MN REAL ESTATE EXAM QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|VERIFIED AND WELL DETAILED ANSWERS

CORRECT ANSWERS|LATEST
2025/2026|VERIFIED AND WELL DETAILED

4 forms of agency relationships - ANSWER
B B B B B B 1) Seller's Broker
B B




2) Buyer's Broker
B B




3) Dual Agent
B B




4) Facilitator
B




When must the agency disclosure form be provided by the licensee? -
B B B B B B B B B B B



B ANSWER At first SUBSTANTIVE contact with the buyer and/or seller
B B B B B B B B




If a facilitator, when working with a buyer, shows a property listed by the facilitator, then they
B B B B B B B B B B B B B B B B B



must act... - B B



B ANSWER as a seller's broker and NOT the buyer's broker (the reverse is also true)
B B B B B B B B B B B B B




Dual agency disclosure must be included in... -
B B B B B B B



B ANSWER Listing, buyer's representations, and purchase agreements
B B B B B




Fiduciary Duties - B B



ANSWER
B "OLD CAR": Obedience, Loyalty, Disclosure, Confidentiality, Accountability, an B B B B B B B



d Reasonable Care. This mnemonic device has a slight variation (e.g. care vs. reasonable care),
B B B B B B B B B B B B B B B



but both are helpful in recalling the fiduciary duties an agent owes his clients and broker.
B B B B B B B B B B B B B B B




What must a listing agreement and buyer's representation agreement have? -
B B B B B B B B B B



B ANSWER 1) be in writing
B B B




2) definite expiration date
B B B




3) listing price and terms of sale
B B B B B B




4) amount of and method of computing the commission
B B B B B B B B




5) negotiable commissions clause
B B B




6) dual agency disclosure provision
B B B B B




1
Wicky

,7) closing services and how the contract can be cancelled
B B B B B B B B B




8) may contain an override clause but NOT a holdover clause
B B B B B B B B B B




Chapter 82 of Minnesota State Statutes regulates... - ANSWER
B B B B B B B B Real estate licensees.
B B




The MN Commissioner of Commerce administers.... -
B B B B B B



ANSWER
B Real estate law, rules implementing the law, issued licenses, are takes discipli
B B B B B B B B B B B



nary action against those who violate the law
B B B B B B B




Who must have a real estate license? -
B B B B B B B



BANSWER Anyone who, for another and for a fee, lists, sells, exchanges, manages, buys, B B B B B B B B B B B B B



rents, auctions, or negotiates options on real estate, a business opportunity, or a business.
B B B B B B B B B B B B B




Commercial loan brokers, some non- B B B B



institutional lenders, and rental services are also required to have a broker's license.
B B B B B B B B B B B B B




A property owner involved in 5 or more transactions per year also needs a license.
B B B B B B B B B B B B B B




Each new licensee must complete ___ hours of continuing education within the first licensing
B B B B B B B B B B B B B B



period - ANSWER B B 30



Each new licensee must complete ____ hours of continuing education during each 24-
B B B B B B B B B B B B



month renewal period - ANSWER
B B B B 30



At least ___ of the 30 credit hours must be completed during the first 12 months of the 24-
B B B B B B B B B B B B B B B B B B



month licensing period - ANSWER
B B B B 15



A licensee may be fined up to $____________ per occurrence for violating state licensing law -
B B B B B B B B B B B B B B B



B ANSWER $10,000




2
Wicky

,A broker's special responsibilities include... -
B B B B B



ANSWER
B Supervising salespeople, maintaining a trust account, and keeping records for B B B B B B B B B B



each real estate transaction
B B B




Licensees are PROHIBITED from... - B B B B



ANSWER
B Guaranteeing future profit, interfering with an exclusive agency, misrepresent B B B B B B B B



ation, acting without a signed agency agreement
B B B B B B




Licensees are required to make several disclosures, including.... -
B B B B B B B B



ANSWER
B Agency disclosure, disclosure to the buyer of known material facts that might B B B B B B B B B B B B



adversely affect the use or enjoyment of a property
B B B B B B B B




The recovery portion of the Real Estate Education, Research, and Recovery Fund (REERRF) is u
B B B B B B B B B B B B B B



sed to... - B B



ANSWER
B Compensate claimants who have obtained a judgement against a licensee bas B B B B B B B B B B



ed on fraud in a real estate transaction, but have been unable to collect the judgement from t
B B B B B B B B B B B B B B B B B



he licensee B




Who is exempt from Minnesota's real estate licensing requirement? - ANSWER
B B B B B B B B B B A court-
B



appointed trustee selling property B B B




Limited Broker - B B



ANSWER
B Owner buying or selling own property if involved in 5 or more transactions in B B B B B B B B B B B B B B



a year; may not act as a real estate agent for others
B B B B B B B B B B B




Broker Price Opinion (BPO) -B B B B



ANSWER
B An estimate that details the probable selling price of a particular property and
B B B B B B B B B B B B



provides a varying level of detail about the property's condition, market, and neighborhood, a
B B B B B B B B B B B B B B



s well as info on comparable sales, but does not include an automated valuation model.
B B B B B B B B B B B B B B B




Anyone who produces a BPO must be a licensed real estate salesperson, broker, or appraiser.
B B B B B B B B B B B B B B B




NOT AN APPRAISAL. B B B




3
Wicky

, Licensee may prepare and charge a fee for a BPO.
B B B B B B B B B




Salesperson's license is only effective while _____________ and may transfer to another brok
B B B B B B B B B B B B



er before __________ - ANSWER
B B B B Working for broker, expiration B B B




Licensee with legal problem must notify Commissioner within ___ days - ANSWER
B B B B B B B B B B B 10



Notify commissioner within ___ days of any change of address, name, and so on -
B B B B B B B B B B B B B B



B ANSWER 10



A broker must keep transaction records for ___ years - ANSWER
B B B B B B B B B B 6



A real estate licensee must not try to convince any party to a contract to ____ -
B B B B B B B B B B B B B B B B



B ANSWER Breach it B




What are recovery limits for REERRF? - ANSWER
B B B B B B B $150k per claim, $250k per licensee
B B B B B




If recovery portion of REERRF covers a claim, the licensee's license is _____ -
B B B B B B B B B B B B B



B ANSWER Suspended



A broker must deposit funds received as earnest money deposits into trust accounts no later t
B B B B B B B B B B B B B B B



han - ANSWERB B 3 business days after receipt
B B B B




A ____ day temporary permit may be issued to a qualified salesperson if the primary broker b
B B B B B B B B B B B B B B B B



ecomes incapacitated - ANSWER B B B 45



A loan broker must deposit any fees into an escrow account within ____ hours of receipt -
B B B B B B B B B B B B B B B B



B ANSWER 48


4
Wicky