Minnesota real Estate Principles Exam Prep

Up to what amount can the commissioner of commerce assess civil penalties per violation of license law?

$10,000

Licensee R meets their buyer-client to discuss a property that Licensee R has listed. The buyer expressed interest in the property before viewing it and states to Licensee R that the asking price is too high. In this scenario, when is dual agency created? A) If an offer is made B) At the signing of Purchase and Sale C) When the buyer-client visits the property D) When they discuss the property

D

Who regulates and oversees the MN real estate industry?

MN Department of Commerce

A real estate broker uses some or all of the money held in her trust account to pay for her car repairs. She intends to repay the money within 48 hours. This is an example of A) commingling. B) legal commingling. C) conversion. D) legal conversion.

The answer is conversion. License law standards of conduct forbid a broker from taking any trust funds for their own personal use. The only time trust funds should come out of the trust account is when a closing occurs or when the transaction is canceled and the parties agree in writing as to who should receive the funds.

Gary and Mary own a cabin together. Mary dies and her interest in the cabin goes to her sister, Tina. Describe Mary's and Gary's form of ownership in the cabin. A) Tenancy by the entirety B) Tenancy in common C) Estate in severalty D) Joint tenancy

The answer is tenancy in common. The tenancy in common form of ownership allows an owner of real estate to name at least one heir to take ownership of the real estate upon the owner's death.

Taxes are due May 15 and Oct 15. True False

True; Taxes may also be due 21 days after the postmark date on the tax statement, whichever is later.

What are some exceptions to the licensing requirement?

1. A licensed practicing attorney 2. A court-appointed trustee, executor, administrator, guardian, receiver, or anyone else acting under court order 3. Someone owning and operating a cemetery and selling lots solely for use as burial plots 4. The custodian, janitor, or employee of the owner or manager of a residential apartment building who leases units in the building- provision does not apply to selling the building 5. A bank, trust company, savings and loan association, industrial loan and thrift company, public utility, or land mortgage or farm loan association engaged in a business transaction within the scope of its powers as provided by law 6. Public officers, while performing their official duties 7. A bonded auctioneer engaged in the specific performance of duties as an auctioneer, only when under the direction and supervision of an attorney or broker 8. Someone who acquires real restate for building residential or commercial buildings for resale, if no more than 25 transactions occur in any 12 month period 9. A licensed securities broker-dealer or securities agent who offers to sell real estate that is a security only as an incident to the sale of securities 10. Someone who offers to sell a registered franchise 11. Someone who contracts with a resident to provide care in a continuing care facility 12. A securities broker-dealer, when participating in the conveyance of a business or business opportunity 13. An accountant acting as an incident to the practice of accounting 14. A federally approved or certified lender, when negotiating mortgage loans with prospective borrowers

A buyer wants to back out of a deal a week before closing. The seller has moved to another state. Which recourse does the seller have? A) The seller should consult a real estate lawyer B) The seller should sue the buyer's brokerage for liquidated damages C)The seller may ask the sheriff to enforce the contract D) The seller may file an adverse action against the buyer's credit report

A

When must you have a real estate license in MN?

A real estate license is not required to sell your own home or business, but you must have a license if you agree to help someone else sell a home or business for a commission or flat fee

In Minnesota, which agency relationship does not require a written contract between the consumer and the brokerage?

A) Facilitator B) Buyer's broker C) Seller's broker D) Dual agent The answer is facilitator. Although the law does not require a facilitator to have a facilitator services agreement with the buyer or seller, the brokerage would need a written agreement to enforce their right to be compensated. A prudent business practice would be to obtain a signed buyer or seller facilitator services agreement before performing any services.

What are certain characteristics of loan brokers?

Any fees received by a loan broker before funding the loan must be deposited in a neutral escrow account within 48 hours. Loan applicants may rescind the loan contract within three business days after signing the contract. Loan brokers must hold a real estate broker's license. A limited broker license may be used to fulfill this requirement.

A broker or salesperson may be sanctioned if they fail to provide agency disclosure at first substantive contact in the sale of a(n) A) Strip mall B) Single-family townhome C) Eight-unit building D) office complex

B

A licensed real estate broker is prohibited from A) Listing personally owned property with another broker B) Paying a finder's fee to an unlicensed person for the name of a friend who is thinking of buying a home C) Listing a home for sale as a member of a team D) Receiving a commission for negotiating the purchase of an office building

B

In MN, licensees have a MAXIMUM of how many hours after a listing agreement expires to furnish a protective list to the correct party? A) 96 B) 72 C) 48 D) 24

B

In a common interest community of condominiums, which of the following is TRUE? A) A semi-annual audit is required to be completed B) All owners have a right to use all common areas C) Owners may build fences if their units are at ground level D) HOA dues pay for all repairs in units and common areas

B

Sam signs a listing contract with agent Andy of ABC Realty. The listing contract is legally between A) Sam and the realtors. B) Sam and ABC Realty. C) Sam and Andy. D) Andy and the MLS.

B; The answer is Sam and ABC Realty. The brokerage is the agent and Andy is the subagent of Sam.

A buyer purchases a property with an individual sewage treatment system that the seller misrepresents are compliant. The statutory period during which a buyer may bring action against the seller begins of the date of the: A) Defect's discovery B)Purchase agreement C) property closing D) property's first being offered for sale

C

The responsibilities of a primary broker include: A) providing leads to salespersons B) paying for CE for affiliated licensees C) maintaining trust account books and records D) paying salespersons license renewal and transfer fees

C

Which of the following actions is REQUIRED of a landlord in order to sell or otherwise dispose of a tenant's personal properly remaining on abandoned premises? A) Obtaining written permission from the former tenant B) Taking an inventory of the property C) Waiting 28 days after the tenant has abandoned the property D) Notifying the tenant of the sale at least 7 days prior to the sale

C

Who is the head of the real estate department that administers real estate licensing laws?

Commissioner of commerce appointed by the governor

A verbal lien notice must be provided to the property owner. True False

False; A written lien notice must be provided to the property owner.

If three wells are located on a property for sale, only one well must be disclosed. True False

False; All wells must be disclosed.

When purchasing a CIC property, buyers have a five-day right of rescission after receipt of all disclosures. True False

False; Buyers have a 10-day right of rescission after receipt of all disclosures.

In a foreclosure by advertisement, the advertisement requires three weeks of consecutive published notices. True False

False; In a foreclosure by advertisement, the advertisement requires six weeks of consecutive published notices.

The warranties provided for under Statutory New Home Warranty Law end when the homeowner sells the home. True False

False; The balance of the warranties transfer to subsequent owners.

The equitable redemption period in Minnesota is one year. True False

False; The equitable redemption period is as long as the lender allows.

A landlord may never enter a dwelling without prior notice. True False

False; While a landlord must typically give prior notice, the landlord may enter for the following reasons: for an emergency, to determine a tenant's safety, and to comply with law enforcement.

What does errors and omissions (E&O) insurance do?

Helps real estate licensees and brokerages protect against civil claims of malpractice

Limited Broker

Only licensed to buy or sell property on their own behalf. They cannot act as a real estate agent for other property owners or buyers. A limited broker cannot act as a primary broker for other licensees, or hire and supervise licensed real estate salespersons.

What are the MN license law including many rules about what a licensee may do and must not do in handling real estate transactions called?

Standards of Conduct and Prohibitions

ABC Realty signed a lease to occupy space in a small office suite. The company has grown and is moving to a larger office 3 floors above the current space. ABC Realty must give written notice to the Commissioner of Commerce within how many days of the move? A) 10 days B) 45 days C) 15 days D) 20 days

The answer is 10 days. The Commissioner of Commerce requires a 10-day written notice of changes.

Minnesota's Common Interest Ownership Act provides that when a buyer who does not receive a copy of the disclosure statement at least 10 days before signing a purchase agreement, the buyer has the right to rescind the agreement within _____ days after receiving the statement. A) 10 B) 3 C) 7 D) 5

The answer is 10. Minnesota's Common Interest Ownership Act provides that when a buyer who does not receive a copy of the disclosure statement at least 10 days before signing a purchase agreement, the buyer has the right to rescind the agreement within 10 days after receiving the statement.

An agricultural homestead may include up to A) 80 acres. B) 160 acres. C) half an acre. D) 1 acre.

The answer is 160 acres. A homestead used for agriculture may not exceed 160 acres.

How long are sellers liable for not disclosing material facts they were aware of to a buyer? A) 18 months from signing the listing contract B) 6 months after closing C) 2 years after closing D) 3 years after signing the purchase agreement

The answer is 2 years after closing. A seller who fails to make a disclosure as required and was aware of the condition of the real property is liable to the prospective buyer, who may bring a civil action within 2 years after closing.

A contract for deed must be recorded in the county recorder's office within what time frame of entering the contract for deed? A) 4 weeks B) 2 months C) 4 months D) 2 weeks

The answer is 4 months. Minnesota law requires that the buyer record her contract for deed within 4 months after entering into the contract or be subject to a civil penalty for later recordation.

Before foreclosure, a notice of default and foreclosure sale must be personally delivered to the borrower ____ before the foreclosure sale of property. A) 12 weeks B) 2 weeks C) 4 weeks D) 6 week

The answer is 4 weeks. The notice of default must be personally delivered at least 4 weeks before the foreclosure sale.

A loan broker has received an advance payment from a client to be applied toward the discount points and closing costs for a loan. The loan broker must deposit the fees within A) 3 business days in an escrow account. B) 48 hours in an escrow account. C) 3 business days in the broker's trust account. D) 48 hours in the broker's trust account.

The answer is 48 hours in an escrow account. The contract must set forth the circumstances under which the loan broker will be entitled to payment from the account.

To enforce the Statutory New Home Warranty, the homeowner must report to the contractor in writing within how long after the homeowner discovers (or should have discovered) the defect? A) 6 months B) 120 days C) 12 months D) 24 months

The answer is 6 months. In the event the homeowner discovers a defect with new construction, there are statutory remedies. First, the homeowner must send a written notice to the contractor within 6 months of discovering the defect. After receiving the written notice, the contractor must inspect the home and the defect within 30 days.

A licensed broker must retain copies of representation contracts, facilitation agreements, and trust account transaction records for at least A) 6 years. B) 5 years. C) 3 years. D) 7 years.

The answer is 6 years. A broker's responsibilities include keeping transaction records for 6 years.

Lincoln borrowed $90,000 from a lender to purchase his home, which is situated on a 1-acre lot in a residential subdivision. Three years after the loan was originated, Lincoln defaults on the mortgage, which has a current balance of $87,000. Should the lender foreclose, Minnesota law requires a ______ statutory redemption period after the sheriff's foreclosure sale. A) 12-month B) 5-week C) 60-day D) 6-month

The answer is 6-month. Statutory redemption is 6 months in Minnesota unless the property has been abandoned, at which time the redemption period could be shortened to 5 weeks. If the property is more than 40 acres, more than 10 acres are used for agricultural purposes, or more than one-third of the mortgage principal has been repaid, the statutory redemption period could be 12 months.

When a buyer on a contract for deed is in default, the buyer will be given a ____ equitable redemption period once proper notice of default has been served. A) 120-day B) 60-day C) 30-day D) 90-day

The answer is 60-day. Buyers are given a 60-day equitable redemption period to cure the contract default once notice of default has been served.

The last day of the property tax year in Minnesota is A) December 31 B) October 15 C) January 1 D) May 15

The answer is December 31. The property tax year is 12 months and ends on December 31.

An owner of a property with a Torrens title would receive A) a commitment of title. B) an abstract of title. C) a certificate of title. D) a registration of title.

The answer is a certificate of title. A certificate of titled is issued by the court and placed in the Register of Titles as evidence of ownership.

Carol and Ron own 40 acres of agricultural property. Ron dies and Carol has become the sole owner of the parcel of land without a probate action. Describe the form of ownership that Carol and Ron had in the real estate. A) A community interest B) A joint tenancy C) An estate in severalty D) A tenancy in common

The answer is a joint tenancy. When interests of the deceased automatically transfer upon death to the remaining owner(s) without going through probate, the form of ownership was joint tenancy, as there is a right of survivorship.

All of the following individuals may produce a broker price opinion (BPO) for a consumer, EXCEPT A) a licensed broker. B) a licensed salesperson. C) a licensed appraiser. D) a licensed closing agent.

The answer is a licensed closing agent. Minnesota licensing law allows licensed salespeople, brokers, and appraisers to perform a BPO.

Owner-occupant Murphy would like to rent out rooms in her home. According to the Minnesota Human Rights Act, she may refuse to rent to an otherwise qualified tenant because the person is A) a Norwegian attorney. B) a Lutheran minister. C) a male college student. D) an African real estate agent.

The answer is a male college student. If the resident owner of a single-family home is renting a room within the home, it is not unlawful to discriminate based on gender, marital status, sexual orientation, status with regard to public assistance, or disability.

Real estate agents must disclose all of the following known material facts regarding a home EXCEPT A) water seepage in the basement of the property. B) a natural death that occurred on the property. C) pest infestation. D) a past fire in the attic of the property.

The answer is a natural death that occurred on the property. License law standards of conduct require licensees to disclose all material facts that could adversely and significantly affect an ordinary purchaser's use or enjoyment of the property. However, a natural death; suicide; accidental death; perceived paranormal activity; whether the occupant had AIDS or HIV; or whether the home was located in a neighborhood containing any adult family home, community-based residential facility, or nursing home would not be required to be disclosed under state law.

A person acting on behalf of a real estate broker in performing acts authorized by Minnesota real estate license law must be licensed as A) a limited broker. B) a salesperson. C) an agent. D) a real estate agent.

The answer is a salesperson. In Minnesota, anyone who lists, sells, exchanges, manages, buys, rents, auctions, or negotiates options on real estate, a business opportunity, or a business (or the goodwill, inventory, or fixtures of a business) must have a real estate license if the action is taken for someone else and for a fee or commission.

A salesperson working with a buyer for the first time must give the buyer a disclosure that includes A) a consent of agency representation. B) a statement regarding dual agency. C) a disclosure of affiliated business arrangements. D) a notice of dual agency including seller, buyer, and broker signatures.

The answer is a statement regarding dual agency. A licensee may not act on behalf of both the buyer and the seller in a transaction unless both of the parties have consented to that arrangement.

Tracy has entered into a verbal contract with Tony to construct a patio next to her home. Tony wants to secure his right to place a mechanic's lien on the property if he is not paid for his labor and materials. According to Minnesota law, Tony must provide Tracy with which notice to secure his rights? A) A verbal notice once work is started B) A written contract and include a lien notice C) A written notice D) Verbal notice

The answer is a written notice. The notice of lien rights must always be in writing, whether the property owner and contractor enter into a verbal or written agreement for services.

To engage in the real estate business for a fee, all of the following must have a real estate license EXCEPT A) a parent selling her daughter's condominium. B) an employee selling the employer's property. C) a trustee selling property owned by the trust. D) an attorney representing a seller in the sale of a residence.

The answer is an attorney representing a seller in the sale of a residence. In Minnesota, anyone who lists, sells, exchanges, manages, buys, rents, auctions, or negotiates options on real estate, a business opportunity, or a business (or the goodwill, inventory, or fixtures of a business) must have a real estate license if the action is taken for someone else and for a fee or commission.

When must a real estate licensee provide the Agency Relationships in Real Estate Transactions form to a consumer? A) After signing a listing contract B) At first substantive contact C) After signing papers at a closing D) Before showing a home to a buyer

The answer is at first substantive contact. A licensee must provide an Agency Relationships in Real Estate Transactions form to a consumer before having substantive conversation with them, where price, terms, motivations, or any confidential information may be revealed.

The seller must disclose the existence, location, and status of all capped and current wells on a property A) at the time of settlement. B) before showing the property to a buyer. C) at the time of inspection. D) before accepting or signing an offer.

The answer is before accepting or signing an offer. A seller who inaccurately discloses the existence or status of a well that he knows about (or has reason to know about) can be held liable to the buyer for 6 years from closing for the cost of sealing the well, plus applicable attorney's fees.

A rental service that provides information on available apartment units must hold which license? A) Broker's license B) Attorney's license C) Rental license D) Salesperson license

The answer is broker's license. A rental service must have a broker's license and any employees acting on behalf of the rental service must have a salesperson's license if they give out information about rental properties to the public.

Which of the following is a real estate broker allowed to do? A) Encourage the breach of a listing contract B) Discourage the use of an attorney C) Demand commissions without a signed agency contract D) Charge whatever commission rate he wants to

The answer is charging whatever commission rate he wants to. Real estate brokers are free to charge whatever they feel is adequate to earn a profit for their services. However, they cannot price-fix their fees with other competitor brokers as that would be illegal.

Jerry Jetson is a real estate salesperson with ABC Realty. Jerry has Bob and Joan's home listed for sale. Bob and Joan do not want to fix anything; they want to sell their home "as is." Jerry knows that there was water leakage through the old roof years ago, but a new roof has been installed and there are no leaks. What is Jerry's obligation with respect to any disclosures? A) Does not have to disclose the past water leakage because the roof has been replaced B) Disclose there has been past water leakage with the old roof and that there is a new roof now C) Does not have to disclose the past water leakage because there has been no leaking this year D) Does not have to disclose the past water leakage because Bob and Joan said they are selling "as is"

The answer is disclose there has been past water leakage with the old roof and that there is a new roof now. License law standards of conduct require licensees to disclose all material facts that could adversely and significantly affect an ordinary purchaser's use or enjoyment of the property. This includes issues that have happened in the past, even if the issues have been corrected, such as a new roof being installed.

The listing agent of a 4-plex must do all of the following EXCEPT A) submit all written offers to the seller promptly. B) disclose estimated closing costs when presenting offers. C) disclose immediately that a party is backing out of the transaction. D) disclose to prospective buyers why the owner is selling.

The answer is disclose to prospective buyers why the owner is selling. Disclosing motivation for selling without seller approval would be a breach of the agent's fiduciary duty of confidentiality.

A seller's property disclosure on residential real estate is required A) when gifting the property to someone. B) when selling the property to a current tenant. C) when selling the property to a family member. D) for a bank selling a bank-owned home acquired in foreclosure.

The answer is for a bank selling a bank-owned home acquired in foreclosure. Lenders must provide prospective buyers of residential real estate with a seller disclosure on bank-owned property. However, the owner who may have lost the property in a foreclosure to the bank is not required to provide the bank with a disclosure.

Jenna Anderson is looking at homes with Marty Mellow, a salesperson with XYZ Realty. Jenna does not have a contract with Marty to represent her. Marty is planning on showing Jenna a home listed by Janis Fong, who is also licensed with XYZ Realty. What does Marty need to tell Jenna before showing Janis's listing? A) He is now representing the seller. B) He is a facilitator. C) He is a dual agent. D) He is now representing Jenna.

The answer is he is now representing the seller. Marty was a facilitator for Jenna due to the fact he did not have a buyer representation contract with her. When Marty decides to show another agent's listing that is listed with his own real estate company, he defaults to a seller's broker and now represents the seller. Any confidential info he obtained while a facilitator must always remain confidential; however, any new confidential information obtained from Jenna would need to be disclosed to the seller, by law.

The interest penalty on unpaid real estate taxes increases based on which of the following time intervals? A) Weekly B) Daily C) Monthly D) Annually

The answer is monthly. As each month passes, the property owner will accrue more interest penalties until the county ultimately moves forward with foreclosure for the failure to pay property taxes.

The seller of a property containing a leaking storage tank must A) record an affidavit with the county recorder. B) reduce the selling price by the estimated cost of removal. C) remove the tank before closing. D) disclose the existence of the tank in the listing agreement

The answer is record an affidavit with the county recorder. Before transferring property with a leaking storage tank, an affidavit must be recorded with the county recorder.

A salesperson must receive payment from the brokerage or broker for all of the following EXCEPT A) reimbursement for a loaf of bread. B) payment from a bank for a BPO prepared by the salesperson. C) property management fees. D) a referral fee from an out-of-state broker earned by the salesperson.

The answer is reimbursement for a loaf of bread. The buyer and seller may only pay their brokers. Neither party may pay the salesperson directly. A loaf of bread is an expense not related to the real estate transaction, so it does not need to come from the broker.

Betty Johnson is a real estate salesperson with ABC Realty. Betty is also a co-owner with Carla Curry in a business that manufactures women's clothing. Carla enters into a buyer representation contract with Betty. What must Betty disclose to Carla's prospective homeseller? A) She is Carla's business associate. B) Carla has enough cash in the bank to pay twice the asking price of the home. C) Carla just won a $500,000 lottery. D) Carla really has to find a home fast because she has just gone through a divorce

The answer is she is Carla's business associate. License law standards of conduct require licensees to disclose whether their client is a relative or business associate.

The highest bidder at a mortgage foreclosure sale would be given which of the following? A) Sheriff's certificate of sale B) Bargain and sale deed C) General warranty deed D) Quitclaim deed

The answer is sheriff's certificate of sale. The highest bidder receives a sheriff's certificate of sale on the property and will become the legal owner should the borrower not redeem the property by the end of the statutory redemption period.

Maria has purchased a home using a contract for deed form of financing. According to Minnesota law, the contract for deed must be recorded in A) the county recorder's office. B) the county engineer's office. C) the county treasurer's office. D) the county sheriff's office.

The answer is the county recorder's office. Documents relative to real estate transactions are recorded in the county recorder's office in the county where the property is located.

The interest penalty charged on unpaid property taxes is affected by which of the following? A) The amount of equity that exists in the property B) The value of the real estate C) The county in which the real estate is located D) The date the property owner pays the tax

The answer is the date the property owner pays the tax. The date the owner of real estate makes the property tax payment is taken into consideration when calculating the amount of the late fee or penalty.

In a condominium, which of the following would NOT be considered a limited common element? A) A balcony shared by 2 units B) A secured storage locker C) The hallways and elevator D) A reserved parking garage

The answer is the hallways and elevator. A limited common element is any common element or area of the property that is reserved for the use of a certain unit or certain units, to the exclusion of other units. Hallways and elevators are common elements.

The buyer on a contract for deed is referred to as A) the vendee B) the vendor C) the mortgagor D) the mortgagee

The answer is the vendee. The buyer is the vendee on a contract for deed and holds equitable title until full payment has been made, at which time the buyer receives a deed transferring legal title.

What must a licensee obtain to engage in a dual agency transaction? A) Verbal consent to engage in a dual agency from his client B) Verbal disclosure to engage in a dual agency from his client C) Written disclosure and consent to engage in a dual agency from his client D) Written consent from the Commissioner of Commerce

The answer is written disclosure and consent to engage in a dual agency from his client. This must occur in the listing contract or buyer representation contract to comply with license law standards of conduct.

A salesperson working out of a branch office has been disciplined for committing a violation of licensing law. Is the primary broker responsible for the salesperson's actions? A) No, the branch manager is solely responsible for those salespeople affiliated with the branch office. B) Yes, primary brokers are responsible for the acts of all of the broker's licensed salespeople. C) No, salespeople are independent contractors and are solely responsible for their actions. D) Yes, brokers receive the same discipline as the salesperson.

The answer is yes, primary brokers are responsible for the acts of all of the broker's licensed salespeople. A salesperson must be licensed under a primary broker. When a salesperson stops working for a broker, the salesperson's license is ineffective until it has been activated with another broker. A real estate license may remain ineffective for no more than 2 years.

True; Only trust funds may be deposited in the trust account.

True or False: A brokerage must maintain an interest-bearing trust account.

False; A licensee may discuss terms of future representation only if the discussion was initiated by the consumer.

True or False: A licensee may approach a consumer who is already represented by another brokerage and discuss terms of future representation.

False; A person may only sell four or fewer properties without a license. After that, the person must either be licensed or be represented by a licensee.

True or False: A person who sells 10 properties in a 12-month period without licensee representation does not require a real estate license.

True; This means that a person could take the education before turning 18, but that person would not be able to apply for a license until she turns 18.

True or False: A person wishing to become licensed as a real estate salesperson must be 18 years of age or older at the time of application.

False; A written Facilitator Services Agreement is not required but is recommended.

True or False: A written Facilitator Services Agreement is required by Minnesota law.

False; Advertising must clearly and conspicuously display the name of the brokerage. Advertising may include the salesperson's name if approved by the primary broker.

True or False: Advertising must clearly and conspicuously display the name of the salesperson.

True; The form is intended for information and disclosure. It is not a contract.

True or False: Agency Relationships in Real Estate Transactions disclosure form is not a contract.

True; All licenses expire on June 30 at the end of each two-year license period. Timely renewal deadline is June 15.

True or False: All licenses expire on June 30.

True; Earnest money must be deposited in a trust account when selling agent-owned property.

True or False: Before showing a property a licensee must disclose any ownership interest in the property offered for sale.

False; The commissioner must be notified in writing within 10 days.

True or False: If a licensee receives a civil judgment involving fraud, the licensee must notify the commissioner of commerce in writing within five days.

False; Only the brokerage may receive commissions or fees from buyers, sellers, landlords, or tenants.

True or False: Only the salesperson may receive commissions or fees from buyers, sellers, landlords, or tenants.

True; For example, if a licensee commits commingling and the primary broker had no knowledge of that violation of law, the primary broker could still be charged with failure to supervise

True or False: Primary broker may be charged with failure to supervise for licensee violations.

True; The salesperson's license is ineffective unless associated with a brokerage.

True or False: Primary brokers must notify the commissioner within 10 days when they wish to terminate a salesperson's license.

True; Only court-appointed trustees are exempt.

True or False: Private trustees managing or selling trust-owned properties are not exempt from licensure.

True; Licensees may operate under only one Minnesota brokerage firm.

True or False: Real estate salesperson licenses are held and renewed by the brokerage.

False; The Department of Commerce and the commissioner of commerce do not arbitrate disputes between licensees.

True or False: The Department of Commerce and the commissioner of commerce arbitrate disputes between licensees.

False; The agent does not sign the dual agency and consent provision in the purchase agreement. The agent only signs off on dual agency in the representation agreement.

True or False: The agent must sign the dual agency and consent provision in the purchase agreement.

False; The broker must give a protective list to the client within 72 hours after the expiration of the representation agreement.

True or False: The broker must give a protective list to the client within 24 hours after the expiration of the representation agreement.

False; The buyer representation agreement must be signed before writing an offer to purchase.

True or False: The buyer representation agreement can be signed at any time during the transaction.

True; Filing an incomplete, false, or misleading application may result in denial of the application.

True or False: The commissioner may deny a license application if a person files a misleading application.

False; Occupation by a person with HIV or AIDS is not a material fact and therefore does not require disclosure.

True or False: The fact that a property was occupied by a person with AIDS is a material fact that must be disclosed.

True; The total per licensee, regardless of the number of claims is $250,000

True or False: The real estate education, research, and recovery fund has a recovery maximum of $150,000 per transaction.

When selling a residential property to a current tenant of the property, the seller disclosure is not required. True False

True; A person who is already living in the home would already be aware of the home's issues, therefore a seller disclosure would not be needed

In the Torrens system, the property owner applies to the district court to register the land and obtain a Certificate of Title. True False

True; A registered land/property survey (RLS) may be required to create or subdivide a Torrens property

Homestead status protects homeowners from the forced sale of their primary residence by unpaid creditors holding civil judgments. True False

True; Homestead status is not protected against the following: property tax or special assessment liens, mechanics' liens, mortgage liens, and CIC association liens.

The statutory redemption period is six months for most properties. True False

True; It can be 12 months if the principle is more than one-third paid, if the property is more than 10 acres in agricultural use, if the property is more than 40 acres, or if there is a reverse mortgage.

The Statutory New Home Warranty Law covers defects caused by noncompliance with building standards. True False

True; Statutory New Home Warranty Law guarantees one year free from defects caused by faulty workmanship and defective materials.

Two or more grantees on the deed will be considered tenants in common with equal shares unless the deed specifically states otherwise. True False

True; The deed may specify ownership as tenants in common holding defined unequal shares or can be as joint tenants.

A person who wishes to remove an underground storage tank containing hazardous substances must notify the Minnesota Pollution Control Agency at least 10 days before removal. True False

True; The person must also notify the Minnesota Pollution Control Agency 10 days before installing an underground storage tank.

A contract for deed may also be called an installment sale. True False

True; The remedy for default is termination of the contract, not foreclosure.

State deed tax (transfer tax) is paid to county treasurer by the seller when deed is recorded. True False

True; The tax is 0.0033 (0.33%) × selling price = $3.30 per thousand = $1.65 per $500.

According to the Minnesota Statute of Frauds, a lease of one year or less does not have to be in writing to be enforceable, regardless of the type of property. True False

True; There are exceptions, but this is the general law.

Minnesota adds the protected classes of marital status, sexual orientation, and public assistance. True False

True; These protected classes are in addition to the federally protected classes.

A person who holds property in a trust for another, generally under one of two scenarios

Trustee

TILA RESPA Integrated Disclosure Act (TRID)

closing fees and all other loan costs must be disclosed to the borrower no later than three business days before closing