Minnesota Real Estate Broker Licensing Exam
Questions And Correct Answers (Verified Answers)
Plus Rationales 2025/2026 Q&A | Instant Download
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1. A broker owes fiduciary duties to which party?
A) The buyer only
B) The seller only
C) The client
D) The general public
Rationale: Brokers owe fiduciary duties to their clients, which include loyalty,
obedience, disclosure, confidentiality, accounting, and reasonable care.
2. In Minnesota, how long must a broker keep records of real estate
transactions?
A) 1 year
B) 2 years
C) 3 years
D) 6 years
Rationale: Minnesota law requires brokers to maintain transaction records for
six years for compliance and audit purposes.
3. Which of the following is considered a material fact that must be
disclosed?
A) The seller’s preferred moving date
B) A leaking basement
C) The buyer’s loan pre-approval status
D) The neighborhood demographics
Rationale: Material facts affect a buyer’s decision; physical defects like a
leaking basement must be disclosed.
,4. What is the purpose of the Minnesota Real Estate Education, Research,
and Recovery Fund?
A) To provide loans to first-time buyers
B) To fund broker marketing campaigns
C) To regulate mortgage interest rates
D) To reimburse aggrieved clients for broker misconduct
Rationale: The fund compensates consumers who suffer monetary damages
due to licensee fraud or misrepresentation.
5. A broker lists a property for $250,000. The seller later agrees to accept
$240,000. The broker should:
A) Accept the offer without informing the seller
B) Present the offer to the seller promptly
C) Negotiate secretly with the buyer
D) Refuse the offer
Rationale: Brokers must present all offers promptly and cannot withhold offers
from clients.
6. In Minnesota, dual agency requires:
A) Only verbal disclosure
B) No disclosure
C) Written consent from both parties
D) Approval from the MLS
Rationale: Dual agency occurs when a broker represents both buyer and seller;
Minnesota law requires full written consent.
7. Which type of listing agreement guarantees a commission regardless of
who sells the property?
A) Open listing
B) Exclusive right-to-sell listing
C) Exclusive agency listing
D) Net listing
, Rationale: In an exclusive right-to-sell listing, the broker earns a commission no
matter who finds the buyer.
8. Which Minnesota statute governs real estate licensing?
A) Minnesota Statutes Chapter 83
B) Minnesota Statutes Chapter 110A
C) Minnesota Statutes Chapter 82
D) Minnesota Statutes Chapter 101
Rationale: Chapter 82 covers real estate brokers, salespersons, licensing, and
regulation.
9. A broker receives a deposit check from a buyer. The broker must:
A) Hold it in a personal account
B) Deposit it in a trust account promptly
C) Give it to the seller immediately
D) Use it for advertising expenses
Rationale: Trust account rules require brokers to safeguard client funds and
deposit them promptly.
10. What is an encumbrance?
A) A home inspection report
B) A claim, lien, or restriction on property
C) A mortgage pre-approval
D) A sales contract
Rationale: Encumbrances affect ownership rights and include liens, easements,
or restrictions.
11. In Minnesota, a broker may act as a transaction broker:
A) Only for commercial properties
B) Only for residential properties
Questions And Correct Answers (Verified Answers)
Plus Rationales 2025/2026 Q&A | Instant Download
1. A broker owes fiduciary duties to which party?
A) The buyer only
B) The seller only
C) The client
D) The general public
Rationale: Brokers owe fiduciary duties to their clients, which include loyalty,
obedience, disclosure, confidentiality, accounting, and reasonable care.
2. In Minnesota, how long must a broker keep records of real estate
transactions?
A) 1 year
B) 2 years
C) 3 years
D) 6 years
Rationale: Minnesota law requires brokers to maintain transaction records for
six years for compliance and audit purposes.
3. Which of the following is considered a material fact that must be
disclosed?
A) The seller’s preferred moving date
B) A leaking basement
C) The buyer’s loan pre-approval status
D) The neighborhood demographics
Rationale: Material facts affect a buyer’s decision; physical defects like a
leaking basement must be disclosed.
,4. What is the purpose of the Minnesota Real Estate Education, Research,
and Recovery Fund?
A) To provide loans to first-time buyers
B) To fund broker marketing campaigns
C) To regulate mortgage interest rates
D) To reimburse aggrieved clients for broker misconduct
Rationale: The fund compensates consumers who suffer monetary damages
due to licensee fraud or misrepresentation.
5. A broker lists a property for $250,000. The seller later agrees to accept
$240,000. The broker should:
A) Accept the offer without informing the seller
B) Present the offer to the seller promptly
C) Negotiate secretly with the buyer
D) Refuse the offer
Rationale: Brokers must present all offers promptly and cannot withhold offers
from clients.
6. In Minnesota, dual agency requires:
A) Only verbal disclosure
B) No disclosure
C) Written consent from both parties
D) Approval from the MLS
Rationale: Dual agency occurs when a broker represents both buyer and seller;
Minnesota law requires full written consent.
7. Which type of listing agreement guarantees a commission regardless of
who sells the property?
A) Open listing
B) Exclusive right-to-sell listing
C) Exclusive agency listing
D) Net listing
, Rationale: In an exclusive right-to-sell listing, the broker earns a commission no
matter who finds the buyer.
8. Which Minnesota statute governs real estate licensing?
A) Minnesota Statutes Chapter 83
B) Minnesota Statutes Chapter 110A
C) Minnesota Statutes Chapter 82
D) Minnesota Statutes Chapter 101
Rationale: Chapter 82 covers real estate brokers, salespersons, licensing, and
regulation.
9. A broker receives a deposit check from a buyer. The broker must:
A) Hold it in a personal account
B) Deposit it in a trust account promptly
C) Give it to the seller immediately
D) Use it for advertising expenses
Rationale: Trust account rules require brokers to safeguard client funds and
deposit them promptly.
10. What is an encumbrance?
A) A home inspection report
B) A claim, lien, or restriction on property
C) A mortgage pre-approval
D) A sales contract
Rationale: Encumbrances affect ownership rights and include liens, easements,
or restrictions.
11. In Minnesota, a broker may act as a transaction broker:
A) Only for commercial properties
B) Only for residential properties
