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?
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?
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?
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?
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?
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?
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