MN State Test passed!

A buyer working with QRS Realty wants to make an offer on a property to save time. The buyer makes a virtual offer of $210,000 and the seller agrees the offer is:

a) Invalid

b) Voidable

c) Unilateral

d) Unenforceable

d) Unenforceable - because it is not in writing

Listing Agreements must include:

a) List of all easements

b) Site plan

c) Amount of compensation

d) Property identification number

c) Amount of compensation

In order for a salesperson to legally advertise a property online, the advertisement must include:

a) Brokerage company name

b) Team name

c) Telephone number of brokerage company

d) Listing price of the property

a) Brokerage company name

For how many years after the warrant date must a vendor warrant that a completed dwelling be free from major construction defects:

a) Two

b) Five

c) Ten

d) Fifteen

c) Ten

Which of the following actions is required of a landlord in order to sell or otherwise dispose of a tenant's personal property remaining on abandoned processes?

a) Taking an inventory of the property

b) Obtaining written permission from the former tenant

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) Waiting 28 days after the tenant has abandoned the proper

A buyer wants to back out a deal a week before closing. The seller has moved to a different state. Which recourse does the seller have?

a) The seller may ask the sheriff to enforce the contract

b) The seller may file an adverse action against the buyer's credit report

c) The seller should sue the buyer's brokerage for liquidated damages

d) The seller should consult a real estate lawyer

d) The seller should consult a real estate lawyer

Under what circumstances may a broker be paid a commission by both the buyer and the seller in the same real estate transaction?

a) If the commission is split equally between the buyer and the seller

b) If the broker has a waiver form signed by the buyer

c) If it is disclosed to the settlement agent

d) If both the buyer and the seller are informed of the commission payment

d) If both the buyer and the seller are informed of the commission payment

In order to qualify for a homestead credit in the following year, a homeowner must own and occupy the property by:

a) January 2nd

b) June 1st

c) October 15th

d) December 1st

d) December 1st

Which of the following statements about the mortgage registry tax for mortgaged properties in Minnesota is correct?

a) It is waived for senior citizens who have reverse mortgages

b) It is assessed at the rate of 0.23 per $100

c) It is saved for homestead property only

d) It is based on the principal only after the deduction for homesteading

d) It is based on the principal only after the deduction for homesteading

To count towards a real estate licensee's continuing education requirement, a continuing education course must be:

a) Taught in a classroom

b) Approved by the department of commerce

c) Focused on one current issue

d) Offered by a real estate

b) Approved by the department of commerce

A broker may acquire an interest in a property listed with their brokerage if the broker:

a) Pays the listing contract price

b) Uses a third party to act on the brokers behalf

c) First inactivates their license

d) Disclosed the brokers intent to sell

d) Disclosed the brokers intent to sell

A buyer purchases a property with an individual sewage treatment system that the seller misrepresents as compliant. The statutory period during which a buyer may bring action against the seller begins at the:

a) Purchase Agreement

b) Property Closing

c) Defects Discovery

d) Property's first being offered for sale

b) Property Closing

Under normal circumstances, provided the vacating tenant has left appropriate delivery instructions, how long after termination of tenancy does the landlord have to return the deposit?

a) Five days

b) Two weeks

c) Three weeks

d) Four weeks

c) Three weeks (21 days)

A commission dispute arrives at settlement between the listing broker and the seller. Legally, the listing broker:

a) May file a commission lien against the property to cloud the title

b) Must instruct the settlement provider not the close the transaction

c) Cannot prevent the closing but may take later action against the seller

d) May place a lien on the property no later than two business days before the closing

c) Cannot prevent the closing but may take later action against the seller

If a homeowner defaults on payments for services rendered, who has the right to file a lien against the property?

a) A salesperson who listed the property to recover commission

b) A surveyor who performs a survey on the land

c) the homeowners mortgage company

d) The county's assessors office

b) A surveyor who performs a survey on the land

If a licensee is charged with a criminal offense, the licensee must notify the commissioner of commerce of the changes within how many days?

a) 5

b) 10

c) 20

d) 30

b) 10

Agency disclosure requirements obligate a licensee to provide disclosure of representation when the licensee is involved in:

a) Commercial real estate rentals

b) Residential real estate sales

c) Federal foreclosure purchases

d) Buying and selling of business opportunities

b) Residential real estate sales

A broker hires a salaried personal assistant to help manage the workload. The personal assistant procures listings by telephone for this broker. The personal assistant must be:

a) A professional telemarketer

b) Employed on a full time basis

c) Licensed as a salesperson or a broker

d) A salesperson applicant

c) Licensed as a salesperson or a broker

What can a licensee legally give a former client for referring a new client?

a) A promotional advertising item whos value does not exceed $25.00

b) One percent of the purchase price

c) A gift card who's value does not exceed $25.00

d) Nothing of any value

d) Nothing of any value

Without written authorization by their broker, a real estate licensee may receive compensation from:

a) Title insurance closer

b) An appraiser

c) Their real estate broker

d) Their team leader

c) Their real estate broker

A salesperson license is revoked. The salesperson will be eligible to take the Minnesota salesperson exam how many years after:

a) 1

b) 2

c) 3

d) 4

b) 2

When a buyer signs a purchase agreement for a subdivided lot, the licensee must furnish a true and accurate copy of the agreement to:

a) The county land and resources department

b) The Minnesota department of commerce

c) All parties to a transaction

d) The city zoning department

c) All parties to a transaction

A buyer's broker agreement must contain:

a) A disclosure of paid disciplinary actions against the licensee

b) Information about the buyer's current property

c) A clear statement of marketing strategies used by the licensee

d) A clear statement of the terms under which the agreement may be cancelled, if there is a provision for cancellation

d) A clear statement of the terms under which the agreement may be cancelled, if there is a provision for cancellation

When the mortgage is paid in full, the mortgagor should record which of the following documents with the county recorder?

a) Receipt for payment

b) Mortgage deed marked "paid"

c) Extension of mortgage

d) Satisfaction of mortgage

d) Satisfaction of mortgage

Which of the following statements about the homestead exemption statute is correct?

a) A new property owner has until the end of the year to file for a homestead

b) A homestead may include any quality of land not exceeding 160 acres or half an acre if in a plotted portion of the city

c) The homestead exemption ceases upon death of a spouse for property held in joint tenancy

d) A homestead is exempt from foreclosure of a mechanics lien

d) A homestead is exempt from foreclosure of a mechanics lien

A broker or salesperson may be sanctioned if they fail to provide agency disclosure at first substantive contact in the sale of a:

a) Eight unit building

b) Single family townhome

c) Strip mall

d) Office complex

b) Single family townhome

An applicant who successfully completes the licensing exam must apply for a salesperson license within a maximum of how many months?

a) 6 months

b) 12 months

c) 18 months

d) 24 months

b) 12 months

A Minnesota homestead owned by a married person and occupied only by the person and their adult child is conveyed, who must sign the deed?

a) The person only

b) The person and their spouse only

c) The person and adult child only

d) The spouse and adult child only

b) The person and their spouse only

For how many years after the warrant date must a vendor warrant that a dwelling be free from defects cause by the faulty workmanship and defective materials due to noncompliance from building standards?

a) 1 years

b) 2 years

c) 5 years

d) 10 years

d) 10 years

Which of the following activities requires a real estate license?

a) Offering counsel and advice in a real estate transaction to another for a fee

b) Leasing residential units in a building by an employee of that building

c) Operating a cemetery and selling lots for use as burial plots

d) Auctioning a residential property by an auctioneer under the supervision of an attorney

a) Offering counsel and advice in a real estate transaction to another for a fee

A licensee is selling property which the licensee and the licensee's sibling own together. The licensee must disclose:

a) Length of time they have owned the property

b) Licensees family relationship to the sister

c) Original purchase price of the property

d) Appraised value

b) Licensees family relationship to the sister

In Minnesota, licensees have a maximum of how many hours after a listing agreement expires to furnish a protective list to the correct party?

a) 24 hours

b) 48 hours

c) 72 hours

d) 96 hours

c) 72 hours

When a seller makes a public offering for the sale of subdivided land, the offering must include:

a) The name, address, and telephone number of the subdivider's attorney

b) Statement from the county's assessors office indicating approval and recommending the land for sale

c) Information concerning the existing or proposed improvements and amenities and their completion dates

d) General description of environmental effect on all trees on the property

c) Information concerning the existing or proposed improvements and amenities and their completion dates

Which of the following documents is subject to the state deed tax when the document is recorded?

a) Deed for a cemetery lot

b) Quitclaim deed

c) Mortgage satisfaction

d) Contract for deed

d) Contract for deed

A buyer purchases a newly constructed house from a builder. For how many years in the plumbing in the buyer's house warranted against faulty installation?

a) 1 year

b) 2 years

c) 5 years

d) 10 years

b) 2 years

Two years' protection for mechanical defects such as; plumbing, electrical, heating, air conditioning, and ventilation systems

Which of the following is a condition of a limited broker license?

a) It authorizes the limited broker to act on behalf of a principal broker in residential transactions

b) It authorizes the limited broker to act as a principal only

c) It permits them to sponsor up to five people

d) Permits to engage in residential mortgage loans

b) It authorizes the limited broker to act as a principal only

A tenant may terminate a lease without penalty or liability if the:

a) Tenant's roommate vacates, and the tenant can no longer afford the rent

b) Oven breaks and is not replaced within 72 hours

c) Tenant requested repairs, do not meet the tenant's satisfaction

d) Tenant is a victim of domestic abuse and fears their life

d) Tenant is a victim of domestic abuse and fears their life

A buyer's broker agreement must include:

a) Current market conditions

b) A lender pre-approval letter

c) The amount of consideration

d) A legal description of the property

d) A legal description of the property

Before a licensee may advertise to the general public that real property is available for sale, they must obtain:

a) Approval of an attorney

b) A legal description of the property

c) The sellers consent to dual agency

d) A signed authorization from the owner

d) A signed authorization from the owner

A licensed real estate broker is prohibited from:

a) Listing a home for sale as a member of the team

b) Receiving commission for negotiating the purchase of an office building

c) Listing personally owned property with another broker

d) Paying a finders fee to an unlicensed person for the name of a friend who is thinking of buying a home

d) Paying a finders fee to an unlicensed person for the name of a friend who is thinking of buying a home

Unless the party requests specific report, the BPO (Broker Price Opinion) must be in writing and contain:

a) The date the license was originally licensed

b) An endorsement from a licensed appraiser

c) A listing of adjustments made to comparable properties

d) A statement of the intended purpose of the opinion

d) A statement of the intended purpose of the opinion

Which of the following parties is responsible for administering the real estate education, research, and recovery fund?

a) The commissioner of commerce

b) The state treasurer

c) A designated financial institution

d) The attorney general

a) The commissioner of commerce

Which of the following scenarios properly conveys title?

a) A wife executes a deed on behalf of a husband who is living in another state

b) A seller, recuperating in the hospital, grants a power of attorney in the sellers spouse, allowing the spouse to execute the deed

c) A probate proceeding confirming a will

d) A wife obtains a notarized statement authorizing the sale

c) A probate proceeding confirming a will

In a common interest community of condominiums, which of the following is true?

a) Owners may build fences if their units are at ground level

b) All owners have a right to use all common areas

c) HOA dues pay for all repairs in units and common areas

d) A semi-annual audit is required to be completed

b) All owners have a right to use all common areas

Maximum fine for first time offense licensee:

a) $1K

b) $5K

c) $10K

d) $25K

c) $10K

Which of the following statements about the mortgage registry tax for mortgaged properties in Minnesota is correct?

a) Applied to the principal only

b) Applied to the full sale price of the mortgaged property

c) Applied to the principal and capitalized interest

d) Only applicable to properties with a qualifying mortgage

a) Applied to the principal only

In order to be eligible for license renewal, Minnesota salespersons and brokers must complete a minimum of how many hours of continuing hours within the renewal period?

a) 15 hours

b) 30 hours

c) 45 hours

d) 60 hours

b) 30 hours

What is the largest number of residential units an apartment complex may have if written leases are not required?

a) 2

b) 5

c) 11

d) 15

c) 11

A licensee lists a home with four wells. The first is a distilled well that is 100 feet deep. The other three wells are shallow sand points that have dried up and are no longer capable of pumping water. The seller is required to:

a) Have all three sand point wells sealed by a licensed well contractor

b) Cover all three sand point wells so they don't pose a safety hazard

c) Seal all three sand point wells by pouring concrete down them

d) Make all four wells operational

b) Cover all three sand point wells so they don't pose a safety hazard

The responsibilities of a primary broker include:

a) Providing leads to salespersons

b) Maintain trust account books and records

c) Paying salesperson license renewal and transfer fees

d) Paying for continuing education for affiliated licenses

a) Providing leads to salespersons

A licensed real estate broker must retain real estate brokerage records for a minimum of how many years?

a) 1 year

b) 3 years

c) 6 years

d) 7 years

b) 3 years

A licensee owns a commercial property with a business partner. They hold the property as tenants in common. If the licensee and business partner decide to sell the property, the licensee must:

a) Post the property in the MLS

b) Include the ownership stake in all advertising

c) List the property with their current broker

d) Disclose their active licensed status

d) Disclose their active licensed status

A contractor was hired to make some additions to a home. The homeowner was known for not paying bills promptly, so a few days into the week the contractor placed a lien on the property.. the contractor should not file a:

a) Certified receipt

b) Cancellation of lien

c) Lis pendes

d) Release of lien

b) Cancellation of lien

An owner bought a new construction, single-family home. At 14 months after closing, the central air system no longer adequately cools the 5,000 SF home. The owner attempts to contract the builder but learns he has died. Which of the following statements about the new construction warranty on major systems of the house is TRUE?

a) Upon builders death

b) At closing

c) A year after closing

d) Good for two years after closing

d) Good for two years after closing

Someone wants to give a licensee a $500 gift card, however the licensee does not have written authorization from his broker... he should:

a) Accept the gift certificate because it is not cash

b) Not accept the gift certificate because the value is over $100

c) Not accept the gift certificate if the salespersons a dual agent

d) Direct the gift to the salespersons broker

d) Direct the gift to the salespersons broker

At the end of a rental period, it is written in a Landlord's rights to withhold funds from the tenant's security deposit for:

a) Damages resulting from normal wear and tear

b) Damages made by a third party not included in the rental agreement

c) Unpaid cable television service to a unit

d) Unexpected common area repairs

b) Damages made by a third party not included in the rental agreement

In order for a contractor to establish an enforceable right for a mechanics lien, which of the following must be true?

a) Give prior actual notice to the property owner of the contractor's intent to file a notice of lien

b) File a properly prepared notice of lien with the secretary of state office

c) Give actual notice of the lien filing to the municipal office in charge of building permits

d) Provide the property owner with a copy of the mechanics lien statute

a) Give prior actual notice to the property owner of the contractor's intent to file a notice of lien

Salesperson X and salesperson Y are with the same brokerage office. Salesperson X lists a property and Y represents the buyer to whom the property is sold. Which of agency relationship BEST identifies salesperson Y's relationship with the buyer?

Dual Agent

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) When they discuss the property