MN Practice Exam Questions With Complete Solutions

Charlene, a landlord in Minnesota, collected screening fees from several applicants. When can she deposit these fees? - ANS She can deposit the fees after all applicants have been screened and either rejected or offered a rental unit. Zenya works for a lender in Minnesota and is initiating foreclosure by action proceedings on a property. If you were to look at the security instrument for this property, which of these clauses is most likely missing from the instrument? - ANS Power-of-sale clause Foreclosure by action is a judicial foreclosure process and requires court supervision. The lender initiates a case against the borrower in a Minnesota court. This process is used when the security instrument doesn't include a power-of-sale clause. Greater Lakes Townhome Association was formed in June 2004. Which statement best describes their participation in the Minnesota Common Interest Ownership Act? - ANS Based on the date the association formed, participation is automatically required. Common interest ownership associations created after June 1, 1994 are automatically required to participate in this act. The same goes for condos, regardless of when they were formed. Single-family or townhome associations created before June 1, 1994 must opt in. This is a renewal year in Minnesota and you're applying to renew your salesperson license. When does your license expire? - ANS June 30 Parker is the primary broker at a Minnesota brokerage. He has two associated licensees: Sally, who has a salesperson license, and Barry, who has a broker license. All of their licenses are coming up for renewal. Who must submit renewal applications? - ANS Parker must submit renewal applications for himself, Sally, and Barry. Rachel is a supervising broker in Minnesota. Which of the following is a true statement about her responsibilities? - ANS She's responsible for all agents and associated brokers of her firm. A homestead property owner has failed to pay their taxes by May 15th. What penalty will be assessed on July 1? - ANS 1% The first day of the month following the due date, an additional penalty of 2% for homestead property is assessed. The first day of each subsequent month through December, an additional penalty of 1% is assessed (to both homestead and nonhomestead properties). Which of the following actions is the Minnesota commerce commissioner NOT empowered to perform? - ANS Investigate a complaint that a licensee acted unethically. In Minnesota, license withdrawals without extenuating circumstances become effective how long after the receipt of a withdrawal request? - ANS 30 days When a Minnesota buyer and seller consent to dual agency, which of the following items are they acknowledging? - ANS That confidential information communicated to the broker which regards price, terms, or motivation to buy or sell will remain confidential unless seller(s) or buyer(s) instruct(s) broker in writing to disclose this information In Minnesota, certain agreements are required to be in writing to be enforceable. Which of these agreements does NOT need to be in writing? - ANS A one-year lease of a single-family property Minnesota law requires all contracts or agreements conveying ownership or interest in real property to be in writing. Leases for longer than one year are also required to be in writing. Serena, a Minnesota broker, represents a seller client. A buyer made an offer on the seller's property, which was accepted contingent upon a home inspection. After the inspection is performed, the buyer's agent provides a copy of the report, which doesn't include any mention of the roof leak Serena's client told her about. What obligation does Serena have? - ANS Serena has a duty to disclose material facts she's aware of, including facts that contradict the inspection report. Jamal is a Minnesota homeowner. He's registering his land with the county court and has submitted an application. If all goes according to plan, what should Jamal have in his hand at the end of the process? - ANS Certificate of Title A licensee wishes to place a sign in the yard of a new listing he's pursuing. What must be in place before that sign hits the ground in Minnesota? - ANS A signed listing agreement The Minnesota statute says a signed listing agreement authorizing the sale of the property must be in place before the property can be advertised to the general public. Advertising includes placing a sign Penelope is a broker in Minnesota who supervises five associated licensees. Her license was revoked by the commission. What do her associated licensees need to do to continue practicing real estate? - ANS Transfer their licenses to a new broker. If a broker loses his or her license, associated licensees must transfer their licenses to a new broker to continue practicing. A temporary permit can be issued to another individual at the brokerage to act as the broker, but only for 45 days. LuAnn is a Minnesota real estate licensee. Several of her former clients were awarded final judgments related to LuAnn's illegal trust fund conversion activities. Which statement best describes any recovery that could be paid out by the Real Estate Education, Research, and Recovery Fund to LuAnn's victims? - ANS A maximum of $150,000 may be paid per claimant, per transaction, and $250,000 per licensee. Maddie is purchasing a property in Minnesota using a contract for deed arrangement. She's not represented by a real estate agent, so the seller has provided her with a disclosure related to this arrangement. Which of the following is NOT required to be included in the disclosure? - ANS A notification of Maddie's rights as a tenant The contract for deed notice seeks to educate buyers about the risks of entering into this type of contract and to educate purchasers about their rights. Buyers aren't tenants in this type of arrangement, so landlord-tenant rights don't apply. Which of the following is true about special assessments in Minnesota? - ANS Improvements for which special assessments are levied must benefit the properties they are levied against. Property owners can't opt out of a special assessment if it's been approved for their district, but they should benefit from the improvement (e.g., new roads). Minnie owns a small parcel of land in northern Minnesota. Minnie's great aunt transferred the property to Minnie 10 years ago. At the time of the transfer, the land was registered with the county court, and evidence of ownership was given to Minnie. Now Minnie wishes to sell the property and needs to produce a marketable title. Which of these is she most likely to provide? - ANS Certificate of title