MN Real Estate Exam Questions and Answers 100% Pass

MN Real Estate Exam Questions and Answers 100% Pass 4 forms of agency relationships 1) Seller's Broker 2) Buyer's Broker 3) Dual Agent 4) Facilitator When must the agency disclosure form be provided by the licensee? At first SUBSTANTIVE contact with the buyer and/or seller If a facilitator, when working with a buyer, shows a property listed by the facilitator, then they must act... as a seller's broker and NOT the buyer's broker (the reverse is also true) Dual agency disclosure must be included in... Listing, buyer's representations, and purchase agreements Fiduciary Duties "OLD CAR": Obedience, Loyalty, Disclosure, Confidentiality, Accountability, and Reasonable Care. This mnemonic device has a slight variation (e.g. care vs. reasonable care), but both are helpful in recalling the fiduciary duties an agent owes his clients and broker. What must a listing agreement and buyer's representation agreement have? 1) be in writing 2) definite expiration date 3) listing price and terms of sale 4) amount of and method of computing the commission 5) negotiable commissions clause 6) dual agency disclosure provision 7) closing services and how the contract can be cancelled 8) may contain an override clause but NOT a holdover clause Chapter 82 of Minnesota State Statutes regulates... Real estate licensees. The MN Commissioner of Commerce administers.... Real estate law, rules implementing the law, issued licenses, are takes disciplinary action against those who violate the law Who must have a real estate license? Anyone who, for another and for a fee, lists, sells, exchanges, manages, buys, rents, auctions, or negotiates options on real estate, a business opportunity, or a business. Commercial loan brokers, some non-institutional lenders, and rental services are also required to have a broker's license. A property owner involved in 5 or more transactions per year also needs a license. Each new licensee must complete ___ hours of continuing education within the first licensing period 30 Each new licensee must complete ____ hours of continuing education during each 24-month renewal period 30 At least ___ of the 30 credit hours must be completed during the first 12 months of the 24-month licensing period 15 A licensee may be fined up to $____________ per occurrence for violating state licensing law $10,000 A broker's special responsibilities include... Supervising salespeople, maintaining a trust account, and keeping records for each real estate transaction Licensees are PROHIBITED from... Guaranteeing future profit, interfering with an exclusive agency, misrepresentation, acting without a signed agency agreement Licensees are required to make several disclosures, including.... Agency disclosure, disclosure to the buyer of known material facts that might adversely affect the use or enjoyment of a property The recovery portion of the Real Estate Education, Research, and Recovery Fund (REERRF) is used to... Compensate claimants who have obtained a judgement against a licensee based on fraud in a real estate transaction, but have been unable to collect the judgement from the licensee Who is exempt from Minnesota's real estate licensing requirement? A court-appointed trustee selling property Limited Broker Owner buying or selling own property if involved in 5 or more transactions in a year; may not act as a real estate agent for others Broker Price Opinion (BPO) An estimate that details the probable selling price of a particular property and provides a varying level of detail about the property's condition, market, and neighborhood, as well as info on comparable sales, but does not include an automated valuation model. Anyone who produces a BPO must be a licensed real estate salesperson, broker, or appraiser. NOT AN APPRAISAL. Licensee may prepare and charge a fee for a BPO.