State Specific Questions for the Minnesota Real Estate Exam

Note: This is a public article to help our Minnesota members. We have state specific content available for other states to paid members through their dashboard. If you are a member, please visit the practice exams section to review questions for your state.

One of our wonderful members, Cydney, provided these questions and notes for the state-specific portion of the Minnesota real estate exam. We hope it helps others who are also studying for the Minnesota exam:

 

1. If a tenant abandons personal property, how many days must the landlord hold the property?

Answer: 28 days

 

2. How long must a broker keep listing, sales and copies of all paperwork?

Answer: 6 years

 

3.  Once you have passed the test, how long are the results good for?

Answer: One year

 

4. Mr. Smith leases to Ms. Jones.  Ms. Jones decides to purchase the property.  Mr. Smith does not give her a disclosure form.  What has he done wrong?

Answer: Nothing. He does not need to provide a disclosure to a tenant.

 

5. Contract for deed

Answer: Termination, not cancellation

 

6. Do you need to have a high school diploma to become a licensed real estate agent?

Answer: No, you only need to be at least 18 years old at time of your application

 

7. What must you do if you are convicted of a felony?

Answer: Notify the Commissioner

 

8. What could a licensee get in trouble for doing?

Answer: Taking a promissory note from a buyer without consent (approval) of the owner

 

9. When must a broker give notice to the Commissioner if closing a trust account?

Answer: 10 days in advance (NOT after already closing the account)

 

10. Broker must provide which of the following to licensees?

Answer: Adequate supervision

 

11. What must a licensee do if buyer is backing out?

Answer: Disclose immediately to all parties

 

12. A listing agent lists a house and a prospective buyer contacts listing agent to view the house.  When must the agent disclose their agency representation and choices and what must be given?

Answer: Before it could affect their bargaining position/Agency disclosure form

 

13. Licensees must deliver documents to all parties at the time they are signed

 

14. What must be on listing agreements and buyer representation forms?

Answer: Statement about dual agency/Disclosure and consent for dual agency/Affiliated business information (ownership of a mortgage or closing company)

 

15. Who pays mortgage registry tax (aka: State tax)?

Answer: Mortgagor (buyer)(.0023 X new mortgage amount)

 

16. When are property taxes paid?

Answer: May 15 & Oct. 15

 

17. Who discloses wells?

Answer: Seller

 

18. When a new petroleum tank is installed or repaired, what is needed?

Answer: Certificate of compliance/Pollution control agency (PCA) certificate

 

19. Sellers must disclose?

Answer: Meth lab & material facts

 

20. What is the minimum time statutory redemption period could be on a foreclosure?

Answer: 5 weeks

 

21. If a licensee has not signed a contract with either party to the transaction they are acting as?

Answer: Facilitator

 

22. When receiving money (other peoples $) real estate agents must immediately?

Answer: Account for funds in broker’s trust acct/deposit into listing brokers trust account within 3 business days

 

23. Conversion to condos

Answer: 60 day right to purchase + 60 day right to vacate = 120 total days

 

24. Statute of Frauds states that a contract must be in writing if?

Answer: 3 year with option to buy

 

25. What are common elements?

Answer: The land and improvements used collectively by all residents

 

26. Associations are required to?

Answer: Hold a meeting once a year/Adopt rules, regulations and budgets

 

27. Damage deposits must be returned to a tenant?

Answer: 21 days (aka: 3 weeks)

 

28. Mechanics lien expires after work is done?

Answer: 120 days

 

29. Common Elements are shared as?

Answer: Tenants in common

 

30. The entity which regulates real estate salespersons & brokers is?

Answer: Department of Commerce

31. The amount of time a temporary broker’s license is valid for is?

Answer: 45 days

 

32. License law requires a real estate license when you sell real estate?

Answer: For another & for a fee

 

33. A licensee gets charged with a felony.  Must they notify the Commissioner?

Answer: Yes, with 10 days of the charge

 

34. A commercial property depreciation schedule is likely to be?

Answer: Straight line depreciation

 

35. A commercial property is all of the following:

Answer: Warehouse, office bldg., industrial, 5+ unit residential

 

36. A salesperson can be paid from a principal directly (and at 100%)?

Answer: For reimbursements of out of pocket expenses

 

37. In subdividing a 40 acre piece of land, does the Commissioner require the Department of Commerce to do a physical inspection of the new subdivision?

Answer: No

 

38. Someone is the “High Bidder” at a sheriffs sale, they can?

Answer: Change locks of an “in danger” property, hire property managers to manage the building, inspect the property from the street

 

39. The ability to enforce a foreclose-able mechanics lien states that the lien must be?

Answer: In writing

 

40. What are the 3 protected classes in MN. that are not protected under the Federal Laws?

Answer: Marital Status, Sexual orientation, Public assistance

 

41. A landlord (lessor) can keep a tenants (lessee) security deposit due to needing to re-paint and/or replace carpeting?

Answer: False-this is normal wear and tear

 

42. Who is responsible for initial application and renewal of a salesperson’s license?

Answer: The broker

 

43. The exemption for needing a license applies to?

Answer: Lawyers, “Court appointed” trustees, auctioneers IF being directed by a broker

 

44. Seller has 3 choices in order to comply with MN. Disclosure Laws:

Answer: (DWI) Disclosure form, waiver signed by buyer & seller, Seller provides a home inspection

 

45. To make a claim from the Real Estate Research Education & Recovery Fund, the injured party must make a request for payment?

Answer: Within 1 year of the judgment

 

46. The penalty for not paying property taxes is based on?

Answer: Date of payment, postmark of envelope, classification of property (NOT property value)

 

47. A type of title that is registered at the County is called?

Answer: Torrens

 

48. Ownership of Torrens property transfers when?

Answer: It is recorded at the County

 

49. New Construction Home Warranty starts?

Answer: Day of closing or date of 1st occupancy, whichever comes first

 

50. Refusing to make loans in a specific neighborhood is called?

Answer: Redlining

 

51. The law that oversees real estate contracts is:

Answer: Statute of Frauds

 

52. A seller must get a copy of their Disclosures to a buyer?

Answer: Before the buyers sign a purchase agreement

 

53. In MN. the redemption period of 12 months is automatic for?

Answer: More than 40 acres, more than 10+ acres agricultural use, more than 1/3 paid, reverse mortgage

 

54. When does a seller NOT NEED TO make a property disclosure?

Answer: When an existing tenant is the buyer/Transfer between spouses/transfer due to a court order/transfer to the Government/transfer by foreclosure/new construction

 

55. What type of institution must a Trust Account be?

Answer: Savings & loan or credit union (checking or savings, must be interest bearing)

 

56. A salesperson is on their way to present an offer to the seller.  They get into a car accident.  Should they call the Broker and have the Broker present the offer?

Answer: Yes

 

57. Can a listing agent accept an I.O.U. (Promissory Note) or wedding ring as earnest money?

Answer: Not without the seller’s permission

 

58. An Agency Relationship In Real Estate Transactions form includes Dual Agency Authorization?

Answer: False.  This form is only a disclosure form educating the consumer about agency options, not an authorization.  Authorizations are found on the Listing Agreement, Buyer Contract & Purchase Agreement