RE review questions
What is the license fee for renewing a broker's license?
$100
What is the license fee for an initial salesperson's license?
$70
f a check representing escrow money is being held by the listing broker and not deposited into an escrow account, how soon must the broker return the check if the offer is rejected?
1 day
What is the minimum age for applicants wishing to obtain a real estate license?
18 years old
fire prevention inspects buildings on a
2 year cycle
How long is the licensing period between license renewals?
2 years
How many hours of continuing education are licensees required to complete during each license renewal period?
30 hours
Closing agents and lenders typically use one of two methods when calculating items that need to be prorated. These are the 12-month/360 day method and the
365 day method
If a salesperson wishes to utilize the automatic transfer system between brokers, how quickly must he or she begin working for the new broker?
5 days
A coinsurance clause requires a homeowner to have what kind of insurance?
80% of the home's replacement value
Which of the following best describes a broker's trust fund record keeping responsibilities?
A broker must maintain trust cash receipts and a cash disbursement journals in accordance with generally accepted accounting principles.
The "four unities" required to create a joint tenancy include which of the following conditions?
The "four unities" required to create a joint tenancy include which of the following conditions?
Who heads of the Minnesota Department of Commerce?
The Commissioner of Commerce, more commonly called the Commissioner.
Between which people is commission splitting not permitted?
Transactions between a licensed real estate broker or salesperson and an unlicensed person.
Good ethical practices have to do with
Trustworthiness, Honesty and Competence
When does a salesperson's automatic transfer between brokers become effective?
Upon the mailing or personal delivery of the required fee and documents to the Commissioner's office.
Can a broker keep his or her personal money in a trust account?
Yes, but only a small sum to pay account charges and maintain a minimum account balance.
What document transfers all of the personal property that is being sold along with the house?
a bill of sale
What do real estate closing companies use to make sure all details of the closing have been covered and all pertinent documents are in house ready for the buyers and sellers to sign?
a checklist
A listing agreement may include
a definite expiration date.
What does a demand feature mean in a mortgage loan?
a demand feature would allow the lender to require early repayment
In what type of commission plan does the licensee start out at a lower percentage payment but then graduate to a higher percentage rate as his or her production increases?
a graduated plan
What describes a decision handed down by the court that resolves a controversy between parties involved in a lawsuit?
a judgment
What is a legal instrument for the voluntary transfer of real and personal property after the owner's death called?
a last will and testament
the state deed tax is
a state tax imposed on each deed or instrument that grants, assigns, transfers or otherwise conveys real property
What is the east-west area between two parallels called?
a tier
What must a business entity engaging in real estate have before commencing real estate transactions?
a valid real estate license
An historical summary of all consecutive grants, conveyances, wills, records and judicial proceedings that affect the title to a particular property is
an abstract and opinion
who conducts a search for abstract of title?
an abstractor
a beneficiary of a will is called
an heir
"I own and I will defend" describes
an overall general warranty covenant
If an inspection finds that a home does not have enough smoke detectors and it is determined that it is the seller's obligation the seller must
buy and install addition detectors
What insurance clause requires that a homeowner have insurance that is equal to 80% of the home's replacement value?
coinsurance clause
Covenants that expire upon a transfer of the property are called
covenants in gross
the transfer of property under a will is known as
devise
Which of the following is not an item that a buyer usually pays at closing?
fee for clearing the title
a full covenant and warranty deed has
five covenants
Which document notifies the borrower of the total amount of interest and property taxes paid in the previous year?
form 1098
After a closing, all real estate sales must be reported to the Internal Revenue Service on a
form-1099
What system is the creation of an index based on the names of the grantors and of the grantees?
grantor/grantee system
How soon must a broker notify the Commissioner of any changes to a trust account?
immediately
In Minnesota, deeds should be recorded
in the county where the property is located
which type of property is most desireable
marketable
What is one defining characteristic of a tenancy in common?
no survivorship
Transfers of real property must be in writing and
nortarized
flood insurance is
not included in a homeowners policy
What term describes a will that is made orally and written down by a witness?
nuncupative
How many brokers may a salesperson work on behalf of at any one time?
only one broker
Which pages of the Closing Disclosure will look the same regardless of the loan type the consumer is getting?
pages 2 and 3
A broker must keep formal trust account records that include enough information to identify the transaction and the
parties
The legal term for a close, mutual, or successive relationship to the same right of property or the power to enforce a promise or warranty is
privity
The covenant is: "I may or may not own, and I won't defend" of which deed?
quitclaim deed
What is the north-south area between consecutive meridians called?
range
When a chain of title is performed what is the last grantee found called?
record title holder
What is the foremost method of constructive notice?
recording ownership documents in public records
What gives the public constructive notice of a grantee's ownership?
recording the deed
What is defined as land or improved property with buildings designed for humans to live in, such as single-family homes, multifamily homes, apartments, vacation homes or condominiums?
residential property
In what category do real estate salespersons spend the bulk of their time and effort?
sale or transfer
laws tend to
set the minimum standards for acceptable behavior
What refers to taxes that are imposed on homeowners and landowners to cover the cost of improvements that will benefit all those upon whom the tax was imposed?
special assessments
Builders usually give which type of deed?
special warranty deed
Which of the following items are paid in arrears?
taxes and interest
When a single individual or entity owns a fee or life estate in a real property, the type of ownership is
tenancy in severalty
Which part of the Code of Ethics contain principles that are considered "aspirational" only and may not be enforced?
the beginning statements
Who must agree to a trust account being interest-bearing before a broker can deposit funds into such an account?
the buyer and the seller
The formal Code of Ethics and Standards of Practice set forth by NAR calls for professionals to observe
the golden rule
Who does the government require to initiate, maintain and renew flood insurance?
the lender
who gives the buyers good faith estimates of their closing costs
the lender
What type of survey system is used to describe properties in residential, commercial and industrial subdivisions?
the lot and black system
What did the federal government develop to simplify and standardize property descriptions as a replacement for the Metes and Bounds method?
the rectangular survey system
Who is responsible for renewing a salesperson's license?
the salesperson's broker
Which of the following statements best describes the term "consummation" as defined under Regulation Z?
the time that a consumer becomes contractually obligated on a credit transaction
How are expenses handled that the seller has incurred but have not yet been billed for at the time of closing?
these items are paid in arrears
Which of the following is an item that is not normally prorated?
title fees
When the abstracting process is combined with an insurance program, the result is
title insurance
Which of the following mortgage loan items would NOT typically fall under origination charges?
title insurance
Where will the Commissioner of Management and Budget credit any interest from interest-bearing trust accounts?
to the housing trust fund account
What is not a defining characteristic or requirement of joint tenancy?
transfer of title
A deed that expressly states that the deed is only effective on the death of one or more of the grantor owners is known as a
transfer on death deed
Mortgage lenders are required to disclose financing costs and annual percentage rate to the borrower under which law or regulation?
truth in lending
What is a standardized explanation of the financial terms of a loan?
truth in lending act
How can a non-resident of Minnesota become licensed as a real estate salesperson?
upon compliance with all the provisions of minnesota license statutes
When does a deed become valid?
upon delivery and acceptance by the grantee
How often are the NAR Code of Articles reviewed?
yearly
On a mortgage Loan Estimate, how are loan amounts and interest rates that might be changed after the closing indicated?
yes or no statements
What penalties, if any, does a broker face for noncompliance with the standards of conduct set out in the broker responsibilities section of Minnesota statutes?
A license denial, suspension, revocation, or censure of the licensee.
What is a "licensee" as defined in Minnesota statute Chapter 82?
A person duly licensed under chapter 82.
What license must a non-licensee obtain in order to provide closing services for real estate transactions?
A real estate closing agent's license
How is "dual agency" defined in Minnesota statute Chapter 82?
A situation in which a licensee owes a duty to more than one party to the transaction.
Which of the following statements is FALSE? a. A broker may require licensees to carry high levels of automobile insurance. b. It's a good idea for brokers to carry workers' compensation coverage. c. A broker is not responsible for the acts of independent contractors. d. Employee status versus independent contractor status is an IRS issue.
C. A broker is not responsible for the acts of independent contractors.
How does a person obtain a real estate license?
Complete the prelicense education courses and written examination, and submit an application and the appropriate fees.
What term describes the person who transfers title to real property?
Grantor
Which type of insurance covers damage from aircraft?
HO-2 Insurance
What must a licensee do when advertising real estate?
Identify him or her self as either a broker or a salesperson acting as agent to a broker.
Which of the following statements best defines joint tenancy?
In a joint tenancy, two or more persons collectively own a property as if they were a single person.
License examinations are held at times and venues as determined by the Commissioner at least once every
License examinations are held at times and venues as determined by the Commissioner at least once every
Often used to convey title to someone who purchases real property from an estate would be a/an
Minnesota personal representative's deed
What association is primarily made up of Hispanic members who meet and work towards real estate goals that are beneficial to the Hispanic population?
NAHREP
What term describes a person licensed to perform any of the acts of a real estate broker but while associated with and supervised by a broker?
Real estate salesperson
What must a primary broker do to ensure all the places of business within a real estate company are properly supervised?
Specify the name of each broker designated as responsible for the direction and supervision of each place of business, and keep a record accordingly