Course 2 Final Exam Practice Set

when can a landlord charge a late fee for rent?

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

Maddie is purchasing a property in Minnesota using a contract for deed arrangement. She's not represented by a real estate agent, so the seller has provided her with a disclosure related to this arrangement. Which of the following is NOT required to be included in the disclosure?

A notification of Maddie's rights as a tenant

Abstract Vs. Torrens recording systems in MN

Abstract: County Torrens: Court

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

Five Days

Contractor's Right to Lien

Notice must inform the contractor's right to lien and right to pay off subcontractors

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

Real Estate Broker

Which of the following would be prohibited in Minnesota, but would not be prohibited by federal law?

Refusing to rent to a gay person

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

Are unwritten contracts enforcable if the goods are created specifically for the buyer and can't be sold to others?

Yes

considered a "responsible person" per Minnesota license law

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.

How is an automatic transfer executed?

transfer application must be signed by original broker prior to the new broker signing. The original broker destroys the salesperson's license. The new broker submits the application and transfer fee to the commission.

Two parties in contract for deed

vendor and vendee.

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

$10,000

What's the maximum paid out from the Real Estate Education, Research, and Recovery Fund?

$150,000

The seller may be held responsible to the buyer for damages up to what amount for violating the contract for deed agreement?

$2,500

Minnesota license renewal fee

$20

How many days do contractors have to file the lien if they don't receive payment for a job?

120 days from the date labor is completed or final delivery of materials

Sandra enters into a contract to buy a condominium in a new development. However, the developer fails to give her a copy of the public offering statement. According to Minnesota law, she's permitted to cancel the contract without penalty within ______ after receiving the statement.

15 Days

Protected Lists

2 days after terminated contract

Clarisse is sitting for the Minnesota licensing exam. How many hours of pre-licensing education must she have completed in order to do this?

30

How many additional education hours are required for a Minnesota real estate salesperson to become a licensed broker?

30

In Minnesota, license withdrawals without extenuating circumstances become effective how long after the receipt of a withdrawal request?

30 days

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

Test takers in Minnesota must score a minimum of ______ to pass each portion of the licensing exam.

75%

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 individuals is considered a loan broker in Minnesota?

A real estate licensee who negotiates loans for real property for an advanced fee

In Minnesota, contractors must provide homeowners with specific notice if they intend to attach a labor and materials lien to a property. What must be included in this notice?

A statement that communicates the contractor's right to place a lien

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?

All licensees must complete 30 hours of continuing education (CE) (either as a student or instructor) in approved courses during their initial license period, and every 24-month period after that.

In Minnesota, when should you present the agency disclosure form to a potential client?

At the first substantive contact

By when must Minnesota sellers disclose to buyers how sewage is handled on the property?

Before accepting the buyer's offer

A real estate broker in Minnesota collected rent from several properties. Into which of the following accounts must those rents be deposited?

Broker's trust account --> Rent collections are considered trust funds, so must be deposited into a trust account. If rent were deposited into any of these other accounts, the broker may be committing a commingling violation.

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.

registering land with the county court and submitting an application earns a landowner what?

Certificate of title

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

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.

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.

The Wilsons hired Gary to build an addition onto their house in Minnesota. Gary subcontracted out the electrical work to Oliver. Within how many days must Gary and Oliver deliver lien notices to the Wilsons?

Contractors have 10 days from the original contract date, and subcontractors have 45 days from the date he first provides labor or materials.

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

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

Minnesota broker responsibilities for salesperson supervision are outlined in the standards of conduct. Which of the following is one of these responsibilities?

Document and investigate all complaints against licensees.

Bonnie just sold a property in Duluth with an underground storage tank. She should ______.

File a change of ownership form within 30 days

If a lender wants to pursue a deficiency judgment against a Minnesota homeowner, which foreclosure process would most likely be used?

Foreclosure by action

Brody was hired by the Petersons to build an addition onto their house in Minnesota. He didn't include the lien notice in the original contract they signed yesterday, so is now providing it separately. How can he deliver the notice to the homeowner?

Hand delivery or certified mail

Walter is the new owner of an abandoned property in eastern St. Paul. He was the winning bidder at a foreclosure sale three weeks ago. He has the certificate of sale in hand. Which of the following actions can he NOT legally perform?

Haul away any personal property scattered throughout the property.

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?

In foreclosure by advertisement, the borrower is notified of the default and pending public auction of the property. After the auction takes place, the winning bidder has to petition the court for a notice of eviction

notified the homeowner warranty vendor of a defect with a window 10 months after moving into the property. What does the vendor need to do next?

Inspect the defect within 30 days of the notification.

Minnesota commerce commissioner NOT empowered to

Investigate a complaint that a licensee acted unethically.

what happens to a buyers' earnest money upon their offer being refused?

It must be returned no later than the next business day after rejection.

MN seller in contract for deed obtains what rights?

Legal title rights

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

Marital Status, sexual orientation, and age

When are property taxes due in Minnesota?

May 15th yearly, and October 15th if paid semiannually

What agency oversees the Underground Storage Tank Program in Minnesota?

Minnesota Pollution Control Agency

Tom and Sharon, a Minnesota couple, have separated. Prior to their divorce becoming final, if Tom wants to buy a condo in his name only, what must he do?

Minnesota isn't a community property state. Although Tom will need to use his own individually owned funds, he can purchase a property in his own name, even as a married man.

Which of the following scenarios constitutes illegal licensee compensation in Minnesota?

Miranda's seller client reimbursed Miranda for the special signage she paid for when marketing his property.

How to end an associate relationship with another

Notify other party, then the broker must notify the commission of the termination within 10 days.

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?

Occupied properties generally have a six-month statutory redemption period. This period is extended to 12 months if the property is 40+ acres, 10+ acres and used for agricultural purposes, or the borrower owes less than two-thirds on the mortgage.

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.

How to ensure override clause is effective

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

In the event a potential buyer cancels the contract for deed transaction in accordance with the law, the seller must ______.

Refund all monies put down or payments made

buyer default 3 months of contract for deed, how can seller proceed?

Seller must provide 60 days' notice that the contract will terminate if the buyer doesn't correct the default. After which, they can begin eviction proceedings.

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.

refusal to show a property to a person based on their sexual orientation violates:

The Minnesota Human Rights Act

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

The commission requires 3.75 or 7.5 hours of module training every license year within the two-year renewal period. Every year the commission will determine the modules and the number of hours that are required.

Subdivided land offer, what must be true

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

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

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

They are only required for residential transactions.

How must homeowners in MN pay their property tax

They must pay half of the statement amount by May 15 and the remaining half by October 15.

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

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.

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?

Unless stated otherwise in a written agreement, earnest funds are deposited by the listing broker within three business days from the date of receipt or acceptance of the purchase agreement, whichever is later

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

Upon the due date, a penalty of 2% for homestead property (4% for nonhomestead property) is assessed. The first day of the month following the due date, an additional penalty of 2% for homestead property (4% for nonhomestead) is assessed.

In Minnesota, in which of the following situations can you sell subdivided lands without a real estate license?

When the lots are registered and are being sold as securities

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?

While winning bidders at a foreclosure sale take ownership right away, the new owner can't take possession of the property until after the statutory redemption period ends. For abandoned properties, this period may be as short as five weeks.

Is 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.

Interest earned on a security deposit

accrues on the first day of the month following deposit.

When can a landlord deposit screening fees

after all applicants have been screened and either rejected or offered a rental unit

How long do buyers in contract for deed transactions have to terminate the contract upon receiving disclosures?

five business days

How many transactions can builders sell before they are required to be licensed?

they don't need a license unless they're involved in at least 25 transactions in a 12-month period.