Minnesota State Real Estate Exam Review Questions and
Answers 2026 | Real Estate License Exam Prep & Study
Guide
AxhomeownerxisxwillingxtoxletxhisxneighborxparkxanxRVxinxhisxbackyard.xHexdoesxN
OTxwantxtoxmakexthexpermissionxpermanentxinxcasexhexdislikesxothersxwhoxmightxm
ovexnextxdoorxinxthexfuture.xWhatxshouldxhexgivexhisxneighbor?x-
xcorrectxanswerx ✅Axlicense.
LegalxdescriptionsxusingxthexgovernmentxsurveyxsystemxarexNOTxgenerallyxusedxinx
-xcorrectxanswerx ✅:xthexoriginalx13xstates.
Realxpropertyxcanxbexconvertedxtoxpersonalxpropertyxbyx-
xcorrectxanswerx ✅Severance
Axlandownerxwishesxtoxbuildxaxneighborhoodxgroceryxstorexonxaxbusyxstreetxinxanxar
eaxzonedxforxresidentialxuse.xWhichxofxthexfollowingxwouldxMOSTxlikelyxbexusedxto
xobtainxpermissionxforxthisxstore?x-
xcorrectxanswerx ✅Conditionalxusexpermitxorxzoningxvariance.
Ordinancesxthatxspecifyxconstructionxstandardsxarex-
xcorrectxanswerx ✅BuildingxCodes
Axcouplexownsxanxolderxhomexinxaxneighborhoodxthatxisxbecomingxaxcommercialxar
ea.xBecausexofxthexchangexinxthexusexofxthexland,xthexcouplexcanxexpectxthexvaluexofx
theirxparcelxtoxincreasexatxsomexfuturextime.xThisxisxanxexamplexofxthexprinciplexofx-
xcorrectxanswerx ✅anticipation
,Ifxanxolderxbuildingxcannotxbexair-conditioned,xitxisxanxexamplexofx-
xcorrectxanswerx ✅functionalxobsolesence
Accordingxtoxthexprinciplexofxprogression,xaxthree-bedroom,xone-
storyxhomexisxMOSTxlikelyxtoxbringxthexhighestxsalesxpricexifxlocatedxinxaxneighborh
oodxinxwhichx-xcorrectxanswerx ✅mostxhomesxarexlargerxthanxthexsalexhome
AccordingxtoxthexTruth-in-
LendingxAct,xifxanyx"triggerxterms"xarexusedxinxanxad,xallxofxthexfollowingxdisclosur
esxMUSTxappearxinxthexadxEXCEPTxthex-
xcorrectxanswerx ✅prepaymentxpenaltiesxandxrebates.
ThexFHAxfunctionsxMOSTxlikex-xcorrectxanswerx ✅anxinsurancexcompany
Inxhelpingxaxbuyerxtoxselectxaxlender,xifxthexbuyerxbelievesxhexhasxgoodxcreditxandxhi
sxincomexisxdocumentablexasxaxsalaryxandxbyxtaxxreturns,xthexlicenseexmightxrecom
mendxaxmortgagexbanker,xinsteadxofxaxmortgagexbroker,xforxallxofxthexfollowingxreas
onsxEXCEPTx-xcorrectxanswerx ✅morexvarietyxofxloanxprogramsxavailable.
Axsalespersonxlistsxaxpropertyxwithxaxcontractxthatxallowsxforxsubagencyxandxdualxag
ency.xThexsalespersonxisx-
xcorrectxanswerx ✅anxagentxtoxthexbrokerxandxaxsubagentxtoxthexprincipal.
Anxexclusivexrightxtoxsellxlistingxobtainedxbyxaxbrokerxassociatexbelongsxtox-
xcorrectxanswerx ✅thexemployingxbrokerxonly
Axbroker,xactingxasxagentxforxthexseller,xpresentsxanxofferxtoxbuyxfromxthexbroker'sxf
ormerxcollegexroommate.xThexbrokerxknowsxthatxthexbuyerxwillxincreasexthexamount
, xofxthexofferxifxthexsellerxturnsxdownxthexoffer.xWhenxpresentingxthexoffer,xthexbroke
rxshouldx-xcorrectxanswerx ✅tellxthexsellerxthatxthexbuyerxwillxpayxmore.
Unrepresentedxbuyersxaskxthexlicenseexwhoxlistedxthexhomexwhetherxtheyxshouldxor
derxaxpropertyxinspectionxasxaxpartxofxtheirxduexdiligencexforxthexpurchasexofxthexho
me.xWhichxofxthexfollowingxwouldxbexthexmostxappropriatexwayxforxthexlistingxagen
txtoxrespond?x-
xcorrectxanswerx ✅Ifxyouxfeelxitxisxinxyourxbestxinterest,xpleasexdoxso.
ThexDepartmentxofxHousingxandxUrbanxDevelopmentxestimatesxthatxmostxprivatexh
omesxbuiltxbeforex1978xcontainxpotentiallyxdangerousxlevelsxofxlead.xBecausexofxthi
s,xsomexFederalxagencies,xsuchxasxFHA,x-
xcorrectxanswerx ✅requirexthexbuyerxtoxacknowledgexdisclosurexofxthexpresencex
ofxanyxknownxleadxpaint.
Axprospectivexbuyerxmadexanxofferxtoxpurchasexaxproperty.xThexownerxrespondedxw
ithxaxcounteroffer.xWhilexthexbuyerxwasxreviewingxthexcounteroffer,xthexownerxrecei
vedxaxbetterxoffer.xThexownerxcanxacceptxthexsecondxofferxifx-
xcorrectxanswerx ✅thexownerxwithdrawsxthexcounterofferxbeforexitxisxaccepted.
WhenxaxlistingxbrokerxisxpreparingxanxOfferxtoxPurchasexforxaxbuyerxcustomer,xconti
ngenciesxinvolvingxinspectionsxorxapprovalxbyxaxthirdxpartyxshouldx-
xcorrectxanswerx ✅havexshortxdeadlines.
Axcompanyxagreesxtoxleasexaxpropertyxtoxbexusedxasxaxgamblingxcasino.xStatexlawsxp
rohibitxgambling.xThisxparticularxcontractxwouldxbexlegallyxdefinedxasx-
xcorrectxanswerx ✅Void
Answers 2026 | Real Estate License Exam Prep & Study
Guide
AxhomeownerxisxwillingxtoxletxhisxneighborxparkxanxRVxinxhisxbackyard.xHexdoesxN
OTxwantxtoxmakexthexpermissionxpermanentxinxcasexhexdislikesxothersxwhoxmightxm
ovexnextxdoorxinxthexfuture.xWhatxshouldxhexgivexhisxneighbor?x-
xcorrectxanswerx ✅Axlicense.
LegalxdescriptionsxusingxthexgovernmentxsurveyxsystemxarexNOTxgenerallyxusedxinx
-xcorrectxanswerx ✅:xthexoriginalx13xstates.
Realxpropertyxcanxbexconvertedxtoxpersonalxpropertyxbyx-
xcorrectxanswerx ✅Severance
Axlandownerxwishesxtoxbuildxaxneighborhoodxgroceryxstorexonxaxbusyxstreetxinxanxar
eaxzonedxforxresidentialxuse.xWhichxofxthexfollowingxwouldxMOSTxlikelyxbexusedxto
xobtainxpermissionxforxthisxstore?x-
xcorrectxanswerx ✅Conditionalxusexpermitxorxzoningxvariance.
Ordinancesxthatxspecifyxconstructionxstandardsxarex-
xcorrectxanswerx ✅BuildingxCodes
Axcouplexownsxanxolderxhomexinxaxneighborhoodxthatxisxbecomingxaxcommercialxar
ea.xBecausexofxthexchangexinxthexusexofxthexland,xthexcouplexcanxexpectxthexvaluexofx
theirxparcelxtoxincreasexatxsomexfuturextime.xThisxisxanxexamplexofxthexprinciplexofx-
xcorrectxanswerx ✅anticipation
,Ifxanxolderxbuildingxcannotxbexair-conditioned,xitxisxanxexamplexofx-
xcorrectxanswerx ✅functionalxobsolesence
Accordingxtoxthexprinciplexofxprogression,xaxthree-bedroom,xone-
storyxhomexisxMOSTxlikelyxtoxbringxthexhighestxsalesxpricexifxlocatedxinxaxneighborh
oodxinxwhichx-xcorrectxanswerx ✅mostxhomesxarexlargerxthanxthexsalexhome
AccordingxtoxthexTruth-in-
LendingxAct,xifxanyx"triggerxterms"xarexusedxinxanxad,xallxofxthexfollowingxdisclosur
esxMUSTxappearxinxthexadxEXCEPTxthex-
xcorrectxanswerx ✅prepaymentxpenaltiesxandxrebates.
ThexFHAxfunctionsxMOSTxlikex-xcorrectxanswerx ✅anxinsurancexcompany
Inxhelpingxaxbuyerxtoxselectxaxlender,xifxthexbuyerxbelievesxhexhasxgoodxcreditxandxhi
sxincomexisxdocumentablexasxaxsalaryxandxbyxtaxxreturns,xthexlicenseexmightxrecom
mendxaxmortgagexbanker,xinsteadxofxaxmortgagexbroker,xforxallxofxthexfollowingxreas
onsxEXCEPTx-xcorrectxanswerx ✅morexvarietyxofxloanxprogramsxavailable.
Axsalespersonxlistsxaxpropertyxwithxaxcontractxthatxallowsxforxsubagencyxandxdualxag
ency.xThexsalespersonxisx-
xcorrectxanswerx ✅anxagentxtoxthexbrokerxandxaxsubagentxtoxthexprincipal.
Anxexclusivexrightxtoxsellxlistingxobtainedxbyxaxbrokerxassociatexbelongsxtox-
xcorrectxanswerx ✅thexemployingxbrokerxonly
Axbroker,xactingxasxagentxforxthexseller,xpresentsxanxofferxtoxbuyxfromxthexbroker'sxf
ormerxcollegexroommate.xThexbrokerxknowsxthatxthexbuyerxwillxincreasexthexamount
, xofxthexofferxifxthexsellerxturnsxdownxthexoffer.xWhenxpresentingxthexoffer,xthexbroke
rxshouldx-xcorrectxanswerx ✅tellxthexsellerxthatxthexbuyerxwillxpayxmore.
Unrepresentedxbuyersxaskxthexlicenseexwhoxlistedxthexhomexwhetherxtheyxshouldxor
derxaxpropertyxinspectionxasxaxpartxofxtheirxduexdiligencexforxthexpurchasexofxthexho
me.xWhichxofxthexfollowingxwouldxbexthexmostxappropriatexwayxforxthexlistingxagen
txtoxrespond?x-
xcorrectxanswerx ✅Ifxyouxfeelxitxisxinxyourxbestxinterest,xpleasexdoxso.
ThexDepartmentxofxHousingxandxUrbanxDevelopmentxestimatesxthatxmostxprivatexh
omesxbuiltxbeforex1978xcontainxpotentiallyxdangerousxlevelsxofxlead.xBecausexofxthi
s,xsomexFederalxagencies,xsuchxasxFHA,x-
xcorrectxanswerx ✅requirexthexbuyerxtoxacknowledgexdisclosurexofxthexpresencex
ofxanyxknownxleadxpaint.
Axprospectivexbuyerxmadexanxofferxtoxpurchasexaxproperty.xThexownerxrespondedxw
ithxaxcounteroffer.xWhilexthexbuyerxwasxreviewingxthexcounteroffer,xthexownerxrecei
vedxaxbetterxoffer.xThexownerxcanxacceptxthexsecondxofferxifx-
xcorrectxanswerx ✅thexownerxwithdrawsxthexcounterofferxbeforexitxisxaccepted.
WhenxaxlistingxbrokerxisxpreparingxanxOfferxtoxPurchasexforxaxbuyerxcustomer,xconti
ngenciesxinvolvingxinspectionsxorxapprovalxbyxaxthirdxpartyxshouldx-
xcorrectxanswerx ✅havexshortxdeadlines.
Axcompanyxagreesxtoxleasexaxpropertyxtoxbexusedxasxaxgamblingxcasino.xStatexlawsxp
rohibitxgambling.xThisxparticularxcontractxwouldxbexlegallyxdefinedxasx-
xcorrectxanswerx ✅Void
