MN State Exam 300 QUESTIONS AND WELL ELABORATED
ANSWERS 2025 GRADED A {3VERSIONS}
A broker receives an earnest money deposit from the buyer for an offer
on a house. What must the broker do with the money?
A) open an escrow account designated specifically for this transaction
only.
B) deposit the money into the brokerage's existing non-interest-
bearing escrow account for all such transaction.
C) hold the deposit in a safe place at the brokerage office until the
offer is finalized.
D) deliver the money to the seller's attorney for safekeeping until the
closing. - CORRECT ANSWER B) deposit the money into the
brokerage's existing non-interest-bearing escrow account for all such
transaction.
Earnest money must be deposited into an account specifically for
escrow funds. Although the account need not separate one client's
funds from another client's funds, in no circumstances may the money
be commingled with the broker's personal funds.
A buyer offers a stock certificate worth $12,000 in lieu of cash earnest
money to the broker acting as the seller's agent. Can the broker
accept the certificate?
A) no, all earnest money must be in cash or certified check.
B) yes, provided the value of the certificate is less than 10% of the
total purchase price of the property.
C) no, a seller's agent may not accept a single earnest money payment
over $10,000.
D) yes, assuming the seller accepts the stock certificate. The stock
certificate is deposited immediately with an escrow agent, whose
authority is evidenced by a written agreement executed by the offeror
and the escrow agent. - CORRECT ANSWER D) yes, assuming the
seller accepts the stock certificate. The stock certificate is deposited
,immediately with an escrow agent, whose authority is evidenced by a
written agreement executed by the offeror and the escrow agent.
In the event earnest money is received in the form of a nondepositable
item such as a bond, stock certificate, or any other instrument or
equity or value, in lieu of cash, it shall be deposited immediately with
an authorized escrow agent, whose authority is evidenced by a written
agreement executed by the offeror and the escrow agent. A receipt
shall be issued to the buyer for the value of the nondepositable item.
A consumer has filed a complaint with the Commissioner against a
licensee for an alleged act of discrimination. What is the
Commissioner's course of action?
A) the Commissioner may refer the discrimination case to the
Association of Realtors.
B) the Commissioner will take no action in a discrimination case.
C) the Commissioner may refer the discrimination case to a local
Commission, who in turn may make the appropriate disciplinary
action.
D) the commissioner may order the case be put before the a criminal
court. - CORRECT ANSWER C) the Commissioner may refer the
discrimination case to a local Commission, who in turn may make the
appropriate disciplinary action.
The Commissioner may refer a matter involving discrimination for
study and report to a local Commission. Upon referral by the
Commissioner, the local Commission shall make a report and make
recommendations to the Commissioner and take other appropriate
action within the scope of its powers.
A licensed salesperson in Nebraska wishes to acquire a Minnesota
license. What must they do to obtain a Minnesota salesperson's
license?
A) applicants with active licenses in reciprocal states must submit a
letter of recommendation from their existing broker to the Minnesota
Department of Commerce.
,B) applicants with active licenses in reciprocal states must prove they
have sold over $500,000 worth of real estate within the previous 2
years to qualify for a Minnesota license.
C) Minnesota does NOT have any reciprocal programs with other
states.
D) applicants with active licenses in reciprocal states must submit a
letter of certification to the Minnesota Department of Commerce
providing proof of the active salesperson's license. - CORRECT
ANSWER D) applicants with active licenses in reciprocal states must
submit a letter of certification to the Minnesota Department of
Commerce providing proof of the active salesperson's license.
Minnesota has reciprocal licensing agreements with Colorado, Iowa,
Nebraska, North Dakota, South Dakota, Oklahoma and Wisconsin.
Applicants from these states with an active license must submit a
letter of certification to the Minnesota Department of Commerce
providing proof of an active salesperson's license.
A licensee's license has been suspended by the Commission after a
payment was made from the Recovery Fund against him. How will the
licensee regain his license?
A) a licensee will remain on suspension until the Recovery Fund is
repaid in full.
B) A licensee will remain on suspension until the Recovery Fund is
repaid in full plus an additional 10% interest per year.
C) a licensee will remain on suspension until the Recovery Fund is
repaid in full plus an additional 20% interest per year.
D) a licensee will remain on suspension until the Recovery FUnd is
repaid in full and a period of 12 months has elapsed. - CORRECT
ANSWER B) A licensee will remain on suspension until the Recovery
Fund is repaid in full plus an additional 10% interest per year.
A licensee will remain on suspension until the Recovery Fund is repaid
in full plus 10% interest per year, twice the amount paid from the Fund
on the licensee's account, and the licensee has obtained a surety bond
issued by an insurer authorized to transact business in Minnesota in
the amount of $40,000.
, A salesperson has a transaction in progress when she is recruited to
work for another firm. The sale goes through and she asks her
previous broker for her share of the commission. Is she entitled?
A) yes, she is entitled to her full commission because she introduced
the parties while still employed by her pervious broker.
B) yes, but she is only entitled to 50% of her commission since the
sale was not completed until after she left the firm.
C) no she is only entitled to commissions earned while still employed
by her former broker.
D) no, because licensees forfeit commissions once they resign from a
firm. - CORRECT ANSWER C) no she is only entitled to commissions
earned while still employed by her former broker.
A commission is only earned when a transaction closes, so the
salesperson would still need to be employed by the broker at that time
to collect any portion of the commission.
A salesperson has an initial interview with a potential new client over
the phone, at which point did she make the required disclosures during
this interview. Which is TRUE?
A) the salesperson has made the necessary disclosures and need take
no further action.
B) the salesperson must now provide the client with an agency
disclosure form at the first substantive meeting.
C) the salesperson must now provide the client with an agency
disclosure form at some point before the closing.
D) the salesperson must make a note in the company records that she
made a verbal disclosure to the client. - CORRECT ANSWER B) the
salesperson must now provide the client with an agency disclosure
form at the first substantive meeting.
The salesperson must provide the consumer with an agency disclosure
form at the FIRST substantive (person-to-person) meeting.
ANSWERS 2025 GRADED A {3VERSIONS}
A broker receives an earnest money deposit from the buyer for an offer
on a house. What must the broker do with the money?
A) open an escrow account designated specifically for this transaction
only.
B) deposit the money into the brokerage's existing non-interest-
bearing escrow account for all such transaction.
C) hold the deposit in a safe place at the brokerage office until the
offer is finalized.
D) deliver the money to the seller's attorney for safekeeping until the
closing. - CORRECT ANSWER B) deposit the money into the
brokerage's existing non-interest-bearing escrow account for all such
transaction.
Earnest money must be deposited into an account specifically for
escrow funds. Although the account need not separate one client's
funds from another client's funds, in no circumstances may the money
be commingled with the broker's personal funds.
A buyer offers a stock certificate worth $12,000 in lieu of cash earnest
money to the broker acting as the seller's agent. Can the broker
accept the certificate?
A) no, all earnest money must be in cash or certified check.
B) yes, provided the value of the certificate is less than 10% of the
total purchase price of the property.
C) no, a seller's agent may not accept a single earnest money payment
over $10,000.
D) yes, assuming the seller accepts the stock certificate. The stock
certificate is deposited immediately with an escrow agent, whose
authority is evidenced by a written agreement executed by the offeror
and the escrow agent. - CORRECT ANSWER D) yes, assuming the
seller accepts the stock certificate. The stock certificate is deposited
,immediately with an escrow agent, whose authority is evidenced by a
written agreement executed by the offeror and the escrow agent.
In the event earnest money is received in the form of a nondepositable
item such as a bond, stock certificate, or any other instrument or
equity or value, in lieu of cash, it shall be deposited immediately with
an authorized escrow agent, whose authority is evidenced by a written
agreement executed by the offeror and the escrow agent. A receipt
shall be issued to the buyer for the value of the nondepositable item.
A consumer has filed a complaint with the Commissioner against a
licensee for an alleged act of discrimination. What is the
Commissioner's course of action?
A) the Commissioner may refer the discrimination case to the
Association of Realtors.
B) the Commissioner will take no action in a discrimination case.
C) the Commissioner may refer the discrimination case to a local
Commission, who in turn may make the appropriate disciplinary
action.
D) the commissioner may order the case be put before the a criminal
court. - CORRECT ANSWER C) the Commissioner may refer the
discrimination case to a local Commission, who in turn may make the
appropriate disciplinary action.
The Commissioner may refer a matter involving discrimination for
study and report to a local Commission. Upon referral by the
Commissioner, the local Commission shall make a report and make
recommendations to the Commissioner and take other appropriate
action within the scope of its powers.
A licensed salesperson in Nebraska wishes to acquire a Minnesota
license. What must they do to obtain a Minnesota salesperson's
license?
A) applicants with active licenses in reciprocal states must submit a
letter of recommendation from their existing broker to the Minnesota
Department of Commerce.
,B) applicants with active licenses in reciprocal states must prove they
have sold over $500,000 worth of real estate within the previous 2
years to qualify for a Minnesota license.
C) Minnesota does NOT have any reciprocal programs with other
states.
D) applicants with active licenses in reciprocal states must submit a
letter of certification to the Minnesota Department of Commerce
providing proof of the active salesperson's license. - CORRECT
ANSWER D) applicants with active licenses in reciprocal states must
submit a letter of certification to the Minnesota Department of
Commerce providing proof of the active salesperson's license.
Minnesota has reciprocal licensing agreements with Colorado, Iowa,
Nebraska, North Dakota, South Dakota, Oklahoma and Wisconsin.
Applicants from these states with an active license must submit a
letter of certification to the Minnesota Department of Commerce
providing proof of an active salesperson's license.
A licensee's license has been suspended by the Commission after a
payment was made from the Recovery Fund against him. How will the
licensee regain his license?
A) a licensee will remain on suspension until the Recovery Fund is
repaid in full.
B) A licensee will remain on suspension until the Recovery Fund is
repaid in full plus an additional 10% interest per year.
C) a licensee will remain on suspension until the Recovery Fund is
repaid in full plus an additional 20% interest per year.
D) a licensee will remain on suspension until the Recovery FUnd is
repaid in full and a period of 12 months has elapsed. - CORRECT
ANSWER B) A licensee will remain on suspension until the Recovery
Fund is repaid in full plus an additional 10% interest per year.
A licensee will remain on suspension until the Recovery Fund is repaid
in full plus 10% interest per year, twice the amount paid from the Fund
on the licensee's account, and the licensee has obtained a surety bond
issued by an insurer authorized to transact business in Minnesota in
the amount of $40,000.
, A salesperson has a transaction in progress when she is recruited to
work for another firm. The sale goes through and she asks her
previous broker for her share of the commission. Is she entitled?
A) yes, she is entitled to her full commission because she introduced
the parties while still employed by her pervious broker.
B) yes, but she is only entitled to 50% of her commission since the
sale was not completed until after she left the firm.
C) no she is only entitled to commissions earned while still employed
by her former broker.
D) no, because licensees forfeit commissions once they resign from a
firm. - CORRECT ANSWER C) no she is only entitled to commissions
earned while still employed by her former broker.
A commission is only earned when a transaction closes, so the
salesperson would still need to be employed by the broker at that time
to collect any portion of the commission.
A salesperson has an initial interview with a potential new client over
the phone, at which point did she make the required disclosures during
this interview. Which is TRUE?
A) the salesperson has made the necessary disclosures and need take
no further action.
B) the salesperson must now provide the client with an agency
disclosure form at the first substantive meeting.
C) the salesperson must now provide the client with an agency
disclosure form at some point before the closing.
D) the salesperson must make a note in the company records that she
made a verbal disclosure to the client. - CORRECT ANSWER B) the
salesperson must now provide the client with an agency disclosure
form at the first substantive meeting.
The salesperson must provide the consumer with an agency disclosure
form at the FIRST substantive (person-to-person) meeting.
