property. It's the legal description of a property. It's the legal document that shows proof of ownership of property.
It's the legal concept that one owns property.
Your client, Eric, is interested in purchasing an industrial property to start a new business. You've recommended that soil, air, and water testing be done, but Eric is on a tight budget and doesn't feel these tests are necessary. What should you do? Keep records of your recommendations and a written response from Eric. Perform the tests yourself. Refuse to be a part of the transaction. Support Eric in his decision and do nothing further.
Keep records of your recommendations and a written response from Eric.
Why might a buyer get a great deal on a real estate owned property? Federal regulations require that REOs be sold below market value. Lenders and their shareholders don't like to keep properties on their books longer than necessary. There are no agent commissions to pay for REO transactions. There are special government financing programs for purchasing REOs.
Lenders and their shareholders don't like to keep properties on their books longer than necessary.
A title examiner has decided to limit the title search to the last 50 years. What type of title examination is this considered? Abbreviated search Complete search Index search Limited search
Limited search
A Minnesota homeowner has just learned her property will receive a special assessment. This is likely because she ______. Failed to pay her taxes last year Lives in a district that just had community improvements Recently purchased, prompting a reassessment Recently remodeled
Lives in a district that just had community improvements
Which entity typically enforces the code restrictions and licensing and insurance requirements for contractors, thereby enforcing the building code? Builder/developer Department of Environmental Conservation Department of Health Local building department
Local building department
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 item to land's use Agreement of the parties Method of annexation Relationship of the parties
Method of annexation
Which of the following Minnesota laws establishes the process for condominium creation and requires certain disclosure for purchasers of condominiums? Minnesota Common Interest Ownership Act Minnesota Residential Housing Act Minnesota Uniform Condominium Act Minnesota Uniform Partnership Act
Minnesota Uniform Condominium Act
When a Minnesota salesperson transfers or terminates a license with the primary broker, what action must the broker take? Inform all the licensee's clients of status change Nothing; the licensee has the notification responsibility Notify the commissioner within 10 days Notify the commissioner within 3 days
Notify the commissioner within 10 days
Borrowers must list their liabilities when completing a residential loan application. What are liabilities? Items of value a borrower owns Obligations a borrower owes The difference between a borrower's items of value and obligations Wages earned from employment
Obligations a borrower owes
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? Get a sub-prime loan. No options here; Kirk will need to wait until his debt-to-income ratio meets qualified lending standards. Offer a shared equity situation with the lender. Pay off his other debt and/or increase monthly income.
Pay off his other debt and/or increase monthly income.
Nancy Simons died without leaving a will. The court will determine who her rightful heirs are and appoint an administrator to distribute her estate's assets. What's this process called? Probate Probative investigation Rightful heir determination Underwriting
Probate (In situations where no will exists, the court will determine who the deceased person's rightful heirs are, and appoint an administrator to distribute the estate's assets according to the law of descent and distribution.)
Sue is selling a property outside Minneapolis with a private well. What must she do? Provide notice to prospective buyers that the well must be upgraded. Provide written disclosure of the well's location and status. Sue isn't required to do anything. Upgrade the sewage system before the property can be sold.
Provide written disclosure of the well's location and status.
What type of arrangement allows the buyer to retain title to the property, but places a security interest in the property on behalf of the seller? A straight-term loan Land contract Purchase money mortgage Wrap-around mortgage
Purchase money mortgage
What are the three primary acts that impact mortgage loan disclosure? RESPA, TILA, and Dodd-Frank RESPA, TRID, and Dodd-Frank TRID, TILA, and Dodd-Frank TRID, TILA, and ECOA
RESPA, TILA, and Dodd-Frank (RESPA, TILA, and Dodd-Frank are the three primary acts that impact mortgage loan disclosures. TRID is an acronym for TILA-RESPA Integrated Disclosures (the LE and CD).
Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable? Drew didn't have the financial resources to make the offer. Real estate contracts must be in writing. There was no offer and acceptance. This wasn't a legal purpose.
Real estate contracts must be in writing.
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? Court-ordered partition of property Escheat Foreclosure Regulatory taking
Regulatory taking
Annette really wants to move to San Francisco, but she's unsure whether she'll be able to afford to live there. Housing is very expensive because there simply is no room to build any new housing units. Which economic characteristic does this reflect? Area preference Improvements Permanence Scarcity
Scarcity San Francisco is out of land to build new housing. Scarcity is the corresponding economic characteristic.
Ted's seller client is adamant that she'll be uprooting and taking most of the fruit trees in the backyard when she sells her home. Ted makes a note to himself that he'll need to include the ______ of the trees in the comments for his listing. Abatement Annexation Defenestration Severance
Severance (Detaching a real property item from the land, thereby making it into personal property, is called severance.)
In a contract, consideration is the giving of ______. Notice to attorneys that they may review the terms of the agreement Something of value in exchange for something of value Something of value in exchange for something without value Thoughtfulness and courtesy to all parties
Something of value in exchange for something of value
Which of the following lists items that likely contain asbestos, if manufactured before 1970? Pipe and furnace insulation materials Shingles, siding, and roofing, pipe and furnace insulation materials Soundproofing and decorative material, pipe and furnace insulation materials, shingles, and siding. Soundproofing or decorative material
Soundproofing and decorative material, pipe and furnace insulation materials, shingles, and siding.
Samantha is a real estate licensee. She's showing her client a property. The client asks about some spots on the ceiling and wonders if they're an indication of a roof leak. What should Samantha do? Climb on the roof and perform an inspection. Hire a home inspector to physically inspect the property. Suggest that her client contact a roofing expert to make a determination. Tell her client that the spots indicate a roof leak.
Suggest that her client contact a roofing expert to make a determination.
Which amendment to CERCLA says that "innocent landowners" aren't responsible for clean-up of hazardous contamination? Environmental Responsibility Amendment Hazardous Contamination Amendment Superfunds Amendments and Reauthorization Act The Fair Housing Act
Superfunds Amendments and Reauthorization Act The Superfund Amendments and Reauthorization Act, or SARA, says that innocent landowners aren't responsible for clean-up of hazardous contamination.
Which type of government power uses the legal power of a lien? Eminent domain Escheat Police power Taxation
Taxation
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
Tenancy in common
Katherine is purchasing a second home as an investment/vacation property. She has a large down payment, and the seller is financing the rest of the purchase. Which of these statements is true? The CFPB provides forms similar to the Closing Disclosure and Loan Estimate for seller/financers to use. The Closing Disclosure and Loan Estimate aren't required in a seller-financed transaction. The seller is required to provide the same disclosure forms to Katherine as a standard lender would provide. The seller will provide the Closing Disclosure and Loan Estimate to Katherine but has a longer timeframe to do so than a traditional lender would have.
The CFPB provides forms similar to the Closing Disclosure and Loan Estimate for seller/financers to use. (In a seller-financed transaction, the Closing Disclosure and Loan Estimate aren't required. Some other form of statement may be prepared to show the buyer and the seller their respective closing figures.)
In 2010, what agency banned Freon® as a refrigerant? The attorney general The DEC The DEP The EPA
The EPA Environmental protection agency
What's another name for the Homeowner's Protection Act? HOPA The Home Safe Act of 1998 The PMI Act of 1997 The PMI Act of 1998
The PMI Act of 1998
Which Minnesota law protects its dwindling wetlands? The Minnesota Environmental Policy Act The Minnesota Pollution Control Act The Minnesota Right to Farm Act The Wetland Conservation Act
The Wetland Conservation Act
What's one of the required elements of a valid option contract? A range of sale prices for the property from which the optionee can choose The amount of consideration the optionee is paying the optionor The optionee's promise to buy the property The optionor's verbal assurance that the optionor won't sell the property to anyone else during the option period
The amount of consideration the optionee is paying the optionor
Who's responsible for any tax reserves required to pay property taxes? The buyer The closing agent The lender The seller
The buyer
Which of the following is a potential disadvantage for a buyer who enters into a lease with an option to buy contract? The buyer/lessee could lose any funds credited to the purchase price if he breaches the lease's terms. The buyer/lessee has to pay higher federal capital gains taxes if purchasing a property through a lease with an option to buy transaction. The buyer/lessee has to wait until the property owner is ready to sell the property before he can take possession of it. The buyer/lessee is unlikely to qualify for a regular mortgage if he decides to move or buy another property later.
The buyer/lessee could lose any funds credited to the purchase price if he breaches the lease's terms.
Naomi is completing a residential loan application. On the application, she lists her assets and liabilities so that her net worth can be determined. What's net worth? Items of value the borrower owns Obligations the borrower owes The difference between a borrower's items of value and obligations Wages earned from employment
The difference between a borrower's items of value and obligations Net worth describes the difference between a borrower's assets (items of value) and liabilities (obligations). A positive net worth (where assets are more than liabilities) is preferred.
What's true about the draw period on a home equity line of credit (HELOC)? It's always at least five years. It's never more than 10 years. The draw period varies. There really isn't a draw period to speak of.
The draw period varies.
Carly's closing on an REO property was suddenly delayed due to an internal audit. What does this mean? Carly's lender decided to further audit her loan application materials. The banking association is auditing the lender's foreclosure files. The federal government is auditing the lender's foreclosure process. The lender has requested a title audit to ensure that the foreclosure was properly handled.
The lender has requested a title audit to ensure that the foreclosure was properly handled.
Which of the following statements about escheat is true in Minnesota? The city has the right to exercise the power of escheat. The county has the right to exercise the power of escheat. The state does not exercise the power of escheat. The state has the right to exercise the power of escheat.
The state has the right to exercise the power of escheat.
Which of the following conditions will legally void a subdivision sales contract in Minnesota? The subdivision was never properly registered.The buyer is unhappy with other homes being built in the subdivision. The buyer's financing fell through. The per-lot cost has dropped significantly from the initial sale.
The subdivision was never properly registered.
Which document provides the buyer with data about the property's title record, legal description, and other matters that may need to be acted upon in order to obtain a marketable title? Correction deed Limited search Title examination Title report
Title report
A quitclaim deed does which of these? Transfers a property with only the covenant of warranty Transfers the property with full covenants Transfers without warranty any interest or title the grantor has when conveying it Transfers with warranty any interest or title the grantor has in the property when conveying it
Transfers without warranty any interest or title the grantor has when conveying it
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. Business Operating Personal Trust
Trust
You receive an offer in the mail that says you're eligible to win a cash prize if you place some stickers on a form and return it to the sender. What type of contract is this? Implied contract Invalid contract Unenforceable contract Unilateral contract
Unilateral contract (A sweepstakes entry is a unilateral contract because only the sweepstakes administrator is obligated to perform any action; the recipient of the offer is not contractually bound to enter the contest.)
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 A temporary (usually 90-day) loan that provides funds in addition to an existing loan until permanent financing can be obtained Funds received in one lump sum and frequently used for home renovations, to fund a college education, or for other major purchases 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
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
A contract for an illegal purpose is ______. Fraud Valid Void Voidable
Void
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. Because Todd and Susan are married, both of their signatures are required. Only Susan's name appears on the title, so only her signature is required to convey the property. Susan purchased the property prior to the marriage, so only her signature is required.
Because this is a homestead property and Susan is married to Todd, both Susan and Todd's signatures are required.
Which of the following situations entitles Gary to commission with a 30-day protection clause? Buyers viewed the property 15 days after the listing expired and made an offer that was accepted. Buyers who viewed the property while it was listed with Gary made an accepted offer 10 days after the listing expired. 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. 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.
Buyers who viewed the property while it was listed with Gary made an accepted offer 10 days after the listing expired.
How does a title insurance company prove that a seller has ownership rights to a property? By creating a settlement statement and having the seller sign the document By getting an appraisal of the property By performing an inspection of the property By performing a title search to create a chain of title or abstract of title
By performing a title search to create a chain of title or abstract of title
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? Abstract of title Certificate of title Order and decree of registration Warranty deed
Certificate of title
Your neighbor hires a middle school student to mow his lawn every two weeks. He draws up a written contract in which he clearly outlines the student's mowing responsibilities and the payment the student will receive in return. Which of the following is true in this situation? Because a minor can't enter into a contract, the student's parents are legally obligated to uphold the student's obligation under the contract. Because a minor can't enter into a contract, this contract is void and the neighbor could be subject to legal action if the authorities were alerted. Because this contract binds the student to an obligation that's legal for a minor to perform (mowing lawns), the contract is valid and enforceable. If the neighbor and the student are content to uphold their agreement, the fact that it's not legally binding doesn't matter.
If the neighbor and the student are content to uphold their agreement, the fact that it's not legally binding doesn't matter
In a ground lease situation, what does the ground tenant own? Ground lease Improvements (including buildings) Nothing Title to the property
Improvements (including buildings)
What does the parol evidence rule state? All contracts, commitments and agreements for the sale of real property must be in writing. An Agreement of Sale must contain the essential elements of a contract for it to be enforceable. In certain cases, oral evidence can be used to support or complete an otherwise incomplete or ambiguous contract. In order for a real estate agreement to be enforceable, it must be in writing and signed by both parties.
In certain cases, oral evidence can be used to support or complete an otherwise incomplete or ambiguous contract.
What's true in Minnesota about interest earned on a security deposit? Interest accrues at the first day of the month following its deposit. Interest accrues beginning with the date of deposit. Interest accrues beginning with the first lease renewal. It belongs to the landlord.
Interest accrues at the first day of the month following its deposit.
Which of the following statements best describes how the abstract and Torrens land recording systems are used in Minnesota? Minnesota uses the Torrens system for fee simple estates, and the abstract system for all other estates. The abstract system is used for residential real properties with four or fewer dwellings. The Torrens system is used for non-residential real property. With the abstract system, actions affecting ownership are registered with the court. With the Torrens system, these actions are recorded with the county. With the abstract system, these actions are recorded with the county. With the Torrens system, actions affecting ownership are registered with the court.
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.)
