Minnesota Property Management Licensing Exam Practice Questions
& Verified Answers | 2026 Latest Update
Questions 1–250
Domain 1: Property Management Agreements & Contracts
(Questions 1–40)
1. What is the primary purpose of a property management
agreement?
A) To transfer property ownership to the manager
B) To define the legal relationship and responsibilities between the
property owner and the property manager
C) To establish rental rates for the property
D) To waive the property owner's liability
,Answer B: To define the legal relationship and responsibilities
between the property owner and the property manager
Rationale: A property management agreement is a written contract
that establishes the rights, duties, and obligations of both the
property owner and the property manager.
2. Under Minnesota law, a property management agreement should
be in writing if it exceeds what duration?
A) 30 days
B) 1 year
C) 6 months
D) 90 days
Answer B: 1 year
Rationale: Under the statute of frauds, contracts for the
management of real property that cannot be performed within one
year must be in writing.
3. Which of the following is typically NOT a duty of a property
manager under a management agreement?
,A) Collecting rent
B) Marketing and leasing the property
C) Paying the property owner's personal income taxes
D) Maintaining the property
Answer C: Paying the property owner's personal income taxes
Rationale: Property managers handle property-related financial
matters but do not typically manage the owner's personal tax
obligations.
4. A property manager's fiduciary duty to the property owner
includes all of the following EXCEPT:
A) Loyalty
B) Disclosure
C) Self-dealing
D) Accounting
Answer C: Self-dealing
Rationale: Self-dealing is prohibited under fiduciary duties. The
manager must act in the owner's best interest, not their own.
, 5. Which of the following is an essential element of a valid property
management agreement?
A) Oral agreement is sufficient
B) Mutual consent, competent parties, and lawful purpose
C) Only the owner's signature is required
D) No consideration is necessary
Answer B: Mutual consent, competent parties, and lawful purpose
Rationale: A valid contract requires mutual consent, competent
parties, lawful purpose, and consideration.
6. A property management agreement should specify:
A) Only the rental amount
B) The scope of the manager's authority, fees, and duration
C) Only the duration
D) Only the fees
Answer B: The scope of the manager's authority, fees, and duration
Rationale: The agreement must clearly define the manager's
authority, compensation, and term.
& Verified Answers | 2026 Latest Update
Questions 1–250
Domain 1: Property Management Agreements & Contracts
(Questions 1–40)
1. What is the primary purpose of a property management
agreement?
A) To transfer property ownership to the manager
B) To define the legal relationship and responsibilities between the
property owner and the property manager
C) To establish rental rates for the property
D) To waive the property owner's liability
,Answer B: To define the legal relationship and responsibilities
between the property owner and the property manager
Rationale: A property management agreement is a written contract
that establishes the rights, duties, and obligations of both the
property owner and the property manager.
2. Under Minnesota law, a property management agreement should
be in writing if it exceeds what duration?
A) 30 days
B) 1 year
C) 6 months
D) 90 days
Answer B: 1 year
Rationale: Under the statute of frauds, contracts for the
management of real property that cannot be performed within one
year must be in writing.
3. Which of the following is typically NOT a duty of a property
manager under a management agreement?
,A) Collecting rent
B) Marketing and leasing the property
C) Paying the property owner's personal income taxes
D) Maintaining the property
Answer C: Paying the property owner's personal income taxes
Rationale: Property managers handle property-related financial
matters but do not typically manage the owner's personal tax
obligations.
4. A property manager's fiduciary duty to the property owner
includes all of the following EXCEPT:
A) Loyalty
B) Disclosure
C) Self-dealing
D) Accounting
Answer C: Self-dealing
Rationale: Self-dealing is prohibited under fiduciary duties. The
manager must act in the owner's best interest, not their own.
, 5. Which of the following is an essential element of a valid property
management agreement?
A) Oral agreement is sufficient
B) Mutual consent, competent parties, and lawful purpose
C) Only the owner's signature is required
D) No consideration is necessary
Answer B: Mutual consent, competent parties, and lawful purpose
Rationale: A valid contract requires mutual consent, competent
parties, lawful purpose, and consideration.
6. A property management agreement should specify:
A) Only the rental amount
B) The scope of the manager's authority, fees, and duration
C) Only the duration
D) Only the fees
Answer B: The scope of the manager's authority, fees, and duration
Rationale: The agreement must clearly define the manager's
authority, compensation, and term.
